Vestis Corp (VSTS)

Price$13.19Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced only if the recent cash recovery proves repeatable.

With about 132.2 million shares, the market values the equity near $1.7 billion; adding $1.28 billion of net debt gives an enterprise value near $3.0 billion. That is about 9.6 times management’s guided adjusted earnings before interest, taxes, depreciation and amortization, a rough operating cash-profit measure. Guided free cash flow—cash left after operations and capital spending—implies roughly a 9.6% yield on the equity value. That looks balanced because accounting earnings remain thin and some cash improvement came from working capital.

Big pictureWeekly service makes sales steadier, but shrinking uniform demand still limits growth.

Revenue fell 2.5% in fiscal 2025 after a 0.7% decline in 2024. The latest quarter fell another 1.8% as processed volume dropped 4.5%. Management attributes part of the decline to deliberately dropping unprofitable work, while pricing and workplace-supply sales partly offset lower uniform revenue. Recurring weekly routes across more than 300,000 customer locations and diverse industries reduce dependence on any single sector. Still, employment levels, customer retention and fuel costs affect results, making this business steadier than many but not recession-proof.

Business strengthDebt remains heavy, while cash now goes toward repayment instead of shareholder payouts.

Net debt was $1.28 billion, about 4.1 times the midpoint of management’s adjusted operating-profit outlook. Vestis nevertheless had $351.8 million of available liquidity, no revolving-credit borrowings and current assets exceeding current liabilities by roughly $448 million. Nine-month interest expense of $63.4 million consumed most of the $80.6 million operating profit. Management repaid $64 million during the second and third quarters. Dividends and repurchases remain restricted under lending terms, while the share count increased about 0.5% year over year, indicating modest dilution rather than aggressive issuance.

What could change the storyStable sales and lasting cash would unlock upside; further demand losses would expose debt.

The bull case rests on operating income rising 49% in the latest quarter while management guides to $160-$170 million of annual free cash flow. The bear case is that nine-month net income was only $7.3 million and working-capital changes supplied about $79 million of the operating-cash improvement. The current valuation therefore requires cash generation near management’s range to persist. Positive sales growth and further debt reduction would strengthen the case. If lasting free cash flow settles near $100 million instead, its roughly 6% yield would offer limited compensation for the leverage.

AI: News

Third-quarter outlook raisedVestis raised cash guidance again as margins improved despite continued revenue and volume declines.

On August 11, Vestis reported third-quarter revenue of $661.7 million, down 1.8%, while adjusted operating cash-profit margin rose to 12.2% from 9.5%. Free cash flow reached $47 million, and the company repaid $30 million of debt. Management raised its annual free-cash-flow range to $160-$170 million, increasing the midpoint by $30 million. The shares finished the announcement day roughly unchanged and rose about 2% the next session; that mixed movement cannot be attributed solely to the results.

Second-quarter expectations resetA much larger cash forecast increase convinced investors that the turnaround had gained traction.

On May 12, revenue declined 0.9% to $659.4 million, but adjusted operating cash profit rose to $74.5 million from $47.6 million. Free cash flow was $45.6 million, and Vestis repaid $34 million of debt. Management increased the annual cash-flow forecast midpoint by $80 million, or 145%, and raised its adjusted profit midpoint by $10 million. The shares closed about 29% above the prior session on unusually heavy volume; the timing strongly suggests the release mattered, though it does not prove sole causation.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.73B	$2.81B	$2.83B	$2.69B
Gross profit	$724.8M	$815.9M	$855.1M	$777.3M
Gross margin	26.50%	29.08%	30.26%	28.93%
Operating expenses	$2.67B	$2.65B	$2.61B	$2.49B
Operating income	$64.4M	$158.0M	$217.9M	$192.2M
Operating margin	2.36%	5.63%	7.71%	7.15%
EBITDA	$207.4M	$298.7M	$354.4M	$326.6M
EBITDA margin	7.59%	10.65%	12.54%	12.15%
Net income	−$40.2M	$21.0M	$213.2M	$141.7M
Net profit margin	−1.47%	0.75%	7.54%	5.27%
Basic EPSper basic share	-$0.31	$0.16	$1.63	$1.08
Diluted EPSper diluted share	-$0.31	$0.16	$1.63	$1.08

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of VSTS
Holder	Shares held
Meister Keith A.	19.86M
Corvex Management LP	19.81M
BlackRock, Inc.	15.99M
FMR LLC	9.82M
Alberta Investment Management Corp	5.5M
Greenstone Partners & Co., LLC	5.09M
ROYAL BANK OF CANADA	4.99M
VANGUARD CAPITAL MANAGEMENT LLC	4.97M
VANGUARD PORTFOLIO MANAGEMENT LLC	4.48M
STATE STREET CORP	4.34M
DIMENSIONAL FUND ADVISORS LP	4.28M
Park West Asset Management LLC	3.04M
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	2.91M
GEODE CAPITAL MANAGEMENT, LLC	2.61M
Broad Bay Capital Management, LP	2.31M
Ancora Advisors LLC	2.09M
Stanley Capital Management, LLC	2.04M
GOLDMAN SACHS GROUP INC	2M
BOONE CAPITAL MANAGEMENT LLC	1.9M
JANE STREET GROUP, LLC	1.51M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys16$19.68M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 19, 2025Form 4	Pertz Douglas ADirector	BuyCommon Stock, par value $0.01 per share	15.0K	$6.90	$103.5K	322.0K
Dec 18, 2025Form 4	Pertz Douglas ADirector	BuyCommon Stock, par value $0.01 per share	10.0K	$6.90	$69.0K	307.0K
Dec 17, 2025Form 4	Corvex Management LP +1Director,TenPercentOwner	BuyCommon Stock · indirect	209.8K	$6.79	$1.42M	19.81M
Dec 16, 2025Form 4	Corvex Management LP +1Director,TenPercentOwner	BuyCommon Stock · indirect	800.2K	$6.81	$5.45M	19.60M
Dec 8, 2025Form 4	Goetz WilliamDirector	BuyCommon Stock, par value $0.01 per share	6.7K	$7.42	$50.1K	29.9K

Review ownership filings at SEC.gov ↗

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Vestis Corp (VSTS)

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