What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-08 compared with 2025-04-03 · 86 added, 172 removed, 170 unchanged (60% of the section changed)

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Cintas helps more than one million businesses of all types and sizes, primarily in the United States (U.S.), as well as Canada and Latin America, get READY ™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best.

With products and services including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday ® .

With products and services including uniforms, mats, mops, shop towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm testing, Cintas helps customers get Ready for the Workday ® .

We are North America’s leading provider of corporate identity uniforms through rental and sales programs, as well as a significant provider of related business services, including entrance mats, restroom cleaning services and supplies, first aid and safety services, and fire protection products and services.

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In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment.

The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services.

The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services, as well as workplace water services.

The remainder of Cintas’ business, which consists of the Fire Protection Services operating segment and the Uniform Direct Sales operating segment, is included in All Other.

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Cintas evaluates operating segment performance based on revenue and operating income.

Revenue and operating income for the nine months ended February 28, 2025 and February 29, 2024, for the two reportable operating segments and All Other are presented in Note 11 entitled Segment Information of “Notes to Consolidated Condensed Financial Statements.”

All references made to common stock shares, equity awards, common stock per share amounts or treasury share amounts throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations have been retroactively adjusted to reflect the effects of a four-for-one split of the Company's common stock on September 11, 2024 (the Stock Split).

See Note 1 entitled Basis of Presentation of "Notes to Consolidated Condensed Financial Statements" for additional information on the Stock Split.

Revenue and operating income for the three months ended August 31, 2025 and 2024, for the two reportable operating segments and All Other are presented in Note 10 entitled Segment Information of “Notes to Consolidated Condensed Financial Statements.” The Company regularly reviews its operating segments for reporting purposes based on the information its chief operating decision maker (CODM) regularly reviews for purposes of allocating resources and assessing performance and makes changes when appropriate.

Consolidated Results

Three Months Ended February 28, 2025 Compared to Three Months Ended February 29, 2024

Total revenue increased 8.4% to $2,609.2 million for the three months ended February 28, 2025, compared to $2,406.2 million for the three months ended February 29, 2024.

The organic revenue growth rate, which adjusts for the impact of acquisitions and foreign currency exchange rate fluctuations, was 7.9%.

Revenue growth was positively impacted by 0.9% due to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations.

Uniform Rental and Facility Services reportable operating segment revenue was $2,021.1 million for the three months ended February 28, 2025, compared to $1,876.6 million for the three months ended February 29, 2024, which was an increase of 7.7%.

Three Months Ended August 31, 2025 Compared to Three Months Ended August 31, 2024

Total revenue increased 8.7% to $2,718.1 million for the three months ended August 31, 2025, compared to $2,501.6 million for the three months ended August 31, 2024.

The organic revenue growth rate, which adjusts for

the impact of acquisitions and foreign currency exchange rate fluctuations, was 7.8%.

Revenue growth was positively impacted by 0.9% due to acquisitions.

Uniform Rental and Facility Services reportable operating segment revenue was $2,091.1 million for the three months ended August 31, 2025, compared to $1,933.8 million for the three months ended August 31, 2024, which was an increase of 8.1%.

The organic revenue growth rate for this reportable operating segment was 7.3%.

Revenue growth in the Uniform Rental and Facility Services reportable operating segment was positively impacted by 1.1% due to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations.

Revenue growth in the Uniform Rental and Facility Services reportable operating segment was positively impacted by 0.8% due to acquisitions.

Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.

Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 11.0% for the three months ended February 28, 2025, compared to the three months ended February 29, 2024, from $529.5 million to $588.0 million.

Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 10.4% for the three months ended August 31, 2025, compared to the three months ended August 31, 2024, from $567.7 million to $627.1 million.

The organic revenue growth rate for other revenue was 9.6%.

Revenue growth was positively impacted by 0.4% due to acquisitions and negatively impacted by 0.1% due to foreign exchange rate fluctuations.

Revenue growth was positively impacted by 0.8% due to acquisitions.

Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in-service inventory, including uniforms, mats, shop towels and other ancillary items.

Cost of uniform rental and facility services increased $49.5 million, or 5.2%, for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 51.2% for the three months ended February 29, 2024, to 50.0% for the three months ended February 28, 2025.

This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.

Cost of uniform rental and facility services increased $71.4 million, or 7.3%, for the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 50.7% for the three months ended August 31, 2024, to 50.3% for the three months ended August 31, 2025.

This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and strategic sourcing initiatives.

Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other.

Cost of other increased $22.0 million, or 8.5%, for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Cost of other improved as a percent of revenue, decreasing from 48.7% for three months ended February 29, 2024, to 47.6% for the three months ended February 28, 2025.

The improvement in cost of sales as a percent of revenue was primarily due to a favorable sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment.

Selling and administrative expenses increased $42.4 million, or 6.4%, in the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Selling and administrative expenses as a percent of revenue were 27.2% for the three months ended February 28, 2025, compared to 27.7% for the three months ended February 29, 2024.

We recorded a gain of $15.0 million on a sale of property and equipment in the three months ended February 28, 2025, and we recorded $15.0 million in costs associated with a tentative legal settlement in the three months ended February 29, 2024, both of which impacted all segments by the same percent of revenue.

Excluding those items, selling and administrative expenses as a percent of revenue increased for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

The resulting increase as a percent of revenue was due in part to investments in technology and an increase in legal and professional expenses as a percent of revenue.

Operating income was $609.9 million, or 23.4% of revenue, for the three months ended February 28, 2025, compared to $520.8 million, or 21.6% of revenue, for the three months ended February 29, 2024.

The improvement in operating income as a percent of revenue was primarily due to operating leverage from revenue growth, sourcing and productivity initiatives, in-service inventory usage, and the changes in selling and administrative expenses noted above.

Net interest expense (interest expense less interest income) was $23.4 million for the three months ended February 28, 2025, compared to $24.6 million for the three months ended February 29, 2024.

The change was primarily due to a decrease in the average amount of outstanding debt during the three months ended February 29, 2025.

Cintas’ effective tax rate was 21.0% and 19.9% for the three months ended February 28, 2025 and February 29, 2024, respectively.

Cost of other increased $30.7 million, or 11.4%, for the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Cost of other increased as a percent of revenue, increasing from 47.3% for three months ended August 31, 2024, to 47.7% for the three months ended August 31, 2025.

The increase in cost of sales as a percent of revenue was primarily due to adding route capacity.

Selling and administrative expenses increased $57.6 million, or 8.3%, in the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Selling and administrative expenses as a percent of revenue were 27.5% for the three months ended August 31, 2025, compared to 27.6% for the three months ended August 31, 2024.

The change as a percent of revenue is primarily due to operating leverage from revenue growth.

Operating income was $617.9 million, or 22.7% of revenue, for the three months ended August 31, 2025, compared to $561.0 million, or 22.4% of revenue, for the three months ended August 31, 2024.

The resulting increase in operating income as a percent of revenue was primarily due to more efficient in-service inventory usage and operating leverage from revenue growth.

Net interest expense (interest expense less interest income) was $22.0 million for the three months ended August 31, 2025, compared to $24.4 million for the three months ended August 31, 2024.

The change was primarily due to a decrease in the average amount of outstanding debt during the three months ended August 31, 2025.

Cintas’ effective tax rate was 17.6% and 15.8% for the three months ended August 31, 2025 and 2024, respectively.

The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.

Net income was $463.5 million for the three months ended February 28, 2025, an increase of 16.6% compared to the three months ended February 29, 2024.

Diluted earnings per share were $1.13 for the three months ended February 28, 2025, which was an increase of 17.7% compared to the three months ended February 29, 2024.

Net income was $491.1 million for the three months ended August 31, 2025, an increase of 8.7% compared to the three months ended August 31, 2024.

Diluted earnings per share were $1.20 for the three months ended August 31, 2025, which was an increase of 9.1% compared to the three months ended August 31, 2024.

Diluted earnings per share increased primarily due to the increase in net income.

Uniform Rental and Facility Services Reportable Operating Segment

Three Months Ended February 28, 2025 Compared to Three Months Ended February 29, 2024

Three Months Ended August 31, 2025 Compared to Three Months Ended August 31, 2024

Uniform Rental and Facility Services reportable operating segment revenue increased to $2,091.1 million from $1,933.8 million, or 8.1%, for the three months ended August 31, 2025, over the three months ended August 31, 2024.

The organic revenue growth rate for the reportable operating segment was 7.3%.

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The reportable operating segment’s gross margin was $1,038.5 million.

Gross margin as a percent of revenue was 50.0% for the three months ended February 28, 2025, compared to 48.8% for the three months ended February 29, 2024.

The improvement in gross margin was primarily the result of more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.

Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $26.0 million in the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Selling and administrative expenses as a percent of revenue for the three months ended February 28, 2025 were 25.8%, compared to 26.4% in the three months ended February 29, 2024.

Excluding the items noted previously, selling and administrative expenses as a percent of revenue increased for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

The resulting increase as a percent of revenue was primarily due to investments in technology and an increase in legal and professional expenses as a percent of revenue.

Income before income taxes increased $69.1 million, or 16.4%, for the Uniform Rental and Facility Services reportable operating segment for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Income before income taxes was 24.2% of the reportable operating segment's revenue compared to the three months ended February 29, 2024 of 22.4% of revenue.

Gross margin as a percent of revenue was 49.7% for the three months ended August 31, 2025, compared to 49.3% for the three months ended August 31, 2024.

The resulting increase as a percent of revenue was primarily due to more efficient usage of in-service inventory and strategic sourcing initiatives.

Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $32.3 million in the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Selling and administrative expenses as a percent of revenue for the three months ended August 31, 2025 were 25.8%, compared to 26.2% in the three months ended August 31, 2024.

The improvement was primarily due to operating leverage from revenue growth and a decrease in employee-partner related expenses as a percent of revenue.

Income before income taxes increased $53.5 million, or 12.0%, for the Uniform Rental and Facility Services reportable operating segment for the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Income before income taxes was 23.9% of the reportable operating segment's revenue compared to the three months ended August 31, 2024 of 23.1% of revenue.

The improvement in income before income taxes was a result of the expansion in gross margin in addition to the improvement in selling and administrative expenses as a percent of revenue noted above.

First Aid and Safety Services Reportable Operating Segment

Three Months Ended February 28, 2025 Compared to Three Months Ended February 29, 2024

First Aid and Safety Services reportable operating segment revenue increased from $262.6 million to $301.8 million, or 14.9%, for the three months ended February 28, 2025, over the three months ended February 29, 2024.

Three Months Ended August 31, 2025 Compared to Three Months Ended August 31, 2024

First Aid and Safety Services reportable operating segment revenue increased from $292.6 million to $334.7 million, or 14.4%, for the three months ended August 31, 2025, over the three months ended August 31, 2024.

The organic revenue growth rate for the reportable operating segment was 14.1%.

First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.3% due to acquisitions.

The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.

Cost of first aid and safety services for the three months ended February 28, 2025, increased $14.8 million, or 12.8%, compared to the three months ended February 29, 2024.

The gross margin as a percent of revenue was 57.0% for the three months ended February 28, 2025, compared to the gross margin as a percent of revenue of 56.3% in the three months ended February 29, 2024.

The improvement in gross margin as a percent of revenue was primarily driven by a favorable sales mix and sourcing and productivity initiatives.

Selling and administrative expenses increased $10.6 million in the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Selling and administrative expenses as a percent of revenue for the three months ended February 28, 2025 were 33.3%, compared to 34.3% for the three months ended February 29, 2024.

The resulting increase as a percent of revenue was primarily due to investments in selling resources.

Income before income taxes for the First Aid and Safety Services reportable operating segment increased $13.8 million to $71.5 million for the three months ended February 28, 2025, compared to the three months ended February 29, 2024.

Income before income taxes was 23.7% of the reportable operating segment’s revenue compared to the three months ended February 29, 2024 of 22.0%.

The increase in income before income taxes was primarily due to the previously discussed improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.

Consolidated Results

Nine Months Ended February 28, 2025 Compared to Nine Months Ended February 29, 2024

Total revenue increased 7.7% to $7,672.5 million for the nine months ended February 28, 2025, compared to $7,125.7 million for the nine months ended February 29, 2024.

Total organic revenue growth was also 7.7%.

Organic growth adjusts for the impact of acquisitions, workday differences and foreign currency exchange rate fluctuations.

Revenue growth was positively impacted by 0.7% due to acquisitions, negatively impacted by 0.5% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

Uniform Rental and Facility Services reportable operating segment revenue was $5,945.4 million for the nine months ended February 28, 2025, compared to $5,554.0 million in the nine months ended February 29, 2024, which was an increase of 7.0%.

Organic revenue growth for this reportable operating segment was also 7.0%.

Uniform Rental and Facility Services reportable operating segment revenue was positively impacted by 0.8% due to acquisitions, negatively impacted by 0.6% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.

Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, was $1,727.1 million for the nine months ended February 28, 2025, compared to $1,571.7 million for the nine months ended February 29, 2024, which was an increase of 9.9%.

Organic growth for other revenue was 10.1%.

Revenue growth was positively impacted by 0.5% due to acquisitions and negatively impacted by 0.6% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.

Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items.

Cost of uniform rental and facility services increased $122.9 million, or 4.3%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024.

Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 51.9% for the nine months ended February 29, 2024, to 50.5% for the nine months ended February 28, 2025.

This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.

Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms, and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other.

Cost of other increased $46.8 million, or 6.1%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024.

Cost of other improved as a percent of revenue, decreasing from 49.2% for nine months ended February 29, 2024, to 47.4% for the nine months ended February 28, 2025.

Selling and administrative expenses increased $136.0 million, or 7.0%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024, but improved as a percent of revenue from 27.4% for the nine months ended February 29, 2024, to 27.2% for the nine months ended February 28, 2025.

In the nine months ended February 28, 2025, we recorded a gain on a sale of property and equipment and in the nine months ended February 29, 2024, we recorded costs associated with a tentative legal settlement, both of which impacted all segments by the same percent of revenue.

Excluding those items, selling and administrative expenses as a percent of revenue increased for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024.

The resulting increase as a percent of revenue was primarily due to investments in technology.

Operating income was $1,762.3 million, or 23.0% of revenue, for the nine months ended February 28, 2025, compared to $1,521.0 million, or 21.3% of revenue, for the nine months ended February 29, 2024.

The improvement in operating income as a percent of revenue was primarily due to the previously mentioned improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.

Net interest expense (interest expense less interest income) was $73.5 million for the nine months ended February 28, 2025, compared to $74.5 million for the nine months ended February 29, 2024.

The reduction was primarily due to a decrease in the average amount of outstanding debt during the nine months ended February 29, 2025.

Cintas’ effective tax rate was 19.2% and 20.0% for the nine months ended February 28, 2025 and February 29, 2024, respectively.

The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.

Net income for the nine months ended February 28, 2025, increased $206.7 million, or 17.9%, compared to the nine months ended February 29, 2024.

Diluted earnings per share was $3.31 for the nine months ended February 28, 2025, which was an increase of 18.6% compared to the nine months ended February 29, 2024.

Diluted earnings per share increased primarily due to the increase in net income.

Uniform Rental and Facility Services Reportable Operating Segment

Nine Months Ended February 28, 2025 Compared to Nine Months Ended February 29, 2024

Uniform Rental and Facility Services reportable operating segment revenue increased 7.0% to $5,945.4 million for the nine months ended February 28, 2025, compared to $5,554.0 million for the nine months ended February 29, 2024.

Organic revenue growth for this reportable operating segment was also 7.0%.

This increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.

Cost of uniform rental and facility services increased $122.9 million, or 4.3%, for the nine months ended February 28, 2025 over the nine months ended February 29, 2024.

The reportable operating segment’s gross margin was $2,940.5 million, or 49.5% of revenue, for the nine months ended February 28, 2025, compared to the gross margin of 48.1% for the nine months ended February 29, 2024.

This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.

Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $86.8 million but decreased as a percent of revenue for the nine months ended February 28, 2025 to 25.8%, compared to 26.0% for the nine months ended February 29, 2024.

Excluding the items noted previously, selling and administrative expenses as a percent of revenue increased for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024.

The resulting increase as a percent of revenue was primarily due to investments in technology.

Income before income taxes increased $181.7 million, or 14.8%, for the Uniform Rental and Facility Services reportable operating segment for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024.

Income before income taxes was 23.7% of the reportable operating segment’s revenue, compared to 22.1% for the nine months ended February 29, 2024.

The improvement as a percent of revenue was primarily a result of the improvement in gross margin.

First Aid and Safety Services Reportable Operating Segment

Nine Months Ended February 28, 2025 Compared to Nine Months Ended February 29, 2024

First Aid and Safety Services reportable operating segment revenue increased from $789.7 million to $893.7 million, or 13.2%, for the nine months ended February 28, 2025, over the nine months ended February 29, 2024.

Organic revenue growth for this reportable operating segment was 13.8%.

First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions, negatively impacted by 0.5% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.

Cost of first aid and safety services increased $30.4 million, or 8.7%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024, due to higher sales volume.

The gross margin as a percent of revenue was 57.3% for the nine months ended February 28, 2025, compared to the gross margin as a percent of revenue of 55.6% in the nine months ended February 29, 2024.

The improvement in gross margin as a percent of revenue was primarily driven by a favorable sales mix and sourcing and productivity initiatives.

Selling and administrative expenses increased $31.4 million but decreased as a percent of revenue to 32.9%, for the nine months ended February 28, 2025, compared to 33.3% for the nine months ended February 29, 2024.

Excluding the items noted previously, selling and administrative expenses as a percent of revenue for the nine months ended February 28, 2025 was the same as selling and administrative expenses as a percent of revenue for the nine months ended February 29, 2024.

Income before income taxes for the First Aid and Safety Services reportable operating segment was $218.0 million for the nine months ended February 28, 2025, compared to $175.8 million for the nine months ended February 29, 2024.

Income before income taxes, at 24.4% of the reportable operating segment’s revenue, increased 210 basis points compared to the nine months ended February 29, 2024 primarily due to the improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.

Cost of first aid and safety services for the three months ended August 31, 2025, increased $20.7 million, or 16.7%, compared to the three months ended August 31, 2024.

The gross margin as a percent of revenue was 56.8% for the three months ended August 31, 2025, compared to the gross margin as a percent of revenue of 57.7% in the three months ended August 31, 2024.

The reduction in gross margin as a percent of revenue was primarily due to adding route capacity.

Selling and administrative expenses increased $12.3 million in the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Selling and administrative expenses as a percent of revenue for the three months ended August 31, 2025 were 32.8%, compared to 33.3% for the three months ended August 31, 2024.

The improvement was primarily due to operating leverage from revenue growth and a decrease in employee-partner related expenses as a percent of revenue.

Income before income taxes for the First Aid and Safety Services reportable operating segment increased $9.0 million to $80.3 million for the three months ended August 31, 2025, compared to the three months ended August 31, 2024.

Income before income taxes was 24.0% of the reportable operating segment’s revenue compared to the three months ended August 31, 2024 of 24.4%.

The change in income before income taxes as a percent to revenue was primarily due to the previously discussed change in gross margin, partially offset by the improvement in selling and administrative expenses as a percent of revenue noted above.

Liquidity and Capital Resources

The following is a summary of our cash flows and cash and cash equivalents as of and for the nine months ended:

(In thousands) February 28, 2025 February 29, 2024

The following is a summary of our cash flows and cash and cash equivalents as of and for the three months ended August 31:

(In thousands) 2025 2024

Net cash provided by operating activities $ 414,481 $ 460,357

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Cash and cash equivalents at the end of the period $ 138,143 $ 101,373

Cash and cash equivalents as of February 28, 2025 and February 29, 2024, include $34.2 million and $52.4 million, respectively, that is located outside of the U.S.

Cash and cash equivalents as of August 31, 2025 and 2024, include $66.7 million and $51.0 million, respectively, that is located outside of the U.S.

Cash flows provided by operating activities have historically supplied us with a significant source of liquidity.

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Acquisitions, repurchases of our common stock and dividends remain strategic objectives, but they will be dependent on the economic outlook and liquidity of the Company.

Net cash provided by operating activities was $1,530.2 million for the nine months ended February 28, 2025, compared to $1,386.7 million for the nine months ended February 29, 2024.

The increase from the prior fiscal year was primarily due to an increase in net income and favorable changes in working capital, specifically accounts payable and accrued compensation and related liabilities.

These improvements were partially offset by unfavorable changes in working capital, specifically, inventories, net, uniforms and other rental items in service, and accounts receivable, net.

Net cash provided by operating activities was $414.5 million for the three months ended August 31, 2025, compared to $460.4 million for the three months ended August 31, 2024.

The change from the prior fiscal year was primarily due to unfavorable changes in working capital, specifically, accounts payable and accrued liabilities.

These changes were partially offset by an increase in net income and favorable changes in working capital, specifically accounts receivable, net and prepaid expenses.

Net cash used in investing activities includes capital expenditures, purchases of investments and cash paid for acquisitions of businesses.

Capital expenditures were $294.3 million and $307.6 million for the nine months ended February 28, 2025 and February 29, 2024, respectively.

Capital expenditures in the nine months ended February 28, 2025, included $219.3 million for the Uniform Rental and Facility Services reportable operating segment and $37.7 million for the First Aid and Safety Services reportable operating segment.

Cash paid for acquisitions of businesses was $198.8 million and $185.0 million for the nine months ended February 28, 2025 and February 29, 2024, respectively.

The acquisitions during both the nine months ended February 28, 2025 and February 29, 2024, occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection Services operating segment, which is included in All Other.

In addition, during the nine months ended February 28, 2025, Cintas received cash proceeds of $24.0 million related to the sale of property and equipment.

Net cash used in investing activities also includes $7.1 million and $7.6 million of purchases of investments during the nine months ended February 28, 2025 and February 29, 2024, respectively.

Net cash used in financing activities was $1,150.6 million and $879.5 million for the nine months ended February 28, 2025 and February 29, 2024, respectively.

The increase in cash used in financing activities was due to the increase in share buyback activity and an increase in dividends paid.

This increase in cash used in financing activities was partially offset by a decrease in payments of debt in the nine months ended February 28, 2025.

Cintas announced on July 27, 2021, that the Board of Directors (the Board) authorized a $1.5 billion share buyback program, which was completed during the fourth quarter of fiscal year 2024.

On July 26, 2022 and July 23, 2024, Cintas announced that the Board authorized new share buyback programs for $1.0 billion.

Capital expenditures were $102.0 million and $92.9 million for the three months ended August 31, 2025 and 2024, respectively.

Capital expenditures in the three months ended August 31, 2025, included $70.5 million for the Uniform Rental and Facility Services reportable operating segment and $16.5 million for the First Aid and Safety Services reportable operating segment.

Cash paid for acquisitions of businesses was $7.6 million and $9.4 million for the three months ended August 31, 2025 and 2024, respectively.

The acquisitions during both the three months ended August 31, 2025 and 2024, occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection Services operating segment, which is included in All Other.

Net cash used in investing activities also includes $6.5 million and $7.1 million of purchases of investments during the three months ended August 31, 2025 and 2024, respectively.

Net cash used in financing activities was $424.0 million and $591.3 million for the three months ended August 31, 2025 and 2024, respectively.

The improvement in cash used in financing activities was due to a decrease in share buyback activity, which was partially offset by a decrease in proceeds from the net issuance of commercial paper and an increase in dividends paid in the three months ended August 31, 2025.

On July 26, 2022 and July 23, 2024, Cintas announced that the Board of Directors (the Board) authorized share buyback programs, each for $1.0 billion.

Neither of the outstanding share buyback programs have an expiration date.

The following table summarizes the share buyback activity by program for the nine months ended:

February 28, 2025 February 29, 2024

The following table summarizes the share buyback activity by program for the three months ended August 31:

Buyback Activity

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July 23, 2024 — — — — — —

703 $ 213.40 $ 150,014 2,732 $ 173.40 $ 473,617

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(1) Shares of Cintas common stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

There were no share buybacks in the period subsequent to February 28, 2025, through April 3, 2025.

From the inception of the July 26, 2022 share buyback program through April 3, 2025, Cintas has purchased 3.1 million shares of Cintas common stock in the aggregate, at an average price of $172.85 per share, for a total purchase price of $530.7 million.

Cintas has made no purchases under the July 23, 2024 share buyback program.

In the period subsequent to August 31, 2025, through October 8, 2025, we purchased 1.1 million shares of Cintas common stock at an average price of $199.48 per share, for a total purchase price of $221.7 million.

This completed the July 26, 2022 share buyback program and included purchases under the July 23, 2024 share buyback program.

From the inception of the July 26, 2022 share buyback program through September 2025, Cintas purchased 5.4 million shares of Cintas common stock in the aggregate, at an average price of $185.01 per share, for a total purchase price of $1.0 billion.

From the inception of the July 23, 2024 share buyback program through October 8, 2025, Cintas has purchased 0.5 million shares of Cintas common stock in the aggregate, at an average price of $199.58 per share, for a total purchase price of $108.2 million.

The Board declared the following dividends:

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Per Share Total

Nine months ended February 28, 2025

Three months ended August 31, 2025

April 8, 2025 May 15, 2025 June 13, 2025 $ 0.39 $ 157.8

July 23, 2024 August 15, 2024 September 3, 2024 0.39 157.4

October 29, 2024 November 15, 2024 December 13, 2024 0.39 158.1

$ 1.1175 $ 453.7

Nine months ended February 29, 2024

Three months ended August 31, 2024

April 9, 2024 May 15, 2024 June 14, 2024 $ 0.3375 $ 138.2

July 25, 2023 August 15, 2023 September 15, 2023 0.3375 138.2

October 24, 2023 November 15, 2023 December 15, 2023 0.3375 137.5

$ 0.9625 $ 393.3

Accrued Dividends

As of February 28, 2025

January 14, 2025 (1)

February 14, 2025 March 14, 2025 $ 0.39 $ 158.1

As of February 29, 2024

January 16, 2024 (1)

February 15, 2024 March 15, 2024 $ 0.3375 $ 137.6

(1) The dividends declared during the three months ended February 28, 2025 and February 29, 2024 were included in current accrued liabilities on the consolidated condensed balance sheet at February 28, 2025 and February 29, 2024.

Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board and dependent upon then-existing conditions, including the Company's consolidated operating results and consolidated financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board may deem relevant.

During the nine months ended February 29, 2024, Cintas repurchased, and subsequently retired, $13.5 million of its 6.15%, 30-year senior notes.

As of August 31, 2025

July 29, 2025 (1)

August 15, 2025 September 15, 2025 $ 0.45 $ 182.3

As of August 31, 2024

July 23, 2024 (1)

August 15, 2024 September 3, 2024 $ 0.39 $ 157.3

(1) The dividends declared during the three months ended August 31, 2025 and 2024 were included in current accrued liabilities on the consolidated condensed balance sheet at August 31, 2025 and 2024.

Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board and dependent upon then-existing conditions, including the Company's consolidated results of operations and consolidated financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board may deem relevant.

During the three months ended August 31, 2024, Cintas issued a net $166.0 million of commercial paper.

The following table summarizes Cintas' outstanding debt:

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Issued Fiscal Year

Maturity February 28,

Debt due within one year

Senior notes (1)

3.11 % 2015 2025 $ 50,042 $ 50,294

Senior notes 3.45 % 2022 2025 400,000 400,000

Debt issuance costs (127) (699)

Total debt due within one year $ 449,915 $ 449,595

Maturity August 31,

Debt due after one year

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Senior notes 4.00 % 2022 2032 800,000 800,000

Senior notes 6.15 % 2007 2037 236,550 236,550

Debt issuance costs (10,793) (11,551)

Total debt due after one year $ 2,425,757 $ 2,424,999

(1) Cintas assumed these senior notes with the acquisition of G&K Services, Inc.

(G&K) in the fourth quarter of fiscal 2017, and they were recorded at fair value.

The interest rate shown above is the effective interest rate until repayment in fiscal 2025.

The credit agreement that supports our commercial paper program has a revolving credit facility with a capacity of $2.0 billion.

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The maturity date of the revolving credit facility is March 23, 2027.

As of February 28, 2025 and May 31, 2024, there was no commercial paper outstanding and no borrowings on our revolving credit facility.

As of August 31, 2025 and May 31, 2025, there was no commercial paper outstanding and no borrowings on our revolving credit facility.

Cintas has certain covenants related to debt agreements.

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Our ability to continue to access the commercial paper and long-term debt markets on favorable interest rate and other terms will depend, to a significant degree, on the ratings assigned by the credit rating agencies to our indebtedness.

As of February 28, 2025, our ratings were as follows:

As of August 31, 2025, our ratings were as follows:

Rating Agency Outlook Commercial

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2) is the indirectly, wholly owned principal operating subsidiary of Cintas.

2 is the issuer of the $2,486.6 million aggregate principal amount of senior notes outstanding as of February 28, 2025, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly owned, direct and indirect domestic subsidiaries.

2 is the issuer of the $2,436.6 million aggregate principal amount of senior notes outstanding as of August 31, 2025, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly owned, direct and indirect domestic subsidiaries.

Basis of Preparation of the Summarized Financial Information

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Summarized financial information of the Obligor Group is as follows:

Nine Months Ended

Three Months Ended

Summarized Consolidated Condensed Statements of Income

(In thousands)

2025 February 29,

2025 August 31,

Net sales to unrelated parties $ 2,582,505 $ 2,372,606

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In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of Cintas.

Cintas is also party to additional litigation not considered in the ordinary course of business.

See Note 12 entitled Litigation and Other Contingencies of “Notes to Consolidated Condensed Financial Statements” for a detailed discussion of such additional litigation.

Forward-Looking Statements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis