−Removed: Vestis Corporation (“Vestis”, the “Company”, “our”, “we” or “us”) is a leading provider of uniform rentals and workplace supplies across the United States and Canada.
+Added: Vestis Corporation, a Delaware Corporation (“Vestis”, the “Company”, “our”, “we” or “us”) is a leading provider of uniform rentals and workplace supplies across the United States and Canada.
We provide uniforms, mats, towels, linens, restroom supplies, first-aid supplies, safety products and other workplace supplies.
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We are one of the largest companies operating within the United States and Canada in our industry.
−Removed: We have over 75 years of experience providing uniforms and workplace supplies and a broad footprint that supports efficient delivery of our services and products to more than 300,000 customer locations across the United States and Canada.
+Added: We have over 75 years of experience providing uniforms and workplace supplies and a broad footprint that supports efficient delivery of our services and products to more than 300,000 customer accounts (based on unique customer identification numbers) across the United States and Canada.
Our customer base participates in a wide variety of industries including manufacturing, hospitality, retail, food processing, pharmaceuticals, healthcare and automotive.
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In addition, we offer customized uniforms through direct sales agreements, typically for large regional or national companies.
−Removed: Vestis is led by Kim Scott, President and Chief Executive Officer, Rick Dillon, Executive Vice President and Chief Financial Officer, Angela Kervin, Executive Vice President and Chief Human Resources Officer, Bill Seward, Executive Vice President and Chief Operating Officer and Timothy Donovan, Executive Vice President, Chief Legal Officer and General Counsel.
−Removed: These executives have deep expertise in their respective fields.
−Removed: They were recruited to lead Vestis as a standalone, independent company and are complemented by long-tenured members of management across the company’s commercial and operational functions as well as newly appointed leaders who bring functional expertise, diversity and depth to the Vestis leadership team.
On September 30, 2023 (the "Distribution Date"), Vestis Corporation completed its spin-off from Aramark (the "Spin-Off," or the “Separation”).
On October 2, 2023 our common stock began regular-way trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “VSTS”.
−Removed: Our corporate headquarters are in Roswell, Georgia.
+Added: Our corporate headquarters are located in Roswell, Georgia.
Financial Profile
−Removed: In fiscal year 2024, we generated revenue of approximately $2.8 billion, operating income of $158.0 million, or 5.6% of revenue, and net income of $21.0 million, or 0.7% of revenue.
+Added: In fiscal year 2025, we generated revenue of approximately $2.7 billion, operating income of $64.4 million, or 2.4% of revenue, and a net loss of $40.2 million, or (1.5)% of revenue.
Cash provided from operating activities was $64.2 million.
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We operate within the uniforms, mats, towels, linens, restroom supplies, first-aid supplies and safety products industry in the United States and Canada.
−Removed: This includes businesses that outsource these services through rental programs or direct purchases, as well as non-programmers (which are businesses that maintain these services in-house).
+Added: This includes businesses that outsource these services through rental programs or direct purchases, as well as businesses that maintain these services in-house.
We believe we are well positioned to take advantage of the various key trends and drivers that are impacting our industry.
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We believe we are a leading provider within this industry and we compete with national, regional and local providers who vary in size, scale, capabilities and product and service offering.
−Removed: Primary methods of competition include product quality, service quality and price.
−Removed: Cintas Corporation and UniFirst Corporation are notable competitors of size and we have numerous local and regional competitors.
+Added: Primary methods of competition include range of products, product quality, service quality and price.
+Added: Cintas Corporation and UniFirst Corporation are notable competitors of size, and we also have numerous local and regional competitors.
Additionally, many businesses perform certain aspects of our product and service offerings in-house rather than outsourcing them.
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Additionally, they value trustworthy suppliers who partner with them to resolve workplace challenges that may arise with timely solutions that meet their needs.
−Removed: We deliver to over 300,000 customer locations across the United States and Canada.
+Added: We deliver to over 300,000 customer accounts (based on unique customer identification numbers) across the United States and Canada.
We serve customers ranging from small, family-owned operations with a single location to large corporations and national franchises with multiple locations.
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Certain of our raw materials and products are currently limited to a single supplier.
−Removed: We maintain a Corporate Social Compliance
−Removed: Policy and related Vendor Code of Conduct both of which require the international manufacturing of our private label garments to occur under safe, lawful and humane working conditions.
+Added: We maintain a Corporate Social Compliance Policy and related Vendor Code of Conduct both of which require the international manufacturing of our private label garments to occur under safe, lawful and humane working conditions.
To support our Corporate Social Compliance Policy, our international private label garment manufacturers confirm annually their commitment to comply with our Vendor Code of Conduct.
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Our Competitive Advantages
−Removed: We believe we have significant competitive advantages including our full-service uniform solution offering, size and scale, extensive network footprint, long-tenured customer relationships and experienced leadership team.
+Added: We believe we have significant competitive advantages including our full-service uniform solution offering, size and scale, extensive network footprint and long-tenured customer relationships.
Given our robust capabilities, scale and talent, we are well positioned to partner with customers for their future needs across a range of services, use cases and business strategies.
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Long-Tenured Customer Relationships :
−Removed: We deliver to over 300,000 customer locations and serve businesses which participate across numerous industries.
+Added: We deliver to over 300,000 customer accounts (based on unique customer identification numbers) and serve businesses which participate across numerous industries.
We maintain long-term relationships with our customers due to the quality of our services and products, our ability to deliver on-time and our ability to provide workplace supplies and services that support our customers’ individual strategies and needs.
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Retaining existing customers affords us more opportunities to cross-sell high-value workplace supplies.
−Removed: Experienced Leadership Team :
−Removed: The Company is led by Kim Scott, President and Chief Executive Officer, Rick Dillon, Executive Vice President and Chief Financial Officer, and Bill Seward, Executive Vice President and Chief Operating Officer.
−Removed: These executives have deep experience in their respective areas.
−Removed: They were hired to lead the Company as a standalone, independent company and are complemented by seasoned industry executives across the Company’s commercial and operational functions as well as newly appointed leaders who bring functional expertise, diversity and depth to the Company’s leadership team.
−Removed: Scott has deep and relevant expertise with recurring revenue models having led and operated multiple businesses of this nature over the past 16 years.
−Removed: She also has extensive experience in logistics, route-based distribution and complex rental or subscription-based programs, including in her role as Chief Operating Officer of Terminix.
−Removed: Additionally, she has a broad operating background that includes plant management, logistics, procurement, engineering, acquisitions and large-scale integrations.
−Removed: She joined Aramark in October 2021 as President and CEO of Aramark Uniform Services to develop and launch an accelerated growth and value creation strategy for the company, while also preparing the Company to be a standalone, independent public company.
−Removed: Dillon is a seasoned public company executive with more than 20 years of experience in finance leadership roles.
−Removed: Prior to joining Aramark, Mr.
−Removed: Dillon served as the Chief Financial Officer and Executive Vice President of two publicly traded companies, Enerpac Tool Group and Century Aluminum.
−Removed: He joined Aramark in May 2022 to serve as
−Removed: Chief Financial Officer of Aramark Uniform Services and to prepare the Company to be a standalone, independent public company.
−Removed: Seward has extensive expertise in leadership roles and previously served as President at UPS Supply Chain Solutions where he oversaw multiple business units including global logistics, freight forwarding, warehousing and distribution.
−Removed: In addition, Mr.
−Removed: Seward previously served as Executive Vice President and Chief Commercial Officer at Stericycle, in addition to other leadership roles at UPS.
−Removed: He joined Vestis in September 2024 to serve as Executive Vice President and Chief Operating Officer.
−Removed: Our executive leaders foster a culture of investing in our people, supporting their growth and development, instilling a sense of higher purpose, winning through teamwork with integrity and creating a safe environment for all.
−Removed: In addition, our commitment to diversity, equity and inclusion continues to shape our teammate engagement and recruiting efforts.
Value Creation Strategy
+Added: We recently reviewed our strategic initiatives and priorities and decided to accelerate our near-term growth strategy in order to build a stronger foundation from which to scale in the future as well as drive sustainable and disciplined growth, profitability and return on invested capital.
+Added: As a result, during the first quarter of fiscal 2026, we initiated a multi-year business transformation and restructuring plan (the “Plan”) that is intended to improve our profitability and cash flow generation.
+Added: See “Management's Discussion and Analysis of Financial Condition and Results of Operations - Restructuring Plan”, and Item 9B.
+Added: Other Information , in this annual report on Form 10-K for additional information.
We are focused on the development, growth and expansion of our business, with increased flexibility to pursue independent strategic and financial plans, adapt quickly to the changing needs of our customers and sector dynamics, effectively allocate capital to invest in growth areas and accelerate decision-making processes.
−Removed: We are focused on long-term opportunities to make deliveries in our service network more effective, which we expect will drive revenue growth and margin expansion.
−Removed: Our strategy is focused on creating shareholder value through high-quality and profitable revenue growth that is underpinned by efficient operations and a performance-driven culture.
−Removed: We are pursuing the following key strategies to drive value creation and grow our business:
−Removed: High-Quality Revenue Growth
−Removed: Our strategy will continue to focus on retaining customers, with an increased emphasis on increasing revenue per stop through cross-selling, investing in attractive sectors, margin accretive products and service offerings and adding new customers on existing routes to increase our route density.
+Added: We are executing a long-term strategy built on three strategic priorities:
+Added: • Commercial Excellence;
+Added: • Operational Excellence;
+Added: • Asset & Network Optimization.
+Added: Commercial Excellence
+Added: Our strategy will continue to focus on retaining customers, with an increased emphasis on cross-selling, investing in attractive sectors, margin accretive products and service offerings and adding new customers on existing routes to increase our route density.
We believe that, by focusing on these areas, we will achieve higher growth rates with more attractive margin profiles.
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This includes continued investments in technology, such as our digital customer portals, as well as investments in our customer service process to enhance our route check-in process and predictive analytics that help us better anticipate customer service opportunities.
−Removed: Increasing Revenue Per Stop Through Cross-Selling to Leverage Fixed Costs:
+Added: Increase Cross-Selling to Leverage Fixed Costs:
On average, our current customers take advantage of approximately 30% to 40% of our full line of services and products.
We continue to believe there is a significant opportunity to increase our wallet share with our existing customers through cross-selling additional services and products, including compelling adjacent services such as first aid and restroom supply services.
−Removed: This is expected to result in high-margin growth with existing customers by increasing revenue per stop and leveraging our existing delivery costs.
−Removed: We have invested in tools to support our trusted and tenured route service representative teammates and we are incentivizing them to pursue these opportunities with our existing customer base.
+Added: This is expected to result in growth with existing customers by increasing revenue while leveraging our existing delivery costs.
+Added: We have invested in tools to support our trusted and tenured route service representative teammates as well as certain members of our sales force, and we are incentivizing them to pursue these opportunities with our existing customer base.
Targeting Attractive Sectors, Services and Products:
−Removed: We are implementing more targeted sales strategies to drive growth across high-value sectors, services and products.
−Removed: Using enhanced data analytics and insights will enable us to focus on customer wins that improve our revenue mix.
−Removed: Increasing Route Density:
−Removed: We are establishing route density metrics to target sales along existing customer routes.
−Removed: We will focus on implementing analytical and geographical prospecting tools that will aid and reward our sales representatives for delivering growth that increases route density and lowers our overall cost to serve per route.
−Removed: Efficient Operations
+Added: We are implementing more targeted sales tools and strategies to drive growth across high-value sectors, services and products.
+Added: Using enhanced data analytics and insights will enable us to focus on customer wins that improve our revenue mix at the right price.
+Added: Operational Excellence
Our operations currently include significant cost inputs in areas such as labor, merchandise in service costs, plant operating costs and service-related costs.
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We have identified key areas of opportunity to reduce our operating costs and expand margins across our business:
−Removed: Network Optimization :
−Removed: A comprehensive analysis of our plant network and customer flows (route movements from plant to customer) has revealed a significant opportunity throughout our network to lower our cost to serve.
−Removed: Further, we have identified a portfolio of initiatives related to routing and scheduling efficiencies and transport and logistics improvements.
−Removed: We believe we can deliver margin expansion through this flow optimization.
Workforce Management :
−Removed: We are working to reduce our labor costs by decreasing frontline turnover to improve plant productivity, reducing general and administrative costs and improving plant operations.
+Added: We are working to reduce our labor costs by using targeted workforce reduction actions, and decreasing frontline turnover to improve plant productivity, reducing general and administrative costs and improving plant operations.
Merchandise Inventory Management :
−Removed: We are focused on lowering merchandise in service costs across our system in order to improve the profitability of new and existing business.
−Removed: Examples include delivering higher levels of garment and product reuse to reduce the issuance of new products and supply chain procurement strategies to reduce purchasing costs.
+Added: We are focused on managing merchandise in service costs across our system in order to support the profitability of new and existing business.
+Added: Examples include the targeting of higher levels of garment and product reuse to reduce the issuance of new products and supply chain procurement strategies to reduce purchasing costs.
Performance-driven culture:
−Removed: Fostering a performance-driven culture is essential to the delivery of high-quality revenue growth and margin expansion.
We are focused on further strengthening our capabilities and enhancing competencies in functional areas that are core to the delivery of our strategy such as sales and marketing, pricing, procurement, logistics, technology, talent acquisition and retention and plant operations.
−Removed: We have invested across these areas over the past year and will continue to strengthen these teams to support our strategy.
−Removed: We will make decisions that are informed by data and implement performance measurements and incentives that are aligned with the achievement of our strategic objectives.
+Added: We make decisions that are informed by data and implement performance measurements and incentives that are aligned with the achievement of our strategic objectives.
+Added: Asset and Network Optimization
+Added: Network Optimization:
+Added: A comprehensive analysis of our plant network and customer flows (route movements from plant to customer) has revealed a significant opportunity throughout our network to lower our cost to serve.
+Added: Further, we have identified a portfolio of initiatives related to routing and scheduling efficiencies and transport and logistics improvements.
+Added: We believe we can deliver margin expansion through this flow optimization.
+Added: Increasing Route Density.
+Added: We are establishing route density metrics to target sales along existing customer routes.
+Added: We will focus on implementing analytical and geographical prospecting tools that will aid and reward our sales representatives for delivering growth that increases route density and lowers our overall cost to serve per route.
Human Capital Resources
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We have approximately 18,150 teammates, primarily based in the United States, Canada and Mexico.
−Removed: As of September 27, 2024, approximately 10,800 of our teammates were represented by labor unions.
+Added: Approximately 10,750 of our teammates are represented by labor unions.
We work to maintain productive working relationships with these unions.
−Removed: Diversity, Equity and Inclusion .
−Removed: We believe that it is beneficial to align our diversity, equity and inclusion priorities with our business strategy.
−Removed: As of September 27, 2024, 60% of our Board of Directors is from underrepresented groups, including females who represent 50% of our Board of Directors.
−Removed: Additionally, 60% of our named executive officers are from underrepresented groups including females, who represent 40% of our named executive officers;
−Removed: 67% of our executive officers are from underrepresented groups including females who represent 33% of our executive officers;
−Removed: and 44% of our senior leadership team are from underrepresented groups including females, who represent 33% of our senior leadership team.
−Removed: Continuing to increase diversity in executive and all levels of the leadership pipeline remains an organizational priority for the coming years.
−Removed: We will have multiple employee resource groups;
−Removed: examples include those supporting women, racially and ethnically diverse employees and the LGBTQ+ community.
+Added: During the first quarter of fiscal 2026, we approved and initiated a multi-year business transformation and restructuring plan that is intended to improve our profitability and cash flow generation, and includes certain planned workforce reduction actions (the “Plan”).
+Added: In addition, during the fourth quarter of fiscal year 2025 and prior to development and approval of the Plan, we took certain workforce reduction actions.
+Added: See “Management's Discussion and Analysis of Financial Condition and Results of Operations - Restructuring Plan” for additional information.
+Added: Inclusion and Belonging .
+Added: We believe that it is beneficial to align our inclusion and belonging priorities with our business strategy.
+Added: We strive to achieve broad representation and an inclusive workforce where 50% of our Board of Directors are from underrepresented groups, including females who represent 40% of our Board of Directors.
+Added: Additionally, 41% of our senior leadership team are from underrepresented groups including females, who represent 33% of our senior leadership team.
+Added: We have multiple employee resource groups;
+Added: examples include those supporting women, veterans, racially and ethnically diverse employees and the LGBTQ+ community.
Talent Acquisition, Development and Retention .
−Removed: Hiring, developing and retaining teammates is critically important to our operations and we are focused on creating experiences and programs that foster growth, performance and
+Added: Hiring, developing and retaining teammates is critical to our operations and we are focused on creating experiences and programs that foster growth, performance and retention.
We sponsor training and education programs for our teammates, from hourly teammates to upper levels of management, designed to enhance leadership and managerial capability, help ensure quality execution of our programs, drive customer satisfaction and increase return on investment.
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In addition to offering market competitive salaries and wages, we offer comprehensive health and retirement benefits to our teammates.
−Removed: Our core health and welfare benefits are supplemented with specific programs to manage or improve common health conditions and include a variety of voluntary benefits and paid time away from work programs.
+Added: Our core health and welfare benefits are supplemented with specific programs to manage or improve common health conditions and include a variety of voluntary wellness benefits and paid time away from work programs.
We also provide programs designed to promote physical, emotional and financial well-being.
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In addition, our facilities are subject to periodic inspection by federal, state, provincial, local and international authorities.
−Removed: We have various controls and procedures designed to maintain compliance with applicable laws and regulations.
−Removed: Our compliance requirements are subject to legislative changes, or changes in regulatory interpretation, implementation or enforcement.
+Added: We have various controls and procedures designed to comply with applicable laws and regulations and we may face increased operating costs or material capital investments to maintain compliance.
+Added: Our compliance requirements are subject to the nature of our equipment and operations, legislative changes, or changes in regulatory interpretation, implementation or enforcement.
If we fail to comply with applicable laws, we may be subject to investigations, criminal sanctions or civil remedies, including fines, penalties, damages, reimbursement, injunctions, seizures, disgorgements or debarments from government contracts.
−Removed: Our business is subject to various environmental protection laws and regulations, including the United States Federal Clean Water Act, Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act and similar local, provincial, state, federal and international laws and regulations governing the use, treatment, management, transportation, and disposal of wastes and hazardous materials.
+Added: Our business is subject to various environmental protection laws and regulations, including the United States Federal Clean Water Act, Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental
+Added: Response, Compensation, and Liability Act and similar local, provincial, state, federal and international laws and regulations governing the use, treatment, management, transportation, and disposal of wastes and hazardous materials.
We use and manage chemicals and hazardous materials as part of our operations.
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We actively manage the sites which we know require remediation and monitoring in conjunction with regulators and relevant partners.
−Removed: Based on these activities and various estimates and assumptions, we determine our
−Removed: estimated costs and liabilities.
−Removed: As of September 27, 2024, we do not anticipate any expenditures for environmental remediation that would have a material effect on our financial condition.
−Removed: While environmental compliance is not a material component of our costs, we invest in equipment, technology and operating expenses, primarily for water treatment and waste removal, on a regular basis in order to comply with environmental laws and regulations, to promote the safety of our teammates, customers, and communities and to enhance the sustainability of our operations.
+Added: Based on these activities and various estimates and assumptions, we determine our estimated costs and liabilities.
+Added: While environmental compliance is not a material component of our costs, we invest in equipment, technology and operating expenses, primarily for water treatment and waste removal, on a regular basis in order to comply with environmental laws and regulations, and to promote the safety of our teammates, customers, and communities.
Intellectual Property
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We seek to increase route efficiency with technology and processes that reduce travel time, distance and fuel consumption.
−Removed: For example, our telematics technology allows us to proactively reduce fuel usage by limiting idling through real-time, in-cab driver alerts.
+Added: information from our telematics technology gives us the visibility needed to reduce the amount of idling in our fleet.
Our Board of Directors and executive leadership are committed to leading a socially responsible organization that supports the health of our planet, cares for our employees, invests in the communities we work in and conducts business in an ethical manner with appropriate governance.
−Removed: Our Board of Directors oversees our ESG goals and objectives, and supports the implementation of our ESG priorities and commitments.
Available Information
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Our principal internet address is www.vestis.com where we make available free of charge our annual, quarterly and current reports, and amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it, to the SEC.
+Added: You may request a copy of our SEC filings (excluding exhibits) at no cost by writing or telephoning us at the following address or telephone number:
+Added: Vestis Corporation
+Added: 1035 Alpharetta Street
+Added: Roswell, Georgia 30075
+Added: Corporate Secretary
The references to our website and the SEC's website are intended to be inactive textual references only and the contents of those websites are not incorporated by reference herein.
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.