Cintas (CTAS) 19 Dec 242025 Q2 Earnings call transcript

Good day, everyone, and welcome to the Cintas Corporation Announces Fiscal 2025 Second Quarter Results Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingley, Vice President, Treasurer and Investor Relations. Please go ahead, sir.

Thank you for joining us. second Schneider, Vice Chief Officer, President discuss fiscal Todd Mike Officer; who are our Executive Hansen, and XXXX me President Executive and and will With results. quarter Chief Financial Private from we commentary, XXXX call from Act open After for Securities safe forward-looking our Reform harbor will Litigation a litigation to the questions analysts. The civil provides of statements. events forward-looking company's current to future This the views reflect conference and statements call performance. that contains financial as cause could results to discuss. risks and materially forward-looking those to These are from which differ statements subject uncertainties, actual we may contained to our Securities I discussion turn Todd. refer you the Commission. I'll Exchange recent on the the these with points over to in filings call now most and

Thank you, Jared.

partners strong quarter proposition great with value which needs. customers pleased we provide our are to We compliance supporting cleanliness second and a safety, and their our image, comprehensive our results, employee in reflect execution by

grew fire a unmatched complementary a growth business for Cintas' quarter, of the our all-time a exchange our Second to of to within the and care, education perform over and quarter. local $X.XX billion, mat, foreign an service, second which the and quarter. was deepening is increase meet. was quarter the or needs year an of Whether set verticals record, and rate strong demand state just quarter organic experience an for of over the prior Virtually our which XX.X% of an extinguishers continued to platform Operating of services to health systems, solution. Cintas a EPS lighting, businesses percent grew hospitality, revenue door ready all-time to grew sprinkler XX.X% reflecting currency fluctuations, first below high and safety total focused offerings as X.X%. In needs and revenue in continued prior margin X.X% value of service bathroom second has front in robust for acquisitions all-time year. all to Diluted rate, our that sizes. particularly nature propositions the high X $X.XX. and aid need types product we and every the adjusts a XX.X% a continually exit income our it's and well. Gross revenue The we for XX.X% impacts government, XX.X% a our for first apparel to

strong flow earnings flow our optimization strong our energy in increasing reflects excellence for and chain efficiency continues and growth the sourcing supply this first Our facilities. Cash operational initiatives, X over the cash route with technology-enabled free year. be very months, year via to and prior XX.X%

in capital our We investments long-term capital value across fees, for continue customers of strategic our our to to investing This focus strong positions us shareholders. to employee deploy on ] our back making cash with partners which flow allocation each into allows generation [ starting and us businesses. our deliver

of Our technology significant remain a investments area reinvestment.

$X.XX right looking products the a which capital across operational the customers week. in customers per to ahead, key continue and all continue and with to partners same making And investing will our the the acquisitions, cash employees leverage strategic shareholders with we approach buyback. to standardize quarterly to on possibly time dividend paid Combined Cintas system customer our employee profile. At our are our priority. margin last focus way opportunistic our [ and work and ] of our improving of our processes experience excellence, impacts improves share We operations. a returning share our we remains SAP Cintas' getting of faster,

expectations our outlook. which second and reflect quarter strong provide our to I'll results, in the call financial our updated momentum our confidence turning details year, Before Mike for our provide over fiscal to of

$XX.XX billion total billion to growth of We are to $XX.XXX to a billion, range of a updating X.X% our to X.X%. annual of billion a from $XX.XX rate range revenue $XX.XX expectations

to range organic to the our expect rate We of be growth in X.X% X.X%.

to We to are expectations growth $X.XX of a XXXX $X.XX, also to We updating best range and value $X.XX from industry deliver differentiated position XX.X% us a superior in and of talent $X.XX range and annual diluted of our rate culture, EPS to meaningful a XX.X%. Cintas' beyond. services fiscal to remain the whose dedication discuss products and to delivering key to outstanding our second our business experiences customers sustain our to turn that, investments of remains it to to employee success. With Cintas' work over I all results. quarter outstanding our appropriate Mike growth. on thank customer the and details in focused the making partners I'll creation

good and Todd, morning. Thanks,

Aid margin Our second for growth revenue for First billion Organic for Sale was was $X.XX and exchange 'XX and increase was acquisitions organic last fiscal quarter and Safety an Fire compared $X.XX XX.X%. by year. down was rate X.X%. Gross billion to XX.X% $X.XX revenue $X.XX rate second The Facility business Services, quarter the fluctuations, fiscal billion for year, X.X%. Protection X.X% currency XXXX and compared Direct Uniform Uniform billion for growth foreign was of Services, last Rental adjusted of to XX% Services

gross increase gross Protection for and the Rental year. Sale. quarter percent and Robust volume for leverage Rental basis XX.X% for XX.X% margin by Aid As of operating Services. the and Direct efficiencies margin Services XXX helped and Fire for Todd business Uniform Facility Safety as Facility for from margin Services, segment of XXX XX.X% Uniform operational Gross a last was revenue strong Services First second XX.X% compared and this increased Uniform points for percentage to mentioned, last margin. Gross year, growth, basis generate XX% XX.X% was continued an points.

with on revenue reflects year-over-year progress strong excellence our leverage initiatives, from Our growth. operational combined focus

leverage. benefits and margin business for XXX create to technology from points with Six our basis and revenue growth year, from extracting We teams. Gross continue realize increased Sigma the First from Services to our inefficiencies and segment Aid Safety strong the continuing last engineering investments through

and stations and profitable eyewash rentals, like remains Our revenue with Waterbreak. favorable increases products products mix our sales AED first recurring aid more in

us distribution investment costs. technology SmartTruck that center route improved benefits to efficiencies, provides aid our and optimization have continue and we lower in product to dedicated first see allowed sourcing from Our

of these margins. Selling which a contribute expenses relatively with XX.X%, was year. of as All consistent administrative improved and was revenue last to percent

Second XX% of quarter Operating increase $XXX.X million as last a of $XXX.X to was basis compared fiscal was million percent year. income operating quarter, the points. to revenue second income quarter second in year's 'XX XX.X% compared an in XXX last of

last for million the primarily diluted quarter discrete quarter both the Our tax $XXX.X compared an second year's million last the XX.X% compared items, of second compensation. Net year, last $XXX.X increase to by year. year. effective impact stock-based accounting This in compared income was to rate certain for was tax were tax EPS $X.XX impacted XX.X%. $X.XX rates The quarter XX.X% second of quarters to for

the rate to months, $XX Todd annual first flow over of compared As please buybacks. Todd 'XX earlier, capital fiscal mentioned interest has continue result to fiscal provides 'XX, our the capital in million the financial great free over note total increased us of a year. expenditures, million related of $X.X Through debt. is allocation to guidance, to our net be a M&A, following: flow. months cash predominantly expected and expense we XX.X% of across guidance, billion dividends higher of deploy share $XXX X allowed our generate X the variable as approximately flow priorities the cash This to strong prior capital cash first each

to Our over expected or XX.X%, include Jared. turn guidance not back future be now it or fiscal significant and rate disruptions effective tax share 'XX is downturns. I'll does to buybacks any economic

Mike. Thanks, prepared That concludes our remarks.

question we a from and needed. are to one Thank single the questions just if follow-up Now happy Please ask you. answer analysts.

[Operator first question Tim comes Instructions] Blair. And from Mulrooney William our from

down the it end X.X% high ask to looks your at to wanted growth. about It slightly on I organic X.X%. guide from like came

the if comment for in your that quarter had reason fiscal was but if a what second the curious it's just any I the small of sales there. outlook second year, know it's it Just half you slightly? or -- number, curious for expectations shifted below a came the

thanks for question. Tim, the

we'd to rental very our is in to to it's And with growth continuation like fire single first the at second of like The aid pleased we're mid- line grew double high that a guide we And it division It's be. both half organic and growth, right be. First, divisions X.X%. and right implies where our good, digits. good where rate digits.

continues they proposition to well value to So and resonate. the continue perform

So where the guide for and that like our year and think of the we are, half on we growth well. we reflects -- back year as the attractive

The things the X.X%. might on couple well. year as the adjusted guide X.X% And to is Tim, revenue workday now for of offer I a

maybe for the growth nice I'll organic So of as a change. for not a bit the implied much And year us you growth said, thoughts really a X% as on really little you of a a us. But well. of revenue to -- X.X% and give is range good

gave, we year, that's if So organic we X.X% the of for had back you just half the final growth rate the it last the in to X guide that range implied of quarter about same for the X.X% rate and that implies think that growth guide an quarters.

other guide So that really implied words, in hasn't changed.

and all that half both organic as And for nice hasn't total the a of year, the in in changed so said, really again, outlook and we much, growth a -- year we second quarter, had the Todd really good growth. still

continuation like sounds you've the of good and doing. just been color. It around That's Okay. fine-tuning some what edges

context. So that's very helpful

just I wanted to XX%, on EBITDA above I impressive, the expectations. the Street is question margins, well quarter. touch second my think, very Obviously, For incremental in

any considering trying the favorable might that last analyst outperformance my pick is year Curious or putting to that to there's unfavorable this should year discrete if XX% explain were just or really Just of because we obviously high. a hat some help that on apart factors this either be really, strong little to and bit. one-offs

one-offs revenue leverage no We're of. from speak Tim, Well, our getting growth. good to

continues We've So inefficiencies really got initiatives past where our business, that leverage. the the to out well. spoken extract we've to get programs revenue in helping to growth in go and is about us

Six team, Our global Belt Black chain. supply our Sigma

high are organization. extract improvements teams throughout Our out our engineering at allowing levels. us and to functioning all

to So inefficiencies leverage and that and extract on plan no, no then that revenue we're the one-offs of, to trying is great speak and working. get

And question JPMorgan Andrew from Securities. comes from Steinerman next our

did long-term just growth change versus year-over-year quarter, looking price the also, if kind could When give quarter has when talking adopt at increase? the much us realization to And return about X.X% August a sense the the in now of organic then quarter November year-over-year? revenue of you average the

price increase which earlier levels year makes more about was to are sense we're historical challenging our certain still to price than to as first those margins quarter, is while in coming this, down. proud but in really has able the strong. inflation And increases obtain previously, earlier. margins past was increases at the down calendar Andrew, continue it now. being price really right come our we And compared of about portion incremental the the I'm spoke of -- see as obtaining since increases. They and able out of I extracting mentioned Tim to inefficiencies organization are spite with

behavior don't increases. far price mentioned As why speak -- bit I a in as general. I little about just customer

quite is strong. business New

still very a second stops data but and guide, I have the that. the seems say business to I a Our only retention functioning half not is the that be a to have levels. down at year rates half level. we spending are Catalog significant half the bit. there. was stable. at we're attractive plan reflects -- ], no the pretty so high think, second overall, And to Pit a first macro would going reflects little changes And very [ But good

Jasper And comes next from Bibb Truist from Securities. question

ask proposals to on new the if from administration come through. impact potential cost the those tariffs want I your material proposed about and

of more last on impacted? I think China that you talked costs during Is from China sourcing the potentially bit coming Mexico, ] administration. Canada be tariffs hangar could a there inflation through [ on previously about or Trump

do items very And of too know already It's pivot Jasper. source necessary. chain. occur tell to closely a there. where that way still position XX% they're We're to we to going But those tariffs. a world-class over Certainly, global exactly we're supply with in products. we as watching our positioned early I all what's have

geographic So diversity. multiple also include sources those

good or a chance they'll shine think do, -- will to future in I'm but will we're confident we'll supply pivot what the a So we're exactly appropriate, world have I that, they global of the face challenges are team good a -- our and that's because and when those spot as to face, that types may in in spot.

Jasper, reminder, our I as material a rental -- just cost. might to speak

us period in us allows price we over longer period going over time rental maybe things to to that keep some our mind to In future do changes, P&L not our in So the we of make of also changes, you so other got products but business, those recognize our our to supply other costs and recognize some also might us mats the in it chain and amortize away. allows And of increases that current words, we've our time. allows a adapt don't garments, on. of other the think to situation, the global about just right initiatives to that cost and think but in time. like business on sourcing And how that how that costs

ability to of like in a our time when really amortize So these a related chunk just as be uncertainty materials reminder, a good a our to this tariffs. can benefit

half north margins incremental margin up the Tim's down pretty my half. math, well days, second moderate the anything second for and question, guidance first incremental follow slide? specific imply earlier the anything that second incremental step on of half? adjusting on the the first XX% to material seems for half first mean, I operating half in operating half, maybe like make you there Is driving is was versus in in then a there that might think to working And

Certainly, that. for margin, good in Jasper. spot EPS, you And isn't we're business really grow operating when our But year, think a spot attractive deliver we year. our good look to guide our we in running linear. we're specific, margins Nothing to so the think for at a the

that's to have our an XX%, of term, for while our the going guided -- year, be first half above be in back want incremental sort You the range, to year. of in are we XX% the expectation and we're might in remember what and of the that is that half Jasper longer we to of we that

incremental that of initiatives a that term. hard Todd likely in that But to XX% are longer would working lot really got be We be us. think XX% closer range. will to said, It's we've as for we to a

And Patnaik our from Manav from Barclays. question next comes

If I points. by but have you XX your line The it. you top all still the kind of It can said remain that. lowered lowered just follow you on up that guide sounds like expectations same, basis

there you was? -- is what were be can helpful. you why it Just any So XX that the just sales that help bps, by just down? curious, us if it with maybe catalog lowered that color would Is

second the the implied first bit same The little it was a year of it's the right? Manav, of we've half math, it a today as guide quarter after is as the for in got about books. was the quarter. But another

] QX Our [ in right that at the middle of X.X% comes range.

And that's we rest the go that math X.X%. same after X.X% the it sense? of what to the of of as really -- quarter. implication it's seeing is But ] [ so our still the that's the called that for make -- out guide year first from Does

have what are guess, come I you mean, seeing maybe didn't I would than better this maybe you thought? quarter in that perhaps

sort Well, that middle in that of guide of we've it's -- the given. this organic quarter revenue is

then just can up. I And if Fine. follow Okay.

if ahead you were go something. Sorry, saying

go ahead. No,

just going pretty to you in the quarter, like active. was just seems you can M&A -- I the it were say

So anything just curious which call in to there? areas out and

with those customer position help -- a broader had businesses an to we good offering quarter I'll then with M&A all our is bought to have in synergies after M&A. to each can quality as we cases and I businesses of did Manav, that and We've our obtain remember. base. businesses a some that. areas. And speak predict. certain offering been as we're to is businesses long hard good that -- route-based us And in -- pursuing some We really can us of

like they're we complementary, that's businesses and They're quality and So good we're going to yes, businesses, be buying. a think organization. our very long-term we for the investment

next Josh our UBS. question comes And from Chan from

top line the on that it ask scenario to line hold guidance your maybe you I little as bit. I held would a I you guidance, did guess, this question compared top you could helps guess, have the guess what can happen, your maybe to did guess, that? the of question, of guidance, not where end top allow see I I what that ask like kind not way.

the price increases to historical to we're I it levels. obtain earlier, as challenging back Josh, than pricing It's more but increases, still able was. Well, described as is challenging. is obtaining And it's environment price more

So we're and having of to over grow off above that.

organic X.X% So to little the implied at just bit. as like positioned those be, X.X% results. think half to look well a we of, year, you and to when where of Mike want to right we up X.X% X.X%. tightening growth of workday But the we're you spoke It's look that and when organic we at -- and that, of adjusted back achieve of

And it that's prior this had quarter, good my Certainly, I in still grew on guess obviously, fire, that's that. then it very strong. growth. But really XX% maybe above follow-up quarters, been

any there abnormality think fire was it's you quarter? normal just do fluctuation? So this in Or

Josh, of. year. off rate were last attractive coming a growth pretty abnormality They to Yes, no speak

-- there we're at to at and at organized the that positioned but think -- around levels. grow continue levels future. certainly those it that's no, the well we double-digit business expect the And So in team we what really positioned and that to has

Good Great. second in the half. luck

you. Thank

from Sachs. And Goldman Tong George question our next from comes

what were new quarter. mentioned rates course over the the in evolved you they've more Can and sentiment with retention how purchasing business behaviors You of you're customer strong about and the and quarter? seeing talk customer

mentioned the business it elongated. The in businesses wouldn't similar the and no in I about, talked changed sales there's we X/X past. out still cycle what programmers. George. not us there pretty not -- with behavior, serviced We're because to massive selling And that's there. is been over one XX million Besides of a customer pie It's are has I has what much North all it's because accounts customers, America. we little is million new of our as to exciting about

really it that So makes attractive.

businesses We faster, it's and their we're clean keep money. garments. facilities They're more better, not a smarter, always selling, certain That new objectives said, their customers Now that -- maintain. to for that being certain to wearing help those times. fashion. in clothes, it those in better accomplish do they've got can They're allows cheaper items ways,

quantity a future out just no changes programmers. selling no and amount still it's of We're massive such there. programmers the of there there no a So looks bright significant because

George, do follow-up question? you have a

Yes.

on Sorry, I mute. was

still good and routing. So sourcing about side, talk In you you words, you're you more middle benefits chain of to towards hope -- you Can margin towards are little the with are stages efficiencies, and other or on you you're in the your additional supply of later where are what what terms already very say from unlocking efficiencies? of you the achieved? seeing early what you've Or a you innings hope bit to journey in would achieve accomplish? in the

you, a culture Thank of positive is culture discontent. here George. our Part of

improve. We are constantly looking for ways to

areas. because a And they so long and Sigma. area, are list impressive It's going have that the we're -- of see sourcing, of continue job heck you're a to about in mentioned in on whether a to-do focused that there's team excited Six engineering, still big We those done improvements constantly and list. initiatives an performance, we I one to has

our And Rosenbaum comes from question from next Shlomo Stifel.

looks exactly be I -- revenue was would little did uniforms. much a fiscal ask a you on about bit add [ mentioned the there expected [ little they like But more hit $XXX laundry Could how the M&A. in to didn't acquisitions you if be about you guidance the follow-up. the to like about talk that And have the in I'd sizable. something I'll end. to million year, a the talk acquisitions that those top and there mostly else in Or quarter. are little Just the to ] out, bit It mean, ] was news? a in then this where falling and about would

of some have made space, the some those. amount We also of about acquisitions made fire space, we the regional the acquisitions. nice sort of space. and in it. local did market maybe some very in Shlomo, aid safety the to little ] nice are exactly bit first we we're but They excited into rental get nice rental We've market, and typically a the don't [ players in but

be the and incremental because Okay. reason The a a M&A. is pricing how the there's know being the dimensionalize, be the of tougher huge little on of terms commentary we much top, in guidance expecting tweaking bit just about would to was helpful I asking of on should it's to focus the kind it

where coming the is question that's from. So

a do of follow-up second in in question, detail being verticals just how the to those targeted decelerating is, driven a them are But bit of terms much we little some you efforts of I have give the how more the specifically color us of as verticals, did bit progressing give accelerating on are than the quarter, others. some the so the there. could more is by a sense just growth little better growth get versus the Maybe

are verticals have above perform operating focus X perform our they -- well. the and growth. levels been to continue normal of performing well. at Shlomo, our They

important around -- we those. because focus expect those in focused -- a to understand it's just verticals. areas, So And it's organize we they're to I it's and -- not think them sales

them. partners focused have that products and are understanding that are of important We services leaders on to and businesses, teams those understanding

world, But baked suspect And so will objectives better they're occur. into accomplish and past to continue great in results for expect years, customers our -- that, and to helping that's we delivering and and we been in they're continue. the business their that that that

And our from comes question RBC. Ashish Sabadra next from

how on David was Was performed you Uniform Ashish. Paige us quarter? for some in curious could I on -- the just if just is sales we Direct the could give if sense ] that playing with Uniform growth And to go how into guide then, specifically playing back organic Direct line is your it, but not expectations? your [ in it to XXXX? for revenue This

David.

Fortune business sells we hotels, those into casinos, as in for customers, types. mentioned, quarter. It's us was Direct So XXXX-type a business, our strategic Uniform down airlines, Sale that the

in lumpy. just area fire we business that to was It's in sale, But direct can facility businesses mind, garments strategic and base. a things all us into And that quite keep be quarter. not first been rental many services it's negative those. for sell the it's our customer sell whether aid our sell it So or so into

us. business a a again, market little market, can customers. in we that for providing backwards the the strategic be lumpy that real it So solutions And and like but we went it's and we're those like QX,

And helpful. [ mentioned That's outside that focus your of or verticals the vertical strong. know you really verticals then ] X, [ that are either really within Great. focus I stood ] guess, But the continuing performed any I of to off performed, specific go there was out that well. the focus

nothing will we David, investing that, been that we're and it's the the customers, future in results to regarding we've performing out products, for well, They're make all that them verticals. positioning and get sure expect showing X to the the right continue. specific their call services and for right those

And Baird. question Andrew our next R.W. from comes from Wittmann

maybe, there. give Other little were good. it you energy, I categories, particular? energy could Mike, about any margin here bit the in you results talk talk Obviously, a today. just an Obviously, just But profile SG&A. the you in thought categories I I'll maybe more the general always energy, about opportunity to plant the beyond ] maybe merchandise just things out the costs, but [ costs route other things in or call in called key

item understand in that above now maybe of consistently be little several that gross people's and Just takes opportunity helpful. thought I the been having on line margins help drill bit puts quarters more, with expectations row, some would a it a into to to for

our to I'll as which you rentals, is laundry are The rentals, the with and buckets, cost can the X the cost, associated know, cost of costs. you operating our -- know, and right? -- as in facilities And, of Sure. service our our there within speak you production think material cost

routing. So of is that's good those. each initiatives the working in And news, got really the that are well Andy, we've really

we've couple of of the years, over all in last a And areas. seen so year, those improvements

to and well costs, material about has So constantly global better for so. so talks supply continues chain. do ways Todd our us it's for It And to looking operated source.

In garment us to a sharing. addition heard speak that, to you've

goes better those to order share have means this and of garments, garments. out and we So we utilization garments, the we fewer when that stockrooms,

New garments from centers. our distribution

into area words, the in down. the allowing last other good put meaning of that year years. If we production, dryers operational and things for us or X sure us. to really lot been amortization loading come and a move making talked like garments a to is has important for perfectly us really over That's course washers we are been excellence we our the service, to So about fewer tends

We automating our sortation. are

As that department. for efficiencies you customer. dryer, the out we the them in get once sorting them the got of sort production garments allows to know, come to And initiatives and those that we've back to have going on that are automating

the new costs leverage bucket. sorting us, us costs. And [ service efficient, and continues to become helps way production that more efficient. overall The allow you a then to continue us that just has ] has It's the speak of a SmartTruck. for hear become wash alley in So to more life but it to

moving. be And routing. And be trucks money fewer to able been purchased, we at as need past. we is so the has moving when to we when And routes better truck in about it don't more are means being fewer not much truck always That the efficient. effectively, talks as are is Todd opened. make just

So there. really nice performance

our because on efficient us with we allows spend. do SmartTruck [ like things are is monitor energy can means our idling save energy to that do thing other is we more low idling and The ] that and

that And are pick efficient all those or So those more new away. buckets of the are that a of one-timers Andy, Those doing of business. those sort different as of are up, really can aren't way you sort few components of go hopefully well. ways operating

always would Maybe but [ a last around it. hands for How your the a dynamic of of some say, about I'd XX national that business you seeing account been just today. the hit new, to kind there's there of was specifically there's kind you're segment and market And account ]. the of I its flurry more just getting is kind thought my of in national would to about that over traded Got it not a I follow-up, what thoughts -- much Obviously, that, and marketplace? pricing it's to because related business bit months, compared the feels more historical that, like levels? of talk trading

highly Andy, a nothing always specific been competitive market. there. It's

with retaining [ growing competitive. highly business Our and that's build business, think our we're general, pursuing are rooms And really opportunity a We But massive customers. those. great a there. ] those, selling, to is And attractive trying team in of our has certainly, pie the around job done those there's nice.

where So providing for businesses, our them. value focusing programmers, those great selling we're that's no

so provide. small. Many don't what often, what to get and like our service we think there to our fact talk realize have they provide enough they're a and customers, of in we the when average that relatively we the customer don't big not we And even is that that customers

business, where them talk that's so to it to -- And about them and to helping out and aware. is that's grow heading. And role get like our our it's we there and make

from comes Stanley. question Morgan next our from Toni And Kaplan

quarter you that of back to go you fairly the could tough. segment? to across what or thinking your hoping services about line on when was the that? think an business we should I'm of buying because products should business, direct also And think about less and how the customers are more just give focused over us sales on one I was update How percent I But time. than grow fast comp be

that direct the business, grow other as faster business. far as sale than Toni, businesses we to our tend So

think It is direct not that -- levels. call you they're specifically group in total. the levels But it, of our the of at, sale Now I'll growing when we it wouldn't customers, grow business expect normalized of growing. at wouldn't business to

in we So are us -- and we're door, those as them. which we products then many services of products. in see very look interested the it, to can sell at customers other those gets we many and

and across products early customers of we the see many percentages, particular any as cross-selling innings But -- -- very what we've specific services. far we percentages business. don't given As our think of in still we out are how have I use

on current new an they sell businesses amazing be opportunity doing even customers adding little street think North nature. customer customers over in to also bring base up the So there's down more on and we're businesses, million or but we additional million and on amazing opportunity regional We to whether XX more and because our we're more focused into focused service that, there's customers America. a one in

opportunity. So great

years. margins, Yes. on over first aid few they've Great. ramped And up past the then really

sourcing How favorable the should this mentioned good. to quarter. very general, big maybe the margins in be And benefits I expect sustainable? we those in guess, like were were mix You benefits? and just those

are how you should right for more, you like -- thinking the investing about be so of example? much And level how investment,

you. Great, love attractively. We Toni. Thank business. the It's really Aid growing First

As you linear. good. not And mentioned, the margins it's are very

the besides specific in are expect be experienced get So we and It's growth every takes we're to to quarter. call of to repeat our out And margins And heavily. business. selling. from that will revenue. there's that continue But experiencing dedicated in good suspect in we're business investing the very puts that mix first you're nothing think is rates aid. The what efficiencies we've continuing and fact distribution in that And very center seeing attractive that sustainable. we these I in

we're business, really to very it and at grow investing levels. good attractive So

And our question Alwy from Faiza from next Deutsche comes Bank.

I'm more the to is national if bit curious of question to And more accounts. ask difficulty a maybe more seeing the verticals, in about made. that pricing board, Andy's So that around categories, pricing I some is earlier specific wanted you're comments it products, across taking or the little you

this pricing on -- is us Just help perhaps and you've can color you and what dimensionalize in deceleration expect the if from that -- here? more seen you

are several Faiza, more operated inflation to the with than environment down -- the -- in career come position that first increases My very well. challenging we've has were down but entire will besides And competitive It's fact they -- it's general as as no that significantly. that, quarter. it's very adjustments, And real price increases And well. think a I as a has changes that as far always come price nothing of reasonable pretty in. mentioned, price it's been that been. more

and margins as team a to of nevertheless, is that of the that of So in business we that. the doing But in heck facing efficiencies growing spite in are finding grow one and spite job well.

on of and what very team So the future proud the bullish is accomplishing.

Great. the just And M&A. out and ask like? opportunities the M&A. then there? seeing expectations wanted about I And I'm valuation what you're terms in environment to increasing What's We've seen some in curious of activity

of to event challenging predict it a member where depends Faiza, cases, it that. would really on trying local something if a M&A, business, trigger occur in decides it's that many type the takes, business some an like from to family to upon it's move because

we're ability want organization. And are I happy, for it's extract this, businesses customer they those really great to very tough routing are partners then businesses that we best gave -- that can we employee say most -- whether in can to additional have or and the we active us come active have it can that All great capacities. opportunities good So us. are capacity they bases, predict it. our because can to the inefficiencies, some items leverage into buy out

We think a predict So we're very tough. us it's -- for to strategic we it's investment But term. do very trying long active.

next Jefferies. comes from Stephanie our And from Moore question

Harold [ ] is This Stephanie. on for Lance

to freight ], in of about in sector [ So talked I you done innovations the health I know, the [ you've just the some Costco's cost. want terms piggyback the in curtains company's one of on and about care providing stuff. questions ] of

the incremental the done they've be, guess new increase innovations. hospitality margins, would -- ]. follow-up other products So innovations these understand us or innovative to other would on [ in [indiscernible] in and help your guess, you from seen And some in the to that I wanted trended have these business of that those I then have local you how just revenue government I ask, in

the ], half. thanks first the Harold question. I'll for answer [

to care mops and those -- organize microfiber I'll keep health is mentioned, speak around using we care-acquired patient customers common verticals. rooms that do our I health prevent help The are As that to is the we the clean think areas infections. one whether it to I that

important provided that any the the our dispensing around technology has really them. verticals have have can health control where of care Certainly, very they all in But but helped garments that we it's loss them. to also control when to occurs. of just garments them need people So dispensing ensure customers allows vertical, they the that not inventory, which

just -- shelf some customers. important put you of because when care a would them normally our health of they commodity then they to they a would on and general, health which care, they of was disappear through in kind up. So type been item wear wherever think end specific of to that's tend scrubs, a would because

those X modes where this significant that's our curtains. of customers. And this strong they time been then asking And health lastly, And really said continued It to affects them. really valuable for they help. where buying need So customers. cited We customers, compliance item to privacy come learned you customers issue them up a with ] infections. our the and [ certainly with for are problem acquired spending the it's our care

and to came that. allows And them customers find we us help technology solution. help that to with that handle to up up are help It a struggle us that. for allows them that to like labor with very we're with They with it. the They embracing much So product them patented to it, able with came it.

the we'll I in customers. continue for and those So attractive think to invest future that's

Scott And from question our from comes Oppenheimer. Schneeberger next

across looking follow M&A back I way share about for kind was one But want right assets, now? you curious guys, of the a there's topic, as the laundry. said multiples? just you're What all Are I'm be think, if there. And the few But understand quarter a would what biggest few on GK business particularly it there serve. acquisition this great, -- technology? you -- of Are in [ that M&A looking I just if to out [ to building this I fiscal lines up is on-premises seeing limited looking was you'll -- what in follow-up for? it the are talk there. you laundry, one And was, you M&A multiple, any add prevailing 'XX ] color questions a area? And you are to But you here. it what since could large you out was of type ]. And vended in of

be into. might Just curious, are there you some moving areas

really and question. and business. great of have acquiring invested businesses sure great in? across for thanks Those the are partners. in What are good and quality We're great care making to businesses are they buying base employees. take businesses the active Scott, employee with we businesses, that interested their customer of route-based that positioned interested We're usually all customers in our

as in bought. get are focus the what it's into But So we're that that we those in interested far are the is ones don't the as we're in. We businesses businesses multiples. quality

get, good and that is really nothing of so in are customers. once a each and capacity. in we're think -- across can out We certain a value really there, out those And into spot do we provide it, more we businesses. and And what extracting ordinary we certainly route-based cases, We We good the of And it's sell to then synergies. the do interested more always to base get in then customer that.

businesses So great And we our things do and great with people focus really customers. when good great is on buying that, happen.

earnings just contributing that the at for years a to all we've around just could be that follow-up, a at think we're that yet while. And progress seeing? a curious, Is portal myCintas is few as impressive it's It contributing -- been margins don't on Great. now. an I that, call on A all? in report discussed and

their valuable. time Scott. business doesn't they to they account, been all Certainly, they that available to wants They ability important their interaction manage customers see part, to to the every most basis in manage then. business, to anything. be right can customer the Yes. the is week. It may do customers. for if an customers to or -- it. call to do has it business opportunity Thank [ ] person single our that important going to not But had on myCintas provide we're want always mean you, even the But that really, us our that our point. it allows at only need We've really

business allows to that for conduit portal us their to that that's just manage their business, customer for to electronic the easier us. pay makes important an do having them bill. and with It's So another

So it bill, the allows for to their that. there is for pays us application. It customer cash no allows

right it to goes the that account. it's So meaning

So we to it. have [ don't apply ]

they're be it calling really and just So allows for right? efficiencies they're customer there like and to there's So them and which conduit, with to account that a in, of allows happier many get better another the them us efficiencies really, managing and but their conduit there, not there's -- if customer. efficiencies and the relationship

from And our Fargo. Jason from Haas comes Wells question

describe maintain are to if price easier bit I'm then it? prices? quantify X%? could of like on the increases are in how we little find relative X%, curious you it are to to sort Or of those close terms help back verticals industries a we're still there a certain history, path and you would we where And where you to or

result, Yes, And in our what into question. that what that, trying Fed X% will are mentioned, inflation forward. X% range. We've that, And we inflation a appropriately closely, been historically, it certainly, I out. to as looks and is figure manage the historical as with increases the Jason, being increase above well above inflation. to price like watching it's we're of well that thanks back watch tough those below predict for We the moving price to forward. peaks -- range. now we're very moving but And

I helpful. very this. guess And That's it. talk to I'll Got

that on to range? were because And come -- it's for that changes Or of the the is you more curious So be? historical margins maintain drivers I that the what those all normal is I margins back back was wanted prices? X% we'll the really targeted incremental it those also levels in the said follow easier that sort to half, And like what down? then from expectation So it is know verticals half to to second causes are strong sort of of get we're up -- to there that first those second X% the just to reverted all to half. the incremental any just half would first I

is able market one as reflective we better -- I it of able any price the in far verticals, probably It's as to wouldn't are any darn so. particular? say general. in to Jason, so obtain increases pretty

So the as I in mentioned, back incrementals the as far had it's half as of -- we not yes, linear. year,

we're some and had around we organizing -- towards, really good as to like half. that So and that's XX% and guiding range, in well. what we incrementals the that's XX% first But what we're

should think I that, about. be you with So thinking

Yes.

it's going investments. for year. straight half a of margin. It of Sometimes timing had second sometimes to We just the is it's tough relative to really be comps as last said, sure. line a good year not And Todd

like to this I'd closing time, further questions. to are for remarks. the at no call back Jared turn there And over

you morning. joining for us Thank this

our financial at fiscal with 'XX results look We again issue you March. will quarter third that time. speaking forward of in to We

for Thank today's Thank you. your you participation. This now call. concludes conference

may You now disconnect.