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Aramark Reports Second Quarter Earnings

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adjusted operating income financial
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
adjusted eps financial
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
free cash flow financial
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
term loan b financial
A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.
leverage ratio financial
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
covenant adjusted ebitda financial
Covenant adjusted EBITDA is a company’s reported earnings before interest, taxes, depreciation and amortization that has been modified using the specific add‑backs and exclusions defined in a loan agreement for the purpose of testing debt covenants. Think of it as a tailored yardstick lenders and borrowers agree to use to measure financial health; it matters to investors because it determines whether a firm is in compliance with debt rules, which can affect borrowing costs, dividend payments and default risk.
non-gaap financial
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
dividend equivalent rights financial
Dividend equivalent rights are promises that mirror the cash payments shareholders get from a company’s profits, but they are paid to holders of certain awards (like stock options or restricted stock units) rather than to actual shares. Think of them as a paycheck top‑up that matches dividends while the award is not yet a real stock, and they matter to investors because they add to employee compensation costs and potential share dilution, affecting company profitability and per‑share value.

YEAR-OVER-YEAR SUMMARY

Note: As previously disclosed, the calendar shift resulting from the 53rd week in fiscal 2025 affects quarterly comparisons in fiscal 2026

  • Revenue +15%; Organic Revenue +12%
    • Performance led by broad-based net new business and base business growth in both FSS United States and International; Approximately 3% benefit to Revenue and Organic Revenue growth from the calendar shift
    • New business wins have already reached a record $1 billion this fiscal year to date; High client retention rate exceeding 98% across the Company

  • Operating Income +26%; Adjusted Operating Income (AOI) +24%1
    • Enhanced technology capabilities resulted in additional productivity gains; Approximately 14% and 12% benefit to Operating Income and AOI growth, respectively, from the calendar shift
    • Profitability growth reflected strong revenue levels, supply chain efficiencies, and effective above-unit cost management

  • GAAP EPS +65% to $0.38; Adjusted EPS +40%1 to $0.49
    • Continued momentum in top and bottom line financial performance; Approximately 30% and 20% benefit to GAAP EPS and Adjusted EPS growth, respectively, from the calendar shift
    • Favorable business trends occurring throughout the organization

  • Disciplined Capital Allocation Priorities Contributed to Strong Cash Flow
    • Net cash provided by operating activities of $400 million, +56%; Free Cash Flow of $305 million, +116%, with more than $1.4 billion in cash availability
    • Proactively repaid $55 million of 2030 Term Loans; Repurchased approximately $25 million of stock

  • Recently Entered Hyperscale AI Data Center Market Offering Integrated Suite of Capabilities
    • Launched Aramark Nexus™, a new platform delivering hospitality and workforce support services for hyperscale AI data centers and other large-scale, complex, and often remote operating environments
    • New multi-year agreement with a top global hyperscaler underway; Significant pipeline of growth opportunities for Aramark Nexus™

PHILADELPHIA--(BUSINESS WIRE)-- Aramark (NYSE: ARMK) today reported second quarter fiscal 2026 results.

1

On a constant currency basis

“Our financial results underscore the continued momentum at the Company driven by our unwavering focus on delivering hospitality excellence,” said John Zillmer, Aramark’s Chief Executive Officer. “With exceptionally strong business trends across sectors and geographies, we’ve updated our fiscal 2026 Outlook to the high end of our previously stated expectations for Organic Revenue growth. This reflects our team’s disciplined execution of our growth strategies as we continue to achieve new milestones.”

“We’re excited about our entry into the hyperscale AI data center market with the launch of Aramark Nexus™ where we bring proven expertise in highly complex operations and an established competitive advantage. As we execute on our new multi-year engagement with a top global hyperscaler, this client is expected to become the largest in our portfolio. We believe there is substantial growth potential with this client and other hyperscalers, combined with the existing sales momentum occurring throughout our broader portfolio."

SECOND QUARTER RESULTS
Consolidated revenue was $4.9 billion in the second quarter, a 15% increase year-over-year. The favorable effect of currency translation increased revenue by approximately $101 million. Organic Revenue, which excludes the effect of currency translation, was higher by 12% compared to the same year-ago period. Growth was led by broad-based net new business and base business expansion across sectors and geographies. The calendar shift from the 53rd week in the prior year increased Revenue and Organic Revenue growth by an estimated 3%, principally in the Education sector within the FSS United States segment.

 

Revenue

 

 

Q2 '26

Q2 '25

Change (%)

 

Organic Revenue

Change (%)

 

FSS United States

$3,430M

$3,056M

12 %

 

12 %

 

FSS International

1,477

1,223

21 %

 

13 %

 

Total Company

$4,907M

$4,279M

15 %

 

12 %

 

May not total due to rounding

Difference between Change (%) and Organic Revenue Change (%) is the effect of currency translation

  • FSS United States revenue growth was led by 1) Sports, Leisure & Corrections primarily from higher per cap spending and attendance levels in Sports & Entertainment, which included Opening Day of Major League Baseball and the World Baseball Classic, as well as the NCAA Basketball Tournament; 2) Business & Industry from sustained double-digit growth with significant new business contribution, exceptionally high client retention rates, elevated catering demand, and an expanded Refreshments client base; and 3) Healthcare from onboarding new business. Revenue and Organic Revenue growth also benefited by approximately 4% from the calendar shift.
  • FSS International revenue growth was across all geographies, driven by ongoing base business expansion and net new business performance—which included double-digit growth in both Europe and Canada, and Emerging Markets experiencing high-single digit growth on an organic basis. The calendar shift positively affected Revenue and Organic Revenue growth by an estimated 1%. Revenue on a GAAP basis included the favorable effect of currency translation.

Operating Income was $220 million, an increase of 26% compared to the prior year period, and AOI grew 24%1 to $258 million. The quarter benefited from higher revenue levels, productivity gains in food and labor, supply chain efficiencies, and effective above-unit cost management. The calendar shift contributed to profitability growth by an estimated $25 million. The effect of currency translation increased Operating Income by approximately $5 million.

 

Operating Income

 

Adjusted Operating Income (AOI)

 

Q2 '26

Q2 '25

Change (%)

 

Q2 '26

Q2 '25

Change (%)

Constant Currency Change (%)

FSS United States

$193M

$152M

27%

 

$223M

$176M

27%

27%

FSS International

61

52

19%

 

69

58

19%

12%

Corporate

(34)

(29)

(18)%

 

(34)

(29)

(18)%

(18)%

Total Company

$220M

$174M

26%

 

$258M

$205M

26%

24%

May not total due to rounding

  • FSS United States increased from accelerated revenue levels, enhanced technology driving additional productivity gains, supply chain efficiencies, and effective above-unit cost management. The calendar shift favorably affected Operating Income and AOI growth by an estimated 16% and 13%, respectively.
  • FSS International grew due to higher base business and net new business along with strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. Operating Income on a GAAP basis included the favorable effect of currency translation.
  • Corporate expenses experienced higher share-based compensation.

CASH FLOW AND CAPITAL STRUCTURE
Aramark reported a higher cash inflow in the second quarter compared to the prior year period, associated with stronger earnings and favorable working capital. Net cash provided by operating activities in the quarter increased 56% to $400 million, and Free Cash Flow grew 116% to $305 million.

In the second quarter, the Company proactively repaid approximately $55 million of Term Loan B due June 2030 and repurchased approximately $25 million of its common stock. Aramark has repurchased more than 5 million of its shares for an aggregate purchase price of approximately $194 million since the inception of the Company's share repurchase program.

Aramark’s capital allocation priorities remain unchanged: invest in the business to drive and propel growth; repay debt on an ongoing basis, with leverage expected to be under 3.0x by the end of fiscal 2026; increase the dividend annually; and utilize excess cash generation to opportunistically repurchase Aramark stock.

At quarter-end, the Company had more than $1.4 billion in cash availability.

DIVIDEND DECLARATION
Aramark's Board of Directors approved a quarterly dividend of $0.12 per share of common stock, as announced on May 6, 2026. The dividend will be payable on June 3, 2026, to stockholders of record at the close of business on May 20, 2026.

BUSINESS UPDATE
In the second quarter, Aramark delivered significant year-over-year growth in both the top and bottom line, reflecting continued momentum across the organization. The business trends remain strong heading into the second half of the fiscal year, including 1) a client retention rate exceeding 98% across the Company; 2) sustained revenue growth in FSS United States and FSS International from broad-based net new business and ongoing base business expansion; 3) new client wins that have already reached a record $1 billion; and 4) Aramark's entry into the hyperscale AI data center market.

The Company recently launched Aramark Nexus™, a new platform delivering integrated hospitality and workforce support services for the hyperscale AI data center market and other large-scale, complex, and often remote operating environments. Aramark is uniquely positioned to deliver on these integrated set of capabilities, supported by proven expertise in operating remote environments and an established competitive advantage. Aramark expects this new suite of services to generate margins above the Company average and achieve attractive investment returns. The Company believes there is substantial growth potential in this area of the business, in addition to Aramark's broader portfolio.

OUTLOOK
The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation. The fiscal 2026 outlook reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.

Based on Aramark's strong performance in the first half of the fiscal year, the Company updated its Fiscal 2026 Outlook for Organic Revenue growth and reaffirmed expectations for AOI, Adjusted EPS, and Leverage Ratio.

Aramark continues to expect accelerated AOI and margin expansion this fiscal year, consistent with the Company's expectations, capitalizing on its multiple operating levers while mobilizing a record level of new business openings.

Aramark's newly awarded multi-year agreement with a top global hyperscaler is underway and service set to begin this fiscal year. This new business is not currently reflected in the Company's Fiscal 2026 Outlook with updates to be provided as the client engagement launches, grows, and scales.

Aramark currently anticipates its full-year performance for Fiscal 2026 as follows:

 

  • Organic Revenue growth at the high end of the Company's previously stated +7% to +9%;
  • Adjusted Operating Income growth of +12% to +17%;
  • Adjusted EPS growth of +20% to +25%; and
  • Leverage Ratio under 3x

 

Note: All percentages above are on a constant currency basis

For easier comparison purposes, Fiscal 2025 Organic Revenue is on a 52-week basis

“We enter the second half of the fiscal year with confidence in our growth trajectory and our ability to capitalize on the significant opportunities immediately ahead,” Zillmer added. “Our teams continue to deliver outstanding performance, and we remain focused on building upon this momentum and driving the business to even greater levels of success.”

CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call at 8:30 a.m. ET today to discuss its earnings and outlook. This call and related materials can be heard and reviewed, either live or on a delayed basis, on the Company's website, www.aramark.com, on the investor relations page.

About Aramark
Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 16 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

Selected Operational and Financial Metrics

Adjusted Revenue (Organic)
Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation.

Adjusted Operating Income
Adjusted Operating Income represents operating income adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges and other items impacting comparability.

Adjusted Operating Income (Constant Currency)
Adjusted Operating Income (Constant Currency) represents Adjusted Operating Income adjusted to eliminate the impact of currency translation.

Adjusted Net Income
Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges; the effect of debt repricing and repayments on interest expense, net, and other items impacting comparability, less the tax impact of these adjustments. The tax effect for Adjusted Net Income for our United States earnings is calculated using a blended United States federal and state tax rate. The tax effect for Adjusted Net Income in jurisdictions outside the United States is calculated at the local country tax rate.

Adjusted Net Income (Constant Currency)
Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation.

Adjusted EPS
Adjusted EPS represents Adjusted Net Income divided by diluted weighted average shares outstanding.

Adjusted EPS (Constant Currency)
Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.

Covenant Adjusted EBITDA
Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain other items as defined in our credit agreement required in calculating covenant ratios and debt compliance. We also use Net Debt for our ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents and short-term marketable securities.

Free Cash Flow
Free Cash Flow represents net cash used in operating activities less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company.

We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income, net income, earnings per share or net cash used in operating activities, determined in accordance with GAAP. Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.

Explanatory Notes to the Non-GAAP Schedules

Amortization of Acquisition-Related Intangible Assets - adjustments to eliminate the impact of amortization expense recognized on acquisition-related intangible assets.

Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period ($5.5 million for both the second quarter and year-to-date 2026).

Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, primarily for non-cash charges for the impairment of certain assets related to a business held-for-sale ($6.1 million for year-to-date 2026), multiemployer pension plan withdrawal charge ($5.6 million for year-to-date 2026), legal charges related to an antitrust review ($1.3 million for year-to-date 2026), charges related to hyperinflation in Argentina ($0.9 million gain for the second quarter of 2026, $0.4 million gain for year-to-date 2026, $0.6 million loss for the second quarter of 2025 and $1.3 million loss for year-to-date 2025) and a charge for contingent consideration liabilities related to acquisition earn outs ($11.1 million for year-to-date 2025).

Effect of Debt Repayments and Refinancings on Interest Expense, net - adjustments to eliminate expenses associated with the refinancings by the Company in the applicable period such as payment of third party costs ($0.7 million for year-to-date 2026 and $5.8 million for both the second quarter and year-to-date 2025) and non-cash charges for the write-off of unamortized debt issuance costs and discounts ($0.4 million for year-to-date 2026 and $2.5 million for both the second quarter and year-to-date 2025).

Tax Impact of Adjustments to Adjusted Net Income - adjustments to eliminate the net tax impact of the adjustments to Adjusted Net Income calculated based on a blended United States federal and state tax rate for United States adjustments and the local country tax rate for adjustments in jurisdictions outside the United States. The adjustments also reverse the valuation allowance recorded based on the Company's ability to utilize foreign tax credits ($3.4 million for year-to-date 2026). Additionally, the adjustments reverse the release of a valuation allowance recorded at a foreign subsidiary ($8.6 million benefit for both the second quarter and year-to-date 2025) and eliminates the impact of the state tax treatment related to the sale of a minority interest ($4.4 million charge for both the second quarter and year-to-date 2025) and the tax related impact of the Company's spin-off of the Uniform segment, including non-deductible transaction costs ($3.6 million charge for both the second quarter and year-to-date 2025).

Effect of Currency Translation - adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis. Assumes constant foreign currency exchange rates based on the rates in effect for the prior year period being used in translation for the comparable current year period.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading "Business Update," "Outlook," and those related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected.

Some of the factors that we believe could affect or continue to affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents; geopolitical events including the conflict in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets; the impact of the United States' and other countries’ trade policies including the implementation of tariffs; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; the inability to hire and retain key or sufficiently qualified personnel or increases in labor costs; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; increases or changes in income tax rates or tax-related laws; potential liabilities, increased costs, reputational harm, and other adverse effects based on our commitments and stakeholder expectations relating to environmental, social and governance considerations; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; the use of artificial intelligence technologies within our business processes; our leverage; variable rate indebtedness that subjects us to interest rate risk; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; risks associated with the completed spin-off of Aramark Uniform and Career Apparel ("Uniform") as an independent publicly traded company to our stockholders; and other factors set forth under the headings "Part I, Item 1A Risk Factors," "Part I, Item 3 Legal Proceedings" and "Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 25, 2025 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and which may be obtained by contacting Aramark's investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the SEC. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Amounts)

 

 

 

Three Months Ended

 

 

April 3, 2026

 

March 28, 2025

Revenue

 

$

4,907,342

 

$

4,279,298

Costs and Expenses:

 

 

 

 

Cost of services provided (exclusive of depreciation and amortization)

 

 

4,480,948

 

 

3,919,653

Depreciation and amortization

 

 

132,160

 

 

117,059

Selling and general corporate expenses

 

 

74,485

 

 

68,411

Total costs and expenses

 

 

4,687,593

 

 

4,105,123

Operating income

 

 

219,749

 

 

174,175

Interest Expense, net

 

 

82,241

 

 

89,704

Income Before Income Taxes

 

 

137,508

 

 

84,471

Provision for Income Taxes

 

 

35,368

 

 

22,498

Net income

 

 

102,140

 

 

61,973

Less: Net income attributable to noncontrolling interests

 

 

190

 

 

119

Net income attributable to Aramark stockholders

 

$

101,950

 

$

61,854

 

 

 

 

 

Earnings per share attributable to Aramark stockholders:

 

 

 

 

Basic

 

$

0.39

 

$

0.23

Diluted

 

$

0.38

 

$

0.23

Weighted Average Shares Outstanding:

 

 

 

 

Basic

 

 

263,160

 

 

264,811

Diluted

 

 

266,390

 

 

267,420

 

 

 

 

 

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Amounts)

 

 

 

Six Months Ended

 

 

April 3, 2026

 

March 28, 2025

Revenue

 

$

9,738,891

 

$

8,831,384

Costs and Expenses:

 

 

 

 

Cost of services provided (exclusive of depreciation and amortization)

 

 

8,896,321

 

 

8,070,885

Depreciation and amortization

 

 

258,114

 

 

230,263

Selling and general corporate expenses

 

 

147,158

 

 

138,797

Total costs and expenses

 

 

9,301,593

 

 

8,439,945

Operating income

 

 

437,298

 

 

391,439

Interest Expense, net

 

 

164,160

 

 

165,508

Income Before Income Taxes

 

 

273,138

 

 

225,931

Provision for Income Taxes

 

 

74,497

 

 

58,255

Net income

 

 

198,641

 

 

167,676

Less: Net income attributable to noncontrolling interests

 

 

530

 

 

203

Net income attributable to Aramark stockholders

 

$

198,111

 

$

167,473

 

 

 

 

 

Earnings per share attributable to Aramark stockholders:

 

 

 

 

Basic

 

$

0.75

 

$

0.63

Diluted

 

$

0.74

 

$

0.62

Weighted Average Shares Outstanding:

 

 

 

 

Basic

 

 

263,144

 

 

264,846

Diluted

 

 

266,382

 

 

268,076

 

 

 

 

 

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)

 

 

 

 

 

 

 

April 3, 2026

 

October 3, 2025

Assets

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

475,722

 

$

639,095

Receivables

 

 

2,475,099

 

 

2,210,388

Inventories

 

 

453,325

 

 

418,766

Prepayments and other current assets

 

 

341,915

 

 

254,642

Total current assets

 

 

3,746,061

 

 

3,522,891

Property and Equipment, net

 

 

1,786,495

 

 

1,734,489

Goodwill

 

 

4,980,956

 

 

4,874,670

Other Intangible Assets

 

 

1,907,892

 

 

1,874,067

Operating Lease Right-of-use Assets

 

 

825,305

 

 

701,839

Other Assets

 

 

593,941

 

 

596,673

 

 

$

13,840,650

 

$

13,304,629

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

Current maturities of long-term borrowings

 

$

33,853

 

$

31,543

Current operating lease liabilities

 

 

65,314

 

 

60,744

Accounts payable

 

 

1,246,368

 

 

1,522,747

Accrued expenses and other current liabilities

 

 

1,744,183

 

 

1,931,688

Total current liabilities

 

 

3,089,718

 

 

3,546,722

Long-Term Borrowings

 

 

6,056,336

 

 

5,374,394

Noncurrent Operating Lease Liabilities

 

 

266,806

 

 

255,305

Deferred Income Taxes and Other Noncurrent Liabilities

 

 

1,085,590

 

 

966,019

Redeemable Noncontrolling Interests

 

 

61,871

 

 

14,130

Total Stockholders' Equity

 

 

3,280,329

 

 

3,148,059

 

 

$

13,840,650

 

$

13,304,629

 

 

 

 

 

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

 

 

 

Six Months Ended

 

April 3, 2026

 

March 28, 2025

Cash flows from operating activities:

 

 

 

Net income

$

198,641

 

 

$

167,676

 

Adjustments to reconcile Net income to Net cash used in operating activities:

 

 

 

Depreciation and amortization

 

258,114

 

 

 

230,263

 

Asset write-downs

 

6,058

 

 

 

—

 

Increase in contingent consideration liability

 

—

 

 

 

11,127

 

Deferred income taxes

 

37,430

 

 

 

2,931

 

Share-based compensation expense

 

34,793

 

 

 

30,296

 

Changes in operating assets and liabilities

 

(839,069

)

 

 

(724,340

)

Payments made to clients on contracts

 

(151,368

)

 

 

(86,850

)

Other operating activities

 

73,453

 

 

 

37,693

 

Net cash used in operating activities

 

(381,948

)

 

 

(331,204

)

Cash flows from investing activities:

 

 

 

Net purchases of property and equipment and other

 

(214,878

)

 

 

(232,486

)

Acquisitions, divestitures and other investing activities

 

(101,637

)

 

 

(249,984

)

Net cash used in investing activities

 

(316,515

)

 

 

(482,470

)

Cash flows from financing activities:

 

 

 

Net proceeds/payments of long-term borrowings

 

(83,443

)

 

 

414,590

 

Net change in Revolving Credit Facility

 

140,366

 

 

 

275,882

 

Net change in funding under the Receivables Facility

 

625,000

 

 

 

586,000

 

Payments of dividends

 

(63,068

)

 

 

(55,683

)

Proceeds from issuance of common stock

 

19,288

 

 

 

16,379

 

Repurchase of common stock

 

(66,322

)

 

 

(109,283

)

Payments for contingent considerations

 

(33,697

)

 

 

(10,505

)

Other financing activities

 

(5,677

)

 

 

(50,816

)

Net cash provided by financing activities

 

532,447

 

 

 

1,066,564

 

Effect of foreign exchange rates on cash and cash equivalents and restricted cash

 

(335

)

 

 

(11,497

)

(Decrease) Increase in cash and cash equivalents and restricted cash

 

(166,351

)

 

 

241,393

 

Cash and cash equivalents and restricted cash, beginning of period

 

707,144

 

 

 

732,613

 

Cash and cash equivalents and restricted cash, end of period

$

540,793

 

 

$

974,006

 

   

Balance Sheet classification

April 3, 2026

 

March 28, 2025

Cash and cash equivalents

$

475,722

 

$

920,455

Restricted cash in Prepayments and other current assets

65,071

 

53,551

Total cash and cash equivalents and restricted cash

$

540,793

 

$

974,006

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

April 3, 2026

 

 

FSS United States

 

FSS International

 

Corporate

 

Aramark and Subsidiaries

Revenue (as reported)

 

$

3,430,268

 

 

$

1,477,074

 

 

 

 

$

4,907,342

 

Operating Income (as reported)

 

$

192,620

 

 

$

61,408

 

 

$

(34,279

)

 

$

219,749

 

Operating Income Margin (as reported)

 

 

5.6

%

 

 

4.2

%

 

 

 

 

4.5

%

 

 

 

 

 

 

 

 

 

Revenue (as reported)

 

$

3,430,268

 

 

$

1,477,074

 

 

 

 

$

4,907,342

 

Effect of Currency Translation

 

 

(1,963

)

 

 

(99,098

)

 

 

 

 

(101,061

)

Adjusted Revenue (Organic)

 

$

3,428,305

 

 

$

1,377,976

 

 

 

 

$

4,806,281

 

Revenue Growth (as reported)

 

 

12.2

%

 

 

20.8

%

 

 

 

 

14.7

%

Adjusted Revenue Growth (Organic)

 

 

12.2

%

 

 

12.7

%

 

 

 

 

12.3

%

 

 

 

 

 

 

 

 

 

Operating Income (as reported)

 

$

192,620

 

 

$

61,408

 

 

$

(34,279

)

 

$

219,749

 

Amortization of Acquisition-Related Intangible Assets

 

 

25,114

 

 

 

8,244

 

 

 

—

 

 

 

33,358

 

Severance and Other Charges

 

 

5,512

 

 

 

—

 

 

 

—

 

 

 

5,512

 

Gains, Losses and Settlements impacting comparability

 

 

—

 

 

 

(916

)

 

 

—

 

 

 

(916

)

Adjusted Operating Income

 

$

223,246

 

 

$

68,736

 

 

$

(34,279

)

 

$

257,703

 

Effect of Currency Translation

 

 

(536

)

 

 

(3,978

)

 

 

—

 

 

 

(4,514

)

Adjusted Operating Income (Constant Currency)

 

$

222,710

 

 

$

64,758

 

 

$

(34,279

)

 

$

253,189

 

 

 

 

 

 

 

 

 

 

Operating Income Growth (as reported)

 

 

27.0

%

 

 

19.1

%

 

 

(17.9

)%

 

 

26.2

%

Adjusted Operating Income Growth

 

 

26.9

%

 

 

18.5

%

 

 

(17.9

)%

 

 

25.8

%

Adjusted Operating Income Growth (Constant Currency)

 

 

26.6

%

 

 

11.6

%

 

 

(17.9

)%

 

 

23.6

%

Adjusted Operating Income Margin

 

 

6.5

%

 

 

4.7

%

 

 

 

 

5.3

%

Adjusted Operating Income Margin (Constant Currency)

 

 

6.5

%

 

 

4.7

%

 

 

 

 

5.3

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 28, 2025

 

 

FSS United States

 

FSS International

 

Corporate

 

Aramark and Subsidiaries

Revenue (as reported)

 

$

3,056,338

 

 

$

1,222,960

 

 

 

 

$

4,279,298

 

 

 

 

 

 

 

 

 

 

Operating Income (as reported)

 

$

151,686

 

 

$

51,553

 

 

$

(29,063

)

 

$

174,176

 

Amortization of Acquisition-Related Intangible Assets

 

 

24,195

 

 

 

5,827

 

 

 

—

 

 

 

30,022

 

Gains, Losses and Settlements impacting comparability

 

 

—

 

 

 

622

 

 

 

—

 

 

 

622

 

Adjusted Operating Income

 

$

175,881

 

 

$

58,002

 

 

$

(29,063

)

 

$

204,820

 

 

 

 

 

 

 

 

 

 

Operating Income Margin (as reported)

 

 

5.0

%

 

 

4.2

%

 

 

 

 

4.1

%

Adjusted Operating Income Margin

 

 

5.8

%

 

 

4.7

%

 

 

 

 

4.8

%

 

 

 

 

 

 

 

 

 

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

April 3, 2026

 

 

FSS United States

 

FSS International

 

Corporate

 

Aramark and Subsidiaries

Revenue (as reported)

 

$

6,792,374

 

 

$

2,946,517

 

 

$

—

 

 

$

9,738,891

 

Operating Income (as reported)

 

$

381,368

 

 

$

121,198

 

 

$

(65,268

)

 

$

437,298

 

Operating Income Margin (as reported)

 

 

5.6

%

 

 

4.1

%

 

 

 

 

4.5

%

 

 

 

 

 

 

 

 

 

Revenue (as reported)

 

$

6,792,374

 

 

$

2,946,517

 

 

 

 

$

9,738,891

 

Effect of Currency Translation

 

 

(2,035

)

 

 

(150,401

)

 

 

 

 

(152,436

)

Adjusted Revenue (Organic)

 

$

6,790,339

 

 

$

2,796,116

 

 

 

 

$

9,586,455

 

Revenue Growth (as reported)

 

 

6.8

%

 

 

19.1

%

 

 

 

 

10.3

%

Adjusted Revenue Growth (Organic)

 

 

6.8

%

 

 

13.0

%

 

 

 

 

8.5

%

 

 

 

 

 

 

 

 

 

Operating Income (as reported)

 

$

381,368

 

 

$

121,198

 

 

$

(65,268

)

 

$

437,298

 

Amortization of Acquisition-Related Intangible Assets

 

 

50,276

 

 

 

15,083

 

 

 

—

 

 

 

65,359

 

Severance and Other Charges

 

 

5,512

 

 

 

—

 

 

 

—

 

 

 

5,512

 

Gains, Losses and Settlements impacting comparability

 

 

11,608

 

 

 

915

 

 

 

—

 

 

 

12,523

 

Adjusted Operating Income

 

$

448,764

 

 

$

137,196

 

 

$

(65,268

)

 

$

520,692

 

Effect of Currency Translation

 

 

(533

)

 

 

(6,106

)

 

 

—

 

 

 

(6,639

)

Adjusted Operating Income (Constant Currency)

 

$

448,231

 

 

$

131,090

 

 

$

(65,268

)

 

$

514,053

 

 

 

 

 

 

 

 

 

 

Operating Income Growth (as reported)

 

 

10.4

%

 

 

15.2

%

 

 

(10.2

)%

 

 

11.7

%

Adjusted Operating Income Growth

 

 

10.9

%

 

 

17.3

%

 

 

(10.2

)%

 

 

12.6

%

Adjusted Operating Income Growth (Constant Currency)

 

 

10.8

%

 

 

12.0

%

 

 

(10.2

)%

 

 

11.2

%

Adjusted Operating Income Margin

 

 

6.6

%

 

 

4.7

%

 

 

 

 

5.3

%

Adjusted Operating Income Margin (Constant Currency)

 

 

6.6

%

 

 

4.7

%

 

 

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

March 28, 2025

 

 

FSS United States

 

FSS International

 

Corporate

 

Aramark and Subsidiaries

Revenue (as reported)

 

$

6,357,354

 

 

$

2,474,030

 

 

 

 

$

8,831,384

 

 

 

 

 

 

 

 

 

 

Operating Income (as reported)

 

$

345,404

 

 

$

105,238

 

 

$

(59,203

)

 

$

391,439

 

Amortization of Acquisition-Related Intangible Assets

 

 

48,054

 

 

 

10,452

 

 

 

—

 

 

 

58,506

 

Gains, Losses and Settlements impacting comparability

 

 

11,127

 

 

 

1,315

 

 

 

—

 

 

 

12,442

 

Adjusted Operating Income

 

$

404,585

 

 

$

117,005

 

 

$

(59,203

)

 

$

462,387

 

 

 

 

 

 

 

 

 

 

Operating Income Margin (as reported)

 

 

5.4

%

 

 

4.3

%

 

 

 

 

4.4

%

Adjusted Operating Income Margin

 

 

6.4

%

 

 

4.7

%

 

 

 

 

5.2

%

 

 

 

 

 

 

 

 

 

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

April 3,
2026

 

March 28,
2025

 

April 3,
2026

 

March 28,
2025

Net Income Attributable to Aramark Stockholders (as reported)

 

$

101,950

 

 

$

61,854

 

 

$

198,111

 

 

$

167,473

 

 

Adjustment:

 

 

 

 

 

 

 

 

 

Amortization of Acquisition-Related Intangible Assets

 

 

33,358

 

 

 

30,022

 

 

 

65,359

 

 

 

58,506

 

 

Severance and Other Charges

 

 

5,512

 

 

 

—

 

 

 

5,512

 

 

 

—

 

 

Gains, Losses and Settlements impacting comparability

 

 

(916

)

 

 

622

 

 

 

12,523

 

 

 

12,442

 

 

Effect of Debt Repricing and Repayments on Interest Expense, net

 

 

—

 

 

 

8,326

 

 

 

1,121

 

 

 

8,326

 

 

Tax Impact of Adjustments to Adjusted Net Income

 

 

(9,058

)

 

 

(9,030

)

 

 

(16,226

)

 

 

(18,019

)

Adjusted Net Income

 

$

130,846

 

 

$

91,794

 

 

$

266,400

 

 

$

228,728

 

 

Effect of Currency Translation, net of Tax

 

 

(2,980

)

 

 

—

 

 

 

(3,851

)

 

 

—

 

Adjusted Net Income (Constant Currency)

 

$

127,866

 

 

$

91,794

 

 

$

262,549

 

 

$

228,728

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (as reported)

 

 

 

 

 

 

 

 

 

Net Income Attributable to Aramark Stockholders (as reported)

 

$

101,950

 

 

$

61,854

 

 

$

198,111

 

 

$

167,473

 

 

Diluted Weighted Average Shares Outstanding

 

 

266,390

 

 

 

267,420

 

 

 

266,382

 

 

 

268,076

 

 

 

 

$

0.38

 

 

$

0.23

 

 

$

0.74

 

 

$

0.62

 

 

Earnings Per Share Growth (as reported) %

 

 

65.5

%

 

 

 

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Per Share

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

$

130,846

 

 

$

91,794

 

 

$

266,400

 

 

$

228,728

 

 

Diluted Weighted Average Shares Outstanding

 

 

266,390

 

 

 

267,420

 

 

 

266,382

 

 

 

268,076

 

 

 

 

$

0.49

 

 

$

0.34

 

 

$

1.00

 

 

$

0.85

 

 

Adjusted Earnings Per Share Growth %

 

 

43.1

%

 

 

 

 

17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Per Share (Constant Currency)

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Constant Currency)

 

$

127,866

 

 

$

91,794

 

 

$

262,549

 

 

$

228,728

 

 

Diluted Weighted Average Shares Outstanding

 

 

266,390

 

 

 

267,420

 

 

 

266,382

 

 

 

268,076

 

 

 

 

$

0.48

 

 

$

0.34

 

 

$

0.99

 

 

$

0.85

 

 

Adjusted Earnings Per Share Growth (Constant Currency) %

 

 

39.8

%

 

 

 

 

15.5

%

 

 

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

NET DEBT TO COVENANT ADJUSTED EBITDA

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

April 3, 2026

 

March 28, 2025

Net Income Attributable to Aramark Stockholders (as reported)

 

$

357,032

 

$

348,010

 

 

Interest Expense, net

 

 

340,577

 

 

331,285

 

 

Provision for Income Taxes

 

 

119,828

 

 

117,649

 

 

Depreciation and Amortization

 

 

504,196

 

 

451,148

 

 

Share-based compensation expense(1)

 

 

62,695

 

 

63,062

 

 

Unusual or non-recurring losses and (gains)(2)

 

 

25,523

 

 

(25,071

)

 

Pro forma EBITDA for certain transactions(3)

 

 

36,604

 

 

28,502

 

 

Other(4)(5)

 

 

127,504

 

 

95,335

 

Covenant Adjusted EBITDA

 

$

1,573,959

 

$

1,409,920

 

 

 

 

 

 

Net Debt to Covenant Adjusted EBITDA

 

 

 

 

 

Total Long-Term Borrowings

 

$

6,090,189

 

$

6,532,881

 

 

Less: Cash and cash equivalents and short-term marketable securities(6)

 

 

475,722

 

 

963,721

 

 

Net Debt

 

$

5,614,467

 

$

5,569,160

 

 

Covenant Adjusted EBITDA

 

$

1,573,959

 

$

1,409,920

 

 

Net Debt/Covenant Adjusted EBITDA

 

 

3.6

 

 

3.9

 

 

 

 

 

 

(1) Represents share-based compensation expense of equity awards resulting from the application of accounting for stock options, restricted stock units, performance stock units and deferred stock unit awards.

(2) The twelve months ended April 3, 2026 represents a fiscal 2025 non-cash charge for the impairment on an equity investment ($19.5 million) and a fiscal 2026 non-cash charge for the impairment of certain assets related to a business held-for-sale ($6.1 million). The twelve months ended March 28, 2025 represents a fiscal 2024 gain from the sale of the Company's remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million).

(3) Represents the annualizing of net EBITDA from certain acquisitions made during the period and, for purposes of the Credit Agreement, the net benefit from cost savings initiatives ($16.3 million for the twelve months ended April 3, 2026).

(4) "Other" for the twelve months ended April 3, 2026 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($56.4 million), severance charges ($41.9 million), non-cash charges for the impairments of assets ($8.9 million), multiemployer pension plan withdrawal charge ($5.6 million), merger and integration charges ($4.9 million), the impact of hyperinflation in Argentina ($4.0 million), legal charges related to an antitrust review ($3.8 million) and other miscellaneous expenses.

(5) "Other" for the twelve months ended March 28, 2025 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($52.8 million), non-cash adjustments to inventory based on expected usage ($18.2 million), charges related to a ruling on a foreign tax matter ($6.8 million), severance charges ($6.7 million), non-cash charges related to the impairment of a trade name ($3.3 million), contingent consideration expense related to acquisition earn outs, net of reversals ($2.4 million), the impact of hyperinflation in Argentina ($1.9 million) and other miscellaneous expenses.

(6) Short-term marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year and will convert back to cash. Short-term marketable securities are included in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FREE CASH FLOW

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

Six Months Ended

 

Three Months Ended

 

Three Months Ended

 

April 3, 2026

 

January 2, 2026

 

April 3, 2026

Net cash (used in) provided by operating activities

$

(381,948

)

 

$

(782,200

)

 

$

400,252

 

 

 

 

 

 

 

Net purchases of property and equipment and other

 

(214,878

)

 

 

(120,033

)

 

 

(94,845

)

 

 

 

 

 

 

Free Cash Flow

$

(596,826

)

 

$

(902,233

)

 

$

305,407

 

 

 

 

 

 

 

 

Six Months Ended

 

Three Months Ended

 

Three Months Ended

 

March 28, 2025

 

December 27, 2024

 

March 28, 2025

Net cash (used in) provided by operating activities

$

(331,204

)

 

$

(587,152

)

 

$

255,948

 

 

 

 

 

 

 

Net purchases of property and equipment and other

 

(232,486

)

 

 

(117,788

)

 

 

(114,698

)

 

 

 

 

 

 

Free Cash Flow

$

(563,690

)

 

$

(704,940

)

 

$

141,250

 

 

 

 

 

 

 

 

Six Months Ended

 

Three Months Ended

 

Three Months Ended

 

Change

 

Change

 

Change

Net cash (used in) provided by operating activities

$

(50,744

)

 

$

(195,048

)

 

$

144,304

 

 

 

 

 

 

 

Net purchases of property and equipment and other

 

17,608

 

 

 

(2,245

)

 

 

19,853

 

 

 

 

 

 

 

Free Cash Flow

$

(33,136

)

 

$

(197,293

)

 

$

164,157

 

 

Inquiries:
Felise Glantz Kissell
(215) 409-7287
Kissell-Felise@aramark.com

Gene Cleary
(215) 409-7945
Cleary-Gene@aramark.com

Source: Aramark

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