Aramark Reports Earnings Results for Fiscal 2025

PHILADELPHIA--( BUSINESS WIRE)--Aramark (NYSE: ARMK) today reported results for the fourth quarter and full year of fiscal 2025.

“Fiscal 2025 represented many consequential milestones for the Company, contributing to the strong growth trajectory ahead,” said John Zillmer, Aramark CEO. “In addition to being awarded one of the most prestigious medical systems in the world, we delivered almost $1 billion in Annualized Net New business, added more than $1 billion of new purchasing spend in our Global Supply Chain network for a second consecutive year, and achieved a leverage ratio of 3.25x, a number we haven’t seen since prior to when Aramark went private in 2007.”

“We take delivering on our commitments very seriously. Our actions have centered on building a high performing business focused on providing exceptional hospitality to our clients and I want to reiterate that we are resolutely committed to achieving our financial objectives and generating significant shareholder value.”

On a constant-currency basis

Excluded revenue from the 53rd week

FISCAL 2025 SUMMARY

Consolidated revenue was $18.5 billion, an increase of 6% year-over-year. The effect of currency translation reduced revenue by $70 million. Organic revenue grew 7% compared to the prior year period. Growth was strengthened by net new business and base business volume, somewhat offset by the Company's portfolio exits in Facilities in fiscal 2024. The contribution from the 53rd week increased revenue by an estimated 2%.

As Aramark began onboarding an unprecedented level of new business, the Company worked closely with certain large clients toward the end of the fourth quarter to prepare for a seamless transition to Aramark becoming their new Hospitality partner. In some cases, this led to a shift in the timing of new account openings. With many of these sites now up and running, the Company believes it is well positioned for strong performance in the quarters ahead.

Revenue

FY25

FY24

Change (%)

Organic Revenue Change (%)

FSS United States

$13,212M

$12,577M

FSS International

$5,294M

$4,824M

10%

11%

Total Company

$18,506M

$17,401M

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

May not total due to rounding

Operating income increased 12% year-over-year to $792 million and AOI grew 12% 1 to $981 million, which represented an operating margin increase of 20 basis points and AOI margin expansion of nearly 25 basis points 1 year-over-year. Profitability growth resulted from higher revenue levels, expanded supply chain capabilities, and disciplined above-unit cost management. These increases more than offset additional incentive-based compensation recorded in the fourth quarter of approximately $25 million, or 3%, associated with achieving record Net New business.

The effect of currency translation reduced operating income by $4 million.

Operating Income

Adjusted Operating Income (AOI)

FY25

FY24

Change (%)

FY25

FY24

Change (%)

Constant Currency Change (%)

FSS United States

$718M

$660M

$840M

$774M

FSS International

$194M

$187M

$260M

$219M

19%

21%

Corporate

($119M)

($141M)

15%

($119M)

($111M)

(8)%

Total Company

$792M

$707M

12%

$981M

$882M

11%

12%

May not total due to rounding

Aramark's earnings per share in fiscal 2025 was $1.22, compared to $0.99 in fiscal 2024. Adjusted earnings per share increased 19% 1 to $1.82. The additional incentive-based compensation in the fourth quarter impacted Adjusted EPS by approximately 5%, or $0.07.

FOURTH QUARTER RESULTS

Consolidated revenue was $5.0 billion in the fourth quarter, a 14% increase year-over-year both on a GAAP and organic revenue basis, primarily driven by substantial new business, high retention levels, and base business volume. The contribution from the 53rd week increased revenue by an estimated 7%.

The effect of currency translation increased GAAP revenue by $22 million.

Revenue

Q4 '25

Q4 '24

Change (%)

Organic Revenue Change (%)

FSS United States

$3,607M

$3,176M

14%

FSS International

$1,441M

$1,241M

16%

14%

Total Company

$5,048M

$4,417M

14%

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

May not total due to rounding

In the fourth quarter, operating income was unchanged at $218 million compared to the prior year, and AOI grew 6% 1 to $289 million. GAAP Operating Income reflected restructuring initiatives to further optimize operations. AOI growth was from higher revenue levels, leveraging technology capabilities, particularly in supply chain, and above-unit cost management. These increases more than offset elevated expenses in incentive-based compensation (approximately $25 million) and certain medical prescription claims ($5 million), as well as some new business start-up costs largely in Higher Education and Collegiate Sports. Excluding these items, AOI margin would have increased by an additional 70 basis points. The Company has taken actions to decrease future medical expenses, specifically related to certain elective lifestyle prescriptions.

Operating Income

Adjusted Operating Income (AOI)

Q4 '25

Q4 '24

Change (%)

Q4 '25

Q4 '24

Change (%)

Constant Currency Change (%)

FSS United States

$212M

$201M

$246M

$241M

FSS International

$39M

$46M

(15)%

$76M

$58M

31%

Corporate

($33M)

($28M)

(19)%

($33M)

($27M)

(24)%

Total Company

$218M

$219M

Unchanged

$289M

$271M

May not total due to rounding

Aramark's earnings per share in the fourth quarter was $0.33, compared to $0.46 in fiscal 2024. GAAP EPS in the quarter reflected a non-cash asset impairment associated with a minority interest investment made in a previous fiscal year. Adjusted earnings per share increased 6% 1 to $0.57. The additional incentive-based compensation impacted Adjusted EPS by 13%, or $0.07.

CASH FLOW AND CAPITAL STRUCTURE

Net cash provided by operating activities increased 27% to $921 million in fiscal 2025 and Free Cash Flow grew 41% to $454 million. The year-over-year increase was led by stronger cash from operations and favorable working capital. In the fourth quarter, the Company had a significant source of cash driven by the Collegiate Hospitality business, consistent with Aramark's historical seasonality.

The Company's leverage ratio improved to 3.25x at the end of September 2025, compared to 3.41x a year ago, and represented the lowest level in nearly 20 years. Aramark continues to take proactive actions to further enhance the Company's strong balance sheet and reduce its leverage ratio. In the fiscal year, Aramark repurchased in excess of 4 million shares of stock. Subsequent to year-end, the Company has repurchased shares in the market under a 10b5-1 program.

Aramark’s capital allocation priorities remain unchanged: 1) invest in the business to drive and propel growth; 2) reduce leverage below 3.0x; 3) grow quarterly dividend payments; and 4) repurchase Aramark stock using excess cash generation.

At fiscal year-end, the Company had over $2.4 billion in cash availability.

DIVIDEND DECLARATION

Aramark's Board of Directors approved a 14% increase to Aramark's quarterly dividend. The dividend of $0.12 per share of common stock will be payable on December 17, 2025, to stockholders of record at the close of business on December 5, 2025.

BUSINESS UPDATE

In fiscal 2025, Aramark capitalized on extensive new business opportunities, resulting in annualized gross new business wins of $1.6 billion—more than 12% greater than fiscal 2024. The Company also achieved a client retention rate of 96.3% with many LOBs and countries even higher. Combined, this represented unprecedented annualized Net New business for the Company at 5.6% of prior year revenue, which included the largest contract win ever awarded in FSS United States history—and is also one of the most prestigious medical systems in the world—scheduled to commence operations early in the new year.

Aramark believes in its continued ability to achieve Net New business of at least 4% to 5% of prior year revenue—with retention levels above 95%. The new business pipeline across the organization is significant, including in first-time outsourcing, and Aramark is already off to another strong start at this early stage in the new fiscal year.

The Company is also focused on accelerating profitability from its multiple operating levers, which include differentiated supply chain capabilities and disciplined cost management, building upon Aramark's efficiencies and scale.

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.

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

Fiscal 2026 Outlook

($ in millions, except Adjusted EPS and Leverage Ratio)

Fiscal 2025

Reference Point

$ Range 1

Year-over-year

Organic Growth 2

Revenue

$18,180*

$19,550

—

$19,950

+7%

—

+9%

Adjusted Operating Income

$981

$1,100

—

$1,150

+12%

—

+17%

Adjusted EPS

$1.82

$2.18

—

$2.28

+20%

—

+25%

Leverage Ratio

3.25x

Under 3x

Adjusted EPS does not include the additional benefit from opportunistic share repurchases

1Revenue $ Range included ~$100 million of expected favorability from foreign currency translation

2Constant Currency

*For easier comparison purposes, fiscal 2025 Revenue is on a 52-week basis

“We enter fiscal 2026 with great confidence,” Zillmer added. “Our teams are focused on driving performance, and we are already seeing success in leveraging enterprise-wide capabilities, starting operations for a record number of new clients, maintaining our retention momentum, optimizing Global Supply Chain strategies, and lastly pursuing another year of significant growth opportunities.”

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. Aramark has been recognized on FORTUNE’s list of “World’s Most Admired Companies,” The Civic 50 by Points of Light 2024, Fair360’s “Top 50 Companies for Diversity” and “Top Companies for Black Executives,” Newsweek’s list of “America’s Most Responsible Companies 2024,” the HRC’s “Best Places to Work for LGBTQ Equality,” and earned a score of 100 on the Disability Equality Index. 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 change in amortization of acquisition-related intangible assets; severance and other charges; spin-off related 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 change in amortization of acquisition-related intangible assets; severance and other charges; spin-off related charges; loss (gain) on equity investments, net; the effect of debt repayments and refinancings 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 debt agreements 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 provided by (used in) operating activities of continuing operations 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.

Net New Business

Net New Business is an internal statistical metric used to evaluate our new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business.

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 provided by (used in) operating activities of continuing operations, 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 change in amortization expense recognized on acquisition-related intangible assets.

Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period ($23.8 million for the fourth quarter of 2025, $36.4 million for fiscal 2025, $6.8 million for the fourth quarter of 2024 and $13.0 million for fiscal 2024).

Spin-off Related Charges - adjustments to eliminate charges related to the Company's spin-off of the Uniform segment, including accounting and legal related expenses, third party advisory costs and other costs. Adjustment also eliminates charitable contribution expense for the contribution of Vestis shares to a donor advised fund in order to fund charitable contributions ($8.8 million for fiscal 2024).

Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, including expense for contingent consideration liabilities related to acquisition earn outs ($11.1 million for fiscal 2025, $8.7 million reversal for the fourth quarter of 2024 and $8.2 million reversal for fiscal 2024), non-cash charges for the impairments of assets ($8.9 million for both the fourth quarter and fiscal 2025), hyperinflation in Argentina ($2.7 million for the fourth quarter of 2025, $5.7 million for fiscal 2025, $0.2 million for the fourth quarter of 2024 and $5.4 million for fiscal 2024), legal charges related to an anti-trust review ($1.4 million for the fourth quarter of 2025 and $2.5 million for fiscal 2025), non-cash adjustments to inventory based on expected usage ($18.2 million for both the fourth quarter and fiscal 2024), charges related to a ruling on a foreign payroll tax matter ($6.8 million for both the fourth quarter and fiscal 2024), non-cash charge related to the impairment of a trade name ($3.3 million for fiscal 2024), legal fees ($1.1 million for both the fourth quarter and fiscal 2024) and other miscellaneous charges.

Loss (Gain) on Equity Investments, net - adjustments to eliminate the impact of a non-cash charge for the impairment of an equity investment ($19.5 million for both the fourth quarter and fiscal 2025) and the sale of the Company's equity investment in the San Antonio Spurs NBA franchise ($25.1 million gain for both the fourth quarter and fiscal 2024).

Effect of Debt Repayments and Refinancings on Interest Expense, net - adjustments to eliminate expenses associated with the repayment of borrowings and refinancings by the Company in the applicable period such as charges related to the payment of a call premium ($23.9 million for fiscal 2024), non-cash charges for the write-off of unamortized debt issuance costs ($2.5 million for fiscal 2025, $1.1 million for the fourth quarter of 2024 and $9.0 million for fiscal 2024) and the payment of third party costs ($5.8 million for fiscal 2025 and $0.2 million for both the fourth quarter and fiscal 2024). Adjustment also eliminates expenses associated with the repricing of the United States Term B-5 Loans due 2028 and United States Term B-6 Loans due 2030 such as non-cash charges for the write-off of unamortized debt issuance costs and discount ($1.2 million for fiscal 2024) and the payment of third party costs ($0.4 million for fiscal 2024). Additionally, the adjustment eliminates the impact on interest related to a ruling on a foreign payroll tax matter ($3.9 million for both the fourth quarter and fiscal 2024).

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. Adjustment to eliminate the reversal of net valuation allowances recorded against deferred tax assets in foreign subsidiaries that were previously deemed to be not realizable ($9.6 million for the fourth quarter of 2025, $21.2 million for fiscal 2025 and $3.8 million for both the fourth quarter and fiscal 2024) and eliminates the impact of the state tax treatment related to the sale of a minority interest ($4.4 million charge for year-to-date 2025). Adjustment also eliminates the tax related impact of the Company's spin-off of the Uniform segment, including disallowed transaction costs ($3.6 million charge for fiscal 2025, $1.5 million benefit for the fourth quarter of 2024 and $1.1 million charge for fiscal 2024), a valuation allowance recorded based on the Company's ability to utilize foreign tax credits ($2.9 million charge for both the fourth quarter and fiscal 2025, $1.3 million benefit for the fourth quarter of 2024 and $5.8 million charge for fiscal 2024) and the restatement of the Company's deferred tax position ($2.1 million charge for the fourth quarter of 2024 and $0.2 million charge for fiscal 2024).

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 "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, ongoing tensions 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 19, 2024 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)

Fiscal Year Ended

October 3, 2025

September 27, 2024

Revenue

18,506,299

17,400,701

Costs and Expenses:

Cost of services provided (exclusive of depreciation and amortization)

16,959,669

15,975,017

Depreciation and amortization

476,345

435,547

Selling and general corporate expenses

278,439

283,627

Total costs and expenses

17,714,453

16,694,191

Operating income

791,846

706,510

Loss (Gain) on Equity Investments, net

19,465

(25,071

)

Interest Expense, net

341,925

366,716

Income Before Income Taxes

430,456

364,865

Provision for Income Taxes

103,586

102,972

Net income

326,870

261,893

Less: Net income (loss) attributable to noncontrolling interests

476

(629

)

Net income attributable to Aramark stockholders

326,394

262,522

Earnings per share attributable to Aramark stockholders:

Basic

1.24

1.00

Diluted

1.22

0.99

Weighted Average Shares Outstanding:

Basic

263,863

263,045

Diluted

267,349

266,200

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Amounts)

Three Months Ended

October 3, 2025

September 27, 2024

Revenue

5,048,464

4,416,947

Costs and Expenses:

Cost of services provided (exclusive of depreciation and amortization)

4,632,440

4,019,921

Depreciation and amortization

124,260

112,753

Selling and general corporate expenses

73,944

65,478

Total costs and expenses

4,830,644

4,198,152

Operating income

217,820

218,795

Loss (Gain) on Equity Investments, net

19,465

(25,071

)

Interest Expense, net

90,016

84,299

Income Before Income Taxes

108,339

159,567

Provision for Income Taxes

21,097

37,314

Net income

87,242

122,253

Less: Net (loss) income attributable to noncontrolling interests

104

(158

)

Net income attributable to Aramark stockholders

87,138

122,411

Earnings per share attributable to Aramark stockholders:

Basic

0.33

0.46

Diluted

0.33

0.46

Weighted Average Shares Outstanding:

Basic

263,155

263,894

Diluted

266,957

267,912

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)

October 3, 2025

September 27, 2024

Assets

Current Assets:

Cash and cash equivalents

639,095

672,483

Receivables

2,210,388

2,096,928

Inventories

418,766

387,601

Prepayments and other current assets

254,642

249,550

Total current assets

3,522,891

3,406,562

Property and Equipment, net

1,734,489

1,573,193

Goodwill

4,874,670

4,677,201

Other Intangible Assets

1,874,067

1,804,602

Operating Lease Right-of-use Assets

701,839

638,659

Other Assets

596,673

574,154

13,304,629

12,674,371

Liabilities and Stockholders' Equity

Current Liabilities:

Current maturities of long-term borrowings

31,543

964,286

Current operating lease liabilities

60,744

54,163

Accounts payable

1,522,747

1,394,007

Accrued expenses and other current liabilities

1,931,688

1,801,754

Total current liabilities

3,546,722

4,214,210

Long-Term Borrowings

5,374,394

4,307,171

Noncurrent Operating Lease Liabilities

255,305

241,012

Deferred Income Taxes and Other Noncurrent Liabilities

966,019

865,510

Commitments and Contingencies

Redeemable Noncontrolling Interest

14,130

7,494

Total Stockholders' Equity

3,148,059

3,038,974

13,304,629

12,674,371

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

Fiscal Year Ended

October 3, 2025

September 27, 2024

Cash flows from operating activities:

Net income

326,870

261,893

Adjustments to reconcile Net income to Net cash provided by operating activities:

Depreciation and amortization

476,345

435,547

Asset write-downs

8,946

18,186

Reduction of contingent consideration liability

11,127

(8,710

)

Loss (Gain) on equity investments, net

19,465

(25,071

)

Deferred income taxes

14,219

(7,323

)

Share-based compensation expense

58,643

62,552

Changes in operating assets and liabilities

51,396

14,014

Payments made to clients on contracts

(123,113

)

(139,003

)

Other operating activities

77,137

114,429

Net cash provided by operating activities

921,035

726,514

Cash flows from investing activities:

Net purchases of property and equipment and other

(466,573

)

(403,480

)

Proceeds from sale of equity investments

—

101,198

Acquisitions, divestitures and other investing activities

(255,851

)

(113,580

)

Net cash used in investing activities

(722,424

)

(415,862

)

Cash flows from financing activities:

Net proceeds/payments of long-term borrowings

45,779

(1,432,278

)

Payments of dividends

(110,821

)

(99,901

)

Proceeds from issuance of common stock

42,973

36,573

Repurchase of stock

(140,156

)

—

Payments for contingent considerations

(33,604

)

(12,807

)

Other financing activities

(38,799

)

(52,783

)

Net cash used in financing activities

(234,628

)

(1,561,196

)

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

10,548

10,790

Decrease in cash and cash equivalents and restricted cash

(25,469

)

(1,239,754

)

Cash and cash equivalents and restricted cash, beginning of period

732,613

1,972,367

Cash and cash equivalents and restricted cash, end of period

707,144

732,613

Balance Sheet classification

(in thousands)

October 3, 2025

September 27, 2024

Cash and cash equivalents

639,095

672,483

Restricted cash in Prepayments and other current assets

68,049

60,130

Total cash and cash equivalents and restricted cash

707,144

732,613

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN

(Unaudited)

(In thousands)

Fiscal Year Ended

October 3, 2025

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

13,211,947

5,294,352

18,506,299

Operating Income (as reported)

717,510

193,525

(119,189

)

791,846

Operating Income Margin (as reported)

5.4

3.7

4.3

Revenue (as reported)

13,211,947

5,294,352

18,506,299

Effect of Currency Translation

4,436

65,788

70,224

Adjusted Revenue (Organic)

13,216,383

5,360,140

18,576,523

Revenue Growth (as reported)

5.1

9.8

6.4

Adjusted Revenue Growth (Organic)

5.1

11.1

6.8

Operating Income (as reported)

717,510

193,525

(119,189

)

791,846

Amortization of Acquisition-Related Intangible Assets

97,921

26,643

—

124,564

Severance and Other Charges

6,637

29,795

—

36,432

Gains, Losses and Settlements impacting comparability

17,956

10,366

—

28,322

Adjusted Operating Income

840,024

260,329

(119,189

)

981,164

Effect of Currency Translation

1,239

3,241

—

4,480

Adjusted Operating Income (Constant Currency)

841,263

263,570

(119,189

)

985,644

Operating Income Growth (as reported)

8.7

3.3

15.3

12.1

Adjusted Operating Income Growth

8.5

19.1

(7.8

11.2

Adjusted Operating Income Growth (Constant Currency)

8.7

20.6

(7.8

11.7

Adjusted Operating Income Margin

6.4

4.9

5.3

Adjusted Operating Income Margin (Constant Currency)

6.4

4.9

5.3

Fiscal Year Ended

September 27, 2024

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

12,576,737

4,823,964

17,400,701

Operating Income (as reported)

659,907

187,341

(140,738

)

706,510

Amortization of Acquisition-Related Intangible Assets

91,358

15,706

—

107,064

Severance and Other Charges

12,868

—

12,960

Spin-off Related Charges

—

29,037

Gains, Losses and Settlements impacting comparability

10,044

15,528

1,075

26,647

Adjusted Operating Income

774,177

218,575

(110,534

)

882,218

Operating Income Margin (as reported)

5.2

3.9

4.1

Adjusted Operating Income Margin

6.2

4.5

5.1

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN

(Unaudited)

(In thousands)

Three Months Ended

October 3, 2025

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

3,607,339

1,441,125

5,048,464

Operating Income (as reported)

212,076

39,228

(33,484

)

217,820

Operating Income Margin (as reported)

5.9

2.7

4.3

Revenue (as reported)

3,607,339

1,441,125

5,048,464

Effect of Currency Translation

355

(22,029

)

(21,674

)

Adjusted Revenue (Organic)

3,607,694

1,419,096

5,026,790

Revenue Growth (as reported)

13.6

16.1

14.3

Adjusted Revenue Growth (Organic)

13.6

14.4

13.8

Operating Income (as reported)

212,076

39,228

(33,484

)

217,820

Amortization of Acquisition-Related Intangible Assets

25,046

8,881

—

33,927

Severance and Other Charges

2,193

21,561

—

23,754

Gains, Losses and Settlements impacting comparability

6,829

6,222

—

13,051

Adjusted Operating Income

246,144

75,892

(33,484

)

288,552

Effect of Currency Translation

(422

)

—

(340

)

Adjusted Operating Income (Constant Currency)

246,226

75,470

(33,484

)

288,212

Operating Income Growth (as reported)

5.7

(15.1

(19.0

(0.4

Adjusted Operating Income Growth

2.3

31.3

(23.7

6.3

Adjusted Operating Income Growth (Constant Currency)

2.3

30.6

(23.7

6.2

Adjusted Operating Income Margin

6.8

5.3

5.7

Adjusted Operating Income Margin (Constant Currency)

6.8

5.3

5.7

Three Months Ended

September 27, 2024

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

3,176,066

1,240,881

4,416,947

Operating Income (as reported)

200,715

46,214

(28,134

)

218,795

Amortization of Acquisition-Related Intangible Assets

23,724

4,527

—

28,251

Severance and Other Charges

6,719

—

6,719

Gains, Losses and Settlements impacting comparability

9,476

7,055

1,075

17,606

Adjusted Operating Income

240,634

57,796

(27,059

)

271,371

Operating Income Margin (as reported)

6.3

3.7

5.0

Adjusted Operating Income Margin

7.6

4.7

6.1

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

Fiscal Year Ended

October 3, 2025

September 27, 2024

October 3, 2025

September 27, 2024

Net Income Attributable to Aramark Stockholders (as reported)

87,138

122,411

326,394

262,522

Adjustment:

Amortization of Acquisition-Related Intangible Assets

33,927

28,251

124,564

107,064

Severance and Other Charges

23,754

6,719

36,432

12,960

Spin-off Related Charges

—

29,037

Gains, Losses and Settlements impacting comparability

13,051

17,606

28,322

26,647

Loss (Gain) on Equity Investments, net

19,465

(25,071

)

19,465

(25,071

)

Effect of Debt Repayments and Refinancings on Interest Expense, net

—

5,282

8,326

38,634

Tax Impact of Adjustments to Adjusted Net Income

(25,620

)

(11,663

)

(56,515

)

(39,956

)

Adjusted Net Income

151,715

143,535

486,988

411,837

Effect of Currency Translation, net of Tax

—

3,619

—

Adjusted Net Income (Constant Currency)

151,781

143,535

490,607

411,837

Earnings Per Share (as reported)

Net Income Attributable to Aramark Stockholders (as reported)

87,138

122,411

326,394

262,522

Diluted Weighted Average Shares Outstanding

266,957

267,912

267,349

266,200

0.33

0.46

1.22

0.99

Earnings Per Share Growth (as reported) %

(28.3

23.2

Adjusted Earnings Per Share

Adjusted Net Income

151,715

143,535

486,988

411,837

Diluted Weighted Average Shares Outstanding

266,957

267,912

267,349

266,200

0.57

0.54

1.82

1.55

Adjusted Earnings Per Share Growth %

5.6

17.4

Adjusted Earnings Per Share (Constant Currency)

Adjusted Net Income (Constant Currency)

151,781

143,535

490,607

411,837

Diluted Weighted Average Shares Outstanding

266,957

267,912

267,349

266,200

0.57

0.54

1.84

1.55

Adjusted Earnings Per Share Growth (Constant Currency) %

5.6

18.7

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

NET DEBT TO COVENANT ADJUSTED EBITDA

(Unaudited)

(In thousands)

Twelve Months Ended

October 3, 2025

September 27, 2024

Net income Attributable to Aramark Stockholders (as reported)

326,394

262,522

Interest Expense, net

341,925

366,716

Provision for Income Taxes

103,586

102,972

Depreciation and Amortization

476,345

435,547

Share-based compensation expense (1)

58,107

62,552

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

19,465

(22,752

)

Pro forma EBITDA for certain transactions (3)

13,357

840

Other (4)(5)

125,579

126,581

Covenant Adjusted EBITDA

1,464,758

1,334,978

Net Debt to Covenant Adjusted EBITDA

Total Long-Term Borrowings

5,405,937

5,271,457

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

639,095

714,825

Net Debt

4,766,842

4,556,632

Covenant Adjusted EBITDA

1,464,758

1,334,978

Net Debt/Covenant Adjusted EBITDA

3.25

3.41

(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 October 3, 2025 represents the fiscal 2025 non-cash charge for the impairment of an equity investment ($19.5 million). The twelve months ended September 27, 2024 represents fiscal 2024 gain from the sale of the Company's remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and the fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million).

(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period.

(4) "Other" for the twelve months ended October 3, 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 ($54.2 million), severance charges ($36.4 million), contingent consideration expense related to acquisition earn outs ($11.1 million), non-cash charges for the impairments of assets ($8.9 million), the impact of hyperinflation in Argentina ($5.7 million), merger and integration charges ($4.1 million), legal charges related to an anti-trust review ($2.5 million) and other miscellaneous expenses.

(5) "Other" for the twelve months ended September 27, 2024 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 ($52.2 million), charges related to the Company's spin-off of the Uniform segment ($29.0 million), non-cash adjustments to inventory based on expected usage ($21.7 million), severance charges ($13.0 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($8.1 million), charges related to a ruling on a foreign payroll tax matter ($6.8 million), the impact of hyperinflation in Argentina ($5.4 million), non-cash charges related to the impairment of a trade name ($3.3 million), income related to non-United States governmental wage subsidies ($1.1 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 Consolidated Balance Sheets.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FREE CASH FLOW

(Unaudited)

(In thousands)

Fiscal Year Ended

Nine Months Ended

Three Months Ended

October 3, 2025

June 27, 2025

October 3, 2025

Net cash provided by (used in) operating activities

921,035

(254,527

)

1,175,562

Net purchases of property and equipment and other

(466,573

)

(342,714

)

(123,859

)

Free Cash Flow

454,462

(597,241

)

1,051,703

Fiscal Year Ended

Nine Months Ended

Three Months Ended

September 27, 2024

June 28, 2024

September 27, 2024

Net cash provided by (used in) operating activities

726,514

(295,101

)

1,021,615

Net purchases of property and equipment and other

(403,480

)

(270,912

)

(132,568

)

Free Cash Flow

323,034

(566,013

)

889,047

Fiscal Year Ended

Nine Months Ended

Three Months Ended

Change

Net cash provided by operating activities

194,521

40,574

153,947

Net purchases of property and equipment and other

(63,093

)

(71,802

)

8,709

Free Cash Flow

131,428

(31,228

)

162,656

ARAMARK AND SUBSIDIARIES

FISCAL 2025 REFERENCE POINT

(Unaudited)

(In thousands)

Fiscal Year Ended

October 3, 2025

Revenue (as reported)

18,506,299

Estimated Impact of 53rd week

(326,691

)

Adjusted Revenue (Organic)

18,179,608