Q2 2025 Aramark Earnings Call Transcript
Key Points
- Aramark (ARMK) reported a strong client retention rate above 98% in both FSS US and international segments.
- The company experienced a monthly acceleration of revenue growth, with a 6% increase in April.
- New client wins totaled $760 million fiscal year-to-date, providing clear visibility to achieving net new growth of 4% to 5% in fiscal '25.
- International segment reported a 10% year-over-year increase in organic revenue, with strong performance in countries like the UK, Spain, Chile, and Canada.
- Aramark (ARMK) achieved record AOI profitability for any second quarter in global FSS history, with over 20% adjusted EPS growth on a constant currency basis.
- Revenue growth was affected by the exit of some facilities accounts last year and temporary weather-related client site closures in the Southeast US.
- The US segment's organic revenue growth was only 1% in the second quarter, impacted by calendar shifts and weather-related closures.
- Recent US tariff activity introduced uncertainty in market pricing levels and inflation expectations.
- The company faced challenges in the education sector due to fewer operating days caused by a calendar shift.
- Despite strong performance, the company is still managing fluctuations in the marketplace, both on Wall Street and Main Street.
Good morning, and welcome to Aramark's Second Quarter Fiscal 2025 Earnings Results Conference Call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you that this conference is being recorded for rebroadcast. (Operator Instructions)
I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. Kissell, please proceed.
Thank you, and welcome to Aramark's earnings conference call and webcast. This morning, we will be hearing from our CEO, John Zillmer; as well as CFO, Jim Tarangelo. As always, there are accompanying slides for this call that can be viewed through the webcast and are also available on the IR website for easy access.
Our notice regarding forward-looking statements is included in our press release. During this call, we will be making comments that are forward-looking. Actual results may differ materially from those expressed or implied as a result of various
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