Q2 2025 Vestis Corp Earnings Call Transcript
Key Points
- Jim Barber, former COO of UPS, will join as President and CEO, bringing proven leadership and a track record of driving profitable growth.
- New business contributed 2.4% of revenue growth, with strong performance in frontline sales and national accounts.
- Frontline sales team is fully staffed, with average productivity per sales representative increasing by approximately 10% over the second quarter.
- Field sales and national account teams installed 35% more recurring revenue year over year and 10% more than in the first quarter.
- Successfully executed an amendment to the credit agreement, providing additional financial flexibility through the end of fiscal 2026.
- Second quarter revenue was $665 million, a decline of approximately $18 million from Q1, missing growth expectations.
- Adjusted EBITDA margin decreased to 9.4% from 11.9% in Q1, reflecting the impact of lower revenue on a relatively fixed cost structure.
- Revenue from existing customers declined by approximately $8 million in Q2 compared to Q1, including a $4 million decrease in LNR revenue.
- SG&A expenses increased by $27 million compared to Q1, including a $15 million one-time bad debt expense adjustment.
- Net loss for the quarter was $28 million, with a diluted loss per share of $0.21, highlighting ongoing financial challenges.
(Operator Instructions)
Welcome to the Vestis Corporation fiscal second-quarter 2025 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Michael Aurelio, Vice President of Investor Relations.
Thank you, operator, and thank you all for joining us. With me are Philip Homan, Interim Executive Chairman, President and Chief Executive Officer; and Kelly Janzen, Executive Vice President and Chief Financial Officer, and they will discuss our fiscal 2025 second-quarter results. After commentary, we will open the call to questions from the analysts.
The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties which
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