Vestis Corporation (NYSE: VSTS) announced its financial results for the fiscal fourth quarter and full-year periods ending October 3, 2025, highlighting revenue of $712 million and a net loss of $13 million.
The company introduced a strategic business transformation plan anchored on three pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization.
Management expects the plan to generate annual operating cost savings of at least $75 million by the end of fiscal 2026.
Revenue Growth
Revenue for the fourth quarter increased by 4.1% year over year, primarily due to an additional week of operations.
Operating Income Decline
Operating income decreased by $12.2 million compared to the previous year, mainly attributed to margin impact from lost business.
Strategic Transformation Plan
The multi-year transformational restructuring plan aims to enhance customer focus, agility, and efficiency to drive long-term profitable growth.
- The fourth-quarter revenue increase was driven by the extra week of operations, while excluding this impact, revenue declined by 3.5% year over year.
- Operating income decrease was primarily due to margin impact related to lost business, partially offset by cost improvements.
- The strategic transformation plan is expected to streamline operations, boost efficiency, and create value for stakeholders through disciplined execution and continuous improvement.
Vestis Corporation's financial report reflects both challenges and strategic initiatives to enhance performance and drive profitability. The announced multi-year transformation plan demonstrates the company's commitment to long-term growth and operational excellence.