Vestis Corporation (NYSE: VSTS) reported fourth quarter revenue of $712 million, representing a 4.1% increase compared to the prior year period. The uniform and workplace supplies provider recorded an operating income of $18 million and a net loss of $13 million, or $0.10 per diluted share, for the quarter ended October 3, 2025.

The company announced a comprehensive business transformation plan designed to improve profitability and operational efficiency. The plan focuses on three strategic areas: Commercial Excellence, Operational Excellence, and Asset & Network Optimization. Management expects the initiative to generate annual operating cost savings of at least $75 million by the end of fiscal 2026.

For the full fiscal year 2025, Vestis reported revenue of $2.73 billion and a net loss of $40 million. The company generated $64 million in operating cash flow for the year and $6 million in free cash flow.

The fourth quarter revenue increase was primarily driven by an additional week of operations, which contributed $51.6 million. Excluding this impact, revenue declined 3.5% year-over-year, reflecting an $18.1 million decrease in rental revenue due to lost business, a $5.0 million decline in direct sales revenue, and foreign exchange impacts.

Chief Executive Officer Jim Barber stated that the transformation plan represents a critical step toward improving operating leverage and positioning the company for long-term growth. Chief Financial Officer Kelly Janzen emphasized the focus on increasing profitability and cash flow to strengthen the balance sheet.

The transformation plan is expected to be substantially complete by the end of 2027, with implementation costs estimated between $25 million and $30 million. For fiscal 2026, the company projects revenue to be flat to down 2% compared to normalized fiscal 2025 revenue, with Adjusted EBITDA expected in the range of $285 million to $315 million.

Vestis ended the quarter with $298 million in available liquidity, including $30 million in cash and cash equivalents. Total debt outstanding was $1.34 billion, including $1.17 billion in principal bank debt.