Vestis Corporation (VSTS)
NYSE:VSTS
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.1Last Year’s EPS
-0.01Same Quarter Last Year
Moderate Sell
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call delivered materially positive operational and financial momentum: management reported the first YoY adjusted EBITDA growth in over two years, an improved cost-per-pound and operating leverage, strong free cash flow generation, and raised full-year guidance for both adjusted EBITDA and free cash flow. These achievements were supported by measurable operational improvements (on-time delivery, plant productivity, reduced customer complaints) and active balance-sheet actions (debt repayments, asset sales). Offsetting these positives are modest revenue and volume declines, remaining elevated net debt, prior-year one-offs that complicate comparability, and some one-time cash flow benefits that may not repeat. Management emphasized that top-line recovery depends on ongoing commercial execution and network optimization, with a projected return to growth in Q4 but without specific numeric visibility. Overall, the call reflects meaningful progress under the transformation plan with remaining execution and leverage risks to monitor.Company Guidance
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA for Q2 was $74.5 million, up approximately $12 million or ~19% year-over-year on a covenant-adjusted basis; adjusted EBITDA margin improved to 11.3% versus 7.2% in the prior year (9.4% on a comparable adjusted basis).
First YoY Adjusted EBITDA Growth and Operating Leverage Improvement
Company delivered its first year-over-year adjusted EBITDA growth in more than two years and reported the first improvement in operating leverage since becoming public, driven by a $0.02 year-over-year improvement in operating leverage per pound.
Cost per Pound Reduction
Cost per pound improved by $0.02 year-over-year, attributable to lower merchandise and delivery costs, improved plant productivity and SG&A streamlining.
Operational Performance Metrics Improved
Key operational KPIs improved versus Q2 FY2025: on-time delivery up 270 basis points, plant productivity increased ~11%, and customer complaints declined ~4%.
Revenue-Per-Pound Stabilization and Revenue Quality
Revenue per pound was flat at $1.37 year-over-year and sequentially (first time flat since becoming public); the company exited ~6 million pounds of lower-quality volume (averaging ~$1.00/pound), which improved overall revenue quality.
Cash Flow and Balance Sheet Progress
Q2 operating cash flow was $58.3 million and free cash flow $45.6 million; adjusted free cash flow was $57 million. Year-to-date free cash flow improved to ~$74 million (a ~$92 million improvement YoY). Company repaid $34 million of debt in the quarter and ended Q2 with $344 million of available liquidity (including ~$294M revolver capacity and ~$50M cash).
Raised Full-Year Guidance
Management raised FY2026 adjusted EBITDA guidance to $295 million–$325 million (midpoint $310M, up from prior midpoint $300M) and increased expected in-year transformation benefits to ~$50 million (from $40M). Free cash flow guidance was raised materially to $120 million–$150 million (from $50M–$60M).
Asset Dispositions and Debt Reduction Actions
Sold two inactive nonoperating facilities in the quarter generating ~$6.5 million in net proceeds used to repay debt; actively marketing additional nonoperating properties (11 properties with estimated value ~$15 million) for further debt reduction and balance sheet optimization.
VSTS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
VSTS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 12, 2026 | $9.30 | $12.00 | +29.03% |
Feb 10, 2026 | $7.32 | $8.50 | +16.12% |
Dec 01, 2025 | $6.72 | $6.23 | -7.29% |
Aug 05, 2025 | $5.99 | $5.64 | -5.84% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Vestis Corporation (VSTS) report earnings?
Vestis Corporation (VSTS) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is Vestis Corporation (VSTS) earnings time?
Vestis Corporation (VSTS) earnings time is at Aug 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is VSTS EPS forecast?
VSTS EPS forecast for the fiscal quarter 2026 (Q3) is 0.1.