AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 19/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · The established route and processing network, combined with demonstrated inventory, sourcing and fixed-cost efficiencies, supports a narrow cost advantage. Fragmented competition and absent relative-cost benchmarks limit its demonstrated strength.
durability · 2/4 · Network expansion and repeated efficiency improvements across successive filings support persistence. The evidence does not establish a long protected runway or prevent competitors from replicating local service economics.
customer dependency · 2/4 · Over 95% of revenue comes from route servicing, and existing-customer expansion indicates continuing operational relevance. This is indirect evidence of dependency; in-house alternatives and undisclosed switching terms constrain the assessment.
erosion resilience · 2/4 · Organic growth, continued pricing and recent efficiency gains show no demonstrated broad erosion. Resilience remains mixed because local substitution and possible price pressure are credible exposures, while performance under prolonged competitive or demand stress is not supplied.
Pricing power75
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Fiscal 2024, 2025 and 2026 disclosures and the August 2026 quarter repeatedly identify realized price increases alongside customer expansion. This supports demonstrated pricing power, although price contribution and customer-level elasticity are not quantified.
retention · 3/4 · Repeated existing-customer cross-selling, predominantly recurring route revenue and reported strong retention support sustained repeat demand. The assessment uses indirect operating evidence and issuer retention descriptions, not a verified retention rate; annual disclosures also acknowledge lost business.
margin resilience · 3/4 · Repeated sourcing and productivity improvements and the latest operating-margin expansion demonstrate cost absorption alongside pricing. Results are not uniform: All Other's annual operating margin declined, and mix and efficiencies prevent attributing resilience entirely to price.
contractual freedom · 3/4 · The supplied First Aid and Safety agreement demonstrates strong contractual repricing freedom: Cintas expressly reserves price increases, customers must object within 10 days of notice, and Cintas may terminate if they object; otherwise the new prices bind them. Freedom is qualified by that objection process and the requirement for bilateral signatures on amendments. This evidence covers selected First Aid and Safety products, not all uniform rental contracts, and does not establish exceptional companywide freedom.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 1.68
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.06
Financial strength84
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 95.85
- netDebtEbitGrade
- 83.59
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 54.72
- Debt / FCF (x)
- 1.29
- Net debt / operating income (x)
- 0.82
- Interest coverage (x)
- 24.52
- Current ratio (x)
- 1.43
Capital allocation100
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 35.01
- 3-year average dilution (%)
- -0.44
- 3-year average SBC / revenue (%)
- 1.20
- cashConversionGrade
- 98.60
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Annual cash generation and actual investment and distributions establish operating funding capacity. Quarterly capital expenditures, dividends and repurchases together exceeded quarterly operating cash, subsequent repurchases continued, and the pending cash-and-stock acquisition adds an unproven commitment. Spending is assessable, but acquisition returns and buyback value creation remain unestablished.
incentive alignment · 2/4 · Actual fiscal 2026 incentives linked to EPS and sales growth, earned cash awards and generally three-year restricted-stock vesting provide alignment. Committee adjustment discretion and the chairman's non-performance equity structure temper it. Ownership amounts and complete incentive weightings are missing.
execution · 3/4 · Strong organic growth, infrastructure expansion and repeated inventory, sourcing and productivity gains demonstrate execution through operating outcomes. Attribution to particular managers is indirect; pending acquisition integration is not credited.
governance · 2/4 · Independent committees, annual director terms, implemented voting reforms and an unqualified internal-control opinion provide meaningful safeguards. Board discretion over resignation offers and remaining supermajority provisions limit accountability. Proposed reincorporation is not treated as effective.
Evidence
Operations and Distribution
Within the Uniform Rental and Facility Services reportable operating segment, Cintas provides its products and services to customers via local delivery routes originating from rental processing plants and branches.
Business / Operations and Distribution · Filed 29/07/2026
At May 31, 2026, Cintas, in total, had approximately 12,500 local delivery routes, 484 operational facilities and 12 distribution centers.
Business / Operations and Distribution / May 2026 infrastructure · Filed 29/07/2026
At May 31, 2024, Cintas, in total, had approximately 11,700 local delivery routes, 467 operational facilities and 12 distribution centers.
Business / Operations and Distribution / May 2024 infrastructure · Filed 25/07/2024
This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory, strategic sourcing initiatives, efficiency gains and improved leverage of fixed costs.
MD&A / Uniform rental cost efficiency · Filed 07/10/2026
Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 50.3% for the three months ended August 31, 2025, to 49.2% for the three months ended August 31, 2026.
MD&A / Uniform rental cost of services · Filed 07/10/2026
The improvement in gross margin as a percent of revenue was primarily driven by favorable changes in the sales mix, sourcing and productivity initiatives, as well as improved leverage of fixed costs and a reduction in energy expense as a percent of revenue.
MD&A / First Aid and Safety Services / Gross margin drivers · Filed 29/07/2026
The improvement in gross margin as a percent of revenue was primarily driven by favorable changes in the sales mix, sourcing and productivity initiatives, as well as improved leverage of fixed costs and a reduction in energy expense as a percent of revenue.
MD&A / First Aid and Safety Services / Gross margin drivers · Filed 28/07/2025
The improvement in gross margin as a percent of revenue was primarily driven by favorable changes in the sales mix, sourcing and productivity initiatives, as well as improved leverage of fixed costs and a reduction in energy expense as a percent of revenue.
MD&A / First Aid and Safety Services / Gross margin drivers · Filed 25/07/2024
Competition
The primary markets served by each of the Cintas operating segments are local in nature and highly fragmented.
Business / Competition / Local fragmented markets · Filed 29/07/2026
Cintas competes with national, regional and local providers, large national retailers and small local retailers as well as companies with a significant online presence and the level of competition varies at each of Cintas' local
4
operations.
Business / Competition / Provider categories · Filed 29/07/2026
In addition, businesses may decide to perform certain services in-house instead of outsourcing these services.
Business / Competition / In-house alternatives · Filed 29/07/2026
If existing or future competitors seek to gain or retain market share by reducing prices, Cintas may be required to lower prices, which would adversely affect our consolidated results of operations.
Risk Factors / Competitive pricing pressure · Filed 29/07/2026
Increases in labor costs, including the cost to provide employee-partner related healthcare benefits, minimum wages, labor shortages or shortages of skilled labor, regulations regarding the classification of employees and/or their eligibility for overtime wages, higher material costs for items such as fabrics, textiles and other products used in our operations, the inability to obtain insurance coverage at cost-effective rates, higher interest rates, inflation, higher tax rates and other changes in tax laws and other economic factors could increase our costs of rental uniforms and facility services, cost of other services and selling and administrative expenses.
Risk Factors / Labor and input costs · Filed 29/07/2026
Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.
MD&A / Fiscal 2024 revenue growth drivers · Filed 25/07/2024
Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.
MD&A / Fiscal 2025 revenue growth drivers · Filed 28/07/2025
Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.
MD&A / Fiscal 2026 uniform rental revenue growth drivers · Filed 29/07/2026
Revenue growth was a result of new business, the penetration of additional products and services into existing customers, price increases, and strong customer retention.
MD&A / August 2026 quarter / Uniform rental growth and retention · Filed 07/10/2026
The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
MD&A / Fiscal 2026 First Aid and Safety Services / Growth and retention · Filed 29/07/2026
Revenue increased organically by 8.3% primarily as a result of increased sales volume.
MD&A / Fiscal 2026 organic revenue growth · Filed 29/07/2026
Over 95% of the Company's revenue is derived from fees for route servicing of Uniform Rental and Facility Services, First Aid and Safety Services and Fire Protection Services customers, performed by a Cintas employee-partner, at the customer's location of business.
Revenue recognition / Route servicing share of revenue · Filed 29/07/2026
The Company recognizes revenue over time as services are
32
performed, based on the nature of services provided and contractual rates (output method) or at a point in time when the performance obligation under the terms of the contract with a customer are satisfied, at the customer's location of business.
Revenue recognition / Contractual rates · Filed 29/07/2026
The Company's performance period generally corresponds with the monthly invoice period.
Revenue recognition / Performance and invoice periods · Filed 29/07/2026
Operating income was $711.9 million, or 23.6% of revenue, for the three months ended August 31, 2026, compared to $617.9 million, or 22.7% of revenue, for the three months ended August 31, 2025.
MD&A / August 2026 quarter / Consolidated operating income · Filed 07/10/2026
26
Liquidity and Capital Resources
The following table summarizes our cash flows and cash and cash equivalents as of and for the fiscal years ended May 31:
(In thousands)
2026
2025
Net cash provided by operating activities
$
2,276,280
$
2,165,905
Net cash used in investing activities
$
(568,428)
$
(623,638)
Net cash used in financing activities
$
(1,682,072)
$
(1,619,011)
Cash and cash equivalents at end of year
$
289,018
$
263,973
Cash and cash equivalents as of May 31, 2026 and 2025, include $78.5 million and $57.8 million, respectively, that is located outside of the U.S.
Liquidity and Capital Resources / Annual cash flows · Filed 29/07/2026
Table of Contents
CINTAS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
Accounts receivable, net
(32,734)
(3,635)
Inventories, net
12,817
(2,398)
Uniforms and other rental items in service
(33,880)
(34,760)
Prepaid expenses and other current assets and capitalized contract costs
(108,897)
(62,382)
Accounts payable
46,486
(22,501)
Accrued compensation and related liabilities
(77,801)
(94,275)
Accrued liabilities and other
(49,338)
(101,114)
Income taxes, current
96,462
74,625
Net cash provided by operating activities
572,331
414,481
Cash flows from investing activities:
Capital expenditures
(107,532)
(101,957)
Purchases of investments
(7,179)
(6,538)
Acquisitions of businesses, net of cash acquired
(3,916)
(7,602)
Other, net
1,260
(130)
Net cash used in investing activities
(117,367)
(116,227)
Cash flows from financing activities:
Consolidated condensed cash flows / Operating cash and investment spending · Filed 07/10/2026
Proceeds from exercise of stock-based compensation awards
159
2,669
Dividends paid
(180,700)
(157,766)
Repurchase of common stock
(315,710)
(266,097)
Other, net
(3,917)
(2,807)
Net cash used in financing activities
(500,168)
(424,001)
Effect of exchange rate changes on cash and cash equivalents
(215)
(83)
Net decrease in cash and cash equivalents
(45,419)
(125,830)
Cash and cash equivalents at beginning of period
289,018
263,973
Cash and cash equivalents at end of period
$
243,599
$
138,143
See accompanying notes.
Consolidated condensed cash flows / Distributions and cash balance · Filed 07/10/2026
In the period subsequent to August 31, 2026, through October 7, 2026, Cintas purchased 2.5 million shares of Cintas common stock at an average price of $198.99 per share, for a total purchase price of $494.0 million.
Liquidity and Capital Resources / Subsequent repurchases through October 7, 2026 · Filed 07/10/2026
In connection with the Transaction, UniFirst shareholders will receive the merger consideration, which consists of (i) $155.00 in cash and (ii) 0.7720 of validly issued, fully paid and non-assessable shares of Cintas common stock (with, if applicable, cash in lieu of fractional shares), in each case without interest and subject to any required tax withholding, and each applicable holder of such shares of UniFirst stock will cease to have any rights with respect thereto, except the right to receive the applicable merger consideration.
Business / Merger agreement / Cash and stock consideration · Filed 29/07/2026
The Transaction has not closed as of the date of the filing of this Form 10-Q.
Notes / UniFirst transaction / Unclosed status · Filed 07/10/2026
On October 2, 2026, Cintas and UniFirst entered into a timing agreement with the FTC pursuant to which Cintas and UniFirst agreed, among other things, not to consummate the Transaction prior to December 11, 2026 unless they have received written notice from the FTC prior to such date that the FTC has closed its investigation of the Transaction.
Notes / UniFirst transaction / FTC timing agreement · Filed 07/10/2026
UniFirst is a North American company in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services.
Business / Merger agreement / UniFirst business description · Filed 29/07/2026
Rozakis, were generally based on Cintas' diluted EPS, Cintas' growth in sales and the accomplishment of certain non-financial goals (as described below).
Compensation Discussion and Analysis / CEO and COO incentive measures · Filed 15/09/2026
(2)Reflects for fiscal 2026, the annual cash incentive awards earned by the NEOs under the Management Incentive Plan discussed in further detail beginning on page 25.
Summary Compensation Table / Fiscal 2026 incentives earned · Filed 15/09/2026
Schneider
Restricted stock for NEOs generally vests three years from the date of grant.
Compensation Discussion and Analysis / Restricted stock vesting · Filed 15/09/2026
(9) Under the Management Incentive Plan, annual incentive calculations for achievement of financial goals are based on actual results, subject to adjustment at the discretion of the Compensation Committee to exclude non-recurring or unusual items that are not operational, such as accounting principle changes or revenue from an acquisition that was not in the business plan.
Pay Versus Performance / Incentive calculation adjustments · Filed 15/09/2026
Farmer’s equity awards would no longer be based on the achievement of certain corporate performance goals, but rather, would align with the annual retainer of the Board and he would receive an annual equity award in the form of restricted stock, which generally vests three years from the date of the grant.
Compensation Discussion and Analysis / Executive chairman equity compensation · Filed 15/09/2026
Tysoe. Our Audit, Compensation and Nominating and Corporate Governance Committees are composed solely of independent directors.
Corporate Governance / Independent board committees · Filed 15/09/2026
All directors are elected for one-year terms.
Corporate Governance / Annual director terms · Filed 15/09/2026
In an uncontested election, like this election, our Bylaws require that any nominee who does not receive a majority of the votes cast with respect to such nominee must offer their resignation to the Board.
Election of Directors / Resignation requirement · Filed 15/09/2026
The Nominating and Corporate Governance Committee will take the matter under advisement and make a recommendation to the Board on whether to accept or reject the resignation or whether other action should be taken.
Election of Directors / Board discretion over resignations · Filed 15/09/2026
Two proposals — eliminating the supermajority voting standard to remove directors for cause and eliminating the supermajority voting standard for shareholder approval of mergers, share exchanges, asset sales and dissolutions — passed at that meeting and have since been implemented.
Shareholder Engagement / Implemented voting reforms · Filed 15/09/2026
Under our Restated Articles of Incorporation, business combinations may not be effected with “interested shareholders” — defined generally as a shareholder owning 15% or more of our outstanding voting securities — within five years following the date that such shareholders became interested shareholders, unless approved by the affirmative vote of the holders of outstanding voting securities entitled to exercise two-thirds of the combined voting power and by the affirmative vote of two-thirds of the voting securities beneficially owned by “disinterested shareholders.”
Governance / Existing interested-shareholder supermajority provision · Filed 15/09/2026
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of May 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated July 29, 2026 expressed an unqualified opinion thereon.
Independent auditor report / Internal control opinion · Filed 29/07/2026
4. To approve the reincorporation of the Company from the State of Washington to the State of
Delaware;
5.
Annual Meeting Notice / Proposed reincorporation · Filed 15/09/2026
Uniform Rental and Facility Services
25.9%
25.8%
First Aid and Safety Services
32.3%
33.0%
All Other
32.3%
30.6%
Total selling and administrative expenses
27.4%
27.2%
UniFirst transaction expenses
0.1%
—%
Operating income:
Uniform Rental and Facility Services
24.1%
23.5%
First Aid and Safety Services
25.4%
24.2%
All Other
15.3%
16.7%
Total operating income
23.1%
22.8%
Interest expense, net
0.9%
0.9%
Income before income taxes
22.2%
21.9%
24
Fiscal 2026 Compared to Fiscal 2025
MD&A / Fiscal 2026 and 2025 segment operating margins · Filed 29/07/2026
Revenue growth was a result of new business, the penetration of additional products and services into existing customers, price increases, and strong customer retention.
Management discussion of revenue growth · Filed 07/10/2026
2 d/b/a Cintas First Aid & Safety (“Cintas”) will provide Customer the Automatic External Defibrillator(s) (“Devices”), The Safety Director® Emergency Eyewash Station(s) (“Eyewash Stations”) and the WaterBreak® Units, including the WaterBreak® Cooler Units and WaterBreak® Ice Machine Units (together, the “Units,” and collectively with the Devices, Eyewash Stations, and related products and services outlined herein, the “Products” and individually a “Product”) as selected by Customer, in accordance with the terms and conditions of this Cintas First Aid and Safety Service Agreement and the terms of the Delivery Confirmation (collectively, this “Agreement”).
Agreement scope: selected First Aid and Safety products and services · Retrieved 19/10/2026
Customer acknowledges, however, that Cintas’s costs may increase and Cintas reserves the right to increase prices.
Term; Renewal; Charges: express right to increase prices · Retrieved 19/10/2026
If Cintas increases a price, Customer has the right to object in writing within 10 days of notice of the increase, which may be in the form of an invoice.
Term; Renewal; Charges: customer objection within 10 days of notice · Retrieved 19/10/2026
If Customer objects to the increase, Cintas has the right to terminate the Agreement.
Term; Renewal; Charges: Cintas termination right following objection · Retrieved 19/10/2026
If Customer does not object, Customer is bound by the new prices.
Term; Renewal; Charges: new prices bind customers who do not object · Retrieved 19/10/2026
No amendment of this Agreement is effective unless it is signed by Customer and Cintas.
Entire Agreement; Amendments; Waiver; Severability: amendments require both parties' signatures · Retrieved 19/10/2026
