Organic revenue growth was a strong 8.0% for fiscal 2025, driven by increased sales volume, new business acquisitions, and deeper penetration of additional products and services into existing customer accounts. This highlights the effectiveness of Cintas' sales force productivity and training programs.

Cintas acquired 28 individually immaterial businesses in fiscal 2025, compared to 16 in fiscal 2024, with cash paid for acquisitions, net of cash acquired, totaling $232.9 million in 2025, up from $186.8 million in 2024. These acquisitions are spread across all operating segments, indicating a broad strategy to supplement internal growth and broaden the customer base.

The company maintains approximately 12,100 local delivery routes, 478 operational facilities, and 12 distribution centers as of May 31, 2025. This extensive network supports its strategy of broadening its customer base through geographic expansion and efficiently delivering a broad range of products and services.

Management's focus on efficiency initiatives led to a reduction in the cost of uniform rental and facility services as a percent of revenue to 50.7% in fiscal 2025 from 51.8% in fiscal 2024. Similar improvements were seen in the First Aid and Safety Services segment, with cost of other decreasing to 42.8% from 44.5%, primarily due to efficiency gains in energy usage and production.

Despite experiencing impacts from inflation, including higher labor, fuel, and transportation costs in fiscal 2025, management successfully mitigated these pressures through pricing and various efficiency initiatives. This proactive approach prevented a material negative impact on consolidated financial condition or results of operations.

Cintas emphasizes attracting, retaining, and developing talent, with approximately 48,300 employee-partners globally. The company has reduced its recordable injury rate by over 80% since 2008 and has been awarded 140 OSHA VPP Star sites, demonstrating effective health and safety management and a commitment to employee well-being.

The company acknowledges that cybersecurity attacks are evolving, with cybercriminals demonstrating advanced capabilities, and anticipates continuing to be a target. While past incidents have not had a material adverse effect, the risk of production downtimes, data compromise, and reputational damage remains significant, especially with emerging AI technologies intensifying these risks.

Cintas identifies negative global economic factors, including higher unemployment, inflation, and interest rates, as potential adverse impacts on demand and costs. Supply chain constraints and fluctuations in material and labor costs (including healthcare benefits and minimum wages) continue to be significant risks that could increase operating expenses.

The company is subject to a wide array of complex and changing government regulations, including environmental, health and safety, data privacy, and tax laws. Increased regulation, particularly concerning sustainability matters, is expected to lead to higher compliance costs and heightened scrutiny, potentially requiring material investments in processes, training, and technology.

Cintas emphasizes its competitive advantages in product, design, price, quality, service, and convenience. As North America's leading provider of corporate identity uniforms and a significant provider of related business services, these elements are crucial in highly competitive and fragmented local markets.

Cintas serves over one million businesses of all types and sizes, with no individual customer accounting for greater than one percent of total revenue. This diversity provides a strong competitive position by reducing reliance on any single client and insulating against material financial impact from the loss of an account.

Despite inflationary pressures on labor, fuel, and materials, Cintas successfully implemented price increases to mitigate these impacts. This indicates a degree of pricing power within its operating segments, allowing the company to maintain and improve gross margins.

The Uniform Rental and Facility Services segment saw its cost of sales as a percent of revenue improve to 50.7% in fiscal 2025 from 51.8% in fiscal 2024. Similarly, the First Aid and Safety Services segment improved to 42.8% from 44.5%. These improvements reflect efficiency gains in energy usage, inventory management, and production.

Total selling and administrative expenses as a percent of revenue slightly decreased to 27.2% in fiscal 2025 from 27.3% in fiscal 2024. This indicates effective cost management, even with investments in technology and additional selling resources to support revenue growth.

Capital expenditures to limit or monitor hazardous substances increased to $4.8 million in fiscal 2025, up from $1.7 million in fiscal 2024 and $1.0 million in fiscal 2023. This reflects ongoing investment in environmental compliance and sustainability initiatives, which are important for long-term operational integrity.

The increase in selling and administrative expenses, while stable as a percentage of revenue, was partially attributed to investments in technology and additional selling resources. This suggests Cintas is leveraging technology to enhance its sales and operational capabilities.

Cintas capitalized $377.7 million in internal use software in fiscal 2025, an increase from $335.5 million in fiscal 2024. This substantial investment indicates ongoing digital transformation efforts aimed at improving business processes and efficiency.

Cintas maintains an active disaster recovery plan and periodically tests its readiness to respond to cybersecurity incidents. The company also invests in technology and controls to mitigate risks, acknowledging the evolving nature of cyber threats and the increasing sophistication of cybercriminals.

Cintas repurchased $934.8 million of common stock in fiscal 2025, a significant increase from $700.0 million in fiscal 2024. The Board authorized a new $1.0 billion share buyback program on July 23, 2024, indicating management's continued confidence in the company's intrinsic value and future cash flow generation.

Dividends declared and paid per share increased to $1.56 in fiscal 2025 from $1.35 in fiscal 2024, with total dividends paid rising to $611.6 million from $530.9 million. This consistent increase reflects a strong commitment to returning capital to shareholders, supported by robust financial performance.

Cintas issued $400.0 million in new senior notes in May 2025, maturing in 2028 with a 4.20% interest rate, while also paying off $450.0 million in maturing senior notes. The company maintains investment-grade credit ratings (S&P: A-, Moody's: A3, both stable), indicating strong financial health and access to capital markets.

Cintas prioritizes environmental sustainability, with laundering processes designed to reduce wastewater and operating facilities treating discharged water in accordance with local standards. Environmental spending for water treatment and waste removal was $29.0 million in fiscal 2025, demonstrating ongoing commitment.

Cintas has achieved an over 80% reduction in its recordable injury rate since 2008 and has been recognized with 140 OSHA VPP Star sites, more than triple any other U.S. company. This reflects a deep commitment to providing a safe and healthy work environment through robust management systems and training programs.

The company's human capital strategy focuses on attracting, retaining, and developing diverse talent through competitive pay, benefits, and various training opportunities. Wellness programs, including biometric screenings and mental health support, underscore Cintas' commitment to the holistic well-being of its 48,300 employee-partners.

Cintas' strong revenue and profit growth in fiscal 2025 occurred despite ongoing macroeconomic challenges such as inflationary pressures and higher interest rates, as noted in the risk factors. Management's ability to mitigate these impacts through pricing and efficiency initiatives demonstrates resilience.

Revenue denominated in currencies other than the U.S. dollar represented less than 10% of consolidated revenue in fiscal 2025, 2024, and 2023. This limited foreign exposure helps insulate Cintas from significant adverse impacts due to exchange rate fluctuations and geopolitical developments in international markets.

The company acknowledges increasing complexity in data privacy, environmental, and tax regulations. While compliance costs in fiscal 2025 did not materially affect results, Cintas anticipates rising compliance investments and scrutiny, indicating a proactive stance to navigate the changing regulatory environment.