Cintas reported a strong finish to fiscal 2024 with notable quarterly momentum across all segments. Q4 2024 revenue reached $2.471 billion, up 8.2% year over year, supported by an organic growth rate of 7.5% after adjusting for acquisitions and currency effects. Gross margin rose 150 basis points to 49.2%, and operating margin expanded 160 basis points to 22.2%, driving fourth-quarter operating income of $547.6 million and net income of $414.3 million ($3.99 per diluted share, per the earnings call). For the full year, revenue was a record $9.6 billion, up 8.9% with organic growth of 8.0%, and full-year operating margin at an all-time high of 21.6%. Free cash flow amounted to approximately $591 million, underscoring Cintas’ ability to fund acquisitions, buybacks, and dividend growth while maintaining a strong balance sheet.
Management highlighted a durable value proposition across verticals (health care, hospitality, education, and government) and reiterated a disciplined capital allocation framework: technology and infrastructure investments (including SAP enhancements and partnerships with Verizon and Google), selective acquisitions ($186.8 million in fiscal 2024), dividend increases (17.4% in fiscal 2024, 40th consecutive year of dividend increases), and meaningful share repurchases (about $1 billion in 2024). Looking ahead, Cintas guided to over $10 billion in annual revenue for fiscal 2025, with a target of $16.25–$16.75 in diluted EPS and total revenue growth of ~5.9–7.4% (adjusted for two fewer workdays in FY25). Organic growth is guided to 6.4–8% with two fewer workdays dampening quarterly growth by roughly 160 basis points in the affected quarters.
Overall, the thesis rests on continued operating leverage from revenue growth, margin enhancement from efficiency initiatives and top-tier supply chain, and a favorable long-term view of market white space in outsourced uniform, safety, and facility services. Investors should monitor the pace of SAP-enabled optimization, the impact of the Fire Protection SAP deployment, pricing dynamics in a competitive market, and the trajectory of no-programmer customer wins as catalysts for continued upside.