PHILADELPHIA, PA — Aramark (NYSE: ARMK) reported stronger fourth-quarter and full-year results for fiscal 2025, driven by record new business, higher retention rates, and the benefit of a 53rd week of operations.
The company posted full-year revenue of $18.51 billion, up 6% from the prior year, supported by $1.6 billion in annualized gross new business and a retention rate of 96.3%, the highest in Aramark’s history. Organic revenue rose 7%, reflecting growth across business segments and contributions from new client wins.
Fourth-quarter revenue increased 14% year-over-year, boosted by substantial new contracts and an estimated 7% revenue lift from the extra operating week. Operating income rose 12% in the quarter, aided by supply-chain efficiencies, technology-driven productivity improvements, and incentive-based compensation tied to record net new business.
GAAP earnings per share climbed 23% to $1.22, while adjusted EPS increased 19% to $1.82.
Aramark also reported improved profitability and balance-sheet strength across the fiscal year. Operating income rose to $791.8 million, and adjusted operating income reached $981.2 million, reflecting gains in both U.S. and international operations. The company ended the year with a leverage ratio of 3.25x, the lowest level in nearly two decades, and over $2.4 billion in available cash.
Cash generation was a standout, with net cash from operations rising 27% and free cash flow jumping 41%. Aramark repurchased more than 4 million shares and raised its quarterly dividend by 14% during the year.
CEO John Zillmer said fiscal 2025 marked “consequential milestones” for the company, highlighting record new business wins and long-term growth opportunities.
With demand strong across food services, facilities management, and international markets, Aramark exited the year at the high end of its long-term revenue growth model.
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