PHILADELPHIA, PA — Aramark (NYSE: ARMK) delivered solid results in the second quarter of fiscal 2025, driven by robust operational performance, record client retention rates, and strategic growth initiatives. The global food, facilities, and uniform services provider reported consolidated revenue of $4.3 billion, reflecting a 2% year-over-year increase and a 3% rise in organic revenue.
“We are experiencing very positive business trends across the Company as we head into the second half of our fiscal year, including record retention rates, significant new client wins, and monthly revenue growth acceleration,” said John Zillmer, Aramark’s Chief Executive Officer. “The robust capabilities we’ve built are rooted in the power of our people, the strength of our Supply Chain, and a growth-minded, hospitality culture focused on providing exceptional service for our clients.”
The company achieved a 9% year-over-year boost in operating income to $174 million, supported by revenue growth, expanded supply chain efficiencies, and disciplined cost management. Adjusted Operating Income (AOI) rose by 11% to $205 million, marking a 30-basis-point increase in margins. Earnings per share on a GAAP basis climbed 15% to $0.23, with adjusted EPS surging 22% to $0.34.
Segment performance was strong across the board. In Food and Support Services (FSS) United States, contributions came from higher engagement in Business & Industry, strong procurement services growth through Avendra, and new client wins in Corrections. Internationally, markets like the U.K., Spain, Chile, and Canada drove widespread revenue increases alongside sustained base business performance and new business maturation.
Aramark also completed significant steps to advance its capital allocation priorities. Debt maturities of $1.8 billion were extended to 2030 and beyond, while comparable interest rates were maintained. Additionally, the company repurchased nearly $140 million worth of shares as part of a $500 million share repurchase program initiated in late 2024.
The business remains positioned for continued growth in 2025, underpinned by client retention levels exceeding 98% and a focus on net new revenue. Key drivers include volume growth in the Education and Healthcare sectors, positive trends in business reopenings, and momentum in international markets with double-digit organic revenue growth anticipated.
Aramark reaffirmed its full-year fiscal 2025 outlook, highlighting continued organic revenue growth, operational improvements, and balance sheet enhancements. “We are highly confident in realizing the growth opportunities immediately ahead for the business, driven by our extensive strategic and operational capabilities,” Zillmer added.
The company’s Board of Directors also approved a quarterly dividend of 10.5 cents per share, payable on May 28, 2025, to shareholders of record as of May 14, 2025.
With its diversified portfolio and proven resilience during market fluctuations, Aramark expects sustained momentum through the remainder of the fiscal year.
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