PHILADELPHIA, PA — Aramark (NYSE: ARMK) ended fiscal 2025 with one of its strongest performances in nearly two decades, reporting solid revenue gains, record new business, and a dramatically improved financial position as the company prepares for another year of expansion.
The global food and facilities management provider posted $18.5 billion in revenue, a 6% increase from the prior year. Organic revenue rose 7%, driven by stronger base business volume, higher client retention, and the benefit of an additional 53rd operating week. U.S. operations generated more than $13.2 billion in revenue, up 5%, while international revenue climbed 10% to $5.3 billion.
Aramark pointed to record-setting sales activity, including $1.6 billion in annualized gross new business and a 96.3% retention rate, the highest in company history. Net new business grew 5.6%, an unprecedented level for the company. Leadership also highlighted the largest contract win ever secured for the U.S. business, involving a major medical system scheduled to begin operations early in fiscal 2026.
Fourth-quarter results reinforced the momentum. Revenue rose 14% to $5 billion, supported by strong new account openings and growth across base operations. Adjusted operating income increased 6% to $289 million as supply chain efficiencies and cost controls supported profitability.
On the bottom line, Aramark delivered adjusted EPS of $1.82, a 19% increase from fiscal 2024. Free cash flow rose 41% to $454 million, and total liquidity exceeded $2.4 billion. The company also lowered its leverage ratio to 3.25x, the lowest in nearly 20 years. Aramark repurchased more than 4 million shares and increased its quarterly dividend by 14% during the year.
Looking ahead, Aramark expects another year of meaningful expansion. Fiscal 2026 guidance projects revenue between $19.55 billion and $19.95 billion, representing 7% to 9% organic growth. Adjusted operating income is forecast to rise 12% to 17%, with adjusted EPS expected between $2.18 and $2.28, implying 20% to 25% growth.
CEO John Zillmer said fiscal 2025 marked a pivotal year for the company as operational improvements, strategic wins, and a stronger balance sheet set the stage for further acceleration. Aramark expects its leverage ratio to fall below 3.0x in 2026 as new business ramps up and cash generation strengthens.
With record sales wins, expanding global operations, and rising profitability, Aramark enters fiscal 2026 positioned for another strong year of performance.
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