Vestis Corporation (NYSE: VSTS) has reported its fourth-quarter and fiscal 2024 results, along with providing guidance for fiscal 2025. The company's fiscal 2024 revenue stood at $2.8 billion, with operating income at $158 million, representing 5.6% of revenue. Adjusted EBITDA for fiscal 2024 was $353 million, or 12.6% of revenue, while operating cash flow reached $472 million, marking an 83.6% increase year-over-year. Free cash flow was reported at $165 million, up 13.2% year-over-year. The company's net leverage declined to 3.62x at the end of fiscal 2024 from 3.95x at the end of fiscal 2023, with net debt at $1.3 billion, reflecting a $319 million decrease from the end of fiscal 2023.
In terms of specific financial metrics, the company's fiscal 2024 revenue decreased by 0.7% compared to fiscal 2023, with a 170 basis point decline in adjusted EBITDA margin. Similarly, in the fourth quarter of fiscal 2024, Vestis reported a 4.4% decrease in revenue compared to the fourth quarter of fiscal 2023, with a 400 basis point decline in adjusted EBITDA margin.
The company's net cash provided by operating activities for fiscal year 2024 increased by 83.6% relative to fiscal year 2023, reaching $471.8 million. However, free cash flow for fiscal year 2024 decreased by 13.2% compared to fiscal year 2023, amounting to $165.2 million.
Vestis also announced its fiscal 2025 guidance, expecting revenue to be in the range of $2.8 billion to $2.83 billion, and adjusted EBITDA to be in the range of $345 million to $360 million. The company's strategic imperatives include disciplined capital allocation with deleveraging as a priority, with an anticipated ratio of free cash flow to adjusted EBITDA of approximately 50%.
Additionally, the company declared a quarterly cash dividend of $0.035 per common share payable on January 6, 2025, to shareholders of record at the close of business on December 13, 2024. Vestis also announced entering into a $250 million accounts receivable securitization facility and provided information about an upcoming webcast to discuss its fiscal fourth quarter 2024 results and outlook.
The market has reacted to these announcements by moving the company's shares 15.2% to a price of $15.33. Check out the company's full 8-K submission here.
