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Annualized Gross New Wins: $1.6 billion, 12% higher than fiscal '24.

Client Retention Rate: 96.3%.

Leverage Ratio: 3.25 times, lowest since 2007.

Fourth Quarter Organic Revenue Growth: 14%.

Full Year Revenue (GAAP): $18.5 billion, up 6% from the prior year.

Adjusted Operating Income (AOI) for Q4: $289 million, 6% growth on a constant currency basis.

Full Year AOI: $981 million, up 12% on a constant currency basis.

Adjusted EPS for Q4: $0.57, up 6% on a constant currency basis.

Full Year Adjusted EPS: $1.82, nearly 20% increase on a constant currency basis.

Free Cash Flow: $454 million, over 40% growth compared to the prior year.

Cash Availability: More than $2.4 billion at fiscal year-end.

Fiscal '26 Organic Revenue Guidance: $19.45 billion to $19.85 billion, 7% to 9% growth.

Fiscal '26 AOI Guidance: $1.1 billion to $1.15 billion, 12% to 17% growth.

Fiscal '26 Adjusted EPS Guidance: $2.18 to $2.28, 20% to 25% growth.

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Release Date: November 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Aramark (NYSE:ARMK) achieved annualized gross new wins of $1.6 billion, marking a 12% increase from fiscal '24.

The company reported an industry-leading client retention rate of 96.3%, contributing to a net new growth of 5.6%.

Aramark (NYSE:ARMK) expanded its supply chain GPO network with over $1 billion of new purchasing spend for the second consecutive year.

The company achieved a leverage ratio of 3.25 times, the lowest since going private in 2007.

Aramark (NYSE:ARMK) reported a 14% increase in organic revenue for the fourth quarter, driven by net new business and base business growth.

The timing shift in new account openings impacted fourth-quarter revenue, as some large client transitions were delayed.

Higher incentive-based compensation costs of $25 million were recorded in the fourth quarter, affecting adjusted operating income.

The MLB playoffs did not meet expectations, impacting revenue from sports-related services.

Aramark (NYSE:ARMK) faced higher prescription claims and new business start-up costs in the quarter, affecting margins.

The company experienced a non-cash asset write-down in the fourth quarter related to a minority interest investment.

Q: Can you explain the shift in timing for new account openings and whether this will continue? A: John Zillmer, CEO: The shift in timing occurred across multiple sectors, including corrections, Workplace Experience, and Healthcare. These were deferred into fiscal '26 due to client needs and timing. It's not typical, but it was necessary to ensure effective openings. We sold nearly $1 billion of net new business this year, with a retention rate exceeding 96.3%, setting a strong trajectory for '26.

Q: Could you discuss the 2026 cadence, particularly regarding the UPenn contract and other deals? A: John Zillmer, CEO: The Penn contract will begin in February and will be staged over several months. We have significant new business expectations for next year, with a robust pipeline and strong early successes. The cadence should be more normal next year compared to this year.

Q: How are margins expected to evolve with new wins and AI initiatives? A: James Tarangelo, CFO: We've seen consistent margin improvement, and despite some incremental start-up costs from large wins, we expect to offset these with productivity gains, particularly leveraging AI in supply chain and other areas. We anticipate continued margin accretion as we grow.

Q: What are the implications of the Penn Medicine deal for further hospital group outsourcing? A: John Zillmer, CEO: The Penn Medicine deal is significant and sets a precedent for other systems to follow. We're pursuing new opportunities for self-op conversion, and the solutions offered to Penn are transferable to other institutions, indicating a large opportunity in this sector.

Q: Can you elaborate on the organic revenue drivers for fiscal '26 and '25? A: James Tarangelo, CFO: For fiscal '25, base business growth was about 3.5%, with pricing at 3%. Net new contribution was about 1.5%, and the 53rd week added 2%. For '26, we expect 3% to 4% base business growth, with 3% from price, and 4% to 5% from net new contribution, leading to a 7% to 9% growth guide.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.