The operating income climbed 13 per cent to $183 million, while adjusted operating income (AOI) surged 19 per cent to $230 million. FSS United States delivered a 14 per cent increase to $160 million, while AOI grew 16 per cent to $189 million on a constant currency basis.
Aramark has reported a record Q3 FY25 revenue of $4.6 billion, up 6 per cent YoY, with operating income rising 13 per cent to $183 million and AOI up 19 per cent to $230 million.
GAAP EPS grew 24 per cent to $0.27.
Strong FSS US and International performance, AI-driven supply chain gains, and high client retention underpin its outlook to exceed growth and profitability targets.
Meanwhile, FSS International saw a decline of 6 per cent in operating income to $49 million, but AOI increased 13 per cent and 11 per cent in constant currency to $67 million. Corporate expenses improved 14 per cent to a loss of $27 million.
FSS US growth was led by gains in Business and Industry, Education, and Sports, Leisure and Corrections, while FSS International saw broad-based growth in markets including the UK, Chile, Canada, and Spain. Supply chain optimisation, including AI-driven technology, boosted margins and purchasing efficiencies, Aramark said in a press release.
The company’s GAAP earnings per share (EPS) increased 24 per cent to $0.27, and adjusted EPS rose 29 per cent to $0.4.
“Our third quarter performance, highlighted by record revenue for any quarter in Global FSS history, along with record profitability in a third quarter, demonstrates our commitment to sustainable growth and focused operational execution,” said John Zillmer, chief executive officer (CEO) at Aramark.
“We have achieved a number of significant milestones at the company since last reporting earnings, including being recently awarded one of the largest new clients wins in our history, as well as experiencing record client retention levels now surpassing 97 per cent.”
For FY25, Aramark expects to hit or exceed the high end of its 4–5 per cent net new business growth. It also projects ongoing profitability growth into Q4, supported by expanded client wins, strong base business, and disciplined cost management.
“Our supply chain optimisation initiatives, which include introducing additional AI-driven technology, have driven significant incremental value for our clients and the company,” added Zillmer. “I am extremely proud of what the teams have accomplished this quarter and firmly believe there is tremendous value-creating potential in the business going forward.”
Fibre2Fashion News Desk (SG)
