Slides
Page 1
Fiscal 2025 Earnings Results N O V E M B E R 1 7 , 2 0 2 5 Full Year and Q4 Fiscal 2025 Earnings Results
Page 2
Fiscal 2025 Earnings Results Forward-Looking Statements 2 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading, “Fiscal 2026 Outlook,” “Modeling Assumptions,” and those related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected. Some of the factors that we believe could affect or continue to affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents; geopolitical events including, ongoing tensions in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets; the impact of United States and other countries’ trade policies including the implementation of tariffs; the failure to retain current clients, renewal of existing client contracts and ability to obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; the inability to hire and retain key or sufficient qualified personnel or increases in labor costs; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; increases or changes in income tax rates or tax-related laws; potential liabilities, increased costs, reputational harm, and other adverse effects based on our commitments and stakeholder expectations relating to environmental, social and governance considerations; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; the use of Artificial Intelligence technologies within our business processes; our leverage; variable rate indebtedness that subjects us to interest rate risk; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; risks associated with the completed spin-off of Aramark Uniform and Career Apparel ("Uniform") as an independent publicly traded company to our stockholders; and other factors set forth under the headings "Part I, Item 1A Risk Factors," "Part I, Item 3 Legal Proceedings" and "Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 19, 2024 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and which may be obtained by contacting Aramark's investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the Securities and Exchange Commission (the "SEC"). As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.
Page 3
Fiscal 2025 Earnings Results Overview Fiscal 2026 Outlook 4 Free Cash Flow & Leverage Ratio Strength 3 Record New Business & Retention 2 Fiscal 2025 Revenue & AOI Highlights 1 3
Page 4
Fiscal 2025 Earnings Results Summary of Fiscal 2025 Highlights 1 Constant Currency 4 • Cash Flow from Operating Activities: $921 million; Free Cash Flow: $454 million • Repurchased in excess of 4 million shares; Raised quarterly dividend by 14% • Additional incentive-based compensation of ~$25 million, or 3%, recorded in the fourth quarter associated with achieving record Net New business • Leveraged enhanced technology capabilities across portfolio; Profitability led by supply chain efficiencies and productivity • Growth driven by net new business, base business volume, and the contribution from the 53rd week of an estimated 2%; Revenue in the prior year included portfolio exits in Facilities • Onboarding unprecedented level of new business; Worked closely with certain new large accounts on timing of site openings to ensure seamless transition into becoming Aramark clients • Incentive-based compensation in the fourth quarter impacted GAAP EPS and Adjusted EPS by $0.07, or 7% and 5%, respectively • Strong confidence in the business and the significant growth opportunities ahead Revenue + 6% Organic Revenue + 7% Revenue + 6% Organic Revenue + 7% Operating Income + 12% Adjusted Operating Income (AOI) + 12% 1 GAAP EPS + 23% Adjusted EPS + 19% 1 Cash Flow From Operating Activities + 27% Free Cash Flow + 41%
Page 5
Fiscal 2025 Earnings Results Fiscal 2025 Revenue and AOI Growth Across Segments $13,687 $16,083 $17,401 $18,506 FY'22 FY'23 FY'24 FY'25 Revenue Organic revenue grew 7% due to net new business and base business volume, somewhat offset by the Company’s portfolio exits in Facilities in fiscal 2024. The contribution from the 53rd week increased revenue by an estimated ~2% AOI grew 12%1 and margin improved nearly 25 basis points1 from higher revenue levels, expanded supply chain capabilities, and disciplined above-unit cost management, which more than offset additional incentive-based compensation recorded in the fourth quarter of ~$25 million, or 3%, associated with achieving record Net New business Charts displayed in $ millions; may not foot due to rounding Growth metrics represent performance vs. prior year 1 Constant Currency 5 Revenue ($) Organic Revenue Growth (%) AOI ($) AOI Growth1 FSS United States $13,212 5% $840 9% FSS International $5,294 11% $260 21% Corporate n/a n/a $(119) (8)% Aramark $18,506 7% $981 12% $512 $743 $882 $981 FY'22 FY'23 FY'24 FY'25 Adjusted Operating Income (AOI)
Page 6
Fiscal 2025 Earnings Results Continued Growth in Q4 Revenue i. Growth led by substantial new business, high retention levels, and base business volume somewhat offset by the timing of onboarding new business ii. Contribution from the 53rd week of an estimated 7% iii. Exited year-end at higher end of Company’s long term revenue growth model2 AOI i. Profitability reflected higher revenue levels, supply chain efficiencies, and above-unit cost management, along with the incentive-based compensation charge 6 $271 $289 Q4 '24 AOI Q4 '25 AOI Adjusted Operating Income (AOI) Revenue ($) Organic Revenue Growth (%) AOI ($) AOI Growth1 FSS United States $3,607 14% $246 2% FSS International $1,441 14% $76 31% Corporate n/a n/a ($33) (24)% Aramark $5,048 14% $289 6% AOI Growth effected by the following: • FSS United States had elevated expenses from incentive-based compensation ($25 million), certain medical prescription clams ($5 million) and some new business start-up costs largely in Higher Education and Collegiate Sports • Corporate experienced higher incentive-based compensation compared to the prior year Charts displayed in $ millions; may not foot due to rounding Growth metrics represent performance vs. prior year 1 Constant Currency; 2 Excluded revenue from the 53rd week $4,417 $5,048 $5,027 Q4 '24 Revenue (as reported) Q4 '25 Revenue (as reported) Effect of Currency Translation Q4 '25 Adjusted Revenue (Organic) Revenue ($22)
Page 7
Fiscal 2025 Earnings Results Components of Net New Business • Record Annualized Gross New Business Wins of $1.6 billion; More than 12% Higher than fiscal 2024 • Retention rate at 96.3%; Strongest in Company history with many LOBs and countries even higher • Net New business at 5.6% of prior year revenue; Confident in Company’s continued ability to achieve Net New target of at least 4% to 5% with retention levels about 95% • Included the largest contract win ever awarded in FSS United States history—and is also one of the most prestigious medical systems in the world 8.5% 8.8% 9.0% 9.3% 4.1% 4.3% 2.2% 3.7%% of Revenue: $1,348 $1,187 $1,440 $1,617 FY22 FY23 FY24 FY25 Annualized New Business Wins (in millions) 1Overall retention rate and net new business impacted by portfolio exits in Facilities 2Core Foodservice business in both U.S. and International 95.6% 95.5% 93.2% 95.2% 96.3% FY24 Retention 1 2 95%+ FY26+ Target $734 $582 $351 $973 FY22 FY23 FY24 FY25 Annualized Net New Business (in millions) $503 4% to 5%+ FY26+ Target 5.6% FY22 FY23 FY25 1 2 % of Revenue: 7
Page 8
Fiscal 2025 Earnings Results • Total Company Annualized Net New Business 75% better than 3-Year average • Strong, broad-based growth performance from multiple lines of business and geographies, as well as clients both large and small • Reflects magnitude of new business wins combined with significantly improved retention rates • Continue to capitalize on first-time outsourcing opportunities above historic levels • Meaningful improvement across segments • FSS US – Annualized Gross New Wins more than $1 billion, an increase of 33% compared to fiscal 2024; Retention rate at 96.3% • FSS International – Fourth consecutive year of Annualized Gross New Wins greater than 10% of prior year revenue; Retention rate at 96.2% % of Revenue: 4.7% 5.6% 3.3% 5.1% 8.2% 6.8% $556 $973 $0 $200 $400 $600 $800 $1,000 3-Yr Avg (FY22-FY24) FY25 Aramark: Annualized Net New Business (in millions) $2601 $648 $0 $200 $400 $600 $800 $1,000 3-Yr Avg (FY22-FY24) FY25 FSS US (in millions) $296 $325 $0 $100 $200 $300 $400 $500 3-Yr Avg (FY22-FY24) FY25 FSS International (in millions) 1 FSS US net new business impacted by the portfolio exits in Facilities during Fiscal 2024 Record Annualized Net New Business in FY25 8
Page 9
Fiscal 2025 Earnings Results Fourth Quarter Growth Drivers Across Business Segments • Organic revenue growth across all geographies, particularly strong in the U.K., Canada, Ireland, Spain, and Latin America • New business wins included expanding our growing presence in the UEFA Champions League and Bundesliga with the addition of the Bayer Leverkusen football club in Germany, the healthcare network of Hospital Italiano in Argentina, energy exploration and developer ENAP in Chile, and mining leader IAMGold in Canada • Strong business momentum continuing to deliver on a Growth agenda focused on Culture, Team, Capabilities, and Process F S S I N T E R N A T I O N A L F S S U S E D U C A T I O N • Collegiate Hospitality experienced strong retention rates, meal-plan optimization success, and benefited from higher student enrollments—particularly from portfolio of academic institutions in the popular South and Southeast; Continue to advance cross lines of business opportunities with Sports & Entertainment in Collegiate Sports • Student Nutrition seeing growth in net new business as well as from continuation of increased participation rates from expanded offerings and additional programs S P O R T S , L E I S U R E & C O R R E C T I O N S • Collegiate Sports business experiencing double-digit revenue growth, with per cap rates up 14% year-over-year, driven by increased concession spending and expanded premium services; Strong attendance levels to date in the NFL, NBA, and NHL • Corrections continued to experience new business growth as outsourcing remains strong • Leisure business took the opportunity to make strategic reinvestments, which included property development, digital marketing optimization, and other enhancements to drive the guest experience B U S I N E S S & I N D U S T R Y • Continued positive momentum from record net new business, higher participation rates, and additional micro-market and vending services; Proactive approach to leveraging the strategic value in business dining and refreshment services F A C I L I T I E S & O T H E R • Achieved a strong retention rate in fiscal 2025; Increased vertical sales opportunities and cross lines of business opportunities, particularly in Collegiate Hospitality and Business & Industry H E A L T H C A R E • Reported best performance in over two years; Recently awarded the University of Pennsylvania Health System, the largest contract win ever in the U.S from one of the most prestigious medical systems in the world • Recently named #1 in “Best Places to Work” by Modern Healthcare for our commitment to a people-first culture and operational excellence across the industry 9
Page 10
Fiscal 2025 Earnings Results Strong Free Cash Flow and Leverage Reduction $168 $146 $323 $454 FY'22 FY'23 FY'24 FY'25 Free Cash Flow i. Net Cash provided by Operating Activities was $921 million compared to $727 million in fiscal 2024, an increase of 27% ii. Free Cash Flow was $454 million compared to $323 million in fiscal 2024 iii. Favorable performance was the result of higher cash from operations and favorable working capital, particularly from improved collections iv. Q4 generated significant cash inflow, consistent with quarterly cadence of the business v. Over $2.4 billion of cash availability at fiscal year-end Charts displayed in $ millions; may not foot due to rounding Growth metrics represent performance vs. prior year 10 5.30x 3.85x 3.41x 3.25x FY'22 FY'23 FY'24 FY'25 Leverage +41% Dollars in millions FY25 FY24 Total Long-Term Borrowings $5,406 $5,271 Less: Cash and cash equivalents and short-term marketable securities $639 $715 Net Debt $4,767 $4,557 Covenant Adjusted EBITDA $1,465 $1,335 Net Debt / Covenant Adjusted EBITDA 3.25x 3.41x Net Debt to Covenant Adjusted EBITDA +205 Basis Points reduction
Page 11
Fiscal 2025 Earnings Results Strategic Outlays Continue to invest in business to drive and propel growth Opportunistic tuck-in acquisitions Capital expenditures consistent with historical levels, supporting scale and driving innovation Leverage Strong free cash flow generation supports leverage reduction Committed to reducing leverage ratio under 3.0x by the end of fiscal 2026 Liquidity No significant maturities until fiscal 2028 Continue to take proactive actions to further enhance the Company’s strong balance sheet and financial flexibility Over $2.4 billion of cash availability at end of fiscal 2025 Shareholder Return of Capital Repurchase Aramark stock through excess cash generation; Repurchased in excess of 4 million shares in fiscal 2025; Recently repurchased shares in the market under a 10b5-1 program Grow quarterly dividend payments (increased 14% to $0.12 from $0.105 per share in November 2025) Disciplined Capital Allocation Strategy 11
Page 12
Fiscal 2025 Earnings Results $’s represent outstanding principal balances in millions. Excludes debt financing fees and expenses, finance leases and other debt; Assumes EUR / USD exchange rate of 1.17, GBP / USD exchange rate of 1.35 and CAD / USD exchange rate of 0.72 as of 10/3/25 No significant maturities until Fiscal 2028 12 $448 $238 $1,162 $730 $2,384 $1,150 $470 $625 2026 2027 2028 2029 2030 2033 Term Loan A due '29 Drawn Revolving Credit Facility due '29 Undrawn Revolving Credit Facility due '29 Term Loan B Senior Notes Undrawn Receivables Facility due '28 $1,880 $686 Debt Maturity Profile: As of Fiscal Year-End 2025
Page 13
Fiscal 2025 Earnings Results Fiscal 2026 Outlook The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation. The fiscal 2026 outlook reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission. Aramark currently anticipates its full-year performance for fiscal 2026 as follows: Adjusted EPS does not include the additional benefit from opportunistic share repurchases 1 Revenue $ Range included $100 million of expected favorability from foreign currency translation 2 Constant Currency * For easier comparison purposes, fiscal 2025 Revenue is on a 52-week basis 13 ($ in millions, except Adjusted EPS and Leverage Ratio) FY25 FY26 Reference Point $ Range 1 Year-Over-Year Organic Growth 2 Revenue $18,180* $19,550 — $19,950 +7% — +9% Adjusted Operating Income $981 $1,100 — $1,150 +12% — +17% Adjusted EPS $1.82 $2.18 — $2.28 +20% — +25% Leverage Ratio 3.25x Under 3x
Page 14
Fiscal 2025 Earnings Results
Page 15
Fiscal 2025 Earnings Results Appendix
Page 16
Fiscal 2025 Earnings Results Modeling Assumptions FY26 Modeling Assumptions • Net Interest Expense: $315M - $325M • Adjusted Tax Rate: ~26% • Share Count: ~270M • Effect of Currency Translation: ◦ Revenue: ~$100M 16 Does not include the additional benefit from opportunistic share repurchases
Page 17
Fiscal 2025 Earnings Results Modeling Assumptions (continued) FY26 Modeling Assumptions: Quarterly Cadence Considerations • Operating Days - FY25’s extra, or 53rd, week, creates a calendar shift that affects year-over-year quarterly comparisons in FY26, which has no impact on the full year numbers. The calendar shift results from a change in timing between holidays in the Business & Industry sector, school semesters and breaks in the Education sector, and major league sports schedules in the Sports, Leisure and Corrections sector. This effect is expected to reduce both revenue and AOI growth in the first and third quarters by 3 to 4 less operating days, while increasing growth in the second and fourth quarters by 3 to 4 additional operating days • Free Cash Flow - Q1 and Q4 typically experience a large outflow and inflow, respectively, driven by the seasonal start up and shutdown of the Collegiate Hospitality, Sports & Entertainment and Destination businesses 17
Page 18
Fiscal 2025 Earnings Results Revenue by Segment Charts displayed in $ millions 18 Three Months Ended Q1 2025 Three Months Ended Q2 2025 Three Months Ended Q3 2025 Three Months Ended Q4 2025 Twelve Months Ended YTD 2025 12/27/2024 12/29/2023 Change % 03/28/2025 03/29/2024 Change % 06/27/2025 06/28/2024 Change % 10/03/2025 09/27/2024 Change % 10/03/2025 09/27/2024 Change % Revenue (as reported) FSS United States: Business & Industry $ 432.2 $ 383.1 13 % $ 449.6 $ 396.7 13 % $ 500.8 $ 427.5 17 % $ 537.7 $ 419.7 28 % $ 1,920.3 $ 1,627.2 18 % Education 1,141.1 1,112.3 3 % 1,011.5 1,039.5 (3)% 811.9 779.6 4 % 845.8 719.0 18 % 3,810.3 3,650.4 4 % Healthcare 404.6 399.1 1 % 411.5 405.5 1 % 413.1 411.8 — % 452.0 403.9 12 % 1,681.2 1,620.3 4 % Sports, Leisure & Corrections 950.3 903.6 5 % 799.1 763.6 5 % 1,123.6 1,083.9 4 % 1,350.7 1,230.1 10 % 4,223.7 3,981.2 6 % Facilities & Other* 372.8 414.7 (10)% 384.7 438.1 (12)% 397.8 441.7 (10)% 421.1 403.1 4 % 1,576.5 1,697.6 (7)% Total FSS United States 3,301.0 3,212.8 3 % 3,056.4 3,043.4 — % 3,247.2 3,144.5 3 % 3,607.3 3,175.8 14 % 13,211.9 12,576.7 5 % Effect of Currency Translation 1.0 — — 2.5 — — 0.5 — — 0.4 — — 4.4 — — Adjusted Revenue (Organic) 3,302.0 3,212.8 3 % 3,058.9 3,043.4 1 % 3,247.8 3,144.5 3 % 3,607.7 3,175.8 14 % 13,216.4 12,576.7 5 % Revenue (as reported) FSS International: Europe 675.1 637.8 6 % 653.0 624.4 5 % 795.5 700.9 13 % 848.5 700.7 21 % 2,972.2 2,663.7 12 % Rest of World 576.0 557.2 3 % 569.9 532.1 7 % 583.7 530.7 10 % 592.6 540.2 10 % 2,322.2 2,160.3 7 % Total FSS International 1,251.1 1,195.0 5 % 1,222.9 1,156.5 6 % 1,379.2 1,231.6 12 % 1,441.1 1,240.9 16 % 5,294.4 4,824.0 10 % Effect of Currency Translation 60.6 — — 48.3 — — (21.1) — — (22.0) — 0 65.8 — — Adjusted Revenue (Organic) 1,311.7 1,195.0 10 % 1,271.3 1,156.5 10 % 1,358.1 1,231.6 10 % 1,419.1 1,240.9 14 % 5,360.1 4,824.0 11 % Total Revenue (as reported) $ 4,552.1 $ 4,407.8 3 % $ 4,279.3 $ 4,199.9 2 % $ 4,626.4 $ 4,376.1 6 % $ 5,048.4 $ 4,416.7 14 % $ 18,506.3 $ 17,400.7 6 % Effect of Currency Translation 61.6 — — 50.9 — — (20.5) — — (21.7) — — 70.2 — — Adjusted Revenue (Organic) $ 4,613.7 $ 4,407.8 5 % $ 4,330.2 $ 4,199.9 3 % $ 4,605.9 $ 4,376.1 5 % $ 5,026.8 $ 4,416.7 14 % $ 18,576.5 $ 17,400.7 7 % Note: Numbers may not foot due to rounding. *Reflects the prior year exit of some lower margin Facilities accounts
Page 19
Fiscal 2025 Earnings Results CapEx and Client Payments 19 ($ in thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended 12/27/2024 12/29/2023 03/28/2025 03/29/2024 06/27/2025 06/28/2024 10/03/2025 09/27/2024 10/03/2025 09/27/2024 Purchases of property and equipment and other $ 119,861 $ 115,621 $ 115,800 $ 87,407 $ 111,378 $ 85,112 $ 142,201 $ 139,285 $ 489,240 $ 427,425 Payments made to clients on contracts 61,032 45,075 25,818 53,927 12,603 9,260 23,660 30,741 123,113 139,003 $ 180,893 $ 160,696 $ 141,618 $ 141,334 $ 123,981 $ 94,372 $ 165,861 $ 170,026 $ 612,353 $ 566,428 Revenue (as reported) $4,552,086 $4,407,765 $4,279,298 $4,199,913 $4,626,451 $4,376,076 $5,048,464 $4,416,947 $ 18,506,299 $17,400,701 CapEx as % of Revenue 4.0 % 3.6 % 3.3 % 3.4 % 2.7 % 2.2 % 3.3 % 3.8 % 3.3 % 3.3 %
Page 20
Fiscal 2025 Earnings Results Non-GAAP Schedules
Page 21
Fiscal 2025 Earnings Results Selected Operational and Financial Metrics 21 Adjusted Revenue (Organic) Adjusted Revenue (Organic) represents revenue, adjusted to eliminate the impact of currency translation. Adjusted Operating Income Adjusted Operating Income represents operating income adjusted to eliminate the change in amortization of acquisition-related intangible assets; severance and other charges; spin-off related charges and other items impacting comparability. Adjusted Operating Income (Constant Currency) Adjusted Operating Income (Constant Currency) represents Adjusted Operating Income adjusted to eliminate the impact of currency translation. Adjusted Net Income Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the change in amortization of acquisition-related intangible assets; severance and other charges; spin-off related charges; loss (gain) on equity investments, net; the effect of debt repayments and refinancings on interest expense, net, and other items impacting comparability, less the tax impact of these adjustments. The tax effect for Adjusted Net Income for our United States earnings is calculated using a blended United States federal and state tax rate. The tax effect for Adjusted Net Income in jurisdictions outside the United States is calculated at the local country tax rate. Adjusted Net Income (Constant Currency) Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation. Adjusted EPS Adjusted EPS represents Adjusted Net Income divided by diluted weighted average shares outstanding. Adjusted EPS (Constant Currency) Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.
Page 22
Fiscal 2025 Earnings Results Selected Operational and Financial Metrics (continued) 22 Covenant Adjusted EBITDA Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain other items as defined in our debt agreements required in calculating covenant ratios and debt compliance. We also use Net Debt for our ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents and short-term marketable securities. Free Cash Flow Free Cash Flow represents net cash provided by (used in) operating activities of continuing operations less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company. Net New Business Net New Business is an internal statistical metric used to evaluate our new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income, net income, earnings per share or net cash provided by (used in) operating activities of continuing operations, determined in accordance with GAAP. Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.
Page 23
Fiscal 2025 Earnings Results Revenue, AOI and AOI Margin YTD 23 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended October 3, 2025 FSS United States FSS International Corporate Aramark and Subsidiaries Revenue (as reported) $ 13,211,947 $ 5,294,352 $ 18,506,299 Operating Income (as reported) $ 717,510 $ 193,525 $ (119,189) $ 791,846 Operating Income Margin (as reported) 5.4 % 3.7 % 4.3 % Revenue (as reported) $ 13,211,947 $ 5,294,352 $ 18,506,299 Effect of Currency Translation 4,436 65,788 70,224 Adjusted Revenue (Organic) $ 13,216,383 $ 5,360,140 $ 18,576,523 Revenue Growth (as reported) 5.1 % 9.8 % 6.4 % Adjusted Revenue Growth (Organic) 5.1 % 11.1 % 6.8 % Operating Income (as reported) $ 717,510 $ 193,525 $ (119,189) $ 791,846 Amortization of Acquisition-Related Intangible Assets 97,921 26,643 — 124,564 Severance and Other Charges 6,637 29,795 — 36,432 Gains, Losses and Settlements impacting comparability 17,956 10,366 — 28,322 Adjusted Operating Income $ 840,024 $ 260,329 $ (119,189) $ 981,164 Effect of Currency Translation 1,239 3,241 — 4,480 Adjusted Operating Income (Constant Currency) $ 841,263 $ 263,570 $ (119,189) $ 985,644 Operating Income Growth (as reported) 8.7 % 3.3 % 15.3 % 12.1 % Adjusted Operating Income Growth 8.5 % 19.1 % (7.8)% 11.2 % Adjusted Operating Income Growth (Constant Currency) 8.7 % 20.6 % (7.8)% 11.7 % Adjusted Operating Income Margin 6.4 % 4.9 % 5.3 % Adjusted Operating Income Margin (Constant Currency) 6.4 % 4.9 % 5.3 % Fiscal Year Ended September 27, 2024 FSS United States FSS International Corporate Aramark and Subsidiaries Revenue (as reported) $ 12,576,737 $ 4,823,964 $ 17,400,701 Operating Income (as reported) $ 659,907 $ 187,341 $ (140,738) $ 706,510 Amortization of Acquisition-Related Intangible Assets 91,358 15,706 — 107,064 Severance and Other Charges 12,868 — 92 12,960 Spin-off Related Charges — — 29,037 29,037 Gains, Losses and Settlements impacting comparability 10,044 15,528 1,075 26,647 Adjusted Operating Income $ 774,177 $ 218,575 $ (110,534) $ 882,218 Operating Income Margin (as reported) 5.2 % 3.9 % 4.1 % Adjusted Operating Income Margin 6.2 % 4.5 % 5.1 %
Page 24
Fiscal 2025 Earnings Results Revenue, AOI and AOI Margin QTD 24 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Three Months Ended October 3, 2025 FSS United States FSS International Corporate Aramark and Subsidiaries Revenue (as reported) $ 3,607,339 $ 1,441,125 $ 5,048,464 Operating Income (as reported) $ 192,611 $ 39,228 $ (33,484) $ 198,355 Operating Income Margin (as reported) 5.3 % 2.7 % 3.9 % Revenue (as reported) $ 3,607,339 $ 1,441,125 $ 5,048,464 Effect of Currency Translation 355 (22,029) (21,674) Adjusted Revenue (Organic) $ 3,607,694 $ 1,419,096 $ 5,026,790 Revenue Growth (as reported) 13.6 % 16.1 % 14.3 % Adjusted Revenue Growth (Organic) 13.6 % 14.4 % 13.8 % Operating Income (as reported) $ 192,611 $ 39,228 $ (33,484) $ 198,355 Amortization of Acquisition-Related Intangible Assets 25,046 8,881 — 33,927 Severance and Other Charges 2,193 21,561 — 23,754 Gains, Losses and Settlements impacting comparability 26,294 6,222 — 32,516 Adjusted Operating Income $ 246,144 $ 75,892 $ (33,484) $ 288,552 Effect of Currency Translation 82 (422) — (340) Adjusted Operating Income (Constant Currency) $ 246,226 $ 75,470 $ (33,484) $ 288,212 Operating Income Growth (as reported) (4.0)% (15.1)% (19.0)% (9.3)% Adjusted Operating Income Growth 2.3 % 31.3 % (23.7)% 6.3 % Adjusted Operating Income Growth (Constant Currency) 2.3 % 30.6 % (23.7)% 6.2 % Adjusted Operating Income Margin 6.8 % 5.3 % 5.7 % Adjusted Operating Income Margin (Constant Currency) 6.8 % 5.3 % 5.7 % Three Months Ended September 27, 2024 FSS United States FSS International Corporate Aramark and Subsidiaries Revenue (as reported) $ 3,176,066 $ 1,240,881 $ 4,416,947 Operating Income (as reported) $ 200,715 $ 46,214 $ (28,134) $ 218,795 Amortization of Acquisition-Related Intangible Assets 23,724 4,527 — 28,251 Severance and Other Charges 6,719 — — 6,719 Gains, Losses and Settlements impacting comparability 9,476 7,055 1,075 17,606 Adjusted Operating Income $ 240,634 $ 57,796 $ (27,059) $ 271,371 Operating Income Margin (as reported) 6.3 % 3.7 % 5.0 % Adjusted Operating Income Margin 7.6 % 4.7 % 6.1 %
Page 25
Fiscal 2025 Earnings Results Adjusted EPS 25 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands, except per share amounts) Three Months Ended Fiscal Year Ended October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024 Net Income Attributable to Aramark Stockholders (as reported) $ 87,138 $ 122,411 $ 326,394 $ 262,522 Adjustment: Amortization of Acquisition-Related Intangible Assets 33,927 28,251 124,564 107,064 Severance and Other Charges 23,754 6,719 36,432 12,960 Spin-off Related Charges — — — 29,037 Gains, Losses and Settlements impacting comparability 13,051 17,606 28,322 26,647 Loss (Gain) on Equity Investments, net 19,465 (25,071) 19,465 (25,071) Effect of Debt Repayments and Refinancings on Interest Expense, net — 5,282 8,326 38,634 Tax Impact of Adjustments to Adjusted Net Income (25,620) (11,663) (56,515) (39,956) Adjusted Net Income $ 151,715 $ 143,535 $ 486,988 $ 411,837 Effect of Currency Translation, net of Tax 66 — 3,619 — Adjusted Net Income (Constant Currency) $ 151,781 $ 143,535 $ 490,607 $ 411,837 Earnings Per Share (as reported) Net Income Attributable to Aramark Stockholders (as reported) $ 87,138 $ 122,411 $ 326,394 $ 262,522 Diluted Weighted Average Shares Outstanding 266,957 267,912 267,349 266,200 $ 0.33 $ 0.46 $ 1.22 $ 0.99 Earnings Per Share Growth (as reported) % (28.3)% 23.2 % Adjusted Earnings Per Share Adjusted Net Income $ 151,715 $ 143,535 $ 486,988 $ 411,837 Diluted Weighted Average Shares Outstanding 266,957 267,912 267,349 266,200 $ 0.57 $ 0.54 $ 1.82 $ 1.55 Adjusted Earnings Per Share Growth % 5.6 % 17.4 % Adjusted Earnings Per Share (Constant Currency) Adjusted Net Income (Constant Currency) $ 151,781 $ 143,535 $ 490,607 $ 411,837 Diluted Weighted Average Shares Outstanding 266,957 267,912 267,349 266,200 $ 0.57 $ 0.54 $ 1.84 $ 1.55 Adjusted Earnings Per Share Growth (Constant Currency) % 5.6 % 18.7 %
Page 26
Fiscal 2025 Earnings Results Net Debt to Covenant Adjusted EBITDA 26 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES NET DEBT TO COVENANT ADJUSTED EBITDA (Unaudited) (In thousands) Twelve Months Ended October 3, 2025 September 27, 2024 Net Income Attributable to Aramark Stockholders (as reported) $ 326,394 $ 262,522 Less: Income from Discontinued Operations, net of tax — — Net income Attributable to Aramark Stockholders (as reported) $ 326,394 $ 262,522 Interest Expense, net 341,925 366,716 Provision for Income Taxes 103,586 102,972 Depreciation and Amortization 476,345 435,547 Share-based compensation expense(1) 58,107 62,552 Unusual or non-recurring losses and (gains)(2) 19,465 (22,752) Pro forma EBITDA for certain transactions(3) 13,357 840 Other(4)(5) 125,579 126,581 Covenant Adjusted EBITDA $ 1,464,758 $ 1,334,978 Net Debt to Covenant Adjusted EBITDA Total Long-Term Borrowings $ 5,405,937 $ 5,271,457 Less: Cash and cash equivalents and short-term marketable securities(6) 639,095 714,825 Net Debt $ 4,766,842 $ 4,556,632 Covenant Adjusted EBITDA $ 1,464,758 $ 1,334,978 Net Debt/Covenant Adjusted EBITDA 3.25 3.41 (1) Represents share-based compensation expense of equity awards resulting from the application of accounting for stock options, restricted stock units, performance stock units and deferred stock unit awards. (2) The twelve months ended October 3, 2025 represents the fiscal 2025 non-cash charge for the impairment of an equity investment ($19.5 million). The twelve months ended September 27, 2024 represents fiscal 2024 gain from the sale of the Company's remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and the fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million). (3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period. (4) "Other" for the twelve months ended October 3, 2025 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($54.2 million), severance charges ($36.4 million), contingent consideration expense related to acquisition earn outs ($11.1 million), non-cash charges for the impairments of assets ($8.9 million), the impact of hyperinflation in Argentina ($5.7 million), merger and integration charges ($4.1 million), legal charges related to an anti-trust review ($2.5 million) and other miscellaneous expenses. (5) "Other" for the twelve months ended September 27, 2024 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($52.2 million), charges related to the Company's spin-off of the Uniform segment ($29.0 million), non-cash adjustments to inventory based on expected usage ($21.7 million), severance charges ($13.0 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($8.1 million), charges related to a ruling on a foreign payroll tax matter ($6.8 million), the impact of hyperinflation in Argentina ($5.4 million), non-cash charges related to the impairment of a trade name ($3.3 million), income related to non-United States governmental wage subsidies ($1.1 million) and other miscellaneous expenses. (6) Short-term marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year and will convert back to cash. Short-term marketable securities are included in "Prepayments and other current assets" on the Consolidated Balance Sheets.
Page 27
Fiscal 2025 Earnings Results Free Cash Flow 27 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES FREE CASH FLOW (Unaudited) (In thousands) Fiscal Year Ended Nine Months Ended Three Months Ended October 3, 2025 June 27, 2025 October 3, 2025 Net cash provided by (used in) operating activities $ 921,035 $ (254,527) $ 1,175,562 Net purchases of property and equipment and other (466,573) (342,714) (123,859) Free Cash Flow $ 454,462 $ (597,241) $ 1,051,703 Fiscal Year Ended Nine Months Ended Three Months Ended September 27, 2024 June 28, 2024 September 27, 2024 Net cash provided by (used in) operating activities $ 726,514 $ (295,101) $ 1,021,615 Net purchases of property and equipment and other (403,480) (270,912) (132,568) Free Cash Flow $ 323,034 $ (566,013) $ 889,047 Fiscal Year Ended Nine Months Ended Three Months Ended Change Change Change Net cash provided by operating activities $ 194,521 $ 40,574 $ 153,947 Net purchases of property and equipment and other (63,093) (71,802) 8,709 Free Cash Flow $ 131,428 $ (31,228) $ 162,656
Page 28
Fiscal 2025 Earnings Results Fiscal 2025 Reference Point: Estimated impact of 53rd week 28 ARAMARK AND SUBSIDIARIES FISCAL 2025 REFERENCE POINT (Unaudited) (In thousands) Fiscal Year Ended October 3, 2025 Revenue (as reported) $ 18,506,299 Estimated Impact of 53rd week (326,691) Adjusted Revenue (Organic) $ 18,179,608
Page 29
Fiscal 2025 Earnings Results