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What changed in Cintas's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Cintas's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+145 added−160 removedSource: 10-K (2025-07-28) vs 10-K (2024-07-25)

Top changes in Cintas's 2025 10-K

145 paragraphs added · 160 removed · 128 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

49 edited+6 added−19 removed97 unchanged
Biggest changeOur talent development programs strive to provide 5 employee-partners resources to achieve career goals and build management and leadership skills. We offer mentoring programs, a management trainee program and executive leadership programs to support the professional growth of our employee-partners and ensure we have the right succession plans in place.
Biggest changeIn addition, we offer mentoring programs, a management trainee program and executive leadership programs to support the professional growth of our employee-partners and ensure we have the right succession plans in place. 5 Health and Safety We aspire to achieve zero workplace injuries and collisions and provide a safe, open, healthy and accountable work environment for our employee-partners.
Political and economic stability in the countries in which foreign suppliers are located, the financial stability of suppliers, suppliers' failure to meet our supplier standards, labor problems experienced by our suppliers, the availability of raw materials to suppliers, currency exchange rates, transport 8 availability and cost, inflation and other factors relating to the suppliers and the countries in which they are located are beyond our control.
Political and economic stability in the countries in which foreign suppliers are located, the financial stability of suppliers, suppliers' failure to meet our supplier standards, labor problems 8 experienced by our suppliers, the availability of raw materials to suppliers, currency exchange rates, transport availability and cost, inflation and other factors relating to the suppliers and the countries in which they are located are beyond our control.
Although we have an active disaster recovery plan in place that is frequently reviewed and tested, and we believe that we have adopted appropriate measures to mitigate potential risks to our technology and our operations from these information technology-related and other potential disruptions, given the unpredictability of the timing, nature and scope of such disruptions, we could potentially be subject to production downtimes, operational delays and interruptions in our ability to provide products and services to our customers.
Although we have an active disaster recovery plan in place that is frequently reviewed and tested, and we believe that we have adopted appropriate measures designed to mitigate potential risks to our technology and our operations from these information technology-related and other potential disruptions, given the unpredictability of the timing, nature and scope of such disruptions, we could potentially be subject to production downtimes, operational delays and interruptions in our ability to provide products and services to our customers.
Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions; supply chain constraints and macroeconomic conditions, including inflationary pressures and higher interest rates; fluctuations in costs of materials and labor, including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; our ability to meet our aspirations relating to environmental, social and governance (ESG) opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls for financial reporting; the effect of new accounting pronouncements; risk associated with cybersecurity threats, including disruptions caused by the inaccessibility of computer systems data and cybersecurity risk management; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events including global health pandemics; the amount and timing of repurchases of our common stock, if any; changes in global tax and labor laws; and the reactions of competitors in terms of price and service.
Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions; supply chain constraints and macroeconomic conditions, including inflationary pressures and higher interest rates; fluctuations in costs of materials and labor, including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; our ability to meet our aspirations relating to sustainability opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls for financial reporting; the effect of new accounting pronouncements; risks associated with cybersecurity threats, including disruptions caused by the inaccessibility of computer systems data and cybersecurity risk management; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events including global health pandemics; the amount and timing of repurchases of our common stock, if any; changes in global tax and labor laws; and the reactions of competitors in terms of price and service.
In addition, negative publicity related to such unexpected events, whether warranted or not, may impact brand image perception and could adversely affect our consolidated results of operations. Financial Risks Our indebtedness may limit cash flow available to invest in the ongoing needs of our business.
In addition, negative publicity related to such unexpected events, whether warranted or not, may impact brand image perception and could adversely affect our consolidated results of operations. 10 Financial Risks Our indebtedness may limit cash flow available to invest in the ongoing needs of our business.
In addition, credit market deterioration and its actual or perceived effects on our results of operations and financial condition, along with deterioration in general economic conditions, may increase the likelihood that the major independent credit agencies will downgrade our credit ratings, which could increase our cost of borrowing.
In addition, credit market deterioration and 11 its actual or perceived effects on our results of operations and financial condition, along with deterioration in general economic conditions, may increase the likelihood that the major independent credit agencies will downgrade our credit ratings, which could increase our cost of borrowing.
Increases in our cost of borrowing could adversely affect our consolidated results of operations. 11 Legal and Regulatory Risks Failure to comply with federal and state regulations to which we are subject could result in penalties or costs that could adversely affect our consolidated results of operations.
Increases in our cost of borrowing could adversely affect our consolidated results of operations. Legal and Regulatory Risks Failure to comply with federal and state regulations to which we are subject could result in penalties or costs that could adversely affect our consolidated results of operations.
Our outstanding indebtedness along with adverse interest rate fluctuations may have negative consequences on our business, such as requiring us to dedicate a substantial portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, dividend increases, stock buybacks and other general corporate purposes, as well as increase our vulnerability to adverse economic or industry conditions.
Our outstanding indebtedness along with adverse interest rate fluctuations may have negative consequences on our business, such as requiring us to dedicate a substantial portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, dividend increases, stock buybacks and other general corporate purposes, as well as increasing our vulnerability to adverse economic or industry conditions.
In addition, historical, current and forward-looking GHG-related and/or ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future. 7 Risks Relating to Business Strategy and Operations Negative global economic factors may adversely affect our financial performance.
In addition, historical, current and forward-looking GHG-related and/or sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future. 7 Risks Relating to Business Strategy and Operations Negative global economic factors may adversely affect our financial performance.
Through these efforts, Cintas has reduced our recordable injury rate by over 80% since 2008, has been awarded 128 OSHA Star sites in the VPP, which is more than triple any other company in the U.S. and has received numerous safety, health and ergonomics awards from national and international groups.
Through these efforts, Cintas has reduced our recordable injury rate by over 80% since 2008, has been awarded 140 OSHA VPP Star sites in the VPP, which is more than triple any other U.S. company, and has received numerous safety, health and ergonomics awards from national and international groups.
Forward-looking and other statements in this Annual Report on Form 10-K regarding our greenhouse gas (GHG) reduction plans and other ESG aspirations are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC.
Forward-looking and other statements in this Annual Report on Form 10-K regarding our greenhouse gas (GHG) reduction plans and other sustainability aspirations are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC.
Disruptions in the availability of any internal or external information technology systems due to implementation of a new system or otherwise, or privacy breaches involving information technology systems, could impact our ability to service our customers and adversely affect our revenue, consolidated results of operations and reputation and expose us to litigation risk.
Disruptions in the availability of any internal or external information technology systems due to implementation of a new system or otherwise, or privacy incidents involving information technology systems, could impact our ability to service our customers and adversely affect our revenue, consolidated results of operations and reputation and expose us to litigation risk.
The price of fuel and energy needed to run our vehicles and equipment is unpredictable and fluctuates based on events outside of our control, including geopolitical developments, supply and demand fluctuations for fuel and other energy related products, actions by energy producers, war and unrest in oil producing countries, regional production patterns, limits on refining capacities, natural disasters, environmental concerns including the impact of legislative and regulatory efforts to limit GHG emissions and global health pandemics.
The price of fuel and energy needed to run our vehicles and equipment is unpredictable and fluctuates based on events outside of our control, including geopolitical developments, supply and demand fluctuations for fuel and other energy related products, actions by energy producers, war and unrest in oil producing countries, regional production patterns, limits on refining capacities, natural disasters and environmental concerns including the impact of legislative and regulatory efforts to limit GHG emissions.
In addition, we expect there will likely be increasing levels of regulation, disclosure-related and otherwise, with respect to ESG matters, and increased regulation will likely lead to increased compliance costs as well as scrutiny that could heighten all of the risks identified in this risk factor.
In addition, we expect there will likely be increasing levels of regulation, disclosure-related and otherwise, with respect to sustainability matters, and increased regulation will likely lead to increased compliance costs as well as scrutiny that could heighten all of the risks identified in this risk factor.
All production-related managers attend OSHA’s 10-hour Safety Improvement course, and each member of our Senior Management team takes the Management and Leadership Skills for Environmental Health and Safety Professionals Course, part of the Harvard T.H. Chan School of Public Health safety and health curriculum.
All production-related managers attend OSHA’s 10-hour safety training course, and each member of our Senior Management team takes the Management and Leadership Skills for Environmental Health and Safety Professionals Course, part of the Harvard T.H. Chan School of Public Health safety and health curriculum.
Given the increasing sophistication of bad actors and complexity of the techniques used to obtain unauthorized access or disable systems, a cybersecurity breach or attack could potentially persist for an extended period of time before being detected.
Given the increasing sophistication of bad actors and complexity of the techniques used to obtain unauthorized access or disable systems, a cybersecurity incident or attack could potentially persist for an extended period of time before being detected.
In fiscal 2024, compliance with the 4 applicable laws, government regulations, including environmental regulations, and standards did not have a material effect on Cintas’ capital expenditures or consolidated results of operations.
In fiscal 2025, compliance with the 4 applicable laws, government regulations, including environmental regulations, and standards did not have a material effect on Cintas’ capital expenditures or consolidated results of operations.
Our business is subject to complex and stringent state and federal regulations, including employment laws and regulations, minimum wage requirements, overtime requirements, working condition requirements, citizenship requirements, transportation laws and regulations, ESG-related regulations, cybersecurity laws and regulations, data privacy and protection laws and regulations, environmental regulations, and other laws and regulations.
Our business is subject to complex and stringent state and federal regulations, including employment laws and regulations, minimum wage requirements, overtime requirements, working condition requirements, citizenship requirements, transportation laws and regulations, sustainability-related regulations, cybersecurity laws and regulations, data privacy and protection laws and regulations, environmental regulations, and other laws and regulations.
Changes in tax laws or regulations in the jurisdictions in which we do business, or other tax law implementations or interpretations, including the Inflation Reduction Act (IRA), which includes a corporate alternative minimum tax on certain large corporations, incentives to address climate change mitigation and other non-income tax provisions, including an excise tax on the repurchase of corporate stock could increase our effective tax rate, restrict our ability to repatriate undistributed offshore earnings, or impose new restrictions, costs or prohibitions on our current practices and reduce our net income and adversely affect our cash flows.
Changes in tax laws or regulations in the jurisdictions in which we do business, or other tax law implementations or interpretations, including the Inflation Reduction Act (IRA), which includes a corporate alternative minimum tax on certain large corporations and other non-income tax provisions, including an excise tax on the repurchase of corporate stock could increase our effective tax rate, restrict our ability to repatriate undistributed offshore earnings, or impose new restrictions, costs or prohibitions on our current practices and reduce our net income and adversely affect our cash flows.
Employee-partners, contractors, vendors and visitors are all covered by the system, which focuses on hazard prevention, training, management commitment and worker involvement. We are also committed to continuously improving performance through our Health and Safety Improvement Committees in every operation, while corporate health and safety employee-partners conduct annual reviews of our operations.
Employee-partners, contractors, vendors and visitors are all covered by the system, which focuses on worksite analysis, hazard prevention, training, management commitment and worker involvement. We are also committed to continuously improving performance through our employee-partner-driven Health and Safety Improvement Committees in every operation, while corporate health and safety employee-partners conduct annual reviews of our operations.
In fiscal years 2024, 2023 and 2022, revenue denominated in currencies other than the U.S. dollar represented less than 10% of our consolidated revenue.
In fiscal years 2025, 2024 and 2023, revenue denominated in currencies other than the U.S. dollar represented less than 10% of our consolidated revenue.
However, factors such as difficulty to attract key employees, reduced employee engagement, third-party organizational efforts and increased employee-partner turnover could adversely affect our labor relationships with our employee-partners. A failure to preserve positive labor relationships with our employee-partners and could adversely affect our consolidated financial condition and consolidated results of operations.
However, factors such as difficulty to attract key employees, reduced employee engagement, third-party organizational efforts, scrutiny from advocacy groups and increased employee-partner turnover could adversely affect our labor relationships with our employee-partners. A failure to preserve positive labor relationships with our employee-partners could adversely affect our consolidated financial condition and consolidated results of operations.
The failure to identify suitable acquisitions and successfully integrate these acquired businesses, or to discover liabilities associated with such businesses in the diligence process, could adversely affect our consolidated results of operations. Risks associated with the suppliers from whom our products are sourced could adversely affect our consolidated results of operations.
The failure to identify suitable acquisitions and successfully integrate these acquired businesses, or to discover liabilities associated with such businesses in the diligence process, could adversely affect our consolidated results of operations. Risks associated with the suppliers from whom our products are sourced, including greater costs associated with tariffs, could adversely affect our consolidated results of operations.
In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services.
In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services, as well as workplace water services.
Unexpected events, including fires or explosions at facilities, severe weather conditions and natural disasters such as hurricanes, fires, floods, droughts and tornadoes (including those caused by climate change), geopolitical conflicts, war or terrorist activities, unplanned outages, global health pandemics, supply disruptions, failure of equipment or systems or changes in laws and/or regulations impacting our businesses, could adversely affect our consolidated results of operations.
Unexpected events, including fires or explosions at facilities, severe weather conditions and natural disasters such as hurricanes, fires, floods, droughts and tornadoes, geopolitical conflicts, war or terrorist activities, unplanned outages, supply disruptions, failure of equipment or systems or changes in laws and/or regulations impacting our businesses, could adversely affect our consolidated results of operations.
Within the First Aid and Safety Services reportable operating segment and All Other, Cintas provides its products and services via its distribution network and local delivery routes or local representatives. At May 31, 2024, Cintas, in total, had approximately 11,700 local delivery routes, 467 operational facilities and 12 distribution centers. Sourcing Cintas is committed to sourcing responsibly.
Within the First Aid and Safety Services reportable operating segment and All Other, Cintas provides its products and services via its distribution network and local delivery routes or local representatives. At May 31, 2025, Cintas, in total, had approximately 12,100 local delivery routes, 478 operational facilities and 12 distribution centers. Sourcing Cintas is committed to sourcing responsibly.
Increases in labor costs, including the cost to provide employee-partner related healthcare benefits, minimum wages, labor shortages or shortages of skilled labor, regulations regarding the classification of employees and/or their eligibility for overtime wages, higher material costs for items such as fabrics and textiles, the inability to obtain insurance coverage at cost-effective rates, higher interest rates, inflation, global health pandemics, higher tax rates and other changes in tax laws and other economic factors could increase our costs of rental uniforms and facility services, cost of other services and selling and administrative expenses.
Increases in labor costs, including the cost to provide employee-partner related healthcare benefits, minimum wages, labor shortages or shortages of skilled labor, regulations regarding the classification of employees and/or their eligibility for overtime wages, higher material costs for items such as fabrics and textiles, the inability to obtain insurance coverage at cost-effective rates, higher interest rates, inflation, new or expanded tariffs and other measures that could restrict international trade, higher tax rates and other changes in tax laws and other economic factors could increase our costs of rental uniforms and facility services, cost of other services and selling and administrative expenses.
Negative economic conditions, in North America and our other markets, may adversely affect our financial performance. Higher levels of unemployment, inflation, recessionary conditions, geopolitical developments, tax rates and other changes in tax laws and other economic factors could adversely affect the demand for Cintas’ products and services.
Negative economic conditions, in North America and our other markets, have in the past and could again in the future, adversely affect our financial performance. Higher levels of unemployment, inflation, recessionary conditions, geopolitical developments, changes in trade agreements, tax rates and other changes in tax laws and other economic factors could adversely affect the demand for Cintas’ products and services.
Our operating locations are subject to environmental laws and regulations relating to the protection of the environment and health and safety matters, including those governing discharges of pollutants to the air and water, the management and disposal of hazardous substances and wastes and the clean-up of contaminated sites. The operation of our businesses entails risks under environmental laws and regulations.
Our operating locations are subject to environmental laws and regulations relating to the protection of the environment and health and safety matters, including those related to sustainability and governing discharges of pollutants to the air and water, the management and disposal of hazardous substances and wastes and the clean-up of contaminated sites.
Cintas' SEC filings can be found on the Investor Relations page of its website at www.cintas.com/investors/financial-reports and its Code of Conduct and Business Ethics can be found under the Impact page of its website at www.cintas.com/company/esg.
Cintas' SEC filings can be found on the Investor Relations page of its website at www.cintas.com/investors/financial-reports and its Code of Conduct and Business Ethics can be found under the About - Who We Are page of its website at www.cintas.com/company.
These and other factors, including the potential negative impact of global health pandemics affecting our suppliers and our access to products could adversely affect our consolidated results of operations. We rely extensively on information technology systems, including third-party systems, to process transactions, maintain information and manage our businesses.
These and other factors affecting our suppliers and our access to products could adversely affect our consolidated results of operations. We rely extensively on information technology systems, including third-party systems, to process transactions, maintain information and manage our businesses.
Environmental spending related to water treatment and waste removal was approximately $27.0 million in fiscal 2024, approximately $26.0 million in fiscal 2023 and approximately $22.0 million in fiscal 2022. Capital expenditures to limit or monitor hazardous substances totaled approximately $1.7 million in fiscal 2024, approximately $1.0 million in fiscal 2023 and approximately $0.2 million in fiscal 2022.
Environmental spending related to water treatment and waste removal was approximately $29.0 million in fiscal 2025, approximately $27.0 million in fiscal 2024 and approximately $26.0 million in fiscal 2023. Capital expenditures to limit or monitor hazardous substances totaled approximately $4.8 million in fiscal 2025, approximately $1.7 million in fiscal 2024 and approximately $1.0 million in fiscal 2023.
Cyber-security attacks may include, but are not limited to, malicious software, attempts to gain unauthorized access to data and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information and corruption of data.
Cyber-security attacks may include, but are not limited to, malicious software, attempts to gain unauthorized access to data and other electronic security incidents that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information and corruption of data. Emerging artificial intelligence technologies may intensify these cybersecurity risks.
The following table sets forth Cintas' total revenue and the revenue derived from each reportable operating segment and the remaining operating segments included in All Other for the fiscal years ended May 31: (In thousands) 2024 2023 2022 Uniform Rental and Facility Services $ 7,465,199 $ 6,897,130 $ 6,226,980 First Aid and Safety Services 1,067,334 951,496 832,458 All Other 1,064,082 967,143 795,021 Total Revenue $ 9,596,615 $ 8,815,769 $ 7,854,459 Additional information regarding each reportable operating segment and All Other is also included in "Item 8.
The following table sets forth Cintas' total revenue and the revenue derived from each reportable operating segment and the remaining operating segments included in All Other for the fiscal years ended May 31: (In thousands) 2025 2024 2023 Uniform Rental and Facility Services $ 7,976,073 $ 7,465,199 $ 6,897,130 First Aid and Safety Services 1,218,090 1,067,334 951,496 All Other 1,146,018 1,064,082 967,143 Total Revenue $ 10,340,181 $ 9,596,615 $ 8,815,769 Additional information regarding each reportable operating segment and All Other is also included in "Item 8.
The principles and values our employee-partners share are the driving force behind all our accomplishments. At May 31, 2024, Cintas employed approximately 46,500 employee-partners in our global workforce, of which approximately 1,000 were represented by labor unions.
The principles and values our employee-partners share are the driving force behind all our accomplishments. At May 31, 2025, Cintas employed approximately 48,300 employee-partners in our global workforce, of which approximately 900 were represented by labor unions.
We provide numerous training opportunities for our employee-partners, with a focus on continuous learning and development and methodologies to manage performance, provide feedback and develop talent. We offer a wide array of training solutions (classroom, hands-on and e-learning) for our employee-partners.
We provide numerous training opportunities for our employee-partners, with a focus on continuous learning and development and methodologies to manage performance, provide feedback and develop talent. We offer a wide array of training solutions (classroom, hands-on and e-learning) for our employee-partners. Our talent development programs strive to provide employee-partners resources to achieve career goals and build management and leadership skills.
If the network of security controls, policy enforcement mechanisms and monitoring systems to address these threats to our technology fails, or we are unable to successfully address cybersecurity incidents or the risks from cybersecurity threats, we could experience production downtimes, operational delays and interruptions in our ability to provide products and services to our customers, the compromising of confidential or otherwise protected Company, customer, or employee information, destruction or corruption of data, security breaches, or other manipulation or improper use of our systems and networks which could result in financial losses from remedial actions, loss of business or potential liability and damage to our reputation.
If the network of security controls, policy enforcement mechanisms and monitoring systems to address these threats to our technology fails, or we are unable to successfully address cybersecurity incidents or the risks from cybersecurity threats, we could experience production downtimes, operational delays and interruptions in our ability to provide products and services to our customers, the compromising of confidential or otherwise protected Company, customer, or employee information, destruction or corruption of data, security incidents, or other manipulation or improper use of our systems and networks which could result in financial losses from remedial actions, loss of business or potential liability and damage to our reputation. 9 In addition, we rely on software applications, enterprise cloud storage systems and cloud computing services provided by third-party vendors for certain information technology services, including our SAP enterprise system, payroll data, risk management data and lease data.
We operate according to the Cintas Code of Conduct and Business Ethics, available on our website www.cintas.com, which mandates full compliance with applicable laws and regulations and helps to preserve the integrity of our Company. Talent Development Cintas is committed to the continued development of its employee-partners.
We operate according to the Cintas Code of Conduct and Business Ethics, available on our website www.cintas.com, which mandates full compliance with applicable laws and regulations and helps to preserve the integrity of our Company. Talent Development Cintas is committed to actively recruiting, retaining, developing and advancing a diverse and talented workforce.
In addition, it may limit our ability to obtain additional financing in the future to enable us to react to changes in our business or industry or place us at a competitive disadvantage compared to businesses in our industry that have less debt. 10 Changes in the fuel and energy industry could adversely affect our consolidated financial condition and consolidated results of operations.
In addition, it may limit our ability to obtain additional financing in the future to enable us to react to changes in our business or industry or place us at a competitive disadvantage compared to businesses in our industry that have less debt.
AI could disrupt certain aspects of our business and evolve use of technology in ways that are not yet known. If we are not able to adapt and effectively incorporate potential advantages of AI in our business, it may negatively impact our ability to compete.
If we are not able to adapt and effectively incorporate potential advantages of AI in our business, it may negatively impact our ability to compete.
In the early 1970's, Cintas acquired the family industrial laundry business. Over the years, Cintas developed additional products and services that complemented its core uniform business and broadened the scope of products and services available to its customers.
Farmer when he left his family's industrial laundry business in order to develop uniform programs using an exclusive new fabric. In the early 1970's, Cintas acquired the family industrial laundry business. Over the years, Cintas developed additional products and services that complemented its core uniform business and broadened the scope of products and services available to its customers.
If these third-party vendors, as well as our suppliers and other vendors, experience service interruptions or damage, security breaches, cyber-attacks, computer viruses, ransomware or other similar events or intrusions, our business and our consolidated results of operations may be adversely affected. 9 The world has experienced an exponential level of growth in the availability of potential applications of artificial intelligence (AI).
If these third-party vendors, as well as our suppliers and other vendors, experience service interruptions or damage, security incidents, cyber-attacks, computer viruses, ransomware or other similar events or intrusions, our business and our consolidated results of operations may be adversely affected.
Under applicable environmental laws, an owner or operator of real estate may be required to pay the costs of removing or remediating hazardous materials located on or emanating from property, whether or not the owner or operator knew of or was responsible for the presence of such hazardous materials.
We may not be able to timely recover the cost of compliance with such new or more stringent laws and regulations, which could adversely affect our consolidated results of operations. 12 Under applicable environmental laws, an owner or operator of real estate may be required to pay the costs of removing or remediating hazardous materials located on or emanating from property, whether or not the owner or operator knew of or was responsible for the presence of such hazardous materials.
We could incur significant costs, including clean-up costs, fines and sanctions and claims by third parties for property damage and personal injury, as a result of violations of or liabilities under these laws and regulations. We are currently involved in a limited number of remedial investigations and actions at various locations.
The operation of our businesses entails risks under environmental laws and regulations. We could incur significant costs, including clean-up costs, fines and sanctions and claims by third parties for property damage and personal injury, as a result of violations of, or liabilities under these laws and regulations.
The Employee-Partner Business Resource Groups also help foster inclusion among all employee-partners to build awareness, recruit and retain a diverse workforce and support the overall success of Cintas. We also have a diverse Management Trainee program that helps Cintas find and develop the best talent for our leadership pipeline, and we monitor representation across management positions.
We also have multiple Employee-Partner Business Resource Groups which help foster inclusion among all employee-partners to build awareness, recruit and retain a diverse workforce and support the overall success of Cintas.
In addition, new regulations could result in us being required to disclose information about a material cybersecurity incident before it has been mitigated or resolved, or even fully investigated. We have experienced cybersecurity incidents in the past, but none of these incidents, individually or in the aggregate, have had a material adverse effect on our business or results of operations.
In addition, new laws or regulations could result in us being required to disclose information about a material cybersecurity incident before it has been mitigated or resolved, or even fully investigated.
With products and services including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday ® . Cintas was founded in 1968 by Richard T. Farmer when he left his family's industrial laundry business in order to develop uniform programs using an exclusive new fabric.
With products and services including uniforms, mats, mops, shop towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm testing, Cintas helps customers get Ready for the Workday ® . Cintas was founded in 1968 by Richard T.
The content on any website referred to in this Annual Report on Form 10-K is not incorporated herein by reference unless expressly noted. Sustainability In fiscal 2024, Cintas published its fourth annual sustainability report and reported on Cintas’ continued strategy of a Shared Drive for Better.
The content on any website referred to in this Annual Report on Form 10-K is not incorporated herein by reference unless expressly noted. Human Capital Cintas’ key human capital management objectives are to attract, retain and develop talent to deliver on the Company’s strategy.
If, as a result of their assessment of our ESG practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company. Increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters could adversely impact our consolidated results of operations.
Increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters could adversely impact our consolidated results of operations.
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The report included information on Cintas’ efforts in areas of climate and energy initiatives, water interactions, materials and waste, sustainable supply chain, diversity, equity and inclusion efforts, employee-partner development, safety and health strategy, human rights and labor rights positions and governance, ethics and integrity foundations. Cintas' most recent sustainability report can be found on our website at www.cintas.com/company/esg.
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The rapid, ongoing evolution and increased adoption of emerging technologies such as artificial intelligence and machine learning may make it more difficult to anticipate and implement protective measures to recognize, detect, and prevent the occurrence of any of the cyber events.
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Human Capital Cintas’ key human capital management objectives are to attract, retain and develop talent to deliver on the Company’s strategy.
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We have experienced cybersecurity incidents in the past, but none of these incidents, individually or in the aggregate, have had a material adverse effect on our business or results of operations. However, there can be no assurance that we will not experience material cybersecurity incidents in the future.
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Health and Safety We aspire to achieve zero workplace injuries and collisions and provide a safe, open, healthy and accountable work environment for our employee-partners.
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Additionally, we cannot be certain that any insurance coverage will be adequate for cybersecurity liabilities actually incurred, that insurance will continue to be available to us on economically reasonable terms, or at all, or that our insurer will not deny coverage as to any future claim.
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Diversity, Equity & Inclusion Cintas supports diversity, equity and inclusion by fostering a respectful, creative and productive environment where all employee-partners can reach their full potential without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability or protected veteran status. We actively recruit, retain, develop and advance a diverse and talented workforce.
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The world has experienced an exponential level of growth in the availability of potential applications of artificial intelligence (AI). AI could disrupt certain aspects of our business and evolve use of technology in ways that are not yet known.
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We have six Employee-Partner Business Resource Groups, focused on Women, African Americans, Hispanic and Latin Americans, Asian American/Pacific Islanders, LGBTQ+ and Military and Veteran employee-partners. These groups provide platforms for our employee-partners to showcase skills, experiences and perspectives.
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Changes in the fuel and energy industry could adversely affect our consolidated financial condition and consolidated results of operations.
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Cintas’ diversity, equity and inclusion efforts are led by our Senior Vice President of Human Resources and Chief Diversity Officer. This position reports to our Chief Executive Officer and works to help achieve our goals and obtain a diverse and talented workforce, which is critical to our success.
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We are currently involved in a limited number of remedial investigations and actions at various locations.
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In addition, we rely on software applications, enterprise cloud storage systems and cloud computing services provided by third-party vendors for certain information technology services, including our SAP enterprise system, payroll data, risk management data and lease data.
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Increased global focus on climate change may result in the imposition of new or additional regulations or requirements applicable to, and increased financial risks for, our business and industry. A number of government authorities and agencies have introduced or are contemplating regulatory changes to address climate change, including the regulation of GHG emissions.
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The outcome of new legislation or regulation in the U.S. and other jurisdictions in which we operate may result in new or additional requirements, including to fund energy efficiency 12 activities or renewable energy use, and fees or restrictions on certain activities or materials.
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Compliance with these climate change initiatives may also result in additional costs to us, including, among other things, increased production costs, additional taxes, additional investments in renewable energy use and other initiatives, reduced emission allowances or additional restrictions on production or operations.
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We may not be able to timely recover the cost of compliance with such new or more stringent laws and regulations, which could adversely affect our consolidated results of operations.
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Increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding ESG matters may adversely affect our reputation or otherwise adversely impact our share price, demand for our securities and business and results of operations.
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Companies across all industries are facing increasing scrutiny from stakeholders related to ESG matters, including practices and disclosures related to environmental stewardship; social responsibility; diversity, equity and inclusion; and workplace rights.
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The heightened and sometimes conflicting stakeholder focus on ESG issues related to our business requires the continuous monitoring of various and evolving laws, regulations, standards and expectations and the associated reporting requirements.
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As the nature, scope and complexity of ESG reporting, diligence and disclosure requirements expand, we may have to undertake additional costs to control, assess and report on ESG metrics.
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Any failure or perceived failure, whether or not valid, to pursue or fulfill our ESG aspirations, targets or objectives or to satisfy various ESG reporting standards within the timelines we announce, or at all, could result in adverse publicity, reputational harm, or loss of customer and/or investor confidence, which could adversely affect our business and consolidated results of operations.
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In addition, our share price and demand for our securities could be adversely affected.
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In addition, our ability to achieve our ESG aspirations, including to achieve Net Zero GHG emissions by 2050, and to accurately and transparently report our progress presents numerous operational, financial, legal and other risks, and may be dependent on the actions of suppliers and other third parties, significant technological advancements with respect to the development and availability of reliable, affordable and sustainable alternative solutions, all of which are outside of our control.
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If we are unable to meet our ESG aspirations or evolving stakeholder expectations and industry standards, or if we are perceived to have not responded appropriately to the growing concern for ESG issues, our reputation could be negatively impacted. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on ESG matters.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

55 edited+9 added−10 removed40 unchanged
Biggest changeOur Board of Directors declared the following dividends: Paid Dividends Declaration Date (In millions except per share data) Record Date Payment Date Dividend Per Share Total Amount Fiscal Year 2024 April 11, 2023 May 15, 2023 June 15, 2023 $ 1.15 $ 117.6 July 25, 2023 August 15, 2023 September 15, 2023 1.35 138.2 October 24, 2023 November 15, 2023 December 15, 2023 1.35 137.5 January 16, 2024 February 15, 2024 March 15, 2024 1.35 137.6 Total $ 5.20 $ 530.9 Fiscal Year 2023 April 12, 2022 May 16, 2022 June 15, 2022 $ 0.95 $ 97.7 July 26, 2022 August 15, 2022 September 15, 2022 1.15 117.3 October 25, 2022 November 15, 2022 December 15, 2022 1.15 117.4 January 10, 2023 February 15, 2023 March 15, 2023 1.15 117.5 Total $ 4.40 $ 449.9 Accrued Dividends As of May 31, 2024 April 9, 2024 (1) May 15, 2024 June 14, 2024 $ 1.35 $ 137.6 As of May 31, 2023 April 11, 2023 (1) May 15, 2023 June 15, 2023 $ 1.15 $ 117.6 (1) The dividends declared on April 9, 2024 and April 11, 2023 were included in current accrued liabilities on the consolidated balance sheets at May 31, 2024 and 2023, respectively.
Biggest changeOur Board of Directors declared the following dividends: Paid Dividends Declaration Date (In millions except per share data) Record Date Payment Date Dividend Per Share Total Amount Fiscal Year 2025 April 9, 2024 May 15, 2024 June 14, 2024 $ 0.3375 $ 137.6 July 23, 2024 August 15, 2024 September 3, 2024 0.39 158.0 October 29, 2024 November 15, 2024 December 13, 2024 0.39 158.1 January 14, 2025 February 14, 2025 March 14, 2025 0.39 157.9 Total $ 1.5075 $ 611.6 Fiscal Year 2024 April 11, 2023 May 15, 2023 June 15, 2023 $ 0.2875 $ 117.6 July 25, 2023 August 15, 2023 September 15, 2023 0.3375 138.2 October 24, 2023 November 15, 2023 December 15, 2023 0.3375 137.5 January 16, 2024 February 15, 2024 March 15, 2024 0.3375 137.6 Total $ 1.3000 $ 530.9 Accrued Dividends As of May 31, 2025 April 8, 2025 (1) May 15, 2025 June 13, 2025 $ 0.39 $ 157.8 As of May 31, 2024 April 9, 2024 (1) May 15, 2024 June 14, 2024 $ 0.3375 $ 137.6 (1) The dividends declared on April 8, 2025 and April 9, 2024 were included in current accrued liabilities on the consolidated balance sheets at May 31, 2025 and 2024, respectively.
See Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for more information on Cintas' outstanding debt. Basis of Preparation of the Summarized Financial Information The following tables include summarized financial information of Cintas Corporation (Issuer), Corp. 2 and subsidiary guarantors (together, the Obligor Group).
See Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for more information on Cintas' outstanding debt. Basis of Preparation of the Summarized Financial Information The following tables include summarized financial information of Cintas Corporation, Corp. 2 (issuer) and subsidiary guarantors (together, the Obligor Group).
In addition, in such a case, our cost of funds for new issues of 25 commercial paper and long-term debt would be higher than our cost of funds would have been had the ratings of those new issues been at or above the level of the ratings noted above.
In addition, in such a case, our cost of funds for new issues of commercial paper and long-term debt would be higher than our cost of funds would have been had the ratings of those new issues been at or above the level of the ratings noted above.
As of both May 31, 2024 and 2023, there was no commercial paper outstanding and no borrowings on our revolving credit facility. Cintas' debt agreements contain certain covenants. These covenants limit our ability to incur certain liens and priority debt, to engage in sale-leaseback transactions and to merge, consolidate or sell all or substantially all of Cintas' assets.
As of both May 31, 2025 and 2024, there was no commercial paper outstanding and no borrowings on our revolving credit facility. Cintas' debt agreements contain certain covenants. These covenants limit our ability to incur certain liens and priority debt, to engage in sale-leaseback transactions and to merge, consolidate or sell all or substantially all of Cintas' assets.
As of May 31, 2024, our ratings were as follows: Rating Agency Outlook Commercial Paper Long-term Debt Standard & Poor’s Stable A-2 A- Moody’s Investors Service Stable P-2 A3 In the event that the ratings of our commercial paper or our outstanding long-term debt issues were substantially lowered or withdrawn for any reason, or if the ratings assigned to any new issue of long-term debt securities were significantly lower than those noted above, particularly if we no longer had investment grade ratings, our ability to access the debt markets may be adversely affected.
As of May 31, 2025, our ratings were as follows: Rating Agency Outlook Commercial Paper Long-term Debt Standard & Poor’s Stable A-2 A- Moody’s Investors Service Stable P-2 A3 25 In the event that the ratings of our commercial paper or our outstanding long-term debt issues were substantially lowered or withdrawn for any reason, or if the ratings assigned to any new issue of long-term debt securities were significantly lower than those noted above, particularly if we no longer had investment grade ratings, our ability to access the debt markets may be adversely affected.
Cintas records an increase or decrease in selling and administrative expenses related to development of prior claims, higher claims activity and other environmental factors in the period in which it becomes known. These changes in estimates may be material to the consolidated financial statements.
Cintas records an increase or decrease in selling and administrative expenses related to development of prior claims, higher claims activity and other industry factors in the period in which it becomes known. These changes in estimates may be material to the consolidated financial statements.
In fiscal 2024, 2023 and 2022, we experienced impacts from inflation, including, but not limited to, higher labor, fuel and transportation costs. Management has been able to mitigate these inflationary pressures through pricing and various efficiency initiatives.
In fiscal 2025, 2024 and 2023, we experienced impacts from inflation, including, but not limited to, higher labor, fuel and transportation costs. Management has been able to mitigate these inflationary pressures through pricing and various efficiency initiatives.
No constraints on our revenue recognition were applied during the fiscal years ended May 31, 2024, 2023 or 2022. See Note 2 entitled Revenue Recognition of "Notes to Consolidated Financial Statements". Uniforms and other rental items in service. Uniforms and other rental items in service are valued at cost less amortization, calculated using the straight-line method.
No constraints on our revenue recognition were applied during the fiscal years ended May 31, 2025, 2024 or 2023. See Note 2 entitled Revenue Recognition of "Notes to Consolidated Financial Statements". 28 Uniforms and other rental items in service. Uniforms and other rental items in service are valued at cost less amortization, calculated using the straight-line method.
Revenue and operating income for the reportable operating segments for the fiscal years ended May 31, 2024, 2023 and 2022 are presented in Note 14 entitled Operating Segment Information of "Notes to Consolidated Financial Statements." The Company regularly reviews its operating segments for reporting purposes based on the information its chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance and makes changes when appropriate. 19 The following table sets forth certain consolidated statements of income data as a percent of revenue by reportable operating segment, All Other and in total for the fiscal years ended May 31: 2024 2023 Revenue: Uniform Rental and Facility Services 77.8% 78.2% First Aid and Safety Services 11.1% 10.8% All Other 11.1% 11.0% Total revenue 100.0% 100.0% Cost of sales: Uniform Rental and Facility Services 51.8% 52.7% First Aid and Safety Services 44.5% 49.3% All Other 53.6% 55.9% Total cost of sales 51.2% 52.7% Gross margin: Uniform Rental and Facility Services 48.2% 47.3% First Aid and Safety Services 55.5% 50.7% All Other 46.4% 44.1% Total gross margin 48.8% 47.3% Selling and administrative expenses: Uniform Rental and Facility Services 26.0% 25.9% First Aid and Safety Services 33.1% 31.7% All Other 30.4% 29.3% Total selling and administrative expenses 27.3% 26.9% Operating income: Uniform Rental and Facility Services 22.2% 21.4% First Aid and Safety Services 22.4% 19.0% All Other 16.0% 14.8% Total operating income 21.6% 20.4% Interest expense, net 0.9% 1.2% Income before income taxes 20.6% 19.2% Fiscal 2024 Compared to Fiscal 2023 Fiscal 2024 total revenue was $9.6 billion, an increase of 8.9% over the prior fiscal year.
Revenue and operating income for the reportable operating segments for the fiscal years ended May 31, 2025, 2024 and 2023 are presented in Note 14 entitled Operating Segment Information of "Notes to Consolidated Financial Statements." The Company regularly reviews its operating segments for reporting purposes based on the information its chief operating decision maker (CODM) regularly reviews for purposes of allocating resources and assessing performance and makes changes when appropriate. 19 The following table sets forth certain consolidated statements of income data as a percent of revenue by reportable operating segment, All Other and in total for the fiscal years ended May 31: 2025 2024 Revenue: Uniform Rental and Facility Services 77.1% 77.8% First Aid and Safety Services 11.8% 11.1% All Other 11.1% 11.1% Total revenue 100.0% 100.0% Cost of sales: Uniform Rental and Facility Services 50.7% 51.8% First Aid and Safety Services 42.8% 44.5% All Other 52.7% 53.6% Total cost of sales 50.0% 51.2% Gross margin: Uniform Rental and Facility Services 49.3% 48.2% First Aid and Safety Services 57.2% 55.5% All Other 47.3% 46.4% Total gross margin 50.0% 48.8% Selling and administrative expenses: Uniform Rental and Facility Services 25.8% 26.0% First Aid and Safety Services 33.0% 33.1% All Other 30.6% 30.4% Total selling and administrative expenses 27.2% 27.3% Operating income: Uniform Rental and Facility Services 23.5% 22.2% First Aid and Safety Services 24.2% 22.4% All Other 16.7% 16.0% Total operating income 22.8% 21.6% Interest expense, net 0.9% 1.0% Income before income taxes 21.9% 20.5% Fiscal 2025 Compared to Fiscal 2024 Fiscal 2025 total revenue was $10.3 billion, an increase of 7.7% over the prior fiscal year.
The amortization rates used are based on industry experience, Cintas' specific experience and wear tests performed by Cintas. These factors are critical to determining the amount of in service inventory and related cost of uniforms and facility services that are presented in the consolidated financial statements. 28 Goodwill.
The amortization rates used are based on industry experience, Cintas' specific experience and wear tests performed by Cintas. These factors are critical to determining the amount of in service inventory and related cost of uniforms and facility services that are presented in the consolidated financial statements. Insurance reserve.
Item 1A. Risk Factors ." For discussion of fiscal 2023 results compared to fiscal 2022 results, see the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” within our Annual Report on Form 10-K for the fiscal year ended May 31, 2023, filed with the SEC on July 27, 2023.
Item 1A. Risk Factors ." For discussion of fiscal 2024 results compared to fiscal 2023 results, see the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” within our Annual Report on Form 10-K for the fiscal year ended May 31, 2024, filed with the SEC on July 25, 2024.
Corp. 2 is the issuer of the $2,486.6 million aggregate principal amount of senior notes outstanding as of May 31, 2024, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly owned, direct and indirect domestic subsidiaries.
Corp. 2 is the issuer of the $2,436.6 million aggregate principal amount of senior notes outstanding as of May 31, 2025, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and its wholly owned, direct and indirect domestic subsidiaries.
In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services.
In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services, as well as workplace water services.
Other Commitments Amount of Commitment Expiration per Period (In thousands) Total One year or less Two to three years Four to five years After five years Lines of credit (1) $ 1,999,299 $ — $ 1,999,299 $ — $ — Standby letters of credit and surety bonds (2) 117,957 117,957 — — — Total other commitments $ 2,117,256 $ 117,957 $ 1,999,299 $ — $ — (1) Back-up facility for the commercial paper program (reference Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for further discussion).
Other Commitments Amount of Commitment Expiration per Period (In thousands) Total One year or less Two to three years Four to five years After five years Lines of credit (1) $ 1,999,298 $ — $ 1,999,298 $ — $ — Standby letters of credit and surety bonds (2) 129,576 129,576 — — — Total other commitments $ 2,128,874 $ 129,576 $ 1,999,298 $ — $ — (1) Back-up facility for the commercial paper program (reference Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for further discussion).
The following table summarizes Cintas' outstanding debt at May 31: (In thousands) Interest Rate Fiscal Year Issued Fiscal Year Maturity 2024 2023 Debt due within one year Senior notes (1) 3.11% 2015 2025 $ 50,294 $ — Senior notes 3.45% 2022 2025 400,000 — Debt issuance costs (699) — Total debt due within one year $ 449,595 $ — Debt due after one year Senior notes (1) 3.11% 2015 2025 $ — $ 50,630 Senior notes 3.45% 2022 2025 — 400,000 Senior notes 3.70% 2017 2027 1,000,000 1,000,000 Senior notes 4.00% 2022 2032 800,000 800,000 Senior notes 6.15% 2007 2037 236,550 250,000 Debt issuance costs (10,616) (14,225) Total debt due after one year $ 2,025,934 $ 2,486,405 (1) Cintas assumed these senior notes with the acquisition of G&K Services, Inc.
The following table summarizes Cintas' outstanding debt at May 31: (In thousands) Interest Rate Fiscal Year Issued Fiscal Year Maturity 2025 2024 Debt due within one year Senior notes (1) 3.11% 2015 2025 $ — $ 50,294 Senior notes 3.45% 2022 2025 — 400,000 Debt issuance costs — (699) Total debt due within one year $ — $ 449,595 Debt due after one year Senior notes 3.70% 2017 2027 $ 1,000,000 $ 1,000,000 Senior notes 4.20% 2025 2028 400,000 — Senior notes 4.00% 2022 2032 800,000 800,000 Senior notes 6.15% 2007 2037 236,550 236,550 Debt issuance costs (11,551) (10,616) Total debt due after one year $ 2,424,999 $ 2,025,934 (1) Cintas assumed these senior notes with the acquisition of G&K Services, Inc.
The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention. Cost of sales for the First Aid and Safety Services reportable operating segment increased $5.3 million, or 1.1%, in fiscal 2024, due to higher sales volume.
The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention. Cost of sales for the First Aid and Safety Services reportable operating segment increased $46.8 million, or 9.9%, in fiscal 2025, due to higher sales volume.
Gross margin for the First Aid and Safety Services reportable operating segment is defined as revenue less cost of goods, warehouse expenses and service expenses. Gross margin as a percent of revenue was 55.5% for fiscal 2024 compared to 50.7% in fiscal 2023.
Gross margin for the First Aid and Safety Services reportable operating segment is defined as revenue less cost of goods, warehouse expenses and service expenses. Gross margin as a percent of revenue was 57.2% for fiscal 2025 compared to 55.5% in fiscal 2024.
The increase in income before income taxes was due to the previously discussed growth in revenue and improvements in gross margin. Income before income taxes as a percent of revenue was 22.2% compared to 21.4% in fiscal 2023. The improvement over the prior fiscal year was primarily a result of the previously discussed improvement in gross margin.
The increase in income before income taxes was due to the previously discussed growth in revenue and improvements in gross margin. Income before income taxes as a percent of revenue was 23.5% compared to 22.2% in fiscal 2024. The improvement over the prior fiscal year was primarily a result of the previously discussed improvement in gross margin.
Generally, sales productivity improvements are due to increased tenure and improved training, which produce a higher number of products and services sold. Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 11.1%, to $2,131.4 million compared to $1,918.6 million in fiscal 2023.
Generally, sales productivity improvements are due to increased tenure and improved training, which produce a higher number of products and services sold. Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 10.9%, to $2,364.1 million compared to $2,131.4 million in fiscal 2024.
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $154.4 million in fiscal 2024 compared to fiscal 2023 in order to support revenue growth as well as invest in technology and selling resources. Selling and administrative expense as a percent of revenue for fiscal 2024 was 26.0% compared to 25.9% in fiscal 2023.
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $121.2 million in fiscal 2025 compared to fiscal 2024 in order to support revenue growth as well as invest in technology and selling resources. Selling and administrative expense as a percent of revenue for fiscal 2025 was 25.8% compared to 26.0% in fiscal 2024.
Diluted earnings per share increased primarily due to the increase in net income. 21 Uniform Rental and Facility Services Reportable Operating Segment Uniform Rental and Facility Services reportable operating segment revenue increased $568.1 million, or 8.2%, and the cost of uniform rental and facility services increased $232.9 million, or 6.4%, due to the reasons previously discussed.
Diluted earnings per share increased primarily due to the increase in net income. Uniform Rental and Facility Services Reportable Operating Segment Uniform Rental and Facility Services reportable operating segment revenue increased $510.9 million, or 6.8%, and the cost of uniform rental and facility services increased $175.8 million, or 4.5%, due to the reasons previously discussed.
The cost of uniform rental and facility services as a percent of revenue improved compared to fiscal 2023 from 52.7% to 51.8% primarily due to efficiency gains in energy usage, more efficient use of in-service inventory, and improved leverage of fixed costs.
The cost of uniform rental and facility services as a percent of revenue improved compared to fiscal 2024 from 51.8% to 50.7% primarily due to efficiency gains in energy usage, more efficient use of in-service inventory and production efficiency gains.
Future contributions to the defined benefit plans are expected to be $5.1 million in the next fiscal year, $4.7 million in the next two to three fiscal years and $4.7 million in the next four to five fiscal years.
Future contributions to the defined benefit plans are expected to be $2.5 million in the next fiscal year, $10.0 million in the next two to three fiscal years and $8.4 million in the next four to five fiscal years.
Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in-service inventory, including uniforms, mats, shop towels and other ancillary items.
Cost of uniform rental and facility services increased 4.5% compared to fiscal 2024. Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in-service inventory, including uniforms, mats, shop towels and other ancillary items.
The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for fiscal 2024 of $1,571.6 million was a 16.6% increase compared to fiscal 2023. Diluted earnings per share of $15.15 was a 16.6% increase compared to fiscal 2023 diluted earnings per share of $12.99.
The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for fiscal 2025 of $1,812.3 million was a 15.3% increase compared to fiscal 2024. Diluted earnings per share of $4.40 was a 16.1% increase compared to fiscal 2024 diluted earnings per share of $3.79.
As a percent of revenue, selling and administrative expenses were largely consistent as compared to the prior fiscal year. Income before income taxes for the Uniform Rental and Facility Services reportable operating segment increased $180.7 million, or 12.2%, for fiscal 2024 compared to fiscal 2023.
Excluding the items noted previously, selling and administrative expenses as a percent of revenue were largely consistent as compared to the prior fiscal year. Income before income taxes for the Uniform Rental and Facility Services reportable operating segment increased $213.9 million, or 12.9%, for fiscal 2025 compared to fiscal 2024.
Cost of other increased 3.5% in fiscal 2024 compared to fiscal 2023, as a result of higher other revenue, but decreased as a percent of revenue to 49.0%, compared to 52.7% in fiscal 2023.
Cost of other increased 7.7% in fiscal 2025 compared to fiscal 2024, as a result of higher other revenue, but decreased as a percent of revenue to 47.6%, compared to 49.0% in fiscal 2024.
The Company is currently evaluating the impact of ASU 2023-09 on the consolidated financial statements. There are no other accounting pronouncements recently issued or newly effective that had, or are expected to have, a material impact on Cintas' consolidated financial statements.
There are no other accounting pronouncements recently issued or newly effective that had, or are expected to have, a material impact on Cintas' consolidated financial statements.
The reportable operating segment's fiscal 2024 gross margin was 48.2% of revenue compared to 47.3% in fiscal 2023. The improvement in gross margin was primarily the result of efficiency gains in energy usage, more efficient use of in-service inventory, and improved leverage of fixed costs.
The reportable operating segment's fiscal 2025 gross margin was 49.3% of revenue compared to 48.2% in fiscal 2024. The improvement in gross margin was primarily due to efficiency gains in energy usage, more efficient use of in-service inventory and production efficiency gains.
Organic revenue growth by quarter for fiscal 2024 is as follows: First quarter ended August 31, 2023 8.1% Second quarter ended November 30, 2023 9.0% Third quarter ended February 29, 2024 7.7% Fourth quarter ended May 31, 2024 7.5% For the fiscal year ended May 31, 2024 8.0% 20 Uniform Rental and Facility Services reportable operating segment revenue consists predominantly of revenue derived from the rental of corporate identity uniforms and other garments, including flame resistant clothing and the rental and/or sale of mats, mops, shop towels, restroom supplies and other rental services.
Total revenue was positively impacted by 0.8% due to acquisitions, negatively impacted by 0.9% due to two less workdays in fiscal 2025 compared to fiscal 2024 and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations. 20 Organic revenue growth by quarter for fiscal 2025 is as follows: First quarter ended August 31, 2024 8.0% Second quarter ended November 30, 2024 7.1% Third quarter ended February 28, 2025 7.9% Fourth quarter ended May 31, 2025 9.0% For the fiscal year ended May 31, 2025 8.0% Uniform Rental and Facility Services reportable operating segment revenue consists predominantly of revenue derived from the rental of corporate identity uniforms and other garments, including flame resistant clothing and the rental and/or sale of mats, mops, shop towels, restroom supplies and other rental services.
Revenue from the Uniform Rental and Facility Services reportable operating segment increased 8.2%, to $7,465.2 million compared to $6,897.1 million in fiscal 2023. Organic revenue growth for this reportable operating segment was 7.4%. Revenue growth was positively impacted by 0.4% due to acquisitions and 0.4% due to one more workday in fiscal 2024 compared to fiscal 2023.
Revenue from the Uniform Rental and Facility Services reportable operating segment increased 6.8%, to $7,976.1 million compared to $7,465.2 million in fiscal 2024. Organic revenue growth for this reportable operating segment was 7.0%.
Selling and administrative expenses for the First Aid and Safety Services reportable operating segment increased by $52.1 million, or 17.3%, in fiscal 2024 compared to fiscal 2023, and increased as a percent of revenue to 33.1% in fiscal 2024 compared to 31.7% in fiscal 2023.
Selling and administrative expenses for the First Aid and Safety Services reportable operating segment increased by $48.4 million, or 13.7%, in fiscal 2025 compared to fiscal 2024, but decreased as a percent of revenue to 33.0% in fiscal 2025 compared to 33.1% in fiscal 2024.
Net cash used in investing activities also included $7.5 million and $4.6 million of purchases of investments during fiscal 2024 and fiscal 2023, respectively. Net cash used in financing activities was $1,253.5 million for fiscal 2024, compared to $1,172.8 million in fiscal 2023.
Net cash used in investing activities also included $7.2 million and $7.5 million of purchases of investments during fiscal 2025 and fiscal 2024, respectively. Net cash used in financing activities was $1,619.0 million for fiscal 2025, compared to $1,247.5 million in fiscal 2024.
The increase in cash used in financing activities was due to the increase in share buyback activity and dividends paid. These increases were partially offset by a decrease in payments of debt and commercial paper in fiscal 2024 compared to fiscal 2023.
The increase in cash used in financing activities was due to the increase in repayment of debt, share buyback activity and an increase in dividends paid. These increases were partially offset by an increase in proceeds from the issuance of debt in fiscal 2025 compared to fiscal 2024.
First Aid and Safety Services Reportable Operating Segment First Aid and Safety Services reportable operating segment revenue increased $115.8 million in fiscal 2024, a 12.2% increase compared to fiscal 2023. Organic revenue growth for this reportable operating segment was 11.6%.
First Aid and Safety Services Reportable Operating Segment First Aid and Safety Services reportable operating segment revenue increased $150.8 million in fiscal 2025, a 14.1% increase compared to fiscal 2024. Organic revenue growth for this reportable operating segment was 15.0%.
Revenue growth was positively impacted by 0.2% due to acquisitions, positively impacted by 0.5% due to one more workday in fiscal 2024 compared to fiscal 2023 and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
Revenue growth was positively impacted by 0.1% due to acquisitions, negatively impacted by 0.9% due to two less workdays in fiscal 2025 compared to fiscal 2024 and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
On July 27, 2021, we announced the Board authorized a $1.5 billion share buyback program, which was completed during the fourth quarter of fiscal 2024.
Cintas announced on July 27, 2021, that the Board authorized a $1.5 billion share buyback program, which was completed during the fourth quarter of fiscal 2024. On July 26, 2022 and July 23, 2024, Cintas announced that the Board authorized new share buyback programs, each for $1.0 billion.
Future contributions to the defined contribution plans are expected to be $125.3 million in the next fiscal year, $269.6 million in the next two to three fiscal years and $297.3 million in the next four to five fiscal years.
Future contributions to the defined contribution plans are expected to be $141.2 million in the next fiscal year, $304.0 million in the next two to three fiscal years and $335.1 million in the next four to five fiscal years.
Revenue increased organically by 8.0% primarily as a result of increased sales volume. Organic revenue growth adjusts for the impact of acquisitions, workday differences and foreign currency exchange rate fluctuations. Total revenue was positively impacted by 0.4% due to acquisitions and by 0.5% due to one more workday in fiscal 2024 compared to fiscal 2023.
Revenue increased organically by 8.0% primarily as a result of increased sales volume. Organic revenue growth adjusts for the impact of acquisitions, workday differences and foreign currency exchange rate fluctuations.
From the inception of the July 26, 2022 share buyback program through July 25, 2024, Cintas has purchased 0.8 million shares of Cintas common stock in the aggregate, at an average price of $691.40 per share, for a total purchase price of $530.7 million.
From the inception of the July 26, 2022 share buyback program through July 28, 2025, Cintas has purchased 4.1 million shares of Cintas common stock in the aggregate, at an average price of $178.20 per share, for a total purchase price of $736.4 million. Cintas has made no purchases under the July 23, 2024 share buyback program.
Income before income taxes as a percent of revenue at 22.4%, increased from 19.0% in fiscal 2023 due to the previously discussed growth in revenue and improvements in gross margin, partially offset by the change in selling and administrative expenses. 22 Liquidity and Capital Resources The following table summarizes our cash flows and cash and cash equivalents as of and for the fiscal years ended May 31: (In thousands) 2024 2023 Net cash provided by operating activities $ 2,079,781 $ 1,597,814 Net cash used in investing activities $ (608,631) $ (388,672) Net cash used in financing activities $ (1,253,490) $ (1,172,836) Cash and cash equivalents at end of year $ 342,015 $ 124,149 Cash and cash equivalents as of May 31, 2024 and 2023, include $42.1 million and $29.9 million, respectively, that is located outside of the U.S.
Income before income taxes as a percent of revenue at 24.2%, increased from 22.4% in fiscal 2024 due to the previously discussed growth in revenue and improvements in gross margin. 22 Liquidity and Capital Resources The following table summarizes our cash flows and cash and cash equivalents as of and for the fiscal years ended May 31: (In thousands) 2025 2024 Net cash provided by operating activities $ 2,165,905 $ 2,068,500 Net cash used in investing activities $ (623,638) $ (603,334) Net cash used in financing activities $ (1,619,011) $ (1,247,506) Cash and cash equivalents at end of year $ 263,973 $ 342,015 Cash and cash equivalents as of May 31, 2025 and 2024, include $57.8 million and $42.1 million, respectively, that is located outside of the U.S.
The acquisitions in both fiscal 2024 and 2023 occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection operating segment, which is included in All Other.
The acquisitions in both fiscal 2025 and 2024 occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection operating segment, which is included in All Other. In addition, during fiscal 2025, Cintas received cash proceeds of $24.0 million related to the sale of property and equipment.
Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board and dependent upon then-existing conditions, including the Company's consolidated results of operations and consolidated financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board may deem relevant. 24 During the fiscal year ended May 31, 2024, Cintas repurchased, and subsequently retired, $13.5 million of its 6.15%, 30-year senior notes.
Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board and dependent upon then-existing conditions, including the Company's consolidated results of operations and consolidated financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board may deem relevant. 24 On April 15, 2025, in accordance with the terms of the senior notes, Cintas paid the $50.0 million aggregate principal amount outstanding of its 3.11%, private placement, 10-year senior notes that matured on that date with cash on hand.
The improvement in cost of sales as a percent to revenue was primarily due to favorable changes in the sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment as well as i mproved leverage of fixed costs for both the First Aid and Safety Services reportable operating segment and All Other.
The improvement in cost of sales as a percent to revenue was primarily due to favorable changes in the sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment. Selling and administrative expenses increased $196.7 million, to 27.2% as a percent of revenue, compared to 27.3% in fiscal 2024.
Net cash provided by operating activities was $2,079.8 million for fiscal 2024, which was an increase of $482.0 million, or 30.2%, compared to fiscal 2023. The increase was primarily the result of an increase in net income and favorable changes in working capital, specifically inventories, net and uniforms and other rental items in service and accounts receivable, net.
Net cash provided by operating activities was $2,165.9 million for fiscal 2025, which was an increase of $97.4 million, or 4.7%, compared to fiscal 2024. The increase was primarily the result of an increase in net income and favorable changes in working capital, primarily accounts payable and accrued compensation and related liabilities.
Summarized financial information of the Obligor Group is as follows as of and for the fiscal years ended May 31: Summarized Consolidated Statements of Income (In thousands) 2024 2023 Net sales to unrelated parties $ 9,081,215 $ 8,333,404 Net sales to non-guarantors $ 12,432 $ 13,791 Operating income $ 1,957,473 $ 1,742,304 Net income $ 1,484,510 $ 1,301,073 Summarized Consolidated Balance Sheets (In thousands) 2024 2023 Assets Receivables due from non-obligor subsidiaries $ 12,729 $ 9,168 Total other current assets $ 2,973,225 $ 2,738,095 Total other noncurrent assets $ 5,585,493 $ 5,210,312 Liabilities Amounts due to non-obligor subsidiaries $ 60,132 $ 11,902 Current liabilities $ 1,725,734 $ 1,183,511 Noncurrent liabilities $ 2,966,795 $ 3,399,191 26 Contractual and Other Material Cash Obligations Payments Due by Period (In thousands) Total One year or less Two to three years Four to five years After five years Debt (1) $ 2,486,550 $ 450,000 $ 1,000,000 $ — $ 1,036,550 Operating leases (2) 211,469 51,323 79,583 50,352 30,211 Interest payments 563,114 97,814 167,096 93,096 205,108 Total contractual and other material cash obligations $ 3,261,133 $ 599,137 $ 1,246,679 $ 143,448 $ 1,271,869 (1) See Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for a detailed presentation of Cintas' debt.
Summarized financial information of the Obligor Group is as follows as of and for the fiscal years ended May 31: Summarized Consolidated Statements of Income (In thousands) 2025 2024 Net sales to unrelated parties $ 9,813,929 $ 9,081,215 Net sales to non-guarantors $ 15,662 $ 12,432 Operating income $ 2,214,295 $ 1,957,473 Net income $ 1,677,277 $ 1,484,510 Summarized Consolidated Balance Sheets (In thousands) 2025 2024 Assets Receivables due from non-obligor subsidiaries $ 59,346 $ 12,729 Total other current assets $ 3,203,986 $ 2,973,225 Total other noncurrent assets $ 5,972,476 $ 5,585,493 Liabilities Amounts due to non-obligor subsidiaries $ 93,926 $ 60,132 Current liabilities $ 1,560,058 $ 1,725,734 Noncurrent liabilities $ 3,429,841 $ 2,966,795 26 Contractual and Other Material Cash Obligations Payments Due by Period (In thousands) Total One year or less Two to three years Four to five years After five years Debt (1) $ 2,436,550 $ — $ 1,400,000 $ — $ 1,036,550 Operating leases (2) 259,565 58,688 93,365 59,360 48,152 Interest payments 501,830 100,348 156,129 93,096 152,257 Total contractual and other material cash obligations $ 3,197,945 $ 159,036 $ 1,649,494 $ 152,456 $ 1,236,959 (1) See Note 6 entitled Debt, Derivatives and Hedging Activities of "Notes to Consolidated Financial Statements" for a detailed presentation of Cintas' debt.
The increase in income before income taxes was primarily due to revenue growth, as well as the improvements in gross margin previously mentioned, which were partially offset by the change in selling and administrative expenses. Cintas' effective tax rate for both fiscal 2024 and fiscal 2023 was 20.4%.
Income before income taxes was $2,264.2 million, an increase of $290.6 million, or 14.7%, compared to fiscal 2024. The increase in income before income taxes was primarily due to revenue growth, as well as the improvements in gross margin previously mentioned. 21 Cintas' effective tax rate for fiscal 2025 and fiscal 2024 was 20.0% and 20.4%, respectively.
The following table summarizes the buyback activity by program and fiscal years ended May 31: 2024 2023 Buyback Program (In thousands except per share data) Shares Average Price per Share Purchase Price Shares Average Price per Share Purchase Price July 27, 2021 856 $ 535.21 $ 458,284 550 $ 396.69 $ 218,288 July 26, 2022 85 673.78 57,104 — — — 941 $ 547.69 $ 515,388 550 $ 396.69 $ 218,288 Shares acquired for taxes due (1) 331 $ 557.34 $ 184,645 430 $ 420.21 $ 180,577 Total repurchase of Cintas common stock $ 700,033 $ 398,865 (1) Shares of Cintas stock acquired for employee-partner payroll taxes due on options exercised and vested restricted stock awards.
Neither of the outstanding share buyback programs have an expiration date. 23 The following table summarizes the share buyback activity by program and fiscal years ended May 31: 2025 2024 Buyback Program (In thousands except per share data) Shares Average Price per Share Purchase Price Shares Average Price per Share Purchase Price July 27, 2021 — $ — $ — 3,425 $ 133.80 $ 458,284 July 26, 2022 3,794 179.07 679,329 339 168.44 57,104 July 23, 2024 — — — — — — 3,794 $ 179.07 $ 679,329 3,764 $ 136.92 $ 515,388 Shares acquired for taxes due (1) 1,297 $ 196.87 $ 255,471 1,325 $ 139.34 $ 184,645 Total repurchase of Cintas common stock $ 934,800 $ 700,033 (1) Shares of Cintas stock acquired for employee-partner payroll taxes due on options exercised and vested restricted stock awards.
Revenue improved from increases in sales representative productivity and price increases. Revenue increased organically by 10.2%. Revenue growth was positively impacted by 0.5% due to acquisitions and by 0.4% due to one more workday in fiscal 2024 compared to fiscal 2023. Cost of uniform rental and facility services increased 6.4% compared to fiscal 2023.
Revenue improved from increases in sales representative productivity and price increases. Revenue increased organically by 11.3%. Revenue growth was positively impacted by 0.6% due to acquisitions, negatively impacted by 0.9% due to two less workdays in fiscal 2025 compared to fiscal 2024 and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
ASU 2023-07 requires additional disclosures pertaining to significant expenses and other items of an entity’s reportable operating segments. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (fiscal 2025). Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on the consolidated financial statements.
ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 (fiscal 2028), and for interim periods within fiscal years beginning after December 15, 2027 (fiscal 2029), with early adoption permitted. The Company is currently evaluating the impact of ASU 2024-03 on the consolidated financial statements.
The change as a percent of revenue was primarily due to increases in labor and other employee-partner related expenses, including investing in additional selling resources for future growth. Income before income taxes for the First Aid and Safety Services reportable operating segment was $239.2 million in fiscal 2024, an increase of $58.5 million, or 32.4%, compared to fiscal 2023.
Excluding the items noted previously, selling and administrative expenses as a percent of revenue were largely consistent as compared to the prior fiscal year. Income before income taxes for the First Aid and Safety Services reportable operating segment was $294.7 million in fiscal 2025, an increase of $55.6 million, or 23.2%, compared to fiscal 2024.
These improvements were partially offset by unfavorable changes in working capital, primarily current liabilities and deferred income taxes. Net cash used in investing activities was $608.6 million in fiscal 2024, compared to $388.7 million in fiscal 2023. Net cash used in investing activities includes capital expenditures, purchases of investments and cash paid for acquisitions of businesses.
Net cash used in investing activities includes capital expenditures, purchases of investments and cash paid for acquisitions of businesses. These outflows were partially offset by proceeds from the sale of property. Capital expenditures were $408.9 million and $409.5 million for fiscal 2025 and fiscal 2024, respectively.
During the fiscal year ended May 31, 2023, Cintas paid $261.2 million, net of commercial paper. On April 17, 2023, in accordance with the terms of the notes, Cintas paid the $50.0 million aggregate principal amount outstanding of its 3.73%, private placement, 10-year senior notes that matured on that date with proceeds from short-term commercial paper issuance.
On May 1, 2025, in accordance with the terms of the senior notes, Cintas paid the $400.0 million aggregate principal outstanding of its 3.45%, 3-year senior notes that matured on that date with cash on hand.
Cash paid for acquisitions of businesses, net of cash acquired, was $186.8 million and $46.4 million for fiscal 2024 and fiscal 2023, respectively.
Capital expenditures for fiscal 2025 included $301.6 million for the Uniform Rental and Facility Services reportable operating segment and $55.4 million for the First Aid and Safety Services reportable operating segment. Cash paid for acquisitions of businesses, net of cash acquired, was $232.9 million and $186.8 million for fiscal 2025 and fiscal 2024, respectively.
The change as a percent of revenue was primarily due to investing in additional selling resources, investing in our management trainee program, expanding our talent acquisition efforts for future growth, as well as costs associated with a tentative legal settlement discussed in Note 15 entitled Litigation and Other Contingencies of "Notes to Consolidated Financial Statements." Net interest expense (interest expense less interest income) was $95.0 million in fiscal 2024 compared to $109.5 million in fiscal 2023.
The resulting increase as a percent of revenue was primarily due to investments in technology and additional selling resources. Net interest expense (interest expense less interest income) was $95.5 million in fiscal 2025 compared to $95.0 million in fiscal 2024. Net interest expense was the same as a percent of revenue.
Removed
Selling and administrative expenses increased $247.1 million, to 27.3% as a percent of revenue, compared to 26.9% in fiscal 2023.
Added
Revenue growth was positively impacted by 0.8% due to acquisitions, negatively impacted by 0.9% due to two less workdays in fiscal 2025 compared to fiscal 2024 and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
Removed
The change was primarily due to a decrease in the average amount of outstanding debt during fiscal 2024. Income before income taxes was $1,973.6 million, an increase of $280.5 million, or 16.6%, compared to fiscal 2023.
Added
In fiscal 2025 we recorded a $15 million gain on a sale of property, and in fiscal 2024 we recorded $15 million associated with a legal settlement, both of which impacted all segments by the same percent of revenue. Excluding those items, selling and administrative expenses as a percent of revenue increased from fiscal 2024 to fiscal 2025.
Removed
Capital expenditures were $409.5 million and $331.1 million for fiscal 2024 and fiscal 2023, respectively. Capital expenditures for fiscal 2024 included $261.2 million for the Uniform Rental and Facility Services reportable operating segment and $100.0 million for the First Aid and Safety Services reportable operating segment.
Added
These improvements were partially offset by unfavorable changes in working capital, specifically inventories, net, accounts receivable, net and uniforms and other rental items in service. Net cash used in investing activities was $623.6 million in fiscal 2025, compared to $603.3 million in fiscal 2024.
Removed
The increase in capital expenditures from fiscal 2023 to fiscal 2024 was due to investments in the reportable operating segments to support continued revenue growth, an increase in equipment purchases, primarily trucks, due to vendors clearing backlogged orders, and spending associated with the SAP implementation in the Fire Protection Services operating segment, which is included in All Other.
Added
There were no share buybacks in the period subsequent to May 31, 2025, through July 28, 2025.
Removed
From the inception of the July 27, 2021 share buyback program through May 2024, Cintas purchased a total of 3.6 million shares of Cintas common stock at an average price of $421.77 per share for a total purchase price of $1.5 billion.
Added
On May 2, 2025, Cintas issued $400.0 million aggregate principal amount of senior notes that bear an interest rate of 4.20% and mature on May 1, 2028. During the fiscal year ended May 31, 2024, Cintas repurchased and subsequently retired, $13.5 million of its 6.15%, 30-year senior notes.
Removed
On July 26, 2022, Cintas announced that the Board authorized a 23 new $1.0 billion share buyback program, which does not have an expiration date.
Added
In conjunction with these transactions, Cintas recognized a loss of $0.9 million, which is recorded in interest expense on the consolidated statement of income for the fiscal year ended May 31, 2024.
Removed
In the period subsequent to May 31, 2024, through July 25, 2024, under the July 26, 2022 share buyback plan, we purchased 0.7 million shares of Cintas common stock at an average price of $693.58 for a total purchase price of $473.6 million.
Added
ASU 2023-07 requires additional disclosures pertaining to significant expenses that are regularly provided to the CODM and other items of an entity’s reportable operating segments. This standard was adopted by Cintas on May 31, 2025 and did not have a material impact on the Company's consolidated financial statements.
Removed
Goodwill, obtained through acquisitions of businesses, is valued at cost less any impairment. Cintas completes an annual impairment test that includes an assessment of qualitative factors, and quantitative, if necessary, including, but not limited to, macroeconomic conditions, industry and market conditions and entity specific factors such as strategies and financial performance.
Added
The Company is currently evaluating the impact of ASU 2023-09 on the consolidated financial statements.
Removed
We test for goodwill impairment at the reporting unit level. Cintas has identified four reporting units for purposes of evaluating goodwill impairment: Uniform Rental and Facility Services, First Aid and Safety Services and two reporting units within All Other.
Added
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires, among other items, additional disaggregated disclosures in the notes to financial statements for certain categories of expenses that are included on the face of the statement of income.
Removed
Based on the results of the annual impairment tests, Cintas was not required to recognize an impairment of goodwill for the fiscal years ended May 31, 2024, 2023 or 2022. Cintas will continue to perform impairment tests as of March 1 in future years and when indicators of impairment exist. Insurance reserve.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

8 edited+1 added−1 removed12 unchanged
Biggest changeThe Incident Response Plan includes processes for escalation to the CISO, the Executive Leadership Team, including the CEO and General Counsel, Audit Committee and the Board. Our Incident Disclosure Committee has defined processes to determine whether a cybersecurity incident is material and may require disclosure in SEC filings. We face a number of cybersecurity risks in connection with our business.
Biggest changeOur Incident Disclosure Committee has defined processes to determine whether a cybersecurity incident is material and may require disclosure in SEC filings. We face a number of cybersecurity risks in connection with our business. We are regularly the target of attempted cyber intrusions, and we anticipate continuing to be subject to such attempts.
These tests and assessments are useful tools for maintaining a robust cybersecurity program that is designed to protect our investors, customers, employees, vendors and intellectual property. In addition to assessing our own cybersecurity preparedness, we also consider and evaluate cybersecurity risks associated with use of third-party service providers. We seek to engage reliable, reputable service providers that maintain cybersecurity programs.
These tests and assessments are useful tools for maintaining a cybersecurity program that is designed to protect our investors, customers, employees, vendors and intellectual property. In addition to assessing our own cybersecurity preparedness, we also consider and evaluate cybersecurity risks associated with use of third-party service providers. We seek to engage reliable, reputable service providers that maintain cybersecurity programs.
Our CISO has over fifteen years of IT and cybersecurity leadership experience and has various industry related degrees and certifications, including a master’s in information technology and the Certified Information Systems Security Professional (CISSP) and Certified in Risk and Information Systems Control (CRISC) certifications.
Our CISO has over twenty-five years of IT and cybersecurity experience, has served over fifteen years in various cybersecurity management roles, and has various industry related degrees and certifications, including a master’s in information technology and the Certified Information Systems Security Professional (CISSP) and Certified in Risk and Information Systems Control (CRISC) certifications.
Our cybersecurity risk management program is incorporated into our enterprise risk management program and leverages industry standards and best practices, such as the National Institute of Standards and Technology (NIST) framework, which organizes cybersecurity risks into five categories: identify, protect, detect, respond and recover.
Our cybersecurity risk management program is incorporated into our enterprise risk management program and leverages industry standards and best practices, such as the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF 2.0), which organizes cybersecurity into six functions: govern, identify, protect, detect, respond and recover.
Our assessment of risks associated with use of third-party providers is part of our overall cybersecurity risk management framework. We maintain an Incident Response Plan that includes processes and procedures for reviewing and responding to cybersecurity incidents. We periodically test our readiness to respond to a cybersecurity incident through various scenario-based drills.
Our assessment of risks associated with use of third-party providers is part of our overall cybersecurity risk management framework. We maintain an Incident Response Plan that includes processes and procedures for reviewing and responding to cybersecurity incidents.
The Board has ultimate oversight of cybersecurity risk, which it manages as part of our enterprise risk management program. That program is utilized in making decisions with respect to Company priorities, resource allocations and oversight structures.
Our CISO is a part of, and is supported by, our IT security team, which includes other security leaders, security engineers, and security analysts. The Board has ultimate oversight of cybersecurity risk, which it manages as part of our enterprise risk management program. That program is utilized in making decisions with respect to Company priorities, resource allocations and oversight structures.
We are regularly the target of attempted cyber intrusions, and we anticipate continuing to be subject to such attempts. Although such risks and attacks have not materially affected us, including our business strategy, consolidated results of operations or consolidated financial condition, to date, our security programs and measures may not prevent all intrusions, including malware and computer virus attacks.
Although such risks and attacks have not materially affected us, including our business strategy, consolidated results of operations or consolidated financial condition, to date, our security programs and measures may not prevent all intrusions, including malware and computer virus attacks.
In an effort to detect and defend against cyber threats, the Company provides its employee-partners with various cybersecurity and data protection training programs and requires annual security awareness training participation.
Cybersecurity reviews by the Audit Committee or the Board occur quarterly, or more frequently as determined to be necessary or advisable. We view cybersecurity as a shared responsibility. In an effort to detect and defend against cyber threats, the Company provides its employee-partners with various cybersecurity and data protection training programs and requires annual security awareness training participation.
Removed
Cybersecurity reviews by the Audit Committee or the Board occur quarterly, or more frequently as determined to be necessary or advisable. We view cybersecurity as a shared responsibility, and we periodically perform simulations and tabletop exercises at technical and executive levels and incorporate external resources and advisors, as needed.
Added
We periodically test our readiness to respond to a cybersecurity incident through various scenario-based drills at technical and executive levels and incorporate external resources and advisors, as needed. The Incident Response Plan includes processes for escalation to the CISO, the Executive Leadership Team, including the CEO and General Counsel, the Audit Committee and the Board.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed3 unchanged
Biggest changeThe following chart provides additional information concerning Cintas' facilities: Type of Facility # of Facilities Rental Processing Plants 208 Rental Branches 139 First Aid and Safety Facilities 63 All Other Facilities 52 Distribution Centers (1) 12 Manufacturing Facilities 5 Total 479 (1) Includes the principal executive office, which is attached to the distribution center in Cincinnati, Ohio.
Biggest changeThe following chart provides additional information concerning Cintas' facilities: Type of Facility # of Facilities Rental Processing Plants 210 Rental Branches 142 First Aid and Safety Facilities 67 All Other Facilities 54 Distribution Centers (1) 12 Manufacturing Facilities 5 Total 490 (1) Includes the principal executive office, which is attached to the distribution center in Cincinnati, Ohio.
Cintas operates 12 distribution centers and five manufacturing facilities. Cintas also operates first aid and safety and fire protection facilities and direct sales offices. Cintas considers the facilities it operates to be adequate for their intended use. Cintas owns or leases approximately 21,900 vehicles which are used for the route-based services and by the sales and management employee-partners.
Cintas operates 12 distribution centers and five manufacturing facilities. Cintas also operates first aid and safety and fire protection facilities and direct sales offices. Cintas considers the facilities it operates to be adequate for their intended use. Cintas owns or leases approximately 22,900 vehicles which are used for the route-based services and by the sales and management employee-partners.
Item 2. Properties Cintas occupies 479 facilities located in 344 cities. Cintas leases 248 of these facilities for various terms ranging from monthly to the year 2034. Cintas expects that it will be able to renew or replace its leases on satisfactory terms. Of the five manufacturing facilities noted below, all but one are owned by Cintas.
Item 2. Properties Cintas occupies 490 facilities located in 341 cities. Cintas leases 255 of these facilities for various terms ranging from monthly to the year 2039. Cintas expects that it will be able to renew or replace its leases on satisfactory terms. Of the five manufacturing facilities noted below, all but one are owned by Cintas.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+1 added−2 removed2 unchanged
Biggest changeDividends Our Board of Directors declared the following dividends during the fiscal years ended May 31: Declaration Date (In millions except per share data) Record Date Payment Date Dividend Per Share Amount 2024 July 25, 2023 August 15, 2023 September 15, 2023 $ 1.35 $ 138.2 October 24, 2023 November 15, 2023 December 15, 2023 1.35 137.5 January 16, 2024 February 15, 2024 March 15, 2024 1.35 137.6 April 9, 2024 (1) May 15, 2024 June 14, 2024 1.35 137.6 Total $ 5.40 $ 550.9 2023 July 26, 2022 August 15, 2022 September 15, 2022 $ 1.15 $ 117.3 October 25, 2022 November 15, 2022 December 15, 2022 1.15 117.4 January 10, 2023 February 15, 2023 March 15, 2023 1.15 117.5 April 11, 2023 (1) May 15, 2023 June 15, 2023 1.15 117.6 Total $ 4.60 $ 469.8 (1) The dividends declared on April 9, 2024 and April 11, 2023, were included in current accrued liabilities on the consolidated balance sheets at May 31, 2024 and 2023, respectively.
Biggest changeDividends Our Board of Directors declared the following dividends during the fiscal years ended May 31: Declaration Date (In millions except per share data) Record Date Payment Date Dividend Per Share Amount 2025 July 23, 2024 August 15, 2024 September 3, 2024 $ 0.39 $ 158.0 October 29, 2024 November 15, 2024 December 13, 2024 0.39 158.1 January 14, 2025 February 14, 2025 March 14, 2025 0.39 157.9 April 8, 2025 (1) May 15, 2025 June 13, 2025 0.39 157.8 Total $ 1.56 $ 631.8 2024 July 25, 2023 August 15, 2023 September 15, 2023 $ 0.3375 $ 138.2 October 24, 2023 November 15, 2023 December 15, 2023 0.3375 137.5 January 16, 2024 February 15, 2024 March 15, 2024 0.3375 137.6 April 9, 2024 (1) May 15, 2024 June 14, 2024 0.3375 137.6 Total $ 1.3500 $ 550.9 (1) The dividends declared on April 8, 2025 and April 9, 2024, were included in current accrued liabilities on the consolidated balance sheets at May 31, 2025 and 2024, respectively.
Therefore, the peer group used in the performance graph combines publicly traded companies in the business services industry that have similar characteristics as Cintas for each fiscal year, such as route-based delivery of products and services. The companies included in the peer group are ABM Industries, Aramark, Rollins, Inc. and UniFirst Corporation.
Therefore, the peer group used in the performance graph combines publicly traded companies in the business services industry that have similar characteristics as Cintas for each fiscal year, such as route-based delivery of products and services. The companies included in the peer group are ABM Industries, Inc., Aramark, Rollins, Inc. and UniFirst Corporation.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market and Shareholder Information Cintas' common stock is traded on the NASDAQ Global Select Market under the symbol "CTAS." At May 31, 2024, there were approximately 1,300 shareholders of record of Cintas' common stock. Cintas believes that this represents approximately 700,000 beneficial owners.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market and Shareholder Information Cintas' common stock is traded on the NASDAQ Global Select Market under the symbol "CTAS." At May 31, 2025, there were approximately 1,200 shareholders of record of Cintas' common stock. Cintas believes that this represents approximately 1.1 million beneficial owners.
(4) During May 2024, Cintas acquired 29,584 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $688.62 per share for a total purchase price of $20.4 million. Item 6. [Reserved] 18
(4) During May 2025, Cintas acquired 71,376 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $217.88 per share for a total purchase price of $15.6 million. Item 6. [Reserved] 18
(3) During April 2024, Cintas acquired 9,375 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $676.21 per share for a total purchase price of $6.3 million.
(3) During April 2025, Cintas acquired 88,365 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $204.57 per share for a total purchase price of $18.1 million.
(2) During March 2024, Cintas acquired 15,215 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $660.27 per share for a total purchase price of $10.0 million.
(2) During March 2025, Cintas acquired 85,454 shares of Cintas common stock in satisfaction of employee-partner payroll taxes due on options exercised and restricted stock awards that vested during the fiscal year. These shares were purchased at an average price of $202.80 per share for a total purchase price of $17.3 million.
On May 2, 2024, the Company announced a 4-for-1 split of its common stock. Shareholders of record, as of September 4, 2024, will receive three additional shares for each share held, which will be distributed after market close on September 11, 2024.
On May 2, 2024, the Company announced a four-for-one split of its common stock (the Stock Split), in the form of a stock dividend. Shareholders of record, as of September 4, 2024, received three additional common stock shares for each common stock share held, which were distributed after market close on September 11, 2024.
On July 26, 2022, Cintas announced that the Board authorized a new $1.0 billion share buyback program, which does not have an expiration date.
On July 23, 2024, Cintas announced that the Board authorized a new $1.0 billion share buyback program, which does not have an expiration date. Cintas has made no purchases under the July 23, 2024 share buyback program.
From the inception of the July 26, 2022 share buyback program through May 31, 2024, Cintas has purchased a total of less than 0.1 million shares of Cintas common stock at an average price of $673.78 per share for a total purchase price of $57.1 million.
From the inception of the July 26, 2022 share buyback program through May 31, 2025, Cintas purchased a total of 4.1 million shares of Cintas common stock at an average price of $178.20 per share for a total purchase price of $736.4 million.
The companies in the peer group are not necessarily the same as those considered by the Compensation Committee of the Board of Directors. 17 Total Shareholder Returns Comparison of Five-Year Cumulative Total Return Purchases of Equity Securities by the Issuer and Affiliated Purchases Period (In millions, except share and per share data) Total number of shares purchased Average price paid per share Total number of shares purchased as part of the publicly announced plan (1) Maximum approximate dollar value of shares that may yet be purchased under the plan (1) March 1 - 31, 2024 (2) 15,215 $ 660.27 — $ 1,138.0 April 1 - 30, 2024 (3) 9,375 $ 676.21 — $ 1,138.0 May 1 - 31, 2024 (4) 312,396 $ 689.81 282,812 $ 942.9 Total 336,986 $ 688.10 282,812 $ 942.9 (1) On July 27, 2021, we announced that the Board authorized a $1.5 billion share buyback program, which was completed during the fourth quarter of fiscal 2024.
The companies in the peer group are not necessarily the same as those considered by the Compensation Committee of the Board. 17 Total Shareholder Returns Comparison of Five-Year Cumulative Total Return Purchases of Equity Securities by the Issuer and Affiliated Purchases Period (In millions, except share and per share data) Total number of shares purchased Average price paid per share Total number of shares purchased as part of the publicly announced plan (1) Maximum approximate dollar value of shares that may yet be purchased under the plan (1) March 1 - 31, 2025 (2) 85,454 $ 202.80 — $ 1,469.3 April 1 - 30, 2025 (3) 1,150,573 $ 194.50 1,062,208 $ 1,263.6 May 1 - 31, 2025 (4) 71,376 $ 217.88 — $ 1,263.6 Total 1,307,403 $ 196.32 1,062,208 $ 1,263.6 (1) On July 26, 2022, we announced that the Board authorized a $1.0 billion share buyback program, which does not have an expiration date.
Removed
The Company's shares are expected to begin trading on a post-split basis at the market open on September 12, 2024.
Added
The Company's common stock shares began trading on a post Stock Split basis after the market opening on September 12, 2024. All references made to common stock shares, equity awards, common stock per share amounts and treasury stock shares in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Stock Split.
Removed
From the inception of the July 27, 2021 share buyback program through May 2024, Cintas purchased a total of 3.6 million shares of Cintas common stock at an average price of $421.77 per share for a total purchase price of $1.5 billion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeWith products and services including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday ® .
Biggest changeWith products and services including uniforms, mats, mops, shop towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm services, Cintas helps customers get Ready for the Workday ® .
Finally, we evaluate strategic acquisitions as opportunities arise. Results of Operations This Management’s Discussion and Analysis of Financial Condition and Results of Operations section focuses on discussion of fiscal 2024 results compared to fiscal 2023 results and should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this filing.
Finally, we evaluate strategic acquisitions as opportunities arise. Results of Operations This Management’s Discussion and Analysis of Financial Condition and Results of Operations section focuses on discussion of fiscal 2025 results compared to fiscal 2024 results and should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this filing.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk Earnings may be affected by changes in short-term interest rates due to investments, if any, in marketable securities and money market accounts and periodic issuances of commercial paper. If short-term rates changed by one-half percent (or 50 basis points), Cintas' income before income taxes would change by approximately $0.6 million.
Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk Earnings may be affected by changes in short-term interest rates due to investments, if any, in marketable securities and money market accounts and periodic issuances of commercial paper. If short-term rates changed by one-half percent (or 50 basis points), Cintas' income before income taxes would change by approximately $0.3 million.