Adjusted EPS grew nearly 30% year-over-year, with GAAP EPS at $0.27 and adjusted EPS at $0.40.
Aramark reported record revenue of $4.6 billion in Q3, a 6% increase year-over-year with slight FX favorability and over 5% organic growth driven by base business and new client wins.
International segment delivered double-digit organic revenue growth of 10%, led by the U.K., Chile, Canada, and Spain.
Medical expenses in the U.S. segment were about $15 million higher due to high-cost claims and prescription drug costs, impacting margins.
Operating Income was $183 million, up 13%, and Adjusted Operating Income was $230 million, up 19%, with AOI margin expanding by 60 basis points.
Profitability growth was driven by higher base business volume, supply chain efficiencies, and disciplined cost management.
U.S. Food & Support Services (FSS) segment organic revenue increased over 3%, led by workplace experience, education, sports & entertainment, and corrections sectors.
Adjusted EBITDA reached a second quarter record of $1.8 billion, with a margin of nearly 46%.
Adjusted EPS was $10.47 for the quarter.
Fleet productivity increased by 3.3%, supported by disciplined execution.
Leverage remained at 1.8x, towards the lower end of the targeted range.
Rental CapEx was nearly $1.6 billion in the quarter, consistent with expectations.
Returned $534 million to shareholders in the quarter through share buybacks and dividends, with a full-year target of nearly $2.4 billion returned.
Specialty rental revenue grew 14% year-over-year, with 21 cold starts opened in Q2 and a target of at least 50 for the year.
Total rental revenue grew by 4.5% year-over-year to $3.9 billion in Q2, with rental revenue up 6.2% to $3.4 billion, both second quarter records.
Used equipment sales totaled $600 million, in line with expectations, with a full-year target of approximately $2.8 billion of fleet sales.
Year-to-date free cash flow was $1.2 billion, with full-year guidance raised to $2.4 billion to $2.6 billion, including benefits from recent federal tax policy changes.
Dafinchi