What to Know About UniFirst Stock as One Fund Boosts Bet to $89 Million

2026-02-24 04:48:51

On February 17, 2026, Engine Capital Management disclosed a significant buy of UniFirst (UNF 1.98%), acquiring 397,772 shares in an estimated $67.13 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, Engine Capital Management increased its position in UniFirst (UNF 1.98%) by 397,772 shares during the most recent quarter. The estimated value of the trade was $67.13 million, calculated using the average closing price for the quarter. The value of the company’s UniFirst stake at quarter-end climbed by $78.33 million, a figure reflecting both additional shares and price appreciation.

What else to know

Engine Capital Management’s buy boosted UniFirst to 12.2% of its 13F assets under management following the trade.
Top holdings after the filing:
- NYSE:AVTR: $136.69 million (21% of AUM)
- NYSE:NATL: $98.38 million (15% of AUM)
- NYSE: UNF: $88.71 million (12% of AUM)
- NASDAQ:OFIX: $64.47 million (10% of AUM)
- NASDAQ:NXST: $40.46 million (6% of AUM)
As of February 17, 2026, UniFirst shares were priced at $238.27, up 13.8% over the past year.

Company overview

Metric	Value
Revenue (TTM)	$2.45 billion
Net income (TTM)	$139.53 million
Dividend yield	0.59%
Price (as of market close February 17, 2026)	$238.27

Company snapshot

UniFirst offers workplace uniforms, protective workwear, facility service products, and first aid supplies across the United States, Canada, and Europe
The firm generates revenue primarily through rental, cleaning, and sales of uniforms and facility products, supported by a mix of full-service rental, lease, and direct purchase programs
It serves a diverse client base, including automotive, food service, healthcare, manufacturing, government, and utilities sectors

UniFirst is a leading provider of workplace uniforms and facility services, operating at scale with a broad geographic footprint. The company leverages a recurring revenue model through multi-segment rental and service contracts, supporting stable cash flows and customer retention. Its integrated offering and focus on specialized protective apparel provide a competitive edge in the specialty business services industry.

What this transaction means for investors

This outsized bet is interesting because UniFirst is not necessarily a moonshot. Instead, it’s a recurring revenue machine serving more than 300,000 customer locations with uniforms, facility services, and safety supplies.

First quarter fiscal 2026 revenue rose 2.7% to $621.3 million, driven by 2.4% organic growth in its core Uniform and Facility segment. Meanwhile, operating margin dipped to 7.3% from 9.2% as the company invests in digital transformation and growth initiatives, and net income came in at $34.4 million, or $1.89 per diluted share.

At the same time, the balance sheet remains clean, with $129.5 million in cash and no long-term debt. For long-term investors, the takeaway is discipline. UniFirst is growing modestly, sacrificing near-term margin to build scale and efficiency. If those investments translate into sustained operating leverage, a 12% position could look prescient. If margins fail to rebound, returns may prove merely steady, not spectacular.

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