What UniFirst Corp. told the SEC could break it.

UniFirst's results are tied to commodity-energy dynamics on both the demand and cost sides. It states it is relatively more dependent on business in energy-producing regions of the U.S. and Canada than many of its competitors, so a sharp drop in oil prices would cause its oil-industry customers (and their suppliers) to curtail operations, reducing uniform-rental demand. On the cost side, its industrial-laundry operations are energy-intensive: fuel, natural gas and electricity represented approximately 3.9% of total revenue in fiscal 2025, so energy-price spikes directly raise operating costs. Both linkages make margins sensitive to the energy commodity cycle.

“If a dramatic decrease in oil prices were to occur, it could impact our customers in the oil industry and cause those customers to curtail their level of operations, which could have a corresponding effect on our customers in businesses which service or supply the oil industry as well as our customers in unrelated businesses.”

UniFirst self-manufactures roughly 62% of the garments it places in service, primarily at two plants in San Luis Potosi, Mexico and one in Managua, Nicaragua (plus subcontractors), and buys the balance from industry suppliers. Because these garments and certain raw materials are produced abroad and imported into the U.S., U.S. and foreign trade policies and tariffs on imported goods could raise its merchandise costs and disrupt its supply chain. The company flags tariffs (alongside inflation and interest rates) as a factor that may materially affect results; severity is moderated by its USMCA-region (Mexico) footprint and its ability to source from alternative suppliers.

“We manufactured approximately 62% of all garments we placed in service during fiscal 2025. These garments were primarily work pants and shirts manufactured at two of our plants located in San Luis Potosi, Mexico, one plant located in Managua, Nicaragua, as well as at subcontracted manufacturers that we utilize within our sourcing strategy to balance demand and optimize costs.”