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

UNF -0.45% NXST +0.94% AVTR +2.47% OFIX -6.18%

On February 17, 2026, Engine Capital Management disclosed a significant buy of UniFirst (NYSE:UNF), 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 (NYSE:UNF) 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.

Should you buy stock in UniFirst right now?

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

What to Know About UniFirst Stock as One Fund Boosts Bet to $89 Million was originally published by The Motley Fool