ABM Reports Fiscal Second Quarter 2025 Results
- Revenue grew 4.6% to $2.1 billion with 3.8% organic growth
- New bookings increased 11% YoY to $1.1 billion in first half
- Technical Solutions segment revenue up 19%, Aviation up 9%
- Adjusted net income increased to $54.1 million from $52.3 million YoY
- Sequential improvement in cash flow with $138.5 million increase from previous quarter
- Net income declined to $42.2 million from $43.8 million YoY
- Higher interest expense and transformation/integration costs impacted earnings
- Free cash flow decreased to $15.2 million from $101.4 million YoY
- Total indebtedness stands at $1.6 billion with leverage ratio of 2.9X
Insights
ABM posted solid Q2 with 4.6% revenue growth and reaffirmed guidance, showing resilience in core markets despite ERP transition challenges.
ABM delivered 4.6% revenue growth to
On the bottom line, ABM reported net income of
Cash flow metrics weakened significantly year-over-year, with operating cash flow at
New bookings of
Management's decision to reaffirm full-year adjusted EPS guidance of
- Revenue up
4.6% to$2.1 billion , with organic growth contributing3.8% - Business & Industry and Manufacturing & Distribution return to organic revenue growth
- Net income of
$42.2 million and earnings per diluted share of$0.67 , versus$43.8 million and$0.69 in the prior year, respectively - Adjusted net income of
$54.1 million and adjusted earnings per diluted share of$0.86 , versus$52.3 million , or$0.82 in the prior year, respectively - Adjusted EBITDA of
$125.9 million versus$121.0 million in the prior year - Reaffirms full year adjusted EPS outlook of
$3.65 t o$3.80 (1)
NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for fiscal second quarter ended April 30, 2025.
“ABM’s second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry (“B&I”) segment, driven by improving conditions in our prime commercial office markets,” said Scott Salmirs, President & Chief Executive Officer. “We are also encouraged by the growth in our Manufacturing & Distribution (“M&D”) segment, driven by new business wins. We achieved
Looking ahead to the second half of 2025, Mr. Salmirs added, “We remain constructive on the outlook for our core markets, particularly high-quality office buildings, manufacturing and distribution facilities, commercial aviation, and microgrids. Further, projects delayed in the second quarter are expected to be realized in the third quarter.”
Disclosure Update
After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of “prior year self-insurance adjustments”. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers’ compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. As a result, our adjusted financial measures in the second quarter of 2024 now include unfavorable prior year self-insurance adjustments of
(1) When the company provides expectations for adjusted EPS and adjusted EBITDA margin on a forward-looking basis, a reconciliation of the differences between these non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Outlook” and “Use of Non-GAAP Financial Information” below for additional information.
Second Quarter Fiscal 2025 Results
Revenue increased
Net income for the quarter was
Adjusted net income grew to
Adjusted EBITDA for the period increased to
Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
Net cash provided by operating activities was
Liquidity, Capital Structure & Share Repurchases
At the end of the second quarter, the Company’s total indebtedness stood at
Quarterly Cash Dividend
After the quarter’s close, the Company’s Board of Directors declared a cash dividend of
Outlook
The Company is reaffirming its outlook for fiscal year 2025 adjusted EPS to be in the range of
The Company cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for adjusted EPS in 2025 without unreasonable effort, as we believe a GAAP range would be too large and variable to be meaningful due to the uncertainty of the amount and timing of any gains or losses related to, but not limited to, items such as adjustments to contingent consideration, acquisition and integration related costs, legal costs and other settlements, as well as transformation initiative costs.
Conference Call Information
ABM will host its quarterly conference call for all interested parties on Friday, June 6, 2025, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the “Investors” section of the Company's website, located at www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.
A supplemental presentation will accompany the webcast on the Company's website.
A replay will be available approximately three hours after the webcast through June 20, 2025, and can be accessed by dialing (844) 512-2921 and then entering ID #13753708. A replay link of the webcast will also be archived on the ABM website for 90 days.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over
For more information, visit www.abm.com
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning (“ERP”) and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements.
Use of Non-GAAP Financial Information
To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and six months of fiscal years 2025 and 2024. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM’s operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and six months of fiscal years 2025 and 2024. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue excluding management reimbursement. We cannot provide a reconciliation of forward-looking non-GAAP adjusted EBITDA margin measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)
We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31.
| Contact: | |
| Investor Relations: | Paul Goldberg |
| (212) 297-9721 | |
| ir@abm.com |
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) | |||||||||||
| Three Months Ended April 30, | |||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | Increase / (Decrease) | ||||||||
| Revenues | $ | 2,111.7 | $ | 2,018.2 | |||||||
| Operating expenses | 1,841.0 | 1,763.5 | |||||||||
| Selling, general and administrative expenses | 175.1 | 159.9 | |||||||||
| Amortization of intangible assets | 13.2 | 13.6 | (2.5)% | ||||||||
| Operating profit | 82.3 | 81.3 | |||||||||
| Income from unconsolidated affiliates | 1.4 | 1.7 | (19.4)% | ||||||||
| Interest expense | (23.9 | ) | (20.6 | ) | (16.1)% | ||||||
| Income before income taxes | 59.8 | 62.4 | (4.3)% | ||||||||
| Income tax provision | (17.6 | ) | (18.7 | ) | |||||||
| Net income | $ | 42.2 | $ | 43.8 | (3.7)% | ||||||
| Net income per common share | |||||||||||
| Basic | $ | 0.67 | $ | 0.69 | (2.9)% | ||||||
| Diluted | $ | 0.67 | $ | 0.69 | (2.9)% | ||||||
| Weighted-average common and common equivalent shares outstanding | |||||||||||
| Basic | 62.6 | 63.3 | |||||||||
| Diluted | 62.9 | 63.5 | |||||||||
| Dividends declared per common share | $ | 0.265 | $ | 0.225 | |||||||
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) | |||||||||||
| Six Months Ended April 30, | |||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | Increase / (Decrease) | ||||||||
| Revenues | $ | 4,226.6 | $ | 4,087.8 | |||||||
| Operating expenses | 3,696.1 | 3,589.8 | |||||||||
| Selling, general and administrative expenses | 344.1 | 314.5 | |||||||||
| Amortization of intangible assets | 26.5 | 28.2 | (6.1)% | ||||||||
| Operating profit | 159.9 | 155.4 | |||||||||
| Income from unconsolidated affiliates | 2.1 | 3.0 | (28.1)% | ||||||||
| Interest expense | (46.8 | ) | (41.9 | ) | (11.5)% | ||||||
| Income before income taxes | 115.2 | 116.4 | (1.0)% | ||||||||
| Income tax provision | (29.5 | ) | (28.0 | ) | (5.3)% | ||||||
| Net income | $ | 85.8 | $ | 88.4 | (3.0)% | ||||||
| Net income per common share | |||||||||||
| Basic | $ | 1.37 | $ | 1.40 | (2.1)% | ||||||
| Diluted | $ | 1.36 | $ | 1.39 | (2.2)% | ||||||
| Weighted-average common and common equivalent shares outstanding | |||||||||||
| Basic | 62.7 | 63.4 | |||||||||
| Diluted | 63.1 | 63.7 | |||||||||
| Dividends declared per common share | $ | 0.530 | $ | 0.450 | |||||||
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) | ||||||||
| Three Months Ended April 30, | ||||||||
| (in millions) | 2025 | 2024 | ||||||
| Net cash provided by operating activities | $ | 32.3 | $ | 117.0 | ||||
| Additions to property, plant and equipment | (17.1 | ) | (15.6 | ) | ||||
| Other | — | 0.1 | ||||||
| Net cash used in investing activities | $ | (17.1 | ) | $ | (15.5 | ) | ||
| Proceeds from issuance of share-based compensation awards, net | 1.1 | 0.8 | ||||||
| Repurchases of common stock, including excise taxes | — | (23.8 | ) | |||||
| Dividends paid | (16.5 | ) | (14.1 | ) | ||||
| Deferred financing costs paid | (8.0 | ) | — | |||||
| Borrowings from debt | 338.9 | 255.0 | ||||||
| Repayment of borrowings from debt | (327.0 | ) | (313.1 | ) | ||||
| Changes in book cash overdrafts | (5.5 | ) | (2.2 | ) | ||||
| Repayment of finance lease obligations | (1.1 | ) | (1.0 | ) | ||||
| Net cash used in financing activities | $ | (18.1 | ) | $ | (98.4 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 2.7 | (0.4 | ) | |||||
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) | ||||||||
| Six Months Ended April 30, | ||||||||
| (in millions) | 2025 | 2024 | ||||||
| Net cash (used in) provided by operating activities | $ | (73.9 | ) | $ | 116.9 | |||
| Additions to property, plant and equipment | (33.8 | ) | (29.1 | ) | ||||
| Purchase price adjustment for the Quality Uptime Acquisition | 1.9 | — | ||||||
| Other | 0.4 | 0.6 | ||||||
| Net cash used in investing activities | $ | (31.6 | ) | $ | (28.6 | ) | ||
| Taxes withheld from issuance of share-based compensation awards, net | (9.6 | ) | (8.7 | ) | ||||
| Repurchases of common stock, including excise taxes | (21.3 | ) | (23.8 | ) | ||||
| Dividends paid | (32.9 | ) | (28.3 | ) | ||||
| Deferred financing costs paid | (8.0 | ) | — | |||||
| Borrowings from debt | 918.8 | 556.0 | ||||||
| Repayment of borrowings from debt | (700.0 | ) | (597.3 | ) | ||||
| Changes in book cash overdrafts | (46.0 | ) | 6.0 | |||||
| Repayment of finance lease obligations | (2.2 | ) | (2.0 | ) | ||||
| Net cash provided by (used in) financing activities | $ | 98.7 | $ | (98.0 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 1.0 | 0.8 | ||||||
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED) | ||||||
| (in millions) | April 30, 2025 | October 31, 2024 | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 58.7 | $ | 64.6 | ||
| Trade accounts receivable | 1,603.5 | 1,384.1 | ||||
| Costs incurred in excess of amounts billed | 131.5 | 162.1 | ||||
| Prepaid expenses | 141.7 | 103.2 | ||||
| Other current assets | 78.7 | 74.8 | ||||
| Total current assets | 2,014.1 | 1,788.7 | ||||
| Other investments | 27.4 | 30.8 | ||||
| Property, plant and equipment | 159.6 | 150.7 | ||||
| Right-of-use assets | 100.4 | 101.2 | ||||
| Other intangible assets, net of accumulated amortization | 256.2 | 282.4 | ||||
| Goodwill | 2,576.6 | 2,575.9 | ||||
| Other noncurrent assets | 176.3 | 167.5 | ||||
| Total assets | $ | 5,310.7 | $ | 5,097.2 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Current portion of long-term debt, net | $ | 29.3 | $ | 31.6 | ||
| Trade accounts payable | 319.9 | 324.3 | ||||
| Accrued compensation | 212.5 | 295.6 | ||||
| Accrued taxes—other than income | 64.4 | 56.2 | ||||
| Deferred Revenue | 53.7 | 63.7 | ||||
| Insurance claims | 202.4 | 197.5 | ||||
| Income taxes payable | 9.1 | 4.8 | ||||
| Current portion of lease liabilities | 29.2 | 26.6 | ||||
| Other accrued liabilities | 379.3 | 348.2 | ||||
| Total current liabilities | 1,299.8 | 1,348.4 | ||||
| Long-term debt, net | 1,521.8 | 1,302.2 | ||||
| Long-term lease liabilities | 88.1 | 92.0 | ||||
| Deferred income tax liability, net | 58.6 | 60.2 | ||||
| Noncurrent insurance claims | 429.0 | 421.8 | ||||
| Other noncurrent liabilities | 85.1 | 86.8 | ||||
| Noncurrent income taxes payable | 3.8 | 3.8 | ||||
| Total liabilities | 3,486.3 | 3,315.2 | ||||
| Total stockholders’ equity | 1,824.4 | 1,781.9 | ||||
| Total liabilities and stockholders’ equity | $ | 5,310.7 | $ | 5,097.2 | ||
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | |||||||||||
| Three Months Ended April 30, | Increase/ (Decrease) | ||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Revenues | |||||||||||
| Business & Industry | $ | 1,015.5 | $ | 989.6 | |||||||
| Manufacturing & Distribution | 398.1 | 388.6 | |||||||||
| Aviation | 260.1 | 238.2 | |||||||||
| Education | 227.8 | 225.6 | |||||||||
| Technical Solutions | 210.2 | 176.2 | |||||||||
| Total Revenues | $ | 2,111.7 | $ | 2,018.2 | |||||||
| Operating profit | |||||||||||
| Business & Industry | $ | 83.0 | $ | 77.6 | |||||||
| Manufacturing & Distribution | 39.9 | 43.6 | (8.5)% | ||||||||
| Aviation | 16.5 | 13.1 | |||||||||
| Education | 13.8 | 11.5 | |||||||||
| Technical Solutions | 13.4 | 17.0 | (20.7)% | ||||||||
| Corporate | (82.9 | ) | (79.7 | ) | (4.0)% | ||||||
| Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (1.4 | ) | (1.7 | ) | |||||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.1 | ) | — | NM* | |||||||
| Total operating profit | 82.3 | 81.3 | |||||||||
| Income from unconsolidated affiliates | 1.4 | 1.7 | (19.4)% | ||||||||
| Interest expense | (23.9 | ) | (20.6 | ) | (16.1)% | ||||||
| Income before income taxes | 59.8 | 62.4 | (4.3)% | ||||||||
| Income tax provision | (17.6 | ) | (18.7 | ) | |||||||
| Net income | $ | 42.2 | $ | 43.8 | (3.7)% | ||||||
*Not meaningful (due to variance greater than or equal to +/-
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | |||||||||||
| Six Months Ended April 30, | Increase/ (Decrease) | ||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Revenues | |||||||||||
| Business & Industry | $ | 2,038.4 | $ | 2,022.8 | |||||||
| Manufacturing & Distribution | 792.4 | 789.5 | |||||||||
| Aviation | 530.2 | 487.8 | |||||||||
| Education | 453.2 | 445.7 | |||||||||
| Technical Solutions | 412.4 | 342.1 | |||||||||
| Total Revenues | $ | 4,226.6 | $ | 4,087.8 | |||||||
| Operating profit | |||||||||||
| Business & Industry | $ | 162.4 | $ | 157.2 | |||||||
| Manufacturing & Distribution | 79.3 | 85.0 | (6.7)% | ||||||||
| Aviation | 28.7 | 22.8 | |||||||||
| Education | 27.8 | 24.3 | |||||||||
| Technical Solutions | 30.0 | 23.5 | |||||||||
| Corporate | (166.1 | ) | (154.4 | ) | (7.6)% | ||||||
| Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (2.1 | ) | (3.0 | ) | |||||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.1 | ) | — | NM* | |||||||
| Total operating profit | 159.9 | 155.4 | |||||||||
| Income from unconsolidated affiliates | 2.1 | 3.0 | (28.1)% | ||||||||
| Interest expense | (46.8 | ) | (41.9 | ) | (11.5)% | ||||||
| Income before income taxes | 115.2 | 116.4 | (1.0)% | ||||||||
| Income tax provision | (29.5 | ) | (28.0 | ) | (5.3)% | ||||||
| Net income | $ | 85.8 | $ | 88.4 | (3.0) % | ||||||
*Not meaningful (due to variance greater than or equal to +/-
| ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in millions, except per share amounts) | ||||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Income to Adjusted Net Income | ||||||||||||||||
| Net income | $ | 42.2 | $ | 43.8 | $ | 85.8 | $ | 88.4 | ||||||||
| Items impacting comparability(a)(b) | ||||||||||||||||
| Legal costs and other settlements | 0.3 | — | 5.1 | — | ||||||||||||
| Acquisition and integration related costs(c) | 3.4 | 2.3 | 6.8 | 3.7 | ||||||||||||
| Transformation initiative costs(d) | 10.7 | 9.6 | 19.0 | 16.7 | ||||||||||||
| Other(e) | 2.2 | — | 2.2 | 0.8 | ||||||||||||
| Total items impacting comparability | 16.6 | 11.9 | 33.0 | 21.1 | ||||||||||||
| Income tax benefit (f)(g) | (4.7 | ) | (3.4 | ) | (9.4 | ) | (6.3 | ) | ||||||||
| Items impacting comparability, net of taxes | 11.9 | 8.6 | 23.6 | 14.9 | ||||||||||||
| Adjusted net income | $ | 54.1 | $ | 52.3 | $ | 109.4 | $ | 103.3 | ||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||
| Net Income | $ | 42.2 | $ | 43.8 | $ | 85.8 | $ | 88.4 | ||||||||
| Items impacting comparability | 16.6 | 11.9 | 33.0 | 21.1 | ||||||||||||
| Income taxes provision | 17.6 | 18.7 | 29.5 | 28.0 | ||||||||||||
| Interest expense | 23.9 | 20.6 | 46.8 | 41.9 | ||||||||||||
| Depreciation and amortization | 25.7 | 26.0 | 51.6 | 52.9 | ||||||||||||
| Adjusted EBITDA | $ | 125.9 | $ | 121.0 | $ | 246.6 | $ | 232.3 | ||||||||
| Net Income margin as a % of revenues | 2.0 | % | 2.2 | % | 2.0 | % | 2.2 | % | ||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues Excluding Management Reimbursement | ||||||||||||||||
| Revenue | $ | 2,111.7 | $ | 2,018.2 | $ | 4,226.6 | $ | 4,087.8 | ||||||||
| Management Reimbursement | (84.5 | ) | (76.9 | ) | (166.5 | ) | (157.0 | ) | ||||||||
| Revenues excluding management reimbursement | $ | 2,027.2 | $ | 1,941.4 | $ | 4,060.1 | $ | 3,930.8 | ||||||||
| Adjusted EBITDA margin as a % of revenues excluding management reimbursement | 6.2 | % | 6.2 | % | 6.1 | % | 5.9 | % | ||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share | ||||||||||||
| Net income per diluted share | $ | 0.67 | $ | 0.69 | $ | 1.36 | $ | 1.39 | ||||
| Items impacting comparability, net of taxes | 0.19 | 0.13 | 0.37 | 0.23 | ||||||||
| Adjusted net income per diluted share | $ | 0.86 | $ | 0.82 | $ | 1.73 | $ | 1.62 | ||||
| Diluted shares | 62.9 | 63.5 | 63.1 | 63.7 | ||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow | ||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 32.3 | $ | 117.0 | $ | (73.9 | ) | $ | 116.9 | |||||||
| Additions to property, plant and equipment | (17.1 | ) | (15.6 | ) | (33.8 | ) | (29.1 | ) | ||||||||
| Free cash flow | $ | 15.2 | $ | 101.4 | $ | (107.8 | ) | $ | 87.7 | |||||||
(a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company.
(b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of “prior year self-insurance adjustments”. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers’ compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. Of note, the definitional change had no impact in second quarter 2025 results.
(c) Represents acquisition and integration related costs associated with recent acquisitions.
(d) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives.
(e) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years.
(f) The Company's tax impact is calculated using the federal and state statutory rate of
(g) Six months ended April 30 2025 and 2024 include a
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