ABM Reports Fiscal Third Quarter 2025 Results and Comments on Fiscal 2025 Outlook
ABM (NYSE:ABM) reported strong fiscal Q3 2025 results with revenue growing 6.2% to $2.2 billion, including 5.0% organic growth. Net income increased significantly to $41.8 million ($0.67 per share) from $4.7 million in the prior year.
The company achieved notable operational milestones, including operating cash flow up 120.1% to $175.0 million and free cash flow up 134.3% to $150.2 million. ABM announced a restructuring program expected to deliver $35 million in annual cost savings by early fiscal 2026.
The Board approved a $150 million increase in share repurchase authorization and declared a quarterly dividend of $0.265 per share. ABM expects fiscal 2025 adjusted EPS to be toward the lower end of $3.65-$3.80 range, with adjusted EBITDA margin between 6.3-6.5%.
ABM (NYSE:ABM) ha comunicato risultati solidi nel terzo trimestre fiscale 2025: ricavi in crescita del 6,2% a 2,2 miliardi di dollari, di cui il 5,0% organico. L'utile netto è salito notevolmente a 41,8 milioni di dollari (0,67$ per azione) rispetto ai 4,7 milioni dell'anno precedente.
La società ha raggiunto importanti traguardi operativi, con flusso di cassa operativo in aumento del 120,1% a 175,0 milioni e flusso di cassa libero in crescita del 134,3% a 150,2 milioni. ABM ha annunciato un programma di ristrutturazione che dovrebbe generare 35 milioni di dollari di risparmi annuali entro l'inizio dell'esercizio 2026.
Il Consiglio ha approvato un incremento di 150 milioni di dollari dell'autorizzazione al riacquisto di azioni e ha dichiarato un dividendo trimestrale di 0,265$ per azione. ABM prevede che l'EPS rettificato per il 2025 si collochi verso l'estremità inferiore dell'intervallo 3,65-3,80$, con un margine EBITDA rettificato tra il 6,3% e il 6,5%.
ABM (NYSE:ABM) presentó sólidos resultados en el tercer trimestre fiscal de 2025: ingresos que crecieron 6,2% hasta 2,2 mil millones de dólares, incluidos un 5,0% de crecimiento orgánico. El beneficio neto aumentó significativamente a 41,8 millones de dólares (0,67$ por acción) desde 4,7 millones en el año anterior.
La compañía logró hitos operativos destacables, con flujo de caja operativo que subió 120,1% hasta 175,0 millones y flujo de caja libre que creció 134,3% hasta 150,2 millones. ABM anunció un programa de reestructuración que se espera genere 35 millones de dólares en ahorros anuales a principios del ejercicio 2026.
El Consejo aprobó un aumento de 150 millones de dólares en la autorización de recompra de acciones y declaró un dividendo trimestral de 0,265$ por acción. ABM espera que el BPA ajustado para 2025 se sitúe hacia el extremo inferior del rango 3,65-3,80$, con un margen EBITDA ajustado entre 6,3% y 6,5%.
ABM (NYSE:ABM)는 2025 회계연도 3분기에 견조한 실적을 발표했습니다: 매출이 6.2% 증가하여 22억 달러를 기록했고, 이 중 5.0%는 유기적 성장입니다. 순이익은 전년 470만 달러에서 4180만 달러(주당 0.67달러)로 크게 증가했습니다.
회사는 운영 성과에서도 의미 있는 진전을 보였으며, 영업현금흐름이 120.1% 증가해 1억7500만 달러, 잉여현금흐름은 134.3% 증가해 1억5020만 달러를 기록했습니다. ABM은 2026 회계연도 초까지 연간 3500만 달러의 비용 절감을 기대하는 구조조정 프로그램을 발표했습니다.
이사회는 주식 재매입 승인 한도를 1억5000만 달러 증액하는 안을 승인하고, 주당 분기 배당금 0.265달러를 선언했습니다. ABM은 2025 회계연도 조정 주당순이익이 3.65~3.80달러 범위의 하단 쪽을 기록할 것으로, 조정 EBITDA 마진은 6.3~6.5% 사이일 것으로 예상합니다.
ABM (NYSE:ABM) a publié de solides résultats au troisième trimestre fiscal 2025 : le chiffre d'affaires a augmenté de 6,2% pour atteindre 2,2 milliards de dollars, dont 5,0% de croissance organique. Le résultat net a fortement progressé pour atteindre 41,8 millions de dollars (0,67$ par action) contre 4,7 millions l'année précédente.
La société a réalisé des avancées opérationnelles notables, avec un flux de trésorerie d'exploitation en hausse de 120,1% à 175,0 millions et un flux de trésorerie disponible en hausse de 134,3% à 150,2 millions. ABM a annoncé un programme de restructuration devant générer 35 millions de dollars d'économies annuelles d'ici le début de l'exercice 2026.
Le conseil d'administration a approuvé une augmentation de 150 millions de dollars de l'autorisation de rachat d'actions et a déclaré un dividende trimestriel de 0,265$ par action. ABM prévoit que le BPA ajusté pour 2025 se situe vers le bas de la fourchette 3,65–3,80$, avec une marge EBITDA ajustée entre 6,3% et 6,5%.
ABM (NYSE:ABM) meldete solide Ergebnisse für das dritte Geschäftsquartal 2025: Umsatzanstieg um 6,2% auf 2,2 Milliarden US-Dollar, davon 5,0% organisches Wachstum. Der Nettogewinn stieg deutlich auf 41,8 Millionen US-Dollar (0,67$ je Aktie) gegenüber 4,7 Millionen im Vorjahr.
Das Unternehmen erzielte bedeutende operative Fortschritte, darunter operativer Cashflow, der um 120,1% auf 175,0 Millionen zunahm, und Free Cashflow, der um 134,3% auf 150,2 Millionen anstieg. ABM kündigte ein Restrukturierungsprogramm an, das bis zum Beginn des Geschäftsjahres 2026 jährliche Kosteneinsparungen von 35 Millionen US-Dollar bringen soll.
Der Vorstand genehmigte eine Erhöhung der Rückkaufgenehmigung um 150 Millionen US-Dollar und erklärte eine Quartalsdividende von 0,265$ je Aktie. ABM erwartet für das Geschäftsjahr 2025 ein bereinigtes Ergebnis je Aktie eher am unteren Ende der Spanne von 3,65–3,80$, mit einer bereinigten EBITDA-Marge zwischen 6,3% und 6,5%.
- Revenue grew 6.2% to $2.2 billion with 5.0% organic growth
- Operating cash flow increased 120.1% to $175.0 million
- Secured over $1.5 billion in new bookings, up 15% year-over-year
- Restructuring program expected to deliver $35 million annual cost savings
- Board approved $150 million increase in share repurchase authorization
- Strong performance in Technical Solutions (19% growth) and Aviation (9% growth)
- Commercial office markets in West Coast, Midwest, and Mid-Atlantic recovering slowly
- Margin and adjusted EPS pressured by strategic pricing decisions
- Adjusted net income decreased to $51.7M from $53.6M year-over-year
- Higher interest and tax expenses impacting earnings
- Company lowered guidance to lower end of $3.65-$3.80 EPS range
Insights
ABM posted solid revenue growth and strong cash flow, but faces margin pressure in certain markets amid restructuring efforts.
ABM delivered a 6.2% revenue increase to
Net income surged to
The company's cash flow performance was particularly impressive with operating cash flow up
New business momentum remains strong with over
In response to margin pressures, management has launched a restructuring program expected to yield approximately
For fiscal 2025, ABM now expects adjusted EPS to be toward the lower end of its
- Revenue up
6.2% to$2.2 billion , including organic growth of5.0% - Net income of
$41.8 million and earnings per diluted share of$0.67 , versus$4.7 million and$0.07 in the prior year, respectively - Adjusted net income of
$51.7 million and adjusted earnings per diluted share of$0.82 , versus$53.6 million , or$0.84 in the prior year, respectively - Adjusted EBITDA up
5% to$125.8 million - Operating cash flow up
120.1% to$175.0 million and free cash flow up134.3% to$150.2 million - Board approves a
$150 million increase in share repurchase authorization
NEW YORK, Sept. 05, 2025 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal third quarter ended July 31, 2025.
“ABM’s third quarter performance was highlighted by mid-single-digit organic revenue growth and strong free cash flow,” said Scott Salmirs, President & Chief Executive Officer. “Each of our segments once again delivered organic growth, and we secured over
Mr. Salmirs continued, “We continue to see robust pipelines for new business and expansions in Technical Solutions (“ATS”) and Manufacturing & Distribution (“M&D”), as well as in many geographies within Business & Industry (“B&I”). However, some commercial office markets, particularly in select West Coast, Midwest, and Mid-Atlantic metro areas, are recovering more slowly. We are focused on positioning ABM for growth in those B&I markets by utilizing strategic pricing for contract rebids and proactive extensions, combined with managing contract escalation timing to maintain and expand our footprint. We are employing a similar strategy for certain M&D new business opportunities within attractive end-markets like semiconductor and e-commerce. These decisions modestly pressured margin and adjusted EPS, but are expected to yield meaningful benefits over time. We are pleased that the Aviation and Education end-markets remain stable.”
Mr. Salmirs concluded, “We are taking decisive actions to address the near-term margin challenges through labor efficiency actions, cost controls and a restructuring program that is underway. This program is expected to generate significant annual run-rate savings by year-end. Looking ahead, we expect our fourth quarter adjusted EPS and margin results to improve meaningfully over the third quarter driven by the benefits of these actions, as well as strong performance in our ATS segment. For the full fiscal year, we expect adjusted EPS to be toward the low end of our outlook range of
Third Quarter Fiscal 2025 Results
Revenue increased
Net income for the quarter rose to
Adjusted net income was
Adjusted EBITDA 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
Restructuring Program
ABM launched a restructuring program in August to further streamline its operations and improve the efficiency of its support functions. This initiative is intended to enhance overall organizational effectiveness and ensure alignment between the Company’s cost structure and operational footprint, and the Company’s strategic growth objectives. Once fully implemented, this program is expected to deliver approximately
The Company continues to review its overhead and cost structure for efficiency opportunities under this program.
Liquidity, Capital Structure & Share Repurchases
At the end of the third quarter, the Company’s total indebtedness stood at
During the third quarter, ABM repurchased approximately 0.6 million shares of its common stock for
As of the date of this release, ABM has
Quarterly Cash Dividend
After the quarter’s close, the Board declared a cash dividend of
Outlook
The Company expects to be toward the lower end of its fiscal 2025 adjusted EPS range of
The Company cannot provide reconciliations of the differences between the non-GAAP expectations and corresponding GAAP measure for adjusted EPS or adjusted EBITDA margin 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, September 5, 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 September 19, 2025, and can be accessed by dialing (844) 512-2921 and then entering ID #13754755. A replay link of the webcast will also be archived on the ABM website for 90 days.
(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.
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 more 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, technology initiatives, and our restructuring program 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 third quarter and nine 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 third quarter and nine 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 July 31, | ||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | Increase / (Decrease) | |||||||
| Revenues | $ | 2,224.0 | $ | 2,094.2 | ||||||
| Operating expenses | 1,949.6 | 1,831.0 | ||||||||
| Selling, general and administrative expenses | 177.5 | 211.8 | (16.2)% | |||||||
| Amortization of intangible assets | 13.4 | 14.0 | (4.2)% | |||||||
| Operating profit | 83.4 | 37.4 | NM* | |||||||
| Income from unconsolidated affiliates | 1.3 | 1.8 | (29.0)% | |||||||
| Interest expense | (25.3 | ) | (21.2 | ) | (19.5)% | |||||
| Income before income taxes | 59.4 | 18.0 | NM* | |||||||
| Income tax provision | (17.6 | ) | (13.3 | ) | (31.8)% | |||||
| Net income | $ | 41.8 | $ | 4.7 | NM* | |||||
| Net income per common share | ||||||||||
| Basic | $ | 0.67 | $ | 0.07 | NM* | |||||
| Diluted | $ | 0.67 | $ | 0.07 | NM* | |||||
| Weighted-average common and common equivalent shares outstanding | ||||||||||
| Basic | 62.5 | 63.1 | ||||||||
| Diluted | 62.8 | 63.5 | ||||||||
| Dividends declared per common share | $ | 0.265 | $ | 0.225 | ||||||
| *Not meaningful (due to variance greater than or equal to +/- | ||||||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
| Nine Months Ended July 31, | ||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | Increase / (Decrease) | |||||||
| Revenues | $ | 6,450.5 | $ | 6,182.0 | ||||||
| Operating expenses | 5,645.7 | 5,420.8 | ||||||||
| Selling, general and administrative expenses | 521.7 | 526.3 | (0.9)% | |||||||
| Amortization of intangible assets | 39.9 | 42.2 | (5.5)% | |||||||
| Operating profit | 243.3 | 192.8 | ||||||||
| Income from unconsolidated affiliates | 3.4 | 4.7 | (28.4)% | |||||||
| Interest expense | (72.1 | ) | (63.1 | ) | (14.2)% | |||||
| Income before income taxes | 174.6 | 134.4 | ||||||||
| Income tax provision | (47.0 | ) | (41.3 | ) | (13.8)% | |||||
| Net income | $ | 127.6 | $ | 93.1 | ||||||
| Net income per common share | ||||||||||
| Basic | $ | 2.04 | $ | 1.47 | ||||||
| Diluted | $ | 2.03 | $ | 1.46 | ||||||
| Weighted-average common and common equivalent shares outstanding | ||||||||||
| Basic | 62.6 | 63.3 | ||||||||
| Diluted | 63.0 | 63.6 | ||||||||
| Dividends declared per common share | $ | 0.795 | $ | 0.675 | ||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
| Three Months Ended July 31, | ||||||||
| (in millions) | 2025 | 2024 | ||||||
| Net cash provided by operating activities | $ | 175.0 | $ | 79.5 | ||||
| Additions to property, plant and equipment | (24.8 | ) | (15.4 | ) | ||||
| Purchase of businesses, net of cash acquired | (18.6 | ) | (114.3 | ) | ||||
| Other | 0.1 | 0.3 | ||||||
| Net cash used in investing activities | $ | (43.3 | ) | $ | (129.4 | ) | ||
| Proceeds from issuance of share-based compensation awards, net | 1.1 | 0.8 | ||||||
| Repurchases of common stock, including excise taxes | (27.2 | ) | — | |||||
| Dividends paid | (16.5 | ) | (14.1 | ) | ||||
| Borrowings from debt | 490.5 | 356.0 | ||||||
| Repayment of borrowings from debt | (512.0 | ) | (290.1 | ) | ||||
| Changes in book cash overdrafts | 3.1 | 23.5 | ||||||
| Repayment of finance lease obligations | (1.1 | ) | (1.1 | ) | ||||
| Cash paid to settle the contingent consideration liability | (59.0 | ) | — | |||||
| Net cash (used in) provided by financing activities | $ | (121.2 | ) | $ | 75.0 | |||
| Effect of exchange rate changes on cash and cash equivalents | — | 0.6 | ||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
| Nine Months Ended July 31, | ||||||||
| (in millions) | 2025 | 2024 | ||||||
| Net cash provided by operating activities | $ | 101.0 | $ | 196.3 | ||||
| Additions to property, plant and equipment | (58.6 | ) | (44.6 | ) | ||||
| Purchase of businesses, net of cash acquired | (16.7 | ) | (114.3 | ) | ||||
| Other | 0.5 | 0.9 | ||||||
| Net cash used in investing activities | $ | (74.8 | ) | $ | (157.9 | ) | ||
| Taxes withheld from issuance of share-based compensation awards, net | (8.5 | ) | (7.9 | ) | ||||
| Repurchases of common stock, including excise taxes | (48.5 | ) | (23.8 | ) | ||||
| Dividends paid | (49.4 | ) | (42.4 | ) | ||||
| Deferred financing costs paid | (8.0 | ) | — | |||||
| Borrowings from debt | 1,409.3 | 912.0 | ||||||
| Repayment of borrowings from debt | (1,212.0 | ) | (887.4 | ) | ||||
| Changes in book cash overdrafts | (43.0 | ) | 29.5 | |||||
| Repayment of finance lease obligations | (3.3 | ) | (3.1 | ) | ||||
| Cash paid to settle the contingent consideration liability | (59.0 | ) | — | |||||
| Net cash used in financing activities | $ | (22.5 | ) | $ | (23.0 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 1.0 | 1.4 | ||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
| (in millions) | July 31, 2025 | October 31, 2024 | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 69.3 | $ | 64.6 | ||
| Trade accounts receivable | 1,495.0 | 1,384.1 | ||||
| Costs incurred in excess of amounts billed | 159.1 | 162.1 | ||||
| Prepaid expenses | 155.7 | 103.2 | ||||
| Other current assets | 72.5 | 74.8 | ||||
| Total current assets | 1,951.6 | 1,788.7 | ||||
| Other investments | 27.4 | 30.8 | ||||
| Property, plant and equipment | 170.6 | 150.7 | ||||
| Right-of-use assets | 96.3 | 101.2 | ||||
| Other intangible assets, net of accumulated amortization | 255.6 | 282.4 | ||||
| Goodwill | 2,588.6 | 2,575.9 | ||||
| Other noncurrent assets | 180.4 | 167.5 | ||||
| Total assets | $ | 5,270.5 | $ | 5,097.2 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Current portion of long-term debt, net | $ | 29.3 | $ | 31.6 | ||
| Trade accounts payable | 357.1 | 324.3 | ||||
| Accrued compensation | 243.3 | 295.6 | ||||
| Accrued taxes—other than income | 41.4 | 56.2 | ||||
| Deferred Revenue | 79.0 | 63.7 | ||||
| Insurance claims | 199.7 | 197.5 | ||||
| Income taxes payable | 4.3 | 4.8 | ||||
| Current portion of lease liabilities | 28.6 | 26.6 | ||||
| Other accrued liabilities | 330.7 | 348.2 | ||||
| Total current liabilities | 1,313.4 | 1,348.4 | ||||
| Long-term debt, net | 1,500.4 | 1,302.2 | ||||
| Long-term lease liabilities | 84.1 | 92.0 | ||||
| Deferred income tax liability, net | 55.7 | 60.2 | ||||
| Noncurrent insurance claims | 426.8 | 421.8 | ||||
| Other noncurrent liabilities | 55.3 | 86.8 | ||||
| Noncurrent income taxes payable | 3.9 | 3.8 | ||||
| Total liabilities | 3,439.6 | 3,315.2 | ||||
| Total stockholders’ equity | 1,830.9 | 1,781.9 | ||||
| Total liabilities and stockholders’ equity | $ | 5,270.5 | $ | 5,097.2 | ||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
| Three Months Ended July 31, | Increase/ (Decrease) | |||||||||
| (in millions) | 2025 | 2024 | ||||||||
| Revenues | ||||||||||
| Business & Industry | $ | 1,038.7 | $ | 1,010.6 | ||||||
| Manufacturing & Distribution | 408.9 | 377.1 | ||||||||
| Aviation | 291.8 | 268.4 | ||||||||
| Education | 235.1 | 228.3 | ||||||||
| Technical Solutions | 249.5 | 209.7 | ||||||||
| Total Revenues | $ | 2,224.0 | $ | 2,094.2 | ||||||
| Operating profit | ||||||||||
| Business & Industry | $ | 73.8 | $ | 77.8 | (5.2)% | |||||
| Manufacturing & Distribution | 36.4 | 40.9 | (11.1)% | |||||||
| Aviation | 19.7 | 17.8 | ||||||||
| Education | 21.1 | 18.0 | ||||||||
| Technical Solutions | 19.4 | 17.9 | ||||||||
| Corporate(1) | (85.7 | ) | (130.6 | ) | ||||||
| Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (1.3 | ) | (1.8 | ) | ||||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | — | (2.6 | ) | NM* | ||||||
| Total operating profit | 83.4 | 37.4 | NM* | |||||||
| Income from unconsolidated affiliates | 1.3 | 1.8 | (29.0)% | |||||||
| Interest expense | (25.3 | ) | (21.2 | ) | (19.5)% | |||||
| Income before income taxes | 59.4 | 18.0 | NM* | |||||||
| Income tax provision | (17.6 | ) | (13.3 | ) | (31.8)% | |||||
| Net income | $ | 41.8 | $ | 4.7 | NM* | |||||
| *Not meaningful (due to variance greater than or equal to +/- | ||||||||||
| (1) The three months ended July 31, 2024, includes a | ||||||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
| Nine Months Ended July 31, | Increase/ (Decrease) | |||||||||
| (in millions) | 2025 | 2024 | ||||||||
| Revenues | ||||||||||
| Business & Industry | $ | 3,077.2 | $ | 3,033.4 | ||||||
| Manufacturing & Distribution | 1,201.2 | 1,166.6 | ||||||||
| Aviation | 822.0 | 756.1 | ||||||||
| Education | 688.2 | 674.0 | ||||||||
| Technical Solutions | 662.0 | 551.9 | ||||||||
| Total Revenues | $ | 6,450.5 | $ | 6,182.0 | ||||||
| Operating profit | ||||||||||
| Business & Industry | $ | 236.2 | $ | 235.0 | ||||||
| Manufacturing & Distribution | 115.6 | 125.9 | (8.1)% | |||||||
| Aviation | 48.4 | 40.6 | ||||||||
| Education | 48.9 | 42.3 | ||||||||
| Technical Solutions | 49.4 | 41.4 | ||||||||
| Corporate(1) | (251.8 | ) | (285.0 | ) | ||||||
| Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (3.4 | ) | (4.7 | ) | ||||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.1 | ) | (2.6 | ) | ||||||
| Total operating profit | 243.3 | 192.8 | ||||||||
| Income from unconsolidated affiliates | 3.4 | 4.7 | (28.4)% | |||||||
| Interest expense | (72.1 | ) | (63.1 | ) | (14.2)% | |||||
| Income before income taxes | 174.6 | 134.4 | ||||||||
| Income tax provision | (47.0 | ) | (41.3 | ) | (13.8)% | |||||
| Net income | $ | 127.6 | $ | 93.1 | ||||||
| (1) The nine months ended July 31, 2024, includes a | ||||||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(in millions, except per share amounts)
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Income to Adjusted Net Income | ||||||||||||||||
| Net income | $ | 41.8 | $ | 4.7 | $ | 127.6 | $ | 93.1 | ||||||||
| Items impacting comparability(a)(b) | ||||||||||||||||
| Legal costs and other settlements | (2.6 | ) | 0.2 | 2.5 | 0.2 | |||||||||||
| Acquisition and integration related costs(c) | 4.7 | 3.9 | 11.4 | 7.6 | ||||||||||||
| Transformation initiative costs(d) | 11.1 | 11.1 | 30.1 | 27.8 | ||||||||||||
| Change in fair value of contingent consideration(e) | — | 36.0 | — | 36.0 | ||||||||||||
| Other(f) | 0.7 | 2.7 | 2.9 | 3.5 | ||||||||||||
| Total items impacting comparability | 13.8 | 53.9 | 46.8 | 75.1 | ||||||||||||
| Income tax benefit (g)(h) | (3.9 | ) | (5.0 | ) | (13.3 | ) | (11.3 | ) | ||||||||
| Items impacting comparability, net of taxes | 9.9 | 48.9 | 33.5 | 63.8 | ||||||||||||
| Adjusted net income | $ | 51.7 | $ | 53.6 | $ | 161.1 | $ | 156.9 | ||||||||
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||
| Net Income | $ | 41.8 | $ | 4.7 | $ | 127.6 | $ | 93.1 | ||||||||
| Items impacting comparability | 13.8 | 53.9 | 46.8 | 75.1 | ||||||||||||
| Income taxes provision | 17.6 | 13.3 | 47.0 | 41.3 | ||||||||||||
| Interest expense | 25.3 | 21.2 | 72.1 | 63.1 | ||||||||||||
| Depreciation and amortization | 27.4 | 26.7 | 78.9 | 79.5 | ||||||||||||
| Adjusted EBITDA | $ | 125.8 | $ | 119.8 | $ | 372.4 | $ | 352.1 | ||||||||
| Net Income margin as a % of revenues | 1.9 | % | 0.2 | % | 2.0 | % | 1.5 | % | ||||||||
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues Excluding Management Reimbursement | ||||||||||||||||
| Revenue | $ | 2,224.0 | $ | 2,094.2 | $ | 6,450.5 | $ | 6,182.0 | ||||||||
| Management Reimbursement | (88.7 | ) | (79.6 | ) | (255.2 | ) | (236.6 | ) | ||||||||
| Revenues excluding management reimbursement | $ | 2,135.3 | $ | 2,014.6 | $ | 6,195.4 | $ | 5,945.4 | ||||||||
| Adjusted EBITDA margin as a % of revenues excluding management reimbursement | 5.9 | % | 5.9 | % | 6.0 | % | 5.9 | % | ||||||||
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 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 | $ | 0.07 | $ | 2.03 | $ | 1.46 | ||||||||
| Items impacting comparability, net of taxes | 0.16 | 0.77 | 0.53 | 1.00 | ||||||||||||
| Adjusted net income per diluted share | $ | 0.82 | $ | 0.84 | $ | 2.56 | $ | 2.47 | ||||||||
| Diluted shares | 62.8 | 63.5 | 63.0 | 63.6 | ||||||||||||
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | ||||||||||||||||
| Net cash provided by operating activities | $ | 175.0 | $ | 79.5 | $ | 101.0 | $ | 196.3 | ||||||||
| Additions to property, plant and equipment | (24.8 | ) | (15.4 | ) | (58.6 | ) | (44.6 | ) | ||||||||
| Free cash flow | $ | 150.2 | $ | 64.1 | $ | 42.4 | $ | 151.8 | ||||||||
(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 third quarter 2025 results and retroactively to all presented periods to ensure comparability.
(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) Represents an adjustment to the estimate of the fair value of the contingent consideration associated with the RavenVolt acquisition.
(f) Nine months ended July 31, 2025 include a parking tax audit settlement related to prior years. The three and nine months ended July 31, 2024 primarily represents severance costs related to the permanent elimination of the role of Executive Vice President, Chief Strategy & Transformation Officer.
(g) The Company's tax impact is calculated using the federal and state statutory rate of
(h) The three and nine months ended July 31, 2025 include a
FAQ
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