ABM Research | Milton Maxwell

ABM

ABM Industries Incorporated

45.74

-1.44-3.05%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q4 '25)

No earnings call transcript available yet

Last Quarter (Q3 '25)

FY Q4 '25

WGNSTAR color, margins clarified

12/16/25Dec 16, 2025

Q&A drilled into flat segment operating margin guidance at 7.8-8%, offsetting $35M restructuring savings with mix shifts and Q3 pricing decisions. WGNSTAR details emerged: mid-teens EBITDA, '26 dilution from $13M amortization/$12M interest, accretive '27 at 12-13x, lifting leverage to comfortable 3x with roll-up M&A potential. B&I pricing stabilized after Q3 concessions; CRE crisis deemed behind, baking GDP growth into guide. ERP rollout hit 90%, DSOs fell 11% from peak, supporting $250M normalized FCF target. Management stayed crisp on prompts. Q&A reaffirms momentum but adds execution color investors will track.

Key Stats

Market Cap

2.85B

P/E (TTM)

24.72

Basic EPS (TTM)

1.85

Dividend Yield

0.02%

Recent Filings

10-K

FY2025 results

12/19/25Dec 19, 2025

ABM Industries drove FY2025 revenues up 4.6% to $8.7B, with organic growth of 3.8% fueled by Aviation (+8.3%), Technical Solutions (+18.7% on microgrid projects), yet B&I held steady at 1.6% amid strategic pricing. Operating profit surged 47% to $312M, margins ticking to 12.3% despite Q4 restructuring charges of $13M targeting $35M annual savings; Education margins leaped 122 bps to 7.3% on efficiencies, while M&D slipped 134 bps to 9.4% from new wins. Q4 momentum shone in Technical Solutions' service mix and Aviation's overhead control. Debt stood at $1.6B with $578M revolver capacity; repurchased $121M in shares. Labor shortages threaten quarterly momentum.

8-K

ABM agrees $275M WGNSTAR buy

12/17/25Dec 17, 2025

ABM signed a deal December 15 to buy WGNSTAR for $275M cash, targeting semiconductor services with $135M annual revenue and superior EBITDA margins. Closing awaits HSR clearance and Irish approvals in Q2 2026. Acquisition bolsters Technical Solutions amid U.S. onshoring. Deal dilutive to 2026 EPS, accretive thereafter.

8-K

Hytinen joins ABM board

10/30/25Oct 30, 2025

ABM Industries elected Barry Hytinen, Iron Mountain's EVP and CFO, to its board on October 29, 2025, expanding from 11 to 12 directors. Hytinen brings two decades of finance, strategy, and growth expertise from Iron Mountain, Hanesbrands, and Tempur Sealy. His skills sharpen oversight. Standard director pay and indemnification apply.

8-K

ABM Q3 revenue up 6.2%

9/5/25Sep 5, 2025

ABM Industries reported fiscal Q3 2025 revenue of $2.2 billion, up 6.2% year-over-year with 5.0% organic growth, driven by strong performances in Technical Solutions and Aviation segments. Net income surged to $41.8 million from $4.7 million last year, while adjusted EBITDA rose 5% to $125.8 million; free cash flow doubled to $150.2 million. The board hiked the share repurchase authorization by $150 million and declared a $0.265 per share dividend payable November 3, 2025. A new restructuring program targets $35 million in annual savings by early 2026, but full-year adjusted EPS outlook tilts to the low end of $3.65-$3.80 amid margin pressures in select markets. Cash flow remains robust.

10-Q

Q3 FY2025 results

9/5/25Sep 5, 2025

ABM Industries posted solid Q3 FY2025 results, with revenues climbing 6.2% year-over-year to $2.224B, fueled by organic gains across all segments and acquisitions like LMC FM, closed in June 2025 for $22.5M cash plus up to $5.9M contingent. Operating profit surged 123% to $83.4M, thanks to operational efficiencies in Aviation and Education offsetting strategic pricing in B&I and M&D; gross margin dipped slightly to 12.3%. Diluted EPS jumped to $0.67 from $0.07, aligning with 62.8M shares. Cash stood at $69.3M with $621.7M revolver availability under the amended facility maturing 2030, while free cash flow isn't disclosed in the 10-Q. Yet labor shortages and cost pressures linger as key risks.

About

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. The company operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments. It offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; and vehicle maintenance and other services to rental car providers. The company also offers integrated facility services, engineering, and other specialized services in various types of manufacturing, distribution, and data center facilities. In addition, it delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, the company supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, it provides facility infrastructure, mechanical and electrical services; and electric vehicle power and microgrid systems design, installation, and maintenance services. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.

CEO

Mr. Scott B. Salmirs

IPO

3/17/1980

Website

https://www.abm.com

Employees

117,000

Sector

Industrials

Industry

Specialty Business Services