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Raises Midpoint of Outlook For Fiscal 2026 Adjusted EPS and Increases Free Cash Flow Expectations

Revenue increased 4.2% to a quarterly record of $2.3 billion, including organic growth of 2.1% and acquisition-related growth of 2.1%Net income increased 19% to $49.7 million, or $0.84 per diluted share, as compared to $41.8 million, or $0.67, in the prior year Adjusted net income grew 19% to $61.5 million, or $1.04 per diluted share, versus $51.7 million, or $0.82, in the prior yearAdjusted EBITDA improved 11% to $139.6 million, versus $125.8 million last yearOperating cash flow was $146.8 million and free cash flow totaled $128.4 millionThrough nine months, operating cash flow was $275.0 million and free cash flow was $199.6 million, both significantly improved over the prior year period Company raises outlook for full year adjusted EPS and operating cash flow and free cash flow NEW YORK, Sept. 08, 2026 (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, 2026

"Our third quarter results reflected strong operational and financial performance, including record quarterly revenue, robust EPS growth and substantial cash generation. Our team executed well and delivered on our expectations despite a backdrop of macro uncertainty and adverse timing of certain projects," said Scott Salmirs, President and Chief Executive Officer. "Aviation and Manufacturing & Distribution ("M&D") delivered strong organic revenue growth, with M&D benefiting from healthy technology markets and further supported by our recent WGNstar acquisition. Technical Solutions ("ATS") revenue growth was impacted by some project deferrals, while Business & Industry ("B&I") revenue performance was largely as anticipated. We expect ATS to ramp sequentially in the fourth quarter as we execute on many of the deferred projects."

Mr. Salmirs continued, "Disciplined working capital management drove exceptional year-to-date free cash flow, which in turn accelerated our deleveraging ahead of schedule. We also secured a $300 million accounts receivable facility at favorable rates, further strengthening our capital structure. And our focus on cost discipline resulted in a $3 million reduction in ongoing corporate costs versus the prior year. Together, these actions contributed to our third quarter results and helped keep us on track to deliver on our full-year outlook, as well as provide longer-term benefits."

Mr. Salmirs concluded, "As we enter the fourth quarter, we are focused on finishing the year strong and executing with discipline. We are raising the midpoint of our adjusted EPS outlook and increasing our expectations for full year free cash flow based on our strong third quarter results, and are confident in our ability to achieve it."

Third Quarter Fiscal 2026 Results

Revenue increased 4.2% year over year to a record of $2.3 billion, including 2.1% organic growth and 2.1% growth from acquisitions. Revenue growth was led by M&D and Aviation, which grew 18% and 12%, respectively. M&D’s growth was driven by the WGNstar acquisition, recent client wins and ongoing expansions, especially in technology-related markets, while Aviation’s growth reflected healthy air travel trends and the continued ramp of the recently won London Heathrow contract. ATS grew 4%, driven by strong HVAC activity and contributions from its recent acquisition; however, revenue was below expectations due to the deferral of certain projects by a large client. Education grew modestly, while Business & Industry (“B&I”) declined 2.6%, largely as expected, reflecting the previously announced exit of a large UK-based client and continued softness on the US west coast.

Net income increased 19% to $49.7 million, or $0.84 per diluted share, compared to $41.8 million, or $0.67 per diluted share, in the prior year period. The increase in net income primarily reflects higher segment operating profit, lower tax expense and reduced ongoing corporate costs, partially offset by higher interest expense related to the WGNstar acquisition. EPS growth of 25% was further driven by the Company’s share repurchase activities earlier in the year. Net income margin was 2.1% versus 1.9% in the prior year.

Segment operating margin improved 40 basis points sequentially to 7.7%, essentially in line with the prior year, as operational efficiencies helped to offset pressures in Aviation and increased acquisition-related amortization in M&D.

Adjusted net income increased 19% to $61.5 million, or $1.04 per diluted share, compared to $51.7 million, or $0.82 per diluted share in the prior year period. The year-over-year growth primarily reflects the factors discussed above, with per share results further benefiting from the Company's share repurchase activities.

Adjusted EBITDA increased 11% to $139.6 million compared to $125.8 million last year, largely reflecting higher segment operating profit and lower corporate costs.

Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.

Third quarter net cash provided by operating activities was $146.8 million, and free cash flow was $128.4 million, compared to $175.0 million and $150.2 million, respectively, in the prior year period.

For the nine months ended July 31, 2026, net cash provided by operating activities was $275.0 million, and free cash flow was $199.6 million, compared to $101.0 million and $42.4 million, respectively, in the prior year period. This significant improvement was primarily driven by strong working capital management and stabilization in the Company’s enterprise resource planning (“ERP”) system implementation. A reconciliation of net cash provided by operating activities to free cash flow can be found in the “Reconciliation of Non-GAAP Financial Measures” table.

Leverage & Liquidity

At the end of the third quarter, the Company’s total indebtedness stood at $1.8 billion, including $22.4 million in standby letters of credit, resulting in a total leverage ratio of 2.9x, as defined by the Company's revolving credit facility. Available liquidity was $605.8 million, including $110.5 million in cash and cash equivalents. The Company expects to further reduce its total leverage ratio by fiscal year-end.

During the quarter, the Company entered into a $300 million trade receivables financing agreement, which diversifies its funding sources at favorable rates relative to its existing revolving credit facility.

Quarterly Cash Dividend

After the quarter’s close, the Board declared a cash dividend of $0.29 per common share, payable on November 2, 2026, to shareholders of record on October 1, 2026.

Outlook

The Company's full year organic revenue growth outlook remains unchanged, with performance expected near the top end of the 3% to 4% range, and total revenue growth continues to be expected toward the top end of the 4% to 5% range. Segment operating margin, defined as total segment operating profit divided by total revenue, is now projected to be in the range of 7.7% to 7.8%, versus the previous range of 7.8% to 8.0%. Full-year interest expense remains forecast at approximately $110 million, and the normalized tax rate is still expected to be between 29% and 30%, excluding discrete and non-taxable items. The Company is raising the midpoint of its adjusted EPS outlook. The range is now $3.95 to $4.10, versus the previous range of $3.85 to $4.15, reflecting its third quarter performance and confidence in the Company’s ability to deliver a strong fourth quarter.

The Company is raising its full-year outlook for net cash provided from operations and free cash flow and now expects approximately $300 million and $210 million, respectively, with free cash flow up approximately $25 million from the prior outlook, driven by the strong year-to-date performance.

The Company cannot provide a reconciliation of forward-looking non-GAAP segment operating margin or adjusted EPS to the corresponding GAAP measure without unreasonable effort due to the uncertainty of timing and the magnitude of items such as acquisition and integration related costs, legal costs and other settlements. These items are inherently difficult to forecast and may result in a GAAP range that is too large and variable to be meaningful.

Conference Call Information

ABM will host its quarterly conference call for all interested parties on Tuesday, September 8, 2026, 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 22, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID #13761714. 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 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 $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.

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 strategic initiatives, 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 have an effect on 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 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 may not realize the growth opportunities and synergies that are anticipated from the WGNSTAR acquisition; 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 first nine months of fiscal years 2026 and 2025. 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 first nine months of fiscal years 2026 and 2025. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. The Company also presents total segment operating profit, which is the sum of the segment operating profit of each of its segments, and total segment operating margin, defined as total segment operating profit divided by total revenue, because management believes they are useful as they represent the aggregate value of income/profit created by its segments and exclude items not directly related to the segments for performance evaluation purposes. 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 [email protected]      ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

       Three Months Ended July 31,  (in millions, except per share amounts)  2026   2025  Increase /
(Decrease)Revenues  $2,317.1  $2,224.0  4.2%Operating expenses  2,031.0   1,949.6  4.2%Selling, general and administrative expenses  171.3   177.5  (3.5)%Restructuring and related expenses  7.8   —  NM*Amortization of intangible assets  15.5   13.4  15.8%Operating profit   91.5   83.4  9.6%Income from unconsolidated affiliates  1.2   1.3  (2.1)%Interest expense  (29.5)   (25.3)  (16.6)%Income before income taxes  63.2   59.4  6.4%Income tax provision  (13.5)   (17.6)  23.3%Net income $49.7  $41.8  18.9%Net income per common share      Basic $0.84  $0.67  25.4%Diluted $0.84  $0.67  25.4%Weighted-average common and common equivalent shares outstanding      Basic  58.9   62.5   Diluted  59.3   62.8   Dividends declared per common share $0.290  $0.265               *Not meaningful (due to variance greater than or equal to +/-100%)

     ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

       Nine Months Ended July 31,  (in millions, except per share amounts)  2026   2025  Increase /
(Decrease)Revenues  $6,850.6  $6,450.5  6.2%Operating expenses  6,027.5   5,645.7  6.8%Selling, general and administrative expenses  512.2   521.7  (1.8)%Restructuring and related expenses  14.6   —  NM*Amortization of intangible assets  43.4   39.9  8.8%Operating profit   253.0   243.3  4.0%Income from unconsolidated affiliates  3.6   3.4  7.2%Interest expense  (81.6)  (72.1) (13.2)%Income before income taxes  175.0   174.6  0.2%Income tax provision  (43.5)  (47.0) 7.5%Net income $131.6  $127.6  3.1%Net income per common share      Basic $2.22  $2.04  8.8%Diluted $2.20  $2.03  8.4%Weighted-average common and common equivalent shares outstanding      Basic  59.4   62.6   Diluted  59.7   63.0   Dividends declared per common share $0.870  $0.795               *Not meaningful (due to variance greater than or equal to +/-100%)

   ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESSELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

     Three Months Ended July 31,(in millions)  2026   2025 Net cash provided by operating activities $146.8  $175.0 Additions to property, plant and equipment  (18.4)  (24.8)Purchase of businesses, net of cash acquired  —   (18.6)Other  0.9   0.1 Net cash used in investing activities $(17.4) $(43.3)Proceeds from issuance of share-based compensation awards, net  1.1   1.1 Repurchases of common stock, including excise taxes  —   (27.2)Dividends paid  (17.0)  (16.5)Deferred financing costs paid  (1.4)  — Borrowings from debt  656.5   490.5 Repayment of borrowings from debt  (744.7)  (512.0)Changes in book cash overdrafts  (7.1)  3.1 Repayment of finance lease obligations  (1.0)  (1.1)Cash paid to settle the contingent consideration liability  —   (59.0)Net cash used in financing activities $(113.5) $(121.2)Effect of exchange rate changes on cash and cash equivalents  (0.3)  —     ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESSELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

     Nine Months Ended July 31,(in millions)  2026   2025 Net cash provided by operating activities $275.0  $101.0 Additions to property, plant and equipment  (75.4)  (58.6)Purchase of businesses, net of cash acquired  (242.1)  (16.7)Other  1.6   0.5 Net cash used in investing activities $(315.8) $(74.8)Taxes withheld from issuance of share-based compensation awards, net  (8.8)  (8.5)Repurchases of common stock, including excise taxes  (94.7)  (48.5)Dividends paid  (51.2)  (49.4)Deferred financing costs paid  (2.7)  (8.0)Borrowings from debt  1,733.5   1,409.3 Repayment of borrowings from debt  (1,523.9)  (1,212.0)Changes in book cash overdrafts  (2.4)  (43.0)Repayment of finance lease obligations  (3.3)  (3.3)Cash paid to settle the contingent consideration liability  —   (59.0)Net cash provided by (used in) financing activities $46.4  $(22.5)Effect of exchange rate changes on cash and cash equivalents  0.9   1.0       ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)

     (in millions) July 31, 2026 October 31, 2025ASSETS    Current assets    Cash and cash equivalents $110.5 $104.1Trade accounts receivable  1,478.8  1,471.1Costs incurred in excess of amounts billed  209.8  193.7Prepaid expenses  111.3  91.2Other current assets  82.0  78.6Total current assets  1,992.4  1,938.7Other investments  32.1  48.6Property, plant and equipment  211.9  177.2Right-of-use assets  91.8  95.1Other intangible assets, net of accumulated amortization  328.5  243.2Goodwill  2,741.2  2,591.1Other noncurrent assets  203.0  175.5Total assets $5,601.0 $5,269.5LIABILITIES AND STOCKHOLDERS’ EQUITY    Current liabilities    Current portion of long-term debt, net $41.8 $29.4Trade accounts payable  430.8  401.2Accrued compensation  190.5  195.0Accrued taxes—other than income  44.6  48.1Deferred Revenue  153.4  74.7Insurance claims  204.5  200.8Income taxes payable  3.8  4.0Current portion of lease liabilities  27.7  28.2Other accrued liabilities  304.7  324.1Total current liabilities  1,401.8  1,305.7Long-term debt, net  1,732.2  1,537.1Long-term lease liabilities  80.4  83.7Deferred income tax liability, net  69.0  39.9Noncurrent insurance claims  470.2  459.3Other noncurrent liabilities  53.1  54.3Noncurrent income taxes payable  4.1  3.9Total liabilities  3,810.8  3,483.8Total stockholders’ equity  1,790.2  1,785.6Total liabilities and stockholders’ equity $5,601.0 $5,269.5      ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESREVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

       Three Months Ended July 31, Increase/
 (Decrease)
(in millions)  2026   2025  Revenues      Business & Industry $1,012.2  $1,038.7  (2.6)%Manufacturing & Distribution  481.0   408.9  17.6%Aviation  328.1   291.8  12.5%Education  235.8   235.1  0.3%Technical Solutions  259.9   249.5  4.2%Total Revenues $2,317.1  $2,224.0  4.2%Operating profit      Business & Industry $75.0  $73.8  1.5%Manufacturing & Distribution  40.5   36.4  11.4%Aviation  18.4   19.7  (6.9)%Education  23.0   21.1  8.7%Technical Solutions  21.5   19.4  10.8%Segment operating profit $178.3  $170.4  4.6%Segment operating margin  7.7%  7.7%  Corporate  (85.4)  (85.7) 0.3%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions  (1.2)  (1.3) 2.1%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions  (0.2)  —  NM*Total operating profit  91.5   83.4  9.6%Income from unconsolidated affiliates  1.2   1.3  (2.1)%Interest expense  (29.5)  (25.3) (16.6)%Income before income taxes  63.2   59.4  6.4%Income tax provision  (13.5)  (17.6) 23.3%Net income  $49.7  $41.8  18.9%             *Not meaningful (due to variance greater than or equal to +/-100%)

     ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESREVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

       Nine Months Ended July 31, Increase/
 (Decrease)
(in millions)  2026   2025  Revenues      Business & Industry $3,093.2  $3,077.2  0.5%Manufacturing & Distribution  1,367.1   1,201.2  13.8%Aviation  936.6   822.0  14.0%Education  696.7   688.2  1.2%Technical Solutions  757.0   662.0  14.4%Total Revenues $6,850.6  $6,450.5  6.2%Operating profit      Business & Industry $231.3  $236.2  (2.1)%Manufacturing & Distribution  117.5   115.6  1.6%Aviation  47.3   48.4  (2.5)%Education  60.9   48.9  24.6%Technical Solutions  46.7   49.4  (5.4)%Segment operating profit $503.7  $498.6  1.0%Segment operating margin  7.4%  7.7%  Corporate  (246.3)  (251.8) 2.2%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions  (3.6)  (3.4) (7.2)%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions  (0.7)  (0.1) NM*Total operating profit  253.0   243.3  4.0%Income from unconsolidated affiliates  3.6   3.4  7.2%Interest expense  (81.6)  (72.1) (13.2)%Income before income taxes  175.0   174.6  0.2%Income tax provision  (43.5)  (47.0) 7.5%Net income  $131.6  $127.6  3.1%             *Not meaningful (due to variance greater than or equal to +/-100%)

     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,   2026   2025   2026   2025 Reconciliation of Net Income to Adjusted Net Income        Net income $49.7  $41.8  $131.6  $127.6 Items impacting comparability(a)(b)        Restructuring and related(c)  7.8   —   14.6   — Legal costs and other settlements  1.4   (2.6)  1.1   2.5 Acquisition and integration related costs(d)  0.5   4.7   8.7   11.4 Transformation initiative costs(e)  6.3   11.1   20.5   30.1 Other(f)  0.3   0.7   1.0   2.9 Total items impacting comparability  16.3   13.8   46.0   46.8 Income tax impact (g)(h)  (4.5)  (3.9)  (12.8)  (13.3)Items impacting comparability, net of taxes  11.8   9.9   33.2   33.5 Adjusted net income $61.5  $51.7  $164.8  $161.1    Three Months Ended July 31, Nine Months Ended July 31,   2026   2025   2026   2025 Reconciliation of Net Income to Adjusted EBITDA        Net Income $49.7  $41.8  $131.6  $127.6 Items impacting comparability  16.3   13.8   46.0   46.8 Income taxes provision  13.5   17.6   43.5   47.0 Interest expense  29.5   25.3   81.6   72.1 Depreciation and amortization  30.7   27.4   86.5   78.9 Adjusted EBITDA $139.6  $125.8  $389.2  $372.4 Net Income margin as a % of revenues  2.1%  1.9%  1.9%  2.0%   Three Months Ended July 31,
 Nine Months Ended July 31,
  2026
 2025
 2026
 2025
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share            Net income per diluted share $0.84  $0.67  $2.20  $2.03 Items impacting comparability, net of taxes  0.20  $0.16   0.56   0.53 Adjusted net income per diluted share $1.04  $0.82  $2.76  $2.56 Diluted shares  59.3   62.8   59.7   63.0    Three Months Ended July 31, Nine Months Ended July 31,   2026   2025   2026   2025 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow        Net cash provided by operating activities $146.8  $175.0  $275.0  $101.0 Additions to property, plant and equipment  (18.4)  (24.8)  (75.4)  (58.6)Free cash flow $128.4  $150.2  $199.6  $42.4                   (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, and adjusted EBITDA, 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.

(c) Represents costs associated with restructuring program to further streamline our operations and improve the efficiency of our support functions.

(d) Represents acquisition and integration related costs associated with recent acquisitions.

(e) 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.

(f) Nine months ended July 31, 2025 include a parking tax audit settlement related to prior years.

(g) The Company's tax impact is calculated using the federal and state statutory rate of 27.72% and 28.11% for FY2026 and FY2025, respectively. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding.

(h) The three and nine months ended July 31, 2025 include a $0.1 million charge related to ERC refunds received from IRS. The nine months ended July 31, 2025 include a $0.1 million benefit for uncertain tax positions with expiring statues.

Algert Global LLC lowered its holdings in ABM Industries Incorporated (NYSE:ABM – Free Report) by 7.5% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 197,440 shares of the business services provider’s stock after selling 15,940 shares during the period. Algert Global LLC owned approximately 0.34% of ABM Industries worth $8,735,000 as of its most recent SEC filing.

Several other institutional investors have also made changes to their positions in ABM. First Eagle Investment Management LLC bought a new stake in ABM Industries during the fourth quarter valued at about $7,623,000. Quantinno Capital Management LP increased its holdings in shares of ABM Industries by 86.3% during the 1st quarter. Quantinno Capital Management LP now owns 54,790 shares of the business services provider’s stock worth $2,111,000 after purchasing an additional 25,388 shares during the period. Louisiana State Employees Retirement System acquired a new position in shares of ABM Industries during the first quarter valued at about $1,002,000. Pacer Advisors Inc. bought a new stake in shares of ABM Industries in the first quarter valued at about $12,739,000. Finally, BlackRock Inc. bought a new position in ABM Industries in the second quarter worth $410,948,000. 91.62% of the stock is currently owned by institutional investors and hedge funds.

ABM Industries Trading Up 2.3% NYSE ABM opened at $47.66 on Thursday. The stock has a 50-day simple moving average of $46.60 and a 200 day simple moving average of $43.06. The company has a market capitalization of $2.79 billion, a PE ratio of 18.33, a P/E/G ratio of 1.22 and a beta of 0.69. ABM Industries Incorporated has a 12 month low of $36.96 and a 12 month high of $50.12. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 1.04.

ABM Industries (NYSE:ABM – Get Free Report) last issued its quarterly earnings data on Friday, June 5th. The business services provider reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.02). ABM Industries had a return on equity of 11.84% and a net margin of 1.75%.The company had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.21 billion. During the same quarter in the previous year, the business earned $0.86 earnings per share. The company’s revenue was up 8.4% on a year-over-year basis. ABM Industries has set its FY 2026 guidance at 3.850-4.150 EPS. Research analysts forecast that ABM Industries Incorporated will post 3.97 EPS for the current year. ABM Industries Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Thursday, July 2nd were issued a $0.29 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.16 dividend on an annualized basis and a yield of 2.4%. ABM Industries’s payout ratio is currently 44.62%.

Insiders Place Their Bets In related news, CEO Scott B. Salmirs sold 50,000 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $46.34, for a total transaction of $2,317,000.00. Following the sale, the chief executive officer owned 395,285 shares in the company, valued at approximately $18,317,506.90. This trade represents a 11.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades Several brokerages have recently weighed in on ABM. Robert W. Baird lifted their target price on shares of ABM Industries from $45.00 to $48.00 and gave the company a “neutral” rating in a research report on Monday, June 8th. Weiss Ratings raised ABM Industries from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $47.00.

View Our Latest Report on ABM Industries

ABM Industries Company Profile (Free Report)

ABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company’s core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.

Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.

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Key Takeaways ABM posted record second-quarter revenues and first-half new sales bookings, supporting growth.ABM is expanding in data centers and semiconductors through investments and the WGNSTAR acquisition.ABM's rising operating costs and economic uncertainties could pressure margins and future growth. Shares of ABM Industries (ABM - Free Report) have had a decent run over the past three months. The stock has gained 12.6% against the industry's 1.5% drop. The Zacks S&P 500 composite rose 8.7% during the said time frame.

ABM has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

The company’s third-quarter fiscal 2026 earnings are expected to increase 23.2% year over year. Earnings for fiscal 2026 and fiscal 2027 are projected to rise 15.4% and 9.3%, respectively, year over year. Revenues are expected to increase 5.3% in fiscal 2026 and 3% in fiscal 2027.

Factors That Bode Well for ABMABM Industries, a leading provider of integrated facility solutions globally, benefits from growing demand across its broad range of services that support infrastructure functionality and operational efficiency. The services include janitorial, energy management, facilities engineering, electrical and lighting, landscape and turf care, heating, ventilation and air conditioning (HVAC) and mechanical, mission-critical and parking solutions across various sectors.

Recently, the company reported that its second-quarter fiscal 2026 revenues increased 8.4% year over year to a record $2.3 billion. It also gained a record $1.2 billion in first-half new sales bookings, highlighting continued success in expanding its customer base across key growth markets.

ABM’s multi-year, comprehensive strategic plan, ELEVATE, launched in 2021, has also significantly boosted its overall revenues by driving client value through transparent and efficient solutions, talent optimization, expanded data utilization and digital modernization. This initiative has enabled the company to generate revenues and net income with a compounded annual growth rate (CAGR) of 7% and 5%, respectively, from fiscal 2021 to fiscal 2025.

Strategic expansion into high-demand sectors like data centers through targeted acquisitions and investments has amplified ABM’s mission-critical offerings. The company continues to accelerate investment in energy infrastructure, battery storage, data centers and artificial intelligence infrastructure due to strong demand for data centers, battery energy storage systems and HVAC projects. ABM’s Manufacturing & Distribution segment growth was also driven by semiconductor industry investments and technology-sector contract wins. The recent WGNSTAR acquisition has enhanced ABM's capabilities within semiconductor fabrication environments and contributed meaningfully to financial results.

The company has demonstrated a strong commitment to its shareholders through consistent dividend payments and share repurchases. ABM paid dividends of $57.5 million, $56.5 million and $65.6 million while repurchasing shares worth $138.1 million, $56.1 million and $122.2 million in fiscal 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors.

Key Risks to WatchABM Industries remains exposed to broad economic risks, with trade tariffs and changing government policies threatening to increase input expenses and delay key infrastructure projects. Shifts in spending allocations and trade uncertainties may reduce contract awards but elevate operational costs, dampening profit margins and growth potential.

Rising operating costs are squeezing profit margins and limiting short-term earnings growth. ABM’s total operating costs increased by 4.2% in fiscal 2023, 4.1% in fiscal 2024 and 4.7% in fiscal 2025. The company reported that its operating expenses rose 9.3% year over year during the second quarter of 2026.

ABM currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderA couple of better-ranked stocks in the broader Zacks Business Services sector are Veralto Corporation (VLTO - Free Report) and Corpay, Inc. (CPAY - Free Report) .

Veralto carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%. VLTO delivered a trailing four-quarter earnings surprise of 4.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corpay also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 14.3%. CPAY's earnings beat estimates in three of the last four reported quarters and matched once, with the surprise being 2%, on average.