Track market-moving stories before they get noisy

ABM Industries Incorporated (ABM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ABM's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Shares of ABM have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that ABM could be poised for a breakout.

The bullish case solidifies once investors consider ABM's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 3 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Investors may want to watch ABM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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.

Key Takeaways ABM's first-half sales bookings of a record $1.2B signal strong demand and customer acquisition.ABM's WGNSTAR buyout strengthened its semiconductor presence and drove high-double-digit organic growth.ABM's FCF improved nearly $180M in the first six months as it reaffirmed its 2026 growth outlook. ABM (ABM - Free Report) stock has had an impressive run over the past three months. The company’s shares have ascended 13.4%, outpacing the industry’s 1.8% rise and the Zacks S&P 500 Composite's 10.8% rally.

3-Month Share Price Performance                                                   Image Source: Zacks Investment Research

Let us delve into the factors that have contributed to the company’s outperformance.

Unprecedented Sales & Organic Revenue ExpansionIn the second quarter of fiscal 2026, ABM achieved a record $1.2 billion in sales bookings for the first half of the year. This indicates strong market demand for its services and the success of its customer acquisition strategies.

In the first quarter of fiscal 2026, ABM's organic revenues grew 5.5% year over year, moving up to 6.1% in the following quarter. Capitalizing on the lofty sales bookings, expectations around sustained momentum in organic revenues, which support the top line, are further solidified.

WGNSTAR Buyout CompletionABM completed the WGNSTAR acquisition at the beginning of the second quarter of fiscal 2026. This buyout bolstered the company’s presence within the semiconductor fabrication environment.

During the second-quarter fiscal 2026 earnings call, Scott Salmirs, president, CEO and director, stated that the company has landed “tens of millions of dollars in new business,” hinting at the immediate benefits enjoyed from ABM’s market strength, facilitated by WGNSTAR. Moreover, this buyout led to delivering high double-digit growth in organic revenues across the company’s semiconductor market.

FCF Recovery Bolsters LiquidityThe company ended the second quarter of fiscal 2026 with a current ratio of 1.46. A current ratio exceeding 1 bodes well with investors as it suggests efficient coverage of short-term obligations. ABM’s liquidity position is better than its peers, as evidenced by an industry average of 1.13.

                                                                 Image Source: Zacks Investment Research

ABM recorded $71.2 million in free cash flow (FCF) for the first six months of 2026 compared with the preceding year’s negative FCF of $107.8 million. It marks a hefty FCF enhancement worth nearly $180 million in the first six months. As the company recovered FCF, it raised management’s prospects to pay off short-term obligations, bolstering ABM’s liquidity position.

Reaffirmed 2026 Outlook Raises Investors’ RapportIn the second quarter of fiscal 2026, ABM reaffirmed its full-year outlook, aiming at the top end of 3-4% organic growth and a 4-5% top-line improvement. The reaffirmed guidance indicates consistency that accumulates premium in the market. Investors gain confidence as sticking to a growth rate is a sign of a competitive moat and a resilient business model. ABM’s outlook acts as a safety net that leads to an increase in stock prices.

Zacks Rank & Stocks to ConsiderABM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Coherent Corp. (COHR - Free Report) and AppLovin (APP - Free Report) .

Coherent presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

COHR has a long-term earnings growth expectation of 46.8%.

Coherent delivered a trailing four-quarter earnings surprise of 6.2% on average.

AppLovin currently has a Zacks Rank of 2. APP has a long-term earnings growth expectation of 38.8%.

AppLovin delivered a trailing four-quarter earnings surprise of 8.4%, on average.

NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced a new multi-year partnership with the Atlanta Braves to provide janitorial services at Truist Park, marking ABM’s 10th Major League Baseball team partnership and its first Sports & Entertainment client in Atlanta. The agreement further strengthens ABM’s presence across sports & entertainment venues nationwide and reinforces the company’s position as a leading facility services provider for premier entertainment destinations.

Under the agreement, ABM will provide janitorial services across the 1.1 million-square-foot Truist Park campus, supporting Braves home games, concerts, and other large-scale events throughout the year. As one of Major League Baseball’s highest-attended and most fan-friendly venues, Truist Park welcomes approximately three million fans annually and hosts an average of 150 to 200 events each year.

“Today’s sports and entertainment venues require highly coordinated operations that can support millions of fans and large-scale events year-round,” said Valerie Burd, President of Business & Industry, ABM. “Our partnership with the Braves reflects our growing presence across Major League Baseball, where organizations are looking for experienced partners that can help deliver consistent, high-quality venue operations at scale. Together with the Braves, our focus is on helping create a welcoming environment and exceptional experience for every fan who walks through the gates at Truist Park.”

To support real-time coordination across large-scale events, ABM is deploying technology-enabled communication tools that include live translation capabilities to help streamline communication among a diverse event workforce, along with real-time location functionality to enhance team coordination and visibility across the venue.

“We’re proud to partner with ABM and their proven expertise supporting leading Major League Baseball venues across the country makes them a natural fit for the Atlanta Braves and Truist Park,” said Atlanta Braves Senior Vice President, Corporate & Premium Partnerships Jim Allen. “This partnership reflects our shared commitment to delivering a best-in-class experience for our fans, and we look forward to working with ABM to maintain the high standards that make Truist Park a premier entertainment destination.”

“Creating a great fan experience starts long before the first guest arrives and continues long after the final attendee leaves,” said Brian Grant, Vice President, Sports & Entertainment, ABM. “While much of that work happens behind the scenes, it plays a critical role in shaping the overall guest experience. Our focus is on helping ensure Truist Park remains clean, welcoming, and ready to deliver the exceptional experience Braves fans have come to expect.”

ABM serves many of the nation’s leading stadiums, arenas, and entertainment venues, providing scalable solutions that help create clean, safe, and welcoming environments for fans, teams, and staff. For more information about ABM’s Sports & Entertainment solutions, visit www.abm.com/industries/sports-entertainment.

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, education, 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.

MEDIA CONTACT:
Michael Valentino
ABM
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/54eed78e-789e-47ea-a660-5251744ca75c

A month has gone by since the last earnings report for ABM Industries (ABM - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ABM Industries due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ABM Industries Incorporated before we dive into how investors and analysts have reacted as of late.

ABM Industries Misses Q1 Earnings EstimatesABM reported mixed first-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.

ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.

ABM’s Segmental RevenuesThe Business & Industry segment’s revenues gained 4.1% on a year-over-year basis to $1.1 billion, beating our estimate of $1 billion. The education segment’s revenues were $228.7 million, up 1.5% from the year-ago quarter. It missed our anticipated figure of $229.8 million.

The Manufacturing & Distribution segment’s revenues increased 7.1% from the year-ago quarter to $422.3 million, meeting our estimated figure. The Aviation segment’s revenues surged 10.2% from the year-ago quarter to $297.7 million, missing our expectation of $284.6 million.

Technical solutions gained 13.6% from the first quarter of fiscal 2025 to $229.7 million. The metric fell short of our $239.5 million estimate.

Profitability Performance of ABMAdjusted EBITDA was $117.8 million, dipping 2.3% from the year-ago quarter. The adjusted EBITDA margin was 5.2%, declining 50 basis points from the first-quarter fiscal 2025.

ABM’s Balance Sheet & Cash FlowThe company exited the first quarter of fiscal 2026 with cash and cash equivalents of $100.4 million compared with $104.1 million at the end of the preceding quarter. The long-term debt (net) was $1.6 billion compared with $1.5 billion reported in the fourth quarter of fiscal 2025. Net cash generated by operating activities was $62 million for the quarter. The free cash flow was $48.9 million.

ABM’s FY26 GuidanceFor fiscal 2026, ABM expects its adjusted EPS to be $3.85-$4.15. The mid-point of the guided range ($4) is lower than the Zacks Consensus Estimate of $4.08.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, ABM Industries has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ABM Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Recognition highlights ABM Connect as a breakthrough platform transforming facilities into intelligent, data-driven environments April 23, 2026 16:05 ET  | Source: ABM Industries Incorporated

NEW YORK, April 23, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced it has been recognized with an Edison Award in the Commercial Technology category for its innovative ABM Connect data intelligence platform.

ABM Connect was recognized for its ability to transform traditional facility operations into intelligent, data-driven ecosystems, unifying data from people, systems, and sensors to deliver real-time visibility, predictive insights, and measurable operational improvements.

“Recognition from the Edison Awards further validates the measurable impact that ABM Connect is having on our clients,” said Scott Salmirs, President and Chief Executive Officer of ABM. “In an industry that has historically lacked unified, real-time data, ABM Connect brings together operational, financial, and performance insights into a single platform so our clients can unlock greater value from their facilities.”

Winning an Edison Award is a mark of distinction, honoring those who push the boundaries of innovation to solve global challenges and improve lives. Named after Thomas Edison, one of history’s greatest inventors, the awards celebrate forward-thinking solutions and bold ideas that shape the future.

The recognition follows ABM’s recent inclusion on Fast Company’s 2026 World’s Most Innovative Companies list, which also highlighted the impact of ABM Connect in elevating facilities into intelligent, data-driven environments.

Transforming Facilities Through Data, Intelligence, and Workforce Enablement

ABM Connect integrates AI, IoT sensors, robotics, and operational data into a centralized platform, creating a single source of truth for facility performance. The platform enables janitorial and engineering operations to inform and enhance one another, connecting task, occupancy, asset, and comfort data to elevate both performance and occupant experience.

With ABM Connect, organizations can:

Anticipate and prevent equipment failures through predictive maintenanceGain real-time visibility across operations, services, and financial performanceDeploy frontline teams based on live demand signalsOptimize energy use and sustainability outcomes through data-driven insights Across complex, high-traffic environments, ABM Connect delivers measurable results. In aviation settings, for example, the platform leverages live flight data to dynamically route services such as wheelchair assistance and cleaning crews, improving efficiency, and enhancing the passenger experience.

Advancing the Future of Facilities Management

ABM’s recognition by the Edison Awards reinforces its broader commitment to modernizing one of the world’s largest and most essential industries. By digitizing workflows and embedding intelligence into daily operations, ABM is helping redefine facilities management as a more predictive, data-driven, and strategic function.

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.

MEDIA CONTACT:
Michael Valentino
[email protected]

NEW YORK, May 12, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced it has received a 2026 IABC Gold Quill Award of Excellence for outstanding communications management in recognition of its enterprise-wide brand transformation and repositioning. Widely regarded as one of the highest honors in the communications profession, the recognition highlights ABM’s success in aligning its brand to its broader business strategy and shifting from a traditionally commoditized service provider to a strategic, consultative partner delivering integrated, technology-enabled facility solutions across industries.

The transformation was a foundational brand repositioning designed to better communicate ABM’s evolving value across all audiences, including clients, team members, prospective talent, and investors. Informed by extensive research, the initiative addressed a critical need to shift market perception as ABM expanded its capabilities across both soft and hard services, including engineering, energy, and infrastructure solutions. Through a coordinated “inside-out” approach, ABM mobilized its organization to adopt and activate the new brand, ensuring consistent, audience-specific storytelling across internal, external, and media channels while strengthening market recognition, industry leadership, and team engagement.

“ABM has advanced significantly over the past decade, and we’ve evolved from a commoditized service provider into a strategic, consultative partner delivering integrated, technology-enabled solutions at scale,” said Cary Bainbridge, Chief Marketing Officer at ABM. “This transformation was about aligning our brand with that reality -- ensuring we clearly communicate the full scope of our capabilities and the value we bring to clients in the US, UK, and Ireland. By bringing it to life through new messaging, a modernized identity, and a cohesive brand experience, we’re enabling our teams to tell a stronger, more differentiated story in the market.”

To bring this positioning to life, ABM undertook a comprehensive, research-led effort that included a redesigned brand architecture aligned to its solutions portfolio and close coordination across marketing and communications teams. Together, they developed and launched a new positioning centered on the theme line, “Driving possibility, together,” signifying the collective drive to solve, connect, and grow with clients — not just as providers, but as partners. The transformation introduced updated messaging, a modernized visual identity, a new digital experience, and a multi-channel advertising campaign designed to clearly articulate ABM’s role as a strategic, solutions-driven partner. The rollout was supported by an integrated communications approach spanning leadership and field engagement, global internal communications, media relations, and multi-channel external storytelling to drive consistency and impact across all audiences.

The results of the initiative demonstrate its impact across key audiences. Internal engagement increased significantly, with strong adoption of brand resources and improved understanding of ABM’s value proposition. Externally, the company experienced increased awareness, stronger website engagement, and early indicators of a shift in business mix toward higher-value services, reinforcing the effectiveness of the new positioning.

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.

MEDIA CONTACT:
Michael Valentino
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/be85594f-6c70-4023-9bb9-88a0e91f2d58

Conference Call to be Held on June 5, 2026, at 8:30 AM (ET) May 22, 2026 08:00 ET  | Source: ABM Industries Incorporated

NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced that it will release its fiscal second quarter 2026 financial results on Friday, June 5, 2026, before market open.

ABM will host its quarterly conference call for all interested parties on Friday, June 5, 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, 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 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID # 13759986. 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 $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.

Contact:
Investor Relations:
Paul Goldberg
212-297-9721
[email protected]

Revenue increased 8.4% to a second quarter record of $2.3 billion, including organic growth of 6.1% and acquisition growth of 2.3%Record first half new sales bookings of $1.2 billionNet income improved to $43.1 million, or $0.73 per diluted share, as compared to $42.2 million, or $0.67, in the prior year Adjusted net income was $52.9 million, or $0.90 per diluted share, versus $54.1 million, or $0.86, in the prior yearAdjusted EBITDA increased to $131.7 million, versus $125.9 million last yearOperating cash flow was $66.2 million and free cash flow totaled $22.4 million, both well above the prior year NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal second quarter ended April 30, 2026.

"Our second quarter performance was highlighted by organic revenue growth of 6.1% and record first half new sales bookings of $1.2 billion," said Scott Salmirs, President and Chief Executive Officer. "Organic growth was especially strong in Technical Solutions ("ATS") and Aviation. Manufacturing & Distribution's ("M&D") robust growth was driven by healthy organic demand, further boosted by our recent WGNSTAR acquisition, which is performing well and contributing meaningfully to growth. The investments we have made in organic growth and acquisitions, along with our healthy backlog and constructive end-market conditions, have positioned us well for a strong second half."

Mr. Salmirs continued, "Beyond the top line, we executed well in the quarter, resulting in improved margin on a sequential basis and continued solid free cash flow generation, which was up significantly in the first half versus last year. Looking to the second half, we expect meaningfully higher volume in ATS and M&D, as well as improved service mix, especially within ATS. We also expect to benefit from our ongoing cost savings and pricing initiatives. Combined, these factors are expected to drive significant improvement in earnings and margin in the back half of the year."

Mr. Salmirs concluded, "We are encouraged by constructive demand trends across the majority of our end markets, and remain focused on executing with discipline as the broader macroeconomic environment continues to evolve. As such, our fiscal 2026 outlook remains unchanged."

Second Quarter Fiscal 2026 Results

Revenue increased 8.4% year over year to a second quarter record of $2.3 billion, including 6.1% organic growth and 2.3% growth from acquisitions. Revenue growth was led by ATS and Aviation, which grew 27% and 20%, respectively. ATS benefited from strong demand for battery energy storage systems and datacenter-related services, as well as contributions from its recent acquisition, while Aviation’s growth reflected healthy domestic air travel trends and the continued ramp of new contracts, including the recently won London Heathrow contract. M&D increased 17%, driven by acquisitions, recent client wins and ongoing expansions, while Education delivered growth of 2%, benefiting from price escalations. Business & Industry (“B&I”) was essentially flat, as strong growth in its UK operations was largely offset by the exit of certain clients.

Net income was $43.1 million, or $0.73 per diluted share, compared to $42.2 million, or $0.67 per diluted share, in the prior year period. The increase in net income primarily reflects lower tax expense and reduced corporate costs, partially offset by higher interest and amortization expense related to the WGNSTAR acquisition. EPS growth was further driven by the Company’s share repurchase activities earlier in the year. Net income margin was 1.9% versus 2.0% in the prior year.

Segment operating margin was 7.3% compared to 7.9% last year. The change in segment operating margin was driven mainly by the impact of newer contracts that came online last year in M&D and B&I, as well as by weather-related and ramp-up cost inefficiencies in Aviation.

Adjusted net income was $52.9 million, or $0.90 per diluted share, compared to $54.1 million, or $0.86 per diluted share in the prior year period. The year-over-year change primarily reflects the factors discussed above, with per share results benefiting from the Company's share repurchase activities.

Adjusted EBITDA increased to $131.7 million versus $125.9 million last year.

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 $66.2 million, and free cash flow was $22.4 million, compared to $32.3 million and $15.2 million, respectively, in the prior year period. The improvement year over year primarily reflects strong working capital management and ongoing advancements in the Company’s enterprise resource planning (“ERP”) implementation during the quarter. A reconciliation of net cash provided by (used in) 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 second quarter, the Company’s total indebtedness stood at $1.9 billion, including $23.5 million in standby letters of credit, resulting in a total leverage ratio of 3.2x, as defined by the Company's credit facility. Available liquidity was $613.8 million, including $94.9 million in cash and cash equivalents. The Company expects its total leverage ratio to be below 3.0x by fiscal year-end.

Quarterly Cash Dividend

After the quarter’s close, the Board declared a cash dividend of $0.29 per common share, payable on August 3, 2026, to shareholders of record on July 2, 2026.

Outlook

The Company is reaffirming its fiscal 2026 outlook with the following updates. The Company now expects organic revenue growth toward the top end of the 3% to 4% range and total revenue growth toward the top end of the 4% to 5% range. Segment operating margin, defined as total segment operating profit divided by total revenue, is projected toward the low end of the 7.8% to 8.0% range, and adjusted EPS is still expected to be in the range of $3.85 to $4.15. This outlook now reflects the Company's updated approach to providing full year adjusted EPS guidance, which no longer excludes the impact of any prior-year self-insurance adjustments.

Interest expense is now forecast to be approximately $110 million, and the normalized tax rate is expected to be between 29% and 30%, excluding discrete and non-taxable items.

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 Friday, June 5, 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 June 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID #13759986. 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 second quarter and first six 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 second quarter and first six 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 SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

 Three Months Ended April 30,  (in millions, except per share amounts) 2026   2025  Increase / (Decrease)Revenues$2,290.0  $2,111.7  8.4%Operating expenses 2,013.0   1,841.0  9.3%Selling, general and administrative expenses 171.1   175.1  (2.3)%Restructuring and related expenses 3.1   —  NM*Amortization of intangible assets 15.9   13.2  20.5%Operating profit 86.9   82.3  5.5%Income from unconsolidated affiliates 1.0   1.4  (28.6)%Interest expense (28.1)  (23.9) (17.6)%Income before income taxes 59.7   59.8  (0.1)%Income tax provision (16.6)  (17.6) 5.3%Net income$43.1  $42.2  2.1%Net income per common share     Basic$0.73  $0.67  9.0%Diluted$0.73  $0.67  9.0%Weighted-average common and common equivalent shares outstanding     Basic 58.9   62.6   Diluted 59.1   62.9   Dividends declared per common share$0.290  $0.265             *Not meaningful (due to variance greater than or equal to +/-100%)  ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

 Six Months Ended April 30,  (in millions, except per share amounts) 2026   2025  Increase / (Decrease)Revenues$4,533.5  $4,226.6  7.3%Operating expenses 3,996.5   3,696.1  8.1%Selling, general and administrative expenses 340.9   344.1  (1.0)%Restructuring and related expenses 6.8   —  NM*Amortization of intangible assets 27.9   26.5  5.2%Operating profit 161.6   159.9  1.1%Income from unconsolidated affiliates 2.4   2.1  12.8%Interest expense (52.1)  (46.8) (11.4)%Income before income taxes 111.9   115.2  (2.9)%Income tax provision (30.0)  (29.5) (1.9)%Net income$81.8  $85.8  (4.6)%Net income per common share     Basic$1.37  $1.37  —%Diluted$1.37  $1.36  0.7%Weighted-average common and common equivalent
shares outstanding     Basic 59.6   62.7   Diluted 59.9   63.1   Dividends declared per common share$0.580  $0.530             *Not meaningful (due to variance greater than or equal to +/-100%)
                    ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

 Three Months Ended April 30,(in millions) 2026   2025 Net cash provided by operating activities$66.2  $32.3 Additions to property, plant and equipment (43.8)  (17.1)Purchase of businesses, net of cash acquired (242.5)  — Other 0.5   — Net cash used in investing activities$(285.8) $(17.1)Proceeds from issuance of share-based compensation awards, net 1.2   1.1 Repurchases of common stock, including excise taxes (3.0)  — Dividends paid (17.0)  (16.5)Deferred financing costs paid (1.3)  (8.0)Borrowings from debt 722.5   338.9 Repayment of borrowings from debt (488.2)  (327.0)Changes in book cash overdrafts 2.1   (5.5)Repayment of finance lease obligations (1.2)  (1.1)Net cash provided by (used in) financing activities$215.1  $(18.1)Effect of exchange rate changes on cash and cash equivalents (0.9)  2.7          ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

 Six Months Ended April 30,(in millions) 2026   2025 Net cash provided by (used in) operating activities$128.2  $(73.9)Additions to property, plant and equipment (57.0)  (33.8)Purchase of businesses, net of cash acquired (242.1)  1.9 Other 0.7   0.4 Net cash used in investing activities$(298.4) $(31.6)Taxes withheld from issuance of share-based compensation awards, net (9.9)  (9.6)Repurchases of common stock, including excise taxes (94.7)  (21.3)Dividends paid (34.2)  (32.9)Deferred financing costs paid (1.3)  (8.0)Borrowings from debt 1,077.0   918.8 Repayment of borrowings from debt (779.2)  (700.0)Changes in book cash overdrafts 4.7   (46.0)Repayment of finance lease obligations (2.3)  (2.2)Net cash provided by financing activities$159.9  $98.7 Effect of exchange rate changes on cash and cash equivalents 1.1   1.0          ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)

(in millions)April 30, 2026 October 31, 2025ASSETS   Current assets   Cash and cash equivalents$94.9 $104.1Trade accounts receivable 1,517.2  1,471.1Costs incurred in excess of amounts billed 174.7  193.7Prepaid expenses 169.9  91.2Other current assets 77.2  78.6Total current assets 2,034.0  1,938.7Other investments 30.9  48.6Property, plant and equipment 209.7  177.2Right-of-use assets 90.0  95.1Other intangible assets, net of accumulated amortization 350.0  243.2Goodwill 2,738.4  2,591.1Other noncurrent assets 194.1  175.5Total assets$5,647.0 $5,269.5LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities   Current portion of long-term debt, net$41.8 $29.4Trade accounts payable 416.5  401.2Accrued compensation 217.0  195.0Accrued taxes—other than income 47.9  48.1Deferred Revenue 99.8  74.7Insurance claims 206.8  200.8Income taxes payable 3.8  4.0Current portion of lease liabilities 28.3  28.2Other accrued liabilities 329.7  324.1Total current liabilities 1,391.6  1,305.7Long-term debt, net 1,821.6  1,537.1Long-term lease liabilities 78.7  83.7Deferred income tax liability, net 71.5  39.9Noncurrent insurance claims 472.2  459.3Other noncurrent liabilities 59.1  54.3Noncurrent income taxes payable 4.1  3.9Total liabilities 3,898.7  3,483.8Total stockholders’ equity 1,748.4  1,785.6Total liabilities and stockholders’ equity$5,647.0 $5,269.5       ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

 Three Months Ended April 30, Increase/ (Decrease)(in millions) 2026   2025  Revenues     Business & Industry$1,015.8  $1,015.5  —%Manufacturing & Distribution 463.8   398.1  16.5%Aviation 310.8   260.1  19.5%Education 232.2   227.8  1.9%Technical Solutions 267.3   210.2  27.2%Total Revenues$2,290.0  $2,111.7  8.4%Operating profit     Business & Industry$76.7  $83.0  (7.6)%Manufacturing & Distribution 40.6   39.9  1.9%Aviation 16.3   16.5  (0.9)%Education 16.4   13.8  18.8%Technical Solutions 16.8   13.4  25.0%Segment operating profit$166.9  $166.6  0.1%Segment operating margin 7.3%  7.9%  Corporate (79.0)  (82.9) 4.7%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.0)  (1.4) 28.6%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions —   (0.1) 33.6%Total operating profit 86.9   82.3  5.5%Income from unconsolidated affiliates 1.0   1.4  (28.6)%Interest expense (28.1)  (23.9) (17.6)%Income before income taxes 59.7   59.8  (0.1)%Income tax provision (16.6)  (17.6) 5.3%Net income$43.1  $42.2  2.1%            ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

 Six Months Ended April 30, Increase/ (Decrease)(in millions) 2026   2025  Revenues     Business & Industry$2,080.9  $2,038.4  2.1%Manufacturing & Distribution 886.1   792.4  11.8%Aviation 608.5   530.2  14.8%Education 460.9   453.2  1.7%Technical Solutions 497.1   412.4  20.5%Total Revenues$4,533.5  $4,226.6  7.3%Operating profit     Business & Industry$156.4  $162.4  (3.7)%Manufacturing & Distribution 77.0   79.3  (2.9)%Aviation 28.9   28.7  0.6%Education 38.0   27.8  36.6%Technical Solutions 25.2   30.0  (15.9)%Segment operating profit$325.4  $328.2  (0.8)%Segment operating margin 7.2%  7.8%  Corporate (160.9)  (166.1) 3.1%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (2.4)  (2.1) (12.8)%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.6)  (0.1) NM* Total operating profit 161.6   159.9  1.1%Income from unconsolidated affiliates 2.4   2.1  12.8%Interest expense (52.1)  (46.8) (11.4)%Income before income taxes 111.9   115.2  (2.9)%Income tax provision (30.0)  (29.5) (1.9)%Net income$81.8  $85.8  (4.6)%            *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 April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Income to Adjusted Net Income       Net income$43.1  $42.2  $81.8  $85.8 Items impacting comparability (a)(b)       Restructuring and related (c) 3.1   —   6.8   — Legal costs and other settlements (0.3)  0.3   (0.3)  5.1 Acquisition and integration related costs (d) 5.5   3.4   8.2   6.8 Transformation initiative costs (e) 5.3   10.7   14.2   19.0 Other (f) —   2.2   0.7   2.2 Total items impacting comparability 13.7   16.6   29.7   33.0 Income tax impact (g) (3.8)  (4.7)  (8.2)  (9.4)Items impacting comparability, net of taxes 9.9   11.9   21.5   23.6 Adjusted net income$52.9  $54.1  $103.3  $109.4                   Three Months Ended April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Income to Adjusted EBITDA       Net Income$43.1  $42.2  $81.8  $85.8 Items impacting comparability 13.7   16.6   29.7   33.0 Income taxes provision 16.6   17.6   30.0   29.5 Interest expense 28.1   23.9   52.1   46.8 Depreciation and amortization 30.2   25.7   55.9   51.6 Adjusted EBITDA$131.7  $125.9  $249.5  $246.6 Net Income margin as a % of revenues 1.9%  2.0%  1.8%  2.0%                  Three Months Ended April 30, Six Months Ended April 30, 2026
 2025
 2026
 2025
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share       Net income per diluted share$0.73 $0.67 $1.37 $1.36Items impacting comparability, net of taxes 0.17 $0.19  0.36  0.37Adjusted net income per diluted share$0.90 $0.86 $1.72 $1.73Diluted shares 59.1  62.9  59.9  63.1              Three Months Ended April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow       Net cash provided by (used in) operating activities$66.2  $32.3  $128.2  $(73.9)Additions to property, plant and equipment (43.8)  (17.1)  (57.0)  (33.8)Free cash flow$22.4  $15.2  $71.2  $(107.8)                 (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, 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. This definitional change has been applied to second quarter 2026 and first six months of 2026 results and retroactively to all presented periods to ensure comparability.

(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) Three and six months ended April 30, 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.

Cintas’ $5.2B UniFirst Bid Ignites the Battle for Route DominanceABM Industries NYSE: ABM reported stronger second-quarter fiscal 2026 revenue growth and record first-half new sales bookings, while management maintained its full-year adjusted earnings outlook and said it expects a stronger margin performance in the second half of the year.

President and Chief Executive Officer Scott Salmirs said ABM had “a strong quarter,” citing 6.1% organic revenue growth and first-half new sales bookings of $1.2 billion, which he called a new record for the company. Growth was led by ABM Technical Solutions and Aviation, while Manufacturing and Distribution benefited from both underlying demand and the WGNSTAR acquisition.

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ABM Industries Stock: A Dividend King at a Discount“As we look ahead to the second half, the setup is compelling,” Salmirs said, pointing to expected volume growth in Technical Solutions and Manufacturing and Distribution, an improving service mix in Technical Solutions, and cost discipline and pricing actions.

Revenue rises to second-quarter record Executive Vice President and Chief Financial Officer David Orr said revenue increased 8.4% year over year to a second-quarter record of $2.3 billion. That included 6.1% organic growth and a 2.3% contribution from acquisitions, primarily WGNSTAR.

Dividend King ABM Industries is on Track for New HighsOrr said consolidated organic growth was the strongest ABM has delivered since the third quarter of 2022. By segment, Technical Solutions revenue grew 27%, Aviation rose 20%, Manufacturing and Distribution increased 17%, Education grew 2%, and Business & Industry was essentially flat.

Net income for the quarter was $43.1 million, or $0.73 per diluted share, compared with $42.2 million, or $0.67 per diluted share, in the prior-year period. Adjusted net income was $52.9 million, or $0.90 per diluted share, compared with $54.1 million, or $0.86 per diluted share, last year. Orr said the year-over-year changes primarily reflected higher interest and amortization expense, offset by lower tax expense and corporate costs, while per-share results were helped by recent share repurchases.

Adjusted EBITDA increased $5.8 million from the prior year to $131.7 million. Segment operating margin improved 20 basis points sequentially to 7.3%, but was down 60 basis points from a year earlier. Orr attributed the year-over-year decline mainly to the impact of contracts that came online last year in Manufacturing and Distribution and Business & Industry, as well as higher amortization expense tied to WGNSTAR.

Segment trends show strength in Technical Solutions, Aviation and M&D In Business & Industry, revenue was essentially flat at $1 billion. Orr said strength in ABM’s U.K. markets was partially offset by the mid-quarter exit of a large U.K.-based client and other client exits, particularly on the West Coast. Operating profit was $76.7 million and margin was 7.6%, down from $83 million and 8.2% a year earlier.

During the question-and-answer portion of the call, Salmirs said West Coast office markets remain pressured, particularly in technology-heavy cities such as Los Angeles, San Francisco and Seattle. He said competitors have made pricing and margin decisions that do not meet ABM’s thresholds. Orr said the exit of the large U.K. client would account for about 300 basis points of growth impact for Business & Industry in the second half.

Aviation revenue increased 20% to $310.8 million, supported by healthy travel demand and new contract wins, particularly a Heathrow contract. Operating profit was $16.3 million, with a margin of 5.3%, compared with $16.5 million and 6.3% last year. Orr cited weather-related costs, contract scope changes, TSA-driven operational disruptions and ramp-up costs for Heathrow as pressures on profit and margin.

Manufacturing and Distribution revenue rose 17% to $463.8 million, including 7% organic growth and 9% growth from WGNSTAR. Operating profit was $40.6 million and margin was 8.8%, compared with $39.9 million and 10% last year. Orr said margin was affected by the mix of newer contracts and $4 million of incremental amortization expense related to WGNSTAR. Excluding that incremental amortization, he said margin was 9.6%.

Education revenue grew 2% to $232.2 million, primarily from escalations. Operating profit increased 19% to $16.4 million, and margin expanded 100 basis points to 7%, driven by labor efficiency and escalation management.

Technical Solutions revenue grew 27% to $267.3 million, including 22% organic growth. Orr said the segment benefited from data center activity, battery energy storage system work and HVAC projects. Operating profit was $16.8 million, with margin of 6.3%, compared with $13.4 million and 6.4% last year.

WGNSTAR expands semiconductor reach Salmirs said the WGNSTAR acquisition has strengthened ABM’s position in semiconductor fabrication environments and is “performing well.” He said ABM secured tens of millions of dollars in new business during the quarter and delivered high double-digit organic revenue growth across its semiconductor market.

Responding to an analyst question, Salmirs said ABM previously had a strong presence in semiconductor facilities outside the fabrication area, while WGNSTAR operates inside the fabrication environment. He described the combination as making ABM a more seamless provider for semiconductor clients.

Salmirs said ABM has more than 60 semiconductor clients and operates at more than 300 sites. He added that ABM is working with 75% of U.S. and European fab makers by capacity and with seven of the 10 major OEMs. “We see in semiconductor space, double-digit growth continuing for a while,” he said.

Cash flow improves, leverage reduction remains priority ABM ended the quarter with total indebtedness of $1.9 billion, including $23 million in standby letters of credit. Total debt to pro forma adjusted EBITDA was 3.2 times. Available liquidity was $614 million, including $95 million in cash and cash equivalents.

Orr said the WGNSTAR acquisition pushed leverage above three times, as expected, and ABM expects to reduce leverage below three times by the end of the fiscal year. He said near-term capital allocation priority is debt repayment, though the company will remain flexible if value-creation opportunities arise.

Second-quarter cash flow from operations was $66.2 million, and free cash flow was $22.4 million. For the first six months, cash flow from operations was $128.2 million and free cash flow was $71.2 million, compared with a use of cash of $73.9 million and negative free cash flow of $107.8 million in the prior-year period. Orr said the approximately $180 million year-over-year improvement reflected working capital management and progress on ERP stabilization.

Full-year outlook maintained ABM maintained its fiscal 2026 adjusted earnings per share outlook of $3.85 to $4.15. Orr said ABM now expects organic revenue growth to be toward the high end of its 3% to 4% range. The WGNSTAR acquisition is expected to add about one additional point of revenue growth, bringing total growth to the high end of ABM’s 4% to 5% range.

Segment operating margin is expected to be toward the low end of the company’s 7.8% to 8% range, with margin expansion weighted toward the second half of the year. Orr said the improvement is expected to be driven primarily by better mix and volume in Technical Solutions.

Interest expense is now forecast at approximately $110 million because of higher-than-expected interest rates, which Orr said ABM plans to offset with additional cost actions. The company continues to expect free cash flow of about $250 million in 2026 before transformation and integration costs, the final RavenVolt earn-out and any incremental restructuring.

Salmirs said ABM’s end markets remain “largely constructive,” though the company is monitoring macroeconomic uncertainty and the potential impact of rising fuel costs on airline clients. He said ABM remains focused on deleveraging, disciplined capital allocation and margin improvement in the second half.

About ABM Industries NYSE: ABMABM 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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ABM Industries Incorporated (ABM) Q2 2026 Earnings Call Transcript

Key Takeaways ABM kept FY26 adjusted EPS at $3.85-$4.15 while lifting growth outlook toward the high end.ABM expects back-half margin lift from higher ATS volume and a shift toward design & engineering work.ABM flagged B&I pressure from client exits and West Coast offices, but expects a cleaner margin profile. ABM Industries Incorporated (ABM - Free Report) used its fiscal second-quarter call to make a forward-looking case centered less on the quarter’s headline growth and more on what management sees as a stronger second half.

Executives pointed to a healthier mix in Technical Solutions, continued momentum in Manufacturing & Distribution, and improving cash flow as the main reasons they left full-year adjusted earnings guidance unchanged.

ABM Leans on Back-Half SetupPresident and chief executive officer Scott Salmirs said organic revenue growth of 6.1% and record first-half bookings of $1.2 billion showed that demand remained solid across much of the portfolio. He put particular emphasis on Technical Solutions, Aviation and the contribution from the WGNSTAR acquisition.

Salmirs also made the second half the focal point of the call. He said ATS and M&D should see meaningfully higher volume, while ATS should also benefit from a better service mix as project execution moves toward more design and engineering work.

That framing mattered because ABM’s quarter showed strong sales growth but still left investors watching margin progression closely. Management’s core message was that mix, pricing and cost actions are expected to do more of the earnings work later in the year.

ABM Industries Keeps Full-Year OutlookExecutive vice president and chief financial officer David Orr said ABM still expects adjusted earnings per share of $3.85 to $4.15 for fiscal 2026, while organic revenue growth is now expected toward the high end of the 3% to 4% range and total growth toward the high end of 4% to 5%.

Orr also said segment operating margin should land toward the low end of the 7.8% to 8.0% range. He tied that view to a stronger back-half ATS mix and volume, while noting that higher interest rates pushed projected interest expense to about $110 million.

That combination left the call balanced in tone. Management raised its growth posture within the range, but not its earnings range, signaling that improved operating execution still needs to offset financing pressure and earlier margin drag.

ABM Sees ATS and M&D Doing MoreTechnical Solutions was central to the call. Revenues rose 27% in the quarter, helped by data center work, battery energy storage systems and HVAC project activity, but profitability was held back by a heavier equipment and infrastructure mix.

In a Q&A with William Blair, Orr said large battery storage projects supported growth but carried lower margins because of their equipment-heavy profile. Salmirs added that the back half should include more design and engineering work, which he said has a stronger margin profile.

Manufacturing & Distribution also remained a key support. Orr said the segment posted 17% revenue growth, including 7% organic growth and 9% from WGNSTAR, while management continued to describe semiconductor demand and client expansions as meaningful tailwinds.

ABM Industries Addresses B&I PressureBusiness & Industry was the clearest soft spot on the call. Salmirs said flat organic performance reflected the exit of a large U.K. client and pressure in West Coast office markets, where ABM has been unwilling to match uneconomic competitive pricing.

In response to a Truist Securities question, Orr said the TfL exit alone would account for about 300 basis points of B&I growth impact in the back half. Management nevertheless argued that the client exits should help margins improve as lower-quality work rolls off.

That exchange gave investors more clarity on the second-half growth slowdown embedded in the outlook. ABM is accepting weaker B&I revenues in exchange for a cleaner margin profile.

ABM Highlights Cash Flow and LeverageCash flow was another area of emphasis. Orr said second-quarter operating cash flow reached $66.2 million and free cash flow totaled $22.4 million, while first-half operating cash flow improved by roughly $180 million from the prior year period.

Management linked that improvement to working capital discipline and ERP stabilization. Orr said leverage rose to 3.2 times after the WGNSTAR deal, but the company still expects to finish the fiscal year below 3 times.

Near-term capital allocation remains shaped by that goal. In Q&A, management said debt reduction is the priority, even as it continues to monitor the acquisition pipeline for later in the year or early next year.

ABM Industries Clarifies Risk and DirectionOne of the more important clarifications came around self-insurance adjustments. Orr said ABM now believes operational changes in the insurance program have improved predictability enough for those effects to be included in full-year guidance, a shift Salmirs said reduces a key fourth-quarter concern for investors.

Management also used the call to reinforce its strategic posture. Salmirs pointed to semiconductors, data centers, airport modernization and microgrids as the company’s most attractive growth lanes, while stressing discipline on pricing, contract selection and leverage.

The quarter’s financial results supported that backdrop without fully defining it. ABM posted adjusted earnings of $0.9, missing the Zacks Consensus Estimate of $0.92 by 2.05%. Revenues of $2.29 billion topped the Zacks Consensus Estimate of $2.22 billion, beating the consensus mark by 2.95%.

ABM’s Zacks SignalsABM carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. Within the Zacks framework, a Zacks Rank #3 can still be held, while a stronger Style Score indicates more attractive value and growth characteristics than momentum at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The VGM Score of A is favorable because it combines value, growth and momentum factors, but the Zacks Rank remains the primary signal in the system. That rank can change as earnings estimates are revised after the quarter, making post-report estimate trends the key factor to watch.

Key Takeaways ABM stock jumped 10.9% on June 5 after Q2 EPS of 90 cents missed estimates despite a revenue beat.Technical Solutions revenues rose 27.2% and Aviation 19.5%, helped by data centers and the Heathrow win.The free cash flow was $22.4M; leverage 3.2X with plan to drop below 3.0X by the fiscal year-end. ABM Industries Incorporated (ABM - Free Report) reported mixed second-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.

Despite the lower-than-expected earnings results, the stock rallied 10.9% following the earnings release on June 5.

ABM posted adjusted earnings of 90 cents per share in the second quarter of fiscal 2026, up 4.7% from the year-ago period but missing the Zacks Consensus Estimate of 92 cents by 2.2%.

Quarterly revenues rose 8.4% year over year to $2.29 billion and beat the consensus mark of $2.22 billion by 2.9%. Performance was supported by record first-half sales bookings, with strength led by Technical Solutions and Aviation.

ABM Shows Solid Top-Line Momentum Despite ExitsABM Industries delivered organic revenue growth of 6.1% in the quarter, with acquisitions adding 2.3% to reported growth. Management pointed to healthy demand across several end markets, including energy infrastructure, semiconductors and airport modernization, alongside steady recurring work that supports the company’s baseline revenue profile.

Business & Industry was flat organically, pressured by the exit of a large U.K. client during the quarter and additional customer exits, particularly on the West Coast. Management framed some of the exits as intentional, citing a focus on walking away from accounts that do not meet profitability thresholds.

ABM Industries Leans on ATS & Aviation for GrowthBy segment, Technical Solutions revenues climbed 27.2% year over year to $267.3 million, supported by data center activity, battery energy storage systems and contributions from recent acquisitions. Aviation revenues increased 19.5% to $310.8 million, reflecting healthy travel demand and the increase in the latest wins, including the London Heathrow contract.

Manufacturing & Distribution revenues rose 16.5% to $463.8 million, aided by client expansions and the WGNSTAR acquisition, while Education revenues improved 1.9% to $232.2 million on price escalations. Business & Industry revenues were essentially unchanged at $1.02 billion, as strength in U.K. operations was largely offset by client exits.

ABM Sees Mixed Profitability as Mix Shifts

Adjusted EBITDA improved to $131.7 million from $125.9 million a year ago, reflecting higher volume and improved execution in parts of the business. Still, the segmental operating margin declined to 7.3% from 7.9% last year, as newer contracts in Manufacturing & Distribution and Business & Industry weighed on profitability, and Aviation absorbed inefficiencies tied to weather-related costs and contract dynamics.

Within Technical Solutions, operating profit increased year over year, but the margin held near the prior-year level as the quarter skewed toward equipment-intensive infrastructure work. Management emphasized that project mix mattered, noting that a heavier “turning the wrenches” phase can carry lower margins than design-and-engineering work, with mix expected to improve later in the year.

ABM Industries Offsets Headwinds With Operating FocusOn a GAAP basis, net income rose to $43.1 million, or 73 cents per diluted share, from $42.2 million, or 67 cents per share, in the prior-year quarter. The company cited lower tax expenses and reduced corporate costs as positives, partially offset by higher interest expenses and amortization tied to the WGNSTAR acquisition.

In Aviation, profit was pressured by incremental weather-related costs, TSA-driven disruptions and ramp-up costs associated with Heathrow. In Business & Industry, the margin declined year over year due to contract mix shifts and increased sales investments, though management expects the margin to benefit in the back half as the impact of exited, lower-return work flows through.

ABM Highlights Cash Improvement & Deleveraging PathCash generation improved versus last year, with the operating cash flow of $66.2 million and a free cash flow of $22.4 million in the quarter. Management credited working-capital discipline and continued progress on enterprise resource planning implementation for the year-over-year improvement.

ABM ended the quarter with total indebtedness of $1.9 billion and available liquidity of $613.8 million, including $94.9 million in cash and equivalents. Leverage stood at 3.2X, and management reiterated an expectation to bring leverage below 3X by the end of the fiscal year, positioning debt repayment as the near-term capital allocation priority.

ABM Industries Reaffirms Outlook as Growth Skews to Back HalfABM maintained its adjusted earnings outlook for fiscal 2026 at $3.85-$4.15. The midpoint ($4) of the guided range is higher than the consensus estimate for earnings of $3.94.

The company projects organic revenue growth at the higher end of 3-4%, with total revenue growth toward the high end of 4-5%, including acquisition contributions.

Management expects margin expansion to be weighted to the second half, driven by improved volume and service mix in Technical Solutions and continued price escalation and cost actions. ABM also updated its guidance approach to include the impacts of prior-year self-insurance adjustments and forecast interest expenses of $110 million, with a normalized tax rate of 29-30%.

ABM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings SnapshotRepublic Services, Inc. (RSG - Free Report) delivered solid first-quarter 2026 results, with EPS of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.

Revenues rose 2.6% year over year to $4.11 billion and marginally surpassed the consensus mark of $4.10 billion.

Corpay, Inc. (CPAY - Free Report) delivered a strong first-quarter 2026, with adjusted earnings of $5.80 per share, rising 28.6% year over year and surpassing the Zacks Consensus Estimate by 5.5%. Revenues of $1.26 billion increased 25.4% year over year and beat estimates by 4.4%.