ABM Announces Fiscal Second Quarter 2025 Earnings Results

ABM Industries Incorporated (ABM) today announced its financial results for the recent quarter, revealing a mixed performance. The company reported earnings per share of $0.67, falling short of analysts’ expectations by $0.19. However, ABM exceeded revenue estimates, generating approximately $2.11 billion, which is an increase of over $50 million compared to forecasts.

Key Highlights:

• Revenue increased by 4.6% to $2.1 billion, with organic growth contributing 3.8%.
• Business & Industry and Manufacturing & Distribution segments returned to organic revenue growth.
• Net income was $42.2 million, with earnings per diluted share of $0.67.
• Adjusted net income rose to $54.1 million, with adjusted earnings per diluted share of $0.86.
• Adjusted EBITDA increased to $125.9 million.
• The company secured $1.1 billion in new bookings, an 11% year-over-year increase.
• Full-year adjusted EPS outlook reaffirmed at $3.65 to $3.80.

ABM Industries reported its fiscal second quarter results for 2025, showcasing a solid performance with a revenue increase of 4.6% year-over-year, reaching $2.1 billion. The organic growth of 3.8% was primarily driven by the recovery in the Business & Industry segment, supported by improving conditions in prime commercial office markets. CEO Scott Salmirs noted, “We are also encouraged by the growth in our Manufacturing & Distribution segment, driven by new business wins.” The company achieved significant new bookings totaling $1.1 billion, reflecting its strong market position and focus on innovation.

Looking ahead, ABM remains optimistic about its core markets, particularly in high-quality office buildings and manufacturing facilities. Salmirs mentioned that projects delayed in the second quarter are expected to materialize in the third quarter, indicating a positive outlook for the remainder of the fiscal year. The company has reaffirmed its adjusted EPS guidance for the full year, maintaining a range of $3.65 to $3.80, which reflects confidence in its operational strategies and market conditions.

ABM Industries Incorporated (ABM) has experienced a rollercoaster of price changes recently, with a notable decline of 1.95% over the past week, yet managing a respectable 9.43% increase over the last year. This volatility reflects a broader market sentiment, as the stock has seen a slight dip of 1.61% over the past three months and a more significant drop of 8.63% over the last six months. Despite these fluctuations, ABM’s fundamentals present a mixed picture; the company boasts a price-to-earnings ratio of 41.48, indicating that investors are willing to pay a premium for its earnings, albeit with a modest net profit margin of just 0.98%. The two-year compound annual growth rate (CAGR) for revenue stands at a healthy 3.40%, suggesting that the company is steadily growing its top line. However, the lack of free cash flow growth data raises some concerns about its financial flexibility. Additionally, a return on invested capital of 7.83% indicates that while ABM is generating returns, there is room for improvement in capital efficiency. Overall, while ABM’s stock price may be fluctuating, its underlying financial metrics suggest a company that is navigating growth with cautious optimism.

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions segments. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, and mechanical and electrical services; and vehicle maintenance and other services to rental car providers. The company was incorporated in 1985 and is based in New York, New York.