ABM Industries reported record third-quarter revenue of $2.3 billion, a 4.2% year-over-year increase driven by double-digit growth in Aviation and Manufacturing & Distribution. Adjusted earnings of $1.04 per share beat estimates, supported by share repurchases and lower corporate costs. The company raised its full-year adjusted EPS guidance midpoint and significantly increased its free cash flow outlook based on strong year-to-date performance.
Key Highlights
- Revenue grew to a record $2.3 billion, comprising 2.1% organic growth and 2.1% from acquisitions, primarily WGNstar.
- Technical Solutions revenue rose 4.2% to $259.9 million, exceeding expectations despite some client project deferrals that management expects to ramp in the fourth quarter.
- Full-year adjusted EPS guidance was updated to $3.95-$4.10, raising the midpoint to $4.025 from the previous $4.00.
- Free cash flow expectations for fiscal 2026 were raised by $25 million to approximately $210 million.