ABM Industries Reports 4.6% Revenue Growth to $2.11 Billion for Quarter Ended April 30, 2025

ABM Industries Incorporated reported a revenue increase of $93.5 million, or 4.6%, for the three months ended April 30, 2025, reaching $2,111.7 million compared to $2,018.2 million in the same period last year. The growth was driven by organic revenue growth of 3.7% and acquisition growth of 0.8%, primarily attributed to higher project revenues in the Technical Solutions segment and new business within Business & Industry (B&I), Aviation, Manufacturing & Distribution (M&D), and Education. However, this increase was partially offset by the loss of a customer in the M&D segment. Operating profit for the same period rose slightly by $1.0 million to $82.3 million, reflecting improved operational efficiencies and a favorable contract mix.

In terms of profitability, net income for the quarter was $42.2 million, down from $43.8 million a year earlier, resulting in diluted earnings per share of $0.67, unchanged from the previous year. The decrease in net income was attributed to increased interest expenses and a slight decline in income from unconsolidated affiliates. The effective tax rate for the quarter was 29.4%, a decrease from 29.9% in the prior year, with no significant discrete items impacting the tax provision.

ABM's operational metrics showed a notable increase in revenues across several segments. The Technical Solutions segment experienced a revenue increase of 19.3%, driven by organic growth from microgrid projects and the acquisition of Quality Uptime Services, which contributed $16.6 million in revenue. The Aviation segment also saw a revenue increase of 9.2%, attributed to new business and expanded services with existing clients. Conversely, the M&D segment reported a decline in operating profit margin due to a less favorable contract mix and customer attrition.

Looking ahead, ABM anticipates continued improvement in cash flows and operational performance, particularly as the company transitions to a new enterprise resource planning (ERP) system. The company reported net cash used in operating activities of $73.9 million for the six months ended April 30, 2025, compared to a net cash inflow of $116.9 million in the prior year, primarily due to increased working capital needs. ABM remains committed to its ELEVATE strategy, which aims to enhance client and employee experiences through technology and operational improvements, with expected investments totaling $200 to $215 million over the program's duration.