ABM Industries (NYSE:ABM) Posts Earnings Results, Beats Expectations By $0.03 EPS

ABM Industries (NYSE:ABM) issued its earnings results on Tuesday. The business services provider reported $1.04 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.03, FiscalAI reports. ABM Industries had a return on equity of 12.46% and a net margin of 1.82%.The business had revenue of $2.32 billion for the quarter, compared to analyst estimates of $2.32 billion. During the same period last year, the company posted $0.82 EPS. The business’s quarterly revenue was up 4.2% on a year-over-year basis. ABM Industries updated its FY 2026 guidance to 3.950-4.100 EPS.

Here are the key takeaways from ABM Industries’ conference call:

• Strong quarterly results led to higher guidance: Revenue reached a record slightly above $2.3 billion, while adjusted EPS rose 27% to $1.04. ABM raised its fiscal 2026 adjusted EPS range to $3.95-$4.10 and reported free cash flow guidance to approximately $210 million.
• Semiconductor, microgrid, and data-center businesses are expanding rapidly. These markets generated nearly $775 million of year-to-date revenue, growing 26% organically and about 40% including WGNSTAR, with double-digit blended operating margins and a growing pipeline.
• Technical Solutions is expected to rebound sharply in the fourth quarter. Approximately $15 million of microgrid projects were deferred from the third quarter, but management said nearly all are now moving forward and expects double-digit organic ATS growth with materially higher revenue, profit, and margins in Q4.
• Some core businesses remain under pressure. Business & Industry revenue declined about 3% because of client exits, particularly in the U.K. and West Coast, while Aviation margins fell to 5.6% as airlines sought cost relief amid elevated fuel prices.
• Cash generation and balance-sheet performance improved materially. Year-to-date free cash flow increased by more than $150 million to nearly $200 million, leverage fell below three times adjusted EBITDA, and management expects leverage to decline further by year-end.

ABM Industries Stock Performance

ABM stock opened at $49.67 on Thursday. The stock’s 50 day simple moving average is $47.22 and its 200 day simple moving average is $43.20. ABM Industries has a 12-month low of $36.96 and a 12-month high of $50.95. The firm has a market cap of $2.91 billion, a P/E ratio of 17.93, a P/E/G ratio of 1.31 and a beta of 0.68. The company has a current ratio of 1.42, a quick ratio of 1.46 and a debt-to-equity ratio of 0.97.

ABM Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 1st will be issued a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Thursday, October 1st. ABM Industries’s payout ratio is 44.62%.

Insider Buying and Selling

In other ABM Industries news, CEO Scott Salmirs sold 50,000 shares of the business’s stock in a transaction 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 completion of the sale, the chief executive officer owned 395,285 shares in the company, valued at $18,317,506.90. The trade was a 11.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ABM. Dimensional Fund Advisors LP grew its position in shares of ABM Industries by 0.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,051,834 shares of the business services provider’s stock valued at $171,394,000 after buying an additional 31,709 shares during the last quarter. Invesco Ltd. lifted its holdings in ABM Industries by 31.7% in the third quarter. Invesco Ltd. now owns 2,390,863 shares of the business services provider’s stock worth $110,267,000 after acquiring an additional 575,273 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in ABM Industries by 419.5% in the third quarter. Ameriprise Financial Inc. now owns 1,111,320 shares of the business services provider’s stock worth $51,254,000 after acquiring an additional 897,402 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in ABM Industries by 1.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 720,668 shares of the business services provider’s stock valued at $30,484,000 after acquiring an additional 10,147 shares during the period. Finally, Bank of America Corp DE boosted its stake in ABM Industries by 0.3% in the second quarter. Bank of America Corp DE now owns 698,434 shares of the business services provider’s stock valued at $32,973,000 after acquiring an additional 2,396 shares during the period. 91.62% of the stock is currently owned by institutional investors.

Key ABM Industries News

Here are the key news stories impacting ABM Industries this week:

• Positive Sentiment: Better-than-expected third-quarter earnings: Adjusted EPS rose 27% year over year to $1.04, exceeding the $1.01 consensus estimate. Revenue increased 4.2% to a quarterly record of approximately $2.3 billion, while adjusted EBITDA advanced 11% to $139.6 million. ABM Reports Fiscal Third Quarter 2026 Results
• Positive Sentiment: Raised financial outlook: ABM increased its fiscal 2026 adjusted EPS outlook to $3.95-$4.10 and raised expectations for operating and free cash flow. Strong third-quarter free cash flow of $128.4 million supports the company’s financial flexibility. ABM Industries Boosts FY26 Outlook; Declares Dividend
• Positive Sentiment: Dividend maintained: ABM declared a quarterly dividend of $0.29 per share, equivalent to an annualized yield of roughly 2.3%, providing ongoing shareholder income. UBS Adjusts ABM Industries Price Target
• Neutral Sentiment: Analysts raised targets but remain cautious: UBS lifted its price target to $51.50 from $45, while Robert W. Baird increased its target to $53 from $48. Both firms retained Neutral ratings, suggesting the improved results are largely reflected in the current valuation and limiting immediate upside enthusiasm. ABM Analysts Boost Their Forecasts
• Negative Sentiment: Execution risks remain: Analysts continue to point to margin pressure and competition as potential constraints on future profitability. With ABM trading near its 12-month high, these concerns and the Neutral ratings may encourage profit-taking despite the strong quarter. Why Retain ABM Stock

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ABM shares. UBS Group lifted their price target on shares of ABM Industries from $45.00 to $51.50 and gave the company a “neutral” rating in a research report on Wednesday. Robert W. Baird increased their target price on ABM Industries from $48.00 to $53.00 and gave the company a “neutral” rating in a research note on Wednesday. Finally, Weiss Ratings upgraded shares of ABM Industries from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, ABM Industries has an average rating of “Hold” and a consensus target price of $49.88.

ABM Industries Company Profile

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.