ABM Industries slightly beats Q4 revenue estimates on increased microgrid project activity

Overview

• Facility solutions provider's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company repurchased $73 mln of shares in Q4

Outlook

• ABM expects fiscal 2026 adjusted EPS between $3.85 and $4.15

• Company forecasts 2026 organic revenue growth of 3% to 4%

• ABM anticipates total 2026 revenue growth of 4% to 5% with WGNSTAR acquisition

Result Drivers

• TECHNICAL SOLUTIONS - Strong performance with 16% growth driven by increased microgrid project activity

• NEW CLIENT WINS - Manufacturing & Distribution and Aviation segments grew due to new client wins and expansions

• RESTRUCTURING IMPACT - Adjusted EPS impacted by prior year self-insurance adjustments and restructuring costs

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for ABM Industries Inc is $55.00, about 20.2% above its December 16 closing price of $45.74

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNXpn3ch

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)