ABM Industries slightly beats Q1 revenue expectations, maintains 2026 outlook

Reuters03-10
ABM Industries slightly beats Q1 revenue expectations, maintains 2026 outlook 

Overview

  • Facility solutions provider's fiscal Q1 revenue slightly beat analyst expectations

  • Adjusted EPS for fiscal Q1 missed analyst expectations

  • Company repurchased $91.1 mln of common stock during the quarter

Outlook

  • Company’s fiscal 2026 outlook remains unchanged

  • Company expects organic revenue growth of 3% to 4% in fiscal 2026

  • ABM projects adjusted EPS between $3.85 and $4.15 for fiscal 2026

  • Company anticipates interest expense of $95 mln to $105 mln in fiscal 2026

Result Drivers

  • REVENUE GROWTH - Revenue increased 6.1% to $2.2 bln, driven by strong demand in Technical Solutions and Aviation segments

  • MARGIN PRESSURE - Margin pressures were due to project timing and service mix in Technical Solutions, impacting EPS by $0.05

  • CASH FLOW IMPROVEMENT - Operating and free cash flow improved significantly due to strong working capital management and ERP advancements

Company press release: ID:nGNX7KsfTb

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Slight Beat*

$2.2 bln

$2.19 bln (8 Analysts)

Q1 Adjusted EPS

Miss

$0.83

$0.87 (8 Analysts)

Q1 EPS

$0.64

Q1 Adjusted Net Income

Miss

$50.40 mln

$53.20 mln (5 Analysts)

Q1 Net Income

$38.80 mln

Q1 Adjusted EBITDA

Miss

$117.80 mln

$127.08 mln (8 Analysts)

*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 "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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 $53.50, about 23.6% above its March 9 closing price of $43.28

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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