| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 2.2K | 5.3% | 6.2% |
| Total Income | 2.2K | 5.3% | 6.2% |
| Expenditure | 2.1K | 5.5% | 4.1% |
| PBT | 59.40 | 0.7% | 230.0% |
| Net Profit | 41.80 | 0.9% | 789.4% |
| OPM | 3.75% | 0.15pp | 1.96pp |
| NPM | 1.88% | 0.12pp | 1.66pp |
| EPS | 0.67 | 0.0% | 857.1% |
ABM Reports Q3 FY2025 Results: Revenue Up 6.2% to $2.2 Billion
04 May 2026 · 4 May, 9:07 am
Summary
ABM Industries reported a 6.2% increase in revenue to $2.2 billion for the third quarter of fiscal year 2025, driven by 5.0% organic growth. Net income significantly improved to $41.8 million, or $0.67 per diluted share, compared to $4.7 million, or $0.07 per diluted share, in the prior year. Adjusted EBITDA increased by 5% to $125.8 million. The company launched a restructuring program expected to generate approximately $35 million of annualized cost savings. For the full fiscal year, the company expects adjusted EPS to be toward the low end of its outlook range of $3.65 to $3.80.
Key Highlights
- 1
ABM's revenue increased by 6.2% year-over-year to $2.2 billion, including organic growth of 5.0% for Q3 2025.
- 2
Net income for the quarter rose to $41.8 million, or $0.67 per diluted share, compared to $4.7 million, or $0.07 per diluted share, in the prior year.
- 3
Adjusted EBITDA increased by 5% to $125.8 million in the third quarter.
- 4
Operating cash flow increased by 120.1% to $175.0 million, and free cash flow increased by 134.3% to $150.2 million.
- 5
The Board of Directors approved a $150 million increase in share repurchase authorization.
- 6
New bookings through the first three quarters secured over $1.5 billion, a 15% increase year-over-year.
Management Comments
Scott Salmirs
ABM’s third quarter performance was highlighted by mid-single-digit organic revenue growth and strong free cash flow. Each of our segments once again delivered organic growth, and we secured over $1.5 billion in new bookings through the first three quarters – a 15% increase year-over-year, positioning us for strong revenue and earnings growth in the year ahead. We continue to see robust pipelines for new business and expansions in Technical Solutions (“ATS”) and Manufacturing & Distribution (“M&D”), as well as in many geographies within Business & Industry (“B&I”). However, some commercial office markets, particularly in select West Coast, Midwest, and Mid-Atlantic metro areas, are recovering more slowly. We are focused on positioning ABM for growth in those B&I markets by utilizing strategic pricing for contract rebids and proactive extensions, combined with managing contract escalation timing to maintain and expand our footprint. We are employing a similar strategy for certain M&D new business opportunities within attractive end-markets like semiconductor and e-commerce. These decisions modestly pressured margin and adjusted EPS, but are expected to yield meaningful benefits over time. We are pleased that the Aviation and Education end-markets remain stable. We are taking decisive actions to address the near-term margin challenges through labor efficiency actions, cost controls and a restructuring program that is underway. This program is expected to generate significant annual run-rate savings by year-end. Looking ahead, we expect our fourth quarter adjusted EPS and margin results to improve meaningfully over the third quarter driven by the benefits of these actions, as well as strong performance in our ATS segment. For the full fiscal year, we expect adjusted EPS to be toward the low end of our outlook range of 1 $3.65 to $3.80(1). We continue to invest in AI capabilities and client-facing resources and solutions designed to drive higher growth and improved margin over time. Consistent with our confidence in the long-term earnings trajectory and cash-generative qualities of our business, we have also been actively repurchasing shares – totaling over one million shares during July and August.”
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