| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 2.2K | 6.1% |
| Total Income | 2.2K | 6.1% |
| Expenditure | 2.2K | 6.5% |
| PBT | 52.10 | 6.1% |
| Net Profit | 38.80 | 11.0% |
| OPM | 3.33% | 0.34pp |
| NPM | 1.73% | 0.33pp |
| EPS | 0.64 | 7.3% |
ABM Reports Q1 FY26 Revenue $2.2 Billion, Up 6.1% Y-o-Y
04 May 2026 · 4 May, 12:37 am
Summary
ABM Industries reported a 6.1% increase in revenue to $2.2 billion for Q1 FY26, which included 5.5% organic growth. Net income was $38.8 million, or $0.64 per diluted share, down from $43.6 million in the prior year. Adjusted EBITDA amounted to $117.8 million compared to $120.6 million last year. The company reaffirms its fiscal 2026 outlook, expecting organic revenue growth of 3% to 4% and total revenue growth of 4% to 5%.
Key Highlights
- 1
Revenue increased by 6.1% year-over-year to $2.2 billion, including 5.5% organic growth in Q1 FY26.
- 2
Net income totaled $38.8 million, or $0.64 per diluted share, compared to $43.6 million in the prior year.
- 3
Adjusted net income was $50.4 million, or $0.83 per diluted share, versus $55.3 million in the prior year.
- 4
Adjusted EBITDA was $117.8 million, compared to $120.6 million last year.
- 5
Operating cash flow was $62.0 million and free cash flow totaled $48.9 million, both up significantly over the prior year.
- 6
The company repurchased $91.1 million of common stock during the quarter at an average price of $44.13 per share.
- 7
The Board declared a cash dividend of $0.29 per common share, payable on May 4, 2026.
Management Comments
Scott Salmirs
“ABM is off to a solid start to fiscal 2026, delivering strong organic revenue growth of 5.5% and meaningful improvement in operating cash flow and free cash flow. Growth was broad-based across our portfolio, reflecting healthy demand in our end markets and our team’s continued success in expanding client relationships. This performance reinforces our confidence in the strength and resiliency of our business.” “From a margin perspective, results were below our expectations, driven primarily by Technical Solutions, which as we’ve noted in the past, is inherently project-driven and can vary quarter to quarter. This period was impacted by project timing, including temporary weather-related delays, as well as service mix, resulting in approximately $0.05 of EPS pressure relative to our internal plan. Business & Industry and Manufacturing & Distribution, however, performed in line with our expectations reflecting the impact of the new and amended contracts we discussed on our third quarter call, and Education delivered another quarter of strong results.” “We are excited to have closed the WGNSTAR acquisition at the beginning of the second quarter. This transaction strengthens our position in the fast-growing semiconductor market and enhances our technical capabilities in fabrication environments. We believe WGNSTAR will contribute to growth and mix improvement as we integrate the business and leverage its strong client relationships.” “While we remain encouraged by constructive demand trends across our end markets, we continue to approach the broader macroeconomic environment with discipline. Our fiscal 2026 outlook remains unchanged. We expect margin performance to improve as project timing in ATS normalizes and as we continue executing on operational and cost initiatives across the enterprise.”
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