| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 2.3K | 2.1% | 8.4% |
| Total Income | 2.3K | 2.1% | 8.4% |
| Expenditure | 2.2K | 1.6% | 8.6% |
| PBT | 59.70 | 14.6% | 0.2% |
| Net Profit | 43.10 | 11.1% | 2.1% |
| OPM | 3.79% | 0.46pp | 0.10pp |
| NPM | 1.88% | 0.15pp | 0.12pp |
| EPS | 0.73 | 14.1% | 9.0% |
ABM Reports Q2 FY26 Results, Reaffirms FY26 Adjusted EPS Outlook
05 Jun 2026 · 5 Jun, 4:46 pm
Summary
ABM Industries reported record second quarter revenue of $2.3 billion, an increase of 8.4% year-over-year, driven by 6.1% organic growth and 2.3% from acquisitions. Net income rose to $43.1 million ($0.73 per diluted share) from $42.2 million ($0.67 per diluted share) in the prior year, while adjusted EBITDA increased to $131.7 million. Management highlighted strong organic growth in Technical Solutions and Aviation, and reaffirmed the fiscal 2026 outlook, expecting organic revenue growth toward the top end of the 3% to 4% range.
Key Highlights
- 1
Revenue increased 8.4% to a second quarter record of $2.3 billion, including organic growth of 6.1% and acquisition growth of 2.3%.
- 2
The company achieved a record first half new sales bookings of $1.2 billion.
- 3
Net income improved to $43.1 million, or $0.73 per diluted share, compared to $42.2 million, or $0.67 per diluted share, in the prior year.
- 4
Adjusted EBITDA increased to $131.7 million, versus $125.9 million last year.
- 5
Operating cash flow was $66.2 million and free cash flow totaled $22.4 million, both well above the prior year.
- 6
The Company expects its total leverage ratio to be below 3.0x by fiscal year-end.
Management Comments
Scott Salmirs
Our second quarter performance was highlighted by organic revenue growth of 6.1% and record first half new sales bookings of $1.2 billion. Organic growth was especially strong in Technical Solutions ("ATS") and Aviation. Manufacturing & Distribution's ("M&D") robust growth was driven by healthy organic demand, further boosted by our recent WGNSTAR acquisition, which is performing well and contributing meaningfully to growth. The investments we have made in organic growth and acquisitions, along with our healthy backlog and constructive end-market conditions, have positioned us well for a strong second half. Beyond the top line, we executed well in the quarter, resulting in improved margin on a sequential basis and continued solid free cash flow generation, which was up significantly in the first half versus last year. Looking to the second half, we expect meaningfully higher volume in ATS and M&D, as well as improved service mix, especially within ATS. We also expect to benefit from our ongoing cost savings and pricing initiatives. Combined, these factors are expected to drive significant improvement in earnings and margin in the back half of the year. We are encouraged by constructive demand trends across the majority of our end markets, and remain focused on executing with discipline as the broader macroeconomic environment continues to evolve. As such, our fiscal 2026 outlook remains unchanged.
Informational and educational content only. Not investment advice.