| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 2.3K | 1.2% | 4.2% |
| Total Income | 2.3K | 1.2% | 4.2% |
| Expenditure | 2.2K | 1.0% | 4.0% |
| PBT | 63.20 | 5.9% | 6.4% |
| Net Profit | 49.70 | 15.3% | 18.9% |
| OPM | 3.95% | 0.15pp | 0.20pp |
| NPM | 2.15% | 0.26pp | 0.27pp |
| EPS | 0.84 | 15.1% | 25.4% |
ABM Reports Q3 FY26 Results, Raises Outlook
08 Sept 2026 · 8 Sept, 4:42 pm
Summary
ABM Industries announced strong financial results for its fiscal third quarter ended July 31, 2026, with revenue reaching a quarterly record of $2.3 billion, up 4.2% year-over-year. Net income increased by 19% to $49.7 million ($0.84 per diluted share), and adjusted EBITDA grew 11% to $139.6 million. The company highlighted strong performance in Aviation and Manufacturing & Distribution segments, while anticipating sequential improvement in Technical Solutions. Management is raising its full-year outlook for adjusted EPS and free cash flow, citing disciplined execution and strong cash generation.
Key Highlights
- 1
ABM Industries reported a quarterly record revenue of $2.3 billion for fiscal third quarter 2026, an increase of 4.2% year over year.
- 2
Net income for the quarter rose 19% to $49.7 million, or $0.84 per diluted share, compared to $41.8 million, or $0.67 per diluted share, in the prior year.
- 3
Adjusted net income grew 19% to $61.5 million, or $1.04 per diluted share, compared to $51.7 million, or $0.82 per diluted share, in the prior year.
- 4
Adjusted EBITDA improved by 11% to $139.6 million, up from $125.8 million in the prior year.
- 5
Operating cash flow was $146.8 million and free cash flow totaled $128.4 million for the third quarter.
- 6
The company is raising its outlook for full year adjusted EPS and increasing free cash flow expectations.
- 7
Revenue growth was led by Manufacturing & Distribution (18%) and Aviation (12%), with Technical Solutions revenue growing 4% despite project deferrals.
Management Comments
Scott Salmirs
Our third quarter results reflected strong operational and financial performance, including record quarterly revenue, robust EPS growth and substantial cash generation. Our team executed well and delivered on our expectations despite a backdrop of macro uncertainty and adverse timing of certain projects. Aviation and Manufacturing & Distribution ("M&D") delivered strong organic revenue growth, with M&D benefiting from healthy technology markets and further supported by our recent WGNstar acquisition. Technical Solutions ("ATS") revenue growth was impacted by some project deferrals, while Business & Industry ("B&I") revenue performance was largely as anticipated. We expect ATS to ramp sequentially in the fourth quarter as we execute on many of the deferred projects. Disciplined working capital management drove exceptional year-to-date free cash flow, which in turn accelerated our deleveraging ahead of schedule. We also secured a $300 million accounts receivable facility at favorable rates, further strengthening our capital structure. And our focus on cost discipline resulted in a $3 million reduction in ongoing corporate costs versus the prior year. Together, these actions contributed to our third quarter results and helped keep us on track to deliver on our full-year outlook, as well as provide longer-term benefits. As we enter the fourth quarter, we are focused on finishing the year strong and executing with discipline. We are raising the midpoint of our adjusted EPS outlook and increasing our expectations for full year free cash flow based on our strong third quarter results, and are confident in our ability to achieve it.
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