ABM Industries Misses Q1 Profit Estimates Despite 6.1% Revenue Growth
ABM Industries delivered fiscal Q1 revenue of $2.244 billion, a 6.1% year-over-year rise that topped estimates, while adjusted EPS of $0.83 trailed the $0.87 consensus. Operating cash flow swung to a $62.0 million inflow and free cash flow reached $48.9 million, as management reaffirmed fiscal 2026 revenue growth of 4%-5%.
1. First-Quarter Financial Results
ABM reported Q1 revenue of $2.244 billion, up 6.1% year-over-year and above the $2.193 billion estimate, while adjusted EPS came in at $0.83 versus the $0.87 consensus. Net income was $38.8 million, or $0.64 per share, and adjusted EBITDA totaled $117.8 million compared with $120.6 million a year ago.
2. Segment-Level Growth and Margins
Technical Solutions revenue rose 13.6% to $229.7 million, Aviation increased 10.2% to $297.7 million, Business & Industry grew 4.1% to $1.065 billion, Manufacturing & Distribution climbed 7.1% to $422.3 million, and Education revenue edged up 1.5% to $228.7 million. Segment operating margin declined to 7.1% from 7.6%, reflecting project timing and service-mix shifts in Technical Solutions.
3. Cash Flow Improvement and Outlook
Operating cash flow turned positive at $62.0 million and free cash flow reached $48.9 million, compared with prior-year outflows of $106.2 million and $122.9 million, respectively. The company held $100.4 million in cash against $1.7 billion in debt, repurchased 2.1 million shares for $91.1 million, and reaffirmed fiscal 2026 targets of 4%–5% revenue growth and $3.85–$4.15 adjusted EPS.