ABM Reports 8.4% Q2 Revenue Growth to $2.3B, 6.1% Organic and $1.2B Bookings
ABM•ABM reported Q2 fiscal 2026 revenue of $2.3 billion, up 8.4% year-over-year with 6.1% organic growth and record first-half bookings of $1.2 billion. Net income rose to $43.1 million ($0.73/share) and adjusted EBITDA climbed to $131.7 million, while the company reaffirmed its fiscal 2026 adjusted EPS guidance of $3.85 to $4.15.
1. Q2 Financial Highlights
Revenue rose 8.4% to $2.3 billion driven by 6.1% organic growth and 2.3% from acquisitions, with ATS and Aviation up 27% and 20% respectively. First-half bookings reached a record $1.2 billion, led by strong demand for battery energy storage, datacenter services and new aviation contracts.
2. Profitability and Cash Flow
Net income increased to $43.1 million ($0.73 per diluted share) and adjusted EBITDA climbed to $131.7 million. Operating cash flow was $66.2 million and free cash flow totaled $22.4 million, reflecting improved margins and effective working capital management.
3. Leverage, Liquidity and Dividend
Total indebtedness stood at $1.9 billion with a leverage ratio of 3.2x and available liquidity of $613.8 million, including $94.9 million in cash. The board declared a quarterly cash dividend of $0.29 per share payable on August 3, 2026.
4. Outlook and Guidance
ABM reaffirmed its fiscal 2026 outlook with organic revenue growth toward the top end of its 3%–4% range and adjusted EPS guidance of $3.85 to $4.15. The company expects leverage below 3.0x by year-end and anticipates higher ATS and M&D volumes, improved service mix and cost savings to drive second-half margin improvement.
