Facilities management firm ABM Industries' Q3 adj EPS beats on lower costs
ABM•Updated outlook
- ABM raised the midpoint of its fiscal 2026 adjusted EPS outlook to $3.95-$4.10.
- The company increased its full-year free cash flow outlook to about $210 million.
- ABM expects full-year organic revenue growth near the top end of its 3%-4% range.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Slight Miss* | $2.30 bln | $2.31 bln (7 Analysts) |
| Q3 Adjusted EPS | Beat | $1.04 | $1.01 (7 Analysts) |
| Q3 EPS | $0.84 | ||
| Q3 Adjusted Net Income | Beat | $61.50 mln | $60.005 mln (5 Analysts) |
| Q3 Net Income | $49.70 mln | ||
| Q3 Adjusted EBITDA | Miss | $139.60 mln | $145.17 mln (7 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell". The average consensus recommendation for the business support services peer group is "buy". Wall Street's median 12-month price target for ABM Industries Inc is $52.00, about 10.5% above its Sept. 4 closing price of $47.05. The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago.
Quarterly performance and drivers
- Facility solutions provider's fiscal Q3 revenue rose 4.2%, a slight miss versus analyst expectations.
