ABM Industries (NYSE:ABM) Releases Earnings Results, Misses Estimates By $0.02 EPS

ABM Industries (NYSE:ABM) issued its quarterly earnings data on Friday. The business services provider reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.02), FiscalAI reports. ABM Industries had a return on equity of 11.77% and a net margin of 1.78%.The business had revenue of $2.29 billion for the quarter, compared to analysts’ expectations of $2.21 billion. During the same period in the previous year, the business posted $0.86 earnings per share. The company’s revenue for the quarter was up 8.4% on a year-over-year basis. ABM Industries updated its FY 2026 guidance to 3.850-4.150 EPS.

Here are the key takeaways from ABM Industries’ conference call:

• ABM reported a strong second quarter, with organic revenue growth of 6.1%, total revenue up 8.4% to a record $2.3 billion, and first-half new sales bookings of $1.2 billion, also a record.
• Management said margin and cash flow trends are improving, with sequential segment margin expansion and first-half free cash flow up sharply year over year as working capital management and ERP stabilization improved cash generation.
• ABM continues to see strong demand in growth areas like Technical Solutions, Aviation, M&D, semiconductors, and data centers, and expects the back half to benefit from improving mix and project ramping, especially in ATS and M&D.
• B&I was flat in the quarter and is expected to slow further in the second half due to the exit of a large U.K. client and additional West Coast client exits, which management said will pressure revenue even as margins improve.
• ABM reaffirmed full-year adjusted EPS guidance of $3.85-$4.15 and expects to finish the year with free cash flow of about $250 million before certain items, while also planning to reduce leverage back below 3x by year-end.

ABM Industries Stock Up 6.1%

ABM stock opened at $42.33 on Friday. ABM Industries has a one year low of $36.96 and a one year high of $50.12. The stock has a market capitalization of $2.48 billion, a PE ratio of 16.28 and a beta of 0.71. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.50 and a current ratio of 1.50. The company has a fifty day moving average of $39.61 and a 200-day moving average of $42.17.

ABM Industries Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Thursday, July 2nd will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Thursday, July 2nd. ABM Industries’s dividend payout ratio (DPR) is 45.67%.

Institutional Trading of ABM Industries

Several hedge funds have recently made changes to their positions in ABM. Caitong International Asset Management Co. Ltd lifted its stake in shares of ABM Industries by 590.9% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 608 shares of the business services provider’s stock worth $28,000 after acquiring an additional 520 shares during the period. Quarry LP lifted its stake in shares of ABM Industries by 667.0% in the third quarter. Quarry LP now owns 882 shares of the business services provider’s stock valued at $41,000 after purchasing an additional 767 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of ABM Industries in the fourth quarter valued at about $57,000. Headlands Technologies LLC acquired a new stake in shares of ABM Industries in the second quarter valued at about $94,000. Finally, Quadrant Capital Group LLC acquired a new stake in shares of ABM Industries in the third quarter valued at about $177,000. Institutional investors and hedge funds own 91.62% of the company’s stock.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Maxim Group raised shares of ABM Industries from a “hold” rating to a “buy” rating and set a $50.00 price objective on the stock in a research report on Wednesday, March 11th. UBS Group lowered their price objective on shares of ABM Industries from $51.00 to $45.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 11th. Truist Financial lowered their price objective on shares of ABM Industries from $47.00 to $45.00 and set a “hold” rating on the stock in a research report on Wednesday, March 11th. Robert W. Baird lowered their price objective on shares of ABM Industries from $52.00 to $45.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 11th. Finally, Weiss Ratings downgraded shares of ABM Industries from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $46.25.

Trending Headlines about ABM Industries

Here are the key news stories impacting ABM Industries this week:

• Positive Sentiment: ABM beat revenue expectations in fiscal Q2, with sales of $2.29 billion and strong year-over-year growth, signaling resilient demand across its facility and infrastructure services business. ABM Industries Logs Higher 2Q Profit, Revenue as Demand Remains Strong
• Positive Sentiment: Management reaffirmed fiscal 2026 adjusted EPS guidance and said it is targeting about $250 million in free cash flow, which may reassure investors about earnings quality and cash returns. ABM outlines $3.85 to $4.15 adjusted EPS outlook while targeting about $250M in 2026 free cash flow
• Positive Sentiment: The board declared a quarterly dividend of $0.29 per share, underscoring continued shareholder returns and a dividend yield of about 2.7%.
• Neutral Sentiment: ABM’s earnings call transcript and earnings-release materials provide additional details on the quarter, but do not add a clearly new catalyst beyond the reported results. ABM Industries Incorporated (ABM) Q2 2026 Earnings Call Transcript
• Negative Sentiment: The main downside in the report was a small EPS miss versus consensus, which could limit upside if investors focus more on margin pressure than on revenue strength. ABM Industries (ABM) Misses Q2 Earnings Estimates

ABM Industries Company Profile

ABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company’s core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.

Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.