ABM Industries revenue exceeds expectations but profits fall short

LootboxPhobia · 2026-03-10T16:25:52+00:00

ABM Industries reports first quarter fiscal year 2026 results, with adjusted earnings per share of $0.83, below the expected $0.87, but revenue of $2.2 billion slightly above expectations. Profit pressure mainly stems from project delays in the Technical Solutions segment. The company maintains its full-year organic revenue growth guidance of 3% to 4%.

LootboxPhobia

2026-03-10 16:25:52

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New York - On Tuesday, ABM Industries Incorporated (NYSE: ABM) reported first-quarter fiscal 2026 results that missed earnings expectations, with adjusted earnings per share of $0.83, below the analyst consensus of $0.87. Revenue reached $2.2 billion, slightly above the $2.19 billion forecast, representing a 6.1% year-over-year increase.

Following the announcement, the company’s stock rose 0.51% in pre-market trading.

The facilities solutions provider’s adjusted EPS declined from $0.87 in the same period last year, while revenue grew from $2 billion.

The company mainly attributed margin pressure to its Technical Solutions segment, which faced project scheduling issues, including weather-related delays and an unfavorable service mix, resulting in approximately $0.05 of pressure per share relative to internal expectations. The segment’s operating profit margin compressed from 7.6% last year to 7.1%.

“ABM started fiscal 2026 strongly, achieving a solid 5.5% organic revenue growth, with significant improvements in operating and free cash flow,” said President and CEO Scott Salmirs. “Our diversified portfolio experienced broad growth, reflecting healthy demand in end markets and our team’s continued success in expanding customer relationships.”

Revenue growth was primarily driven by the Technical Solutions segment, which increased 14%, and the Aviation segment, which grew 10%. Manufacturing & Distribution increased 7%, Business & Industry grew 4%, and Education grew 2%.

Operating cash flow improved significantly from negative $106.2 million last year to $62 million, while free cash flow rose from negative $122.9 million to $48.9 million.

ABM reaffirmed its outlook for fiscal 2026, maintaining guidance for organic revenue growth of 3% to 4%, with adjusted EPS expected in the range of $3.85 to $4.15. The midpoint of $4.00 represents the company’s full-year earnings target.

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