Key Takeaways ABM's Q3 EPS fell 12.8% y/y and missed estimates, but revenues grew 6.2%.Manufacturing, aviation and technical solutions drove strong segmental revenue gains.ABM expects FY25 EPS at the low end of $3.65-$3.80, with the mid-point topping the consensus estimate.ABM (ABM) has reported mixed third-quarter fiscal 2025 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.Dismal earnings results disappointed investors, as the ABM stock has declined 4.6% ...

Root for the Underdog. Comment below all on your favorite, least favorite, or curiosity stock tickers to make them eligible for inclusion in future FA follower reports.As supplement to this article, please note that The Motley Fool , which sourced this latest list, and SureDividend both update their lists periodically. Kiplinger also featured this recent selection of Kings.He is the leader of the investing group The Dividend Dog Catcher , where he shares a minimum of one new dividend stock idea per week wit ...

Vancouver, BC, Sept. 09, 2025 (GLOBE NEWSWIRE) -- Aben Gold Corp. (TSX-V: ABM) (OTCQB: ABNAF) (Frankfurt: ML1) (“Aben” or “the Company”) announces that it has submitted an application for a Class 1 Quartz Program in early August 2025 to facilitate a planned field program at the Justin Gold Project in the Tombstone Gold Belt, Yukon Territory. This application is intended to enable initial exploration activities in 2025 and does not affect the Company's pending Class 3 Quartz Program application, which was su ...

ABM Industries Inc. ABM reported mixed fiscal third-quarter 2025 results on Friday.The company posted revenue of $2.22 billion, up 6.2% from $2.09 billion a year earlier. Analysts expected $2.15 billion. Adjusted net income was $51.7 million, or 82 cents per diluted share. It missed the 95-cent estimate and was down from $53.6 million, or 84 cents per diluted share, in the prior year."ABM's third quarter performance was highlighted by mid-single-digit organic revenue growth and strong free cash flow," said ...

Core Insights - ABM Industries reported strong revenue performance despite missing earnings expectations, showcasing resilience in a competitive market [1][2][6] Financial Performance - Earnings per share (EPS) for the fiscal third quarter was $0.82, falling short of the estimated $0.95, representing a negative surprise of 13.68% [2][6] - Revenue reached $2.22 billion, exceeding expectations of $2.15 billion, marking a 6.2% increase from the previous year [2][3][6] - Organic growth contributed 5% to the revenue increase, demonstrating the company's ability to generate higher sales despite challenges [3] Profitability and Cash Flow - Net income surged to $41.8 million, translating to earnings of $0.67 per diluted share [3] - Operating cash flow increased by 120.1% to $175 million, while free cash flow grew by 134.3% to $150.2 million [4][6] Shareholder Returns and Financial Health - The board approved a $150 million increase in share repurchase authorization, reflecting confidence in future prospects [4] - The current ratio of 1.55 indicates a strong liquidity position to cover short-term liabilities [4] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 36.14, with a price-to-sales ratio of 0.33 [5] - The enterprise value to sales ratio is 0.52, and the enterprise value to operating cash flow ratio is notably high at 123.73 [5] - The debt-to-equity ratio stands at 0.91, indicating a moderate level of debt compared to equity [5]

For the quarter ended July 2025, ABM Industries (ABM) reported revenue of $2.22 billion, up 6.2% over the same period last year. EPS came in at $0.82, compared to $0.94 in the year-ago quarter.The reported revenue represents a surprise of +2.75% over the Zacks Consensus Estimate of $2.16 billion. With the consensus EPS estimate being $0.95, the EPS surprise was -13.68%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

[FORWARD-LOOKING STATEMENTS](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the inherent risks and uncertainties associated with forward-looking statements in the Form 10-Q, covering competitive, operational, and economic factors [Forward-Looking Statements Overview](index=4&type=section&id=Forward-Looking%20Statements%20Overview) The Form 10-Q contains forward-looking statements subject to various known and unknown risks, uncertainties, and assumptions that could materially affect actual results - The report contains forward-looking statements subject to various risks and uncertainties, including competitive market pressures, labor shortages, turnover, and cost increases, and the ability to attract and retain qualified personnel[11](index=11&type=chunk) - Risks also include the success of the ELEVATE strategy, client relationship preservation, subcontractor liabilities, international business risks, decreased commercial office space utilization, negative general economic conditions, and potential breaches or disruptions to IT systems[11](index=11&type=chunk) - Further risks encompass challenges with new ERP system implementation, acquisition/divestiture failures, self-insurance volatility, legal proceedings, regulatory compliance costs, collective bargaining agreements, tax policy changes, increased borrowings and interest rates, goodwill impairment, internal control failures, adverse weather, catastrophic events, and activist investor actions[11](index=11&type=chunk)[14](index=14&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents ABM Industries' unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents ABM Industries' unaudited consolidated financial statements, including balance sheets, income statements, equity statements, and cash flow statements [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets and stockholders' equity increased from October 31, 2024, to July 31, 2025, driven by receivables and goodwill, partially offset by increased long-term debt Consolidated Balance Sheet Highlights (in millions) | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | Total assets | $5,270.5 | $5,097.2 | | Total liabilities | $3,439.6 | $3,315.2 | | Total stockholders' equity | $1,830.9 | $1,781.9 | | Cash and cash equivalents | $69.3 | $64.6 | | Trade accounts receivable, net | $1,495.0 | $1,384.1 | | Goodwill | $2,588.6 | $2,575.9 | | Long-term debt, net | $1,500.4 | $1,302.2 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income and operating profit significantly improved for both the three and nine months ended July 31, 2025, driven by revenue growth and reduced SG&A expenses Consolidated Statements of Comprehensive Income Highlights (in millions, except per share) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenues | $2,224.0 | $2,094.2 | $6,450.5 | $6,182.0 | | Operating profit | $83.4 | $37.4 | $243.3 | $192.8 | | Net income | $41.8 | $4.7 | $127.6 | $93.1 | | Basic EPS | $0.67 | $0.07 | $2.04 | $1.47 | | Diluted EPS | $0.67 | $0.07 | $2.03 | $1.46 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased for the nine months ended July 31, 2025, due to net income, partially offset by common stock repurchases and higher dividends Stockholders' Equity Changes (in millions, except per share) | Metric | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Balance, beginning of period (Total Stockholders' Equity) | $1,781.9 | $1,781.9 (from Oct 31, 2024) / $1,781.9 (from Oct 31, 2023) | | Net income | $127.6 | $93.1 | | Dividends (Common stock) | $(49.4) | $(42.4) | | Repurchase of common stock, including excise tax | $(48.5) | $(23.8) | | Balance, end of period (Total Stockholders' Equity) | $1,830.9 | $1,835.0 | | Cash dividends declared per common share | $0.795 | $0.675 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased for the nine months ended July 31, 2025, due to ERP transition and contingent consideration, while investing and financing activities remained stable Consolidated Statements of Cash Flows Highlights (in millions) | Metric | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $101.0 | $196.3 | | Net cash used in investing activities | $(74.8) | $(157.9) | | Net cash used in financing activities | $(22.5) | $(23.0) | | Net increase in cash and cash equivalents | $4.7 | $16.8 | | Cash and cash equivalents at end of period | $69.3 | $86.3 | - The decrease in operating cash flow was primarily due to increased working capital requirements from the ERP system transition, which temporarily delayed invoicing, and a **$16.0 million** operating cash outflow for RavenVolt contingent consideration[167](index=167&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures regarding ABM's accounting policies, significant transactions, and financial instrument valuations [1. The Company and Nature of Operations](index=10&type=section&id=1.%20THE%20COMPANY%20AND%20NATURE%20OF%20OPERATIONS) ABM is a leading provider of integrated facility services across five segments, offering janitorial, engineering, parking, and specialized technical solutions - ABM provides integrated facility services across B&I, M&D, Aviation, Education, and Technical Solutions segments[25](index=25&type=chunk) - Services include janitorial, facilities engineering, parking, and specialized mechanical and electrical technical solutions[25](index=25&type=chunk) [2. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=2.%20BASIS%20OF%20PRESENTATION%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Financial statements are prepared under U.S. GAAP for interim reporting, with ASU 2022-04 adoption having no material impact due to non-participation in supplier finance programs - Unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions[26](index=26&type=chunk) - Management reimbursement revenue for the three and nine months ended July 31, 2025, was **$88.7 million** and **$255.2 million**, respectively, showing an increase from the prior year[28](index=28&type=chunk) - The company adopted ASU 2022-04 (Supplier Finance Programs) effective November 1, 2023, with no material impact due to non-participation in such programs[29](index=29&type=chunk)[30](index=30&type=chunk) [3. Acquisitions](index=12&type=section&id=3.%20ACQUISITIONS) ABM acquired LMC FM in June 2025 for **$22.5 million** cash and made a **$75.0 million** contingent consideration payment for RavenVolt in Q3 2025 - Acquired LMC FM Limited on June 1, 2025, for approximately **$22.5 million** cash, plus potential **$5.9 million** contingent consideration[31](index=31&type=chunk) - LMC contributed **$9.3 million** in revenues to the Technical Solutions segment for the three and nine months ended July 31, 2025[32](index=32&type=chunk) - Acquired Quality Uptime Services, Inc. on June 21, 2024, for **$116.3 million** net cash[33](index=33&type=chunk) - Made a **$75.0 million** payment in Q3 2025 for RavenVolt's calendar year 2024 contingent consideration, with **$16.0 million** classified as operating cash outflow and **$59.0 million** as financing cash outflow[35](index=35&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk) [4. Revenues](index=13&type=section&id=4.%20REVENUES) Revenues are disaggregated by service lines and segments, with total revenues of **$2,224.0 million** and **$6,450.5 million** for the three and nine months ended July 31, 2025, respectively Revenues by Major Service Line and Segment (Three Months Ended July 31, 2025, in millions) | Major Service Line | B&I | M&D | Aviation | Education | Technical Solutions | Total | | :----------------- | :-- | :-- | :------- | :-------- | :------------------ | :---- | | Janitorial | $715.5 | $343.3 | $60.1 | $204.9 | — | $1,323.8 | | Aviation Services | — | — | $134.5 | — | — | $134.5 | | Parking and Transportation | $111.6 | $13.6 | $84.2 | $0.1 | — | $209.4 | | Operations and Maintenance | $210.5 | $51.3 | $12.9 | $30.1 | — | $304.8 | | Building & Energy Solutions | $1.2 | $0.7 | — | — | $249.5 | $251.4 | | **Total** | **$1,038.7** | **$408.9** | **$291.8** | **$235.1** | **$249.5** | **$2,224.0** | Revenues by Major Service Line and Segment (Nine Months Ended July 31, 2025, in millions) | Major Service Line | B&I | M&D | Aviation | Education | Technical Solutions | Total | | :----------------- | :-- | :-- | :------- | :-------- | :------------------ | :---- | | Janitorial | $2,119.9 | $1,010.9 | $166.0 | $599.3 | — | $3,896.1 | | Aviation Services | — | — | $368.2 | — | — | $368.2 | | Parking and Transportation | $321.4 | $38.9 | $248.4 | $0.3 | — | $609.1 | | Operations and Maintenance | $632.0 | $150.5 | $39.3 | $88.6 | — | $910.4 | | Building & Energy Solutions | $3.9 | $0.9 | — | — | $662.0 | $666.8 | | **Total** | **$3,077.2** | **$1,201.2** | **$822.0** | **$688.2** | **$662.0** | **$6,450.5** | - Remaining performance obligations totaled **$273.0 million** at July 31, 2025, with approximately **77%** expected to be recognized over the next 12 months[41](index=41&type=chunk)[42](index=42&type=chunk) Contract Balances (in millions) | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | Billed trade receivables | $1,262.4 | $1,282.9 | | Unbilled trade receivables | $257.7 | $124.0 | | Costs incurred in excess of amounts billed | $159.1 | $162.1 | | Capitalized commissions | $32.4 | $30.8 | | Contract liabilities (end of period) | $151.6 | $118.2 (beginning of period) | [5. Net Income Per Common Share](index=16&type=section&id=5.%20NET%20INCOME%20PER%20COMMON%20SHARE) Basic and diluted net income per common share significantly increased for both the three and nine months ended July 31, 2025, reflecting improved net income Net Income Per Common Share (in millions, except per share amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $41.8 | $4.7 | $127.6 | $93.1 | | Basic EPS | $0.67 | $0.07 | $2.04 | $1.47 | | Diluted EPS | $0.67 | $0.07 | $2.03 | $1.46 | | Weighted-average common and common equivalent shares outstanding — Basic | 62.5 | 63.1 | 62.6 | 63.3 | | Weighted-average common and common equivalent shares outstanding — Diluted | 62.8 | 63.5 | 63.0 | 63.6 | [6. Fair Value of Financial Instruments](index=17&type=section&id=6.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) Financial instruments, including cash, insurance deposits, and contingent consideration, are measured at fair value, with RavenVolt contingent consideration being a Level 3 measurement Financial Assets and Liabilities Measured at Fair Value (in millions) | Metric | Fair Value Hierarchy | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------------- | :------------ | :--------------- | | Cash and cash equivalents | 1 | $69.3 | $64.6 | | Insurance deposits | 1 | $4.8 | $2.3 | | Assets held in funded deferred compensation plan | 1 | $4.6 | $4.4 | | Credit facility | 2 | $1,532.5 | $1,335.3 | | Interest rate swap assets | 2 | $7.9 | $13.5 | | Preferred equity investment | 3 | $14.1 | $15.4 | | Contingent consideration | 3 | $39.8 | $109.1 | - Contingent consideration for the RavenVolt Acquisition is remeasured at each reporting date using Level 3 inputs, based on the expected probability of achieving contingency targets[51](index=51&type=chunk) [7. Insurance](index=18&type=section&id=7.%20INSURANCE) ABM uses insured and self-insurance programs, retaining significant exposure per occurrence, with an insignificant adjustment to reserves in Q3 2025 compared to a **$17.9 million** increase in Q3 2024 - The company uses a combination of insured and self-insurance programs, retaining **$1.0 million** to **$5.0 million** of exposure per occurrence[52](index=52&type=chunk) - A comprehensive actuarial review in Q3 2025 led to an insignificant adjustment to total reserves for known and IBNR claims[55](index=55&type=chunk)[56](index=56&type=chunk) - In Q3 2024, a similar review resulted in a **$17.9 million** increase in total reserves related to prior years[56](index=56&type=chunk) Insurance-Related Balances (in millions) | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | Insurance claim reserves, excluding medical and dental | $613.1 | $608.4 | | Medical and dental claim reserves | $13.5 | $11.0 | | Insurance recoverables | $85.6 | $91.0 | | Standby letters of credit | $24.9 | $53.1 | | Surety bonds and surety-backed letters of credit | $212.3 | $175.3 | | Restricted insurance deposits | $4.8 | $2.3 | | Total collateralizing insurance obligations | $241.9 | $230.7 | [8. Credit Facility](index=19&type=section&id=8.%20CREDIT%20FACILITY) ABM amended its Credit Facility in February 2025, extending maturity to 2030 and increasing capacity, while remaining in compliance with all covenants and using interest rate swaps for hedging - Amended and restated Credit Facility on February 26, 2025, extending maturity to February 26, 2030[60](index=60&type=chunk) - Increased revolving credit facility capacity from **$1.3 billion** to **$1.6 billion** and term loan from **$528.1 million** to **$600.0 million**[60](index=60&type=chunk) - Incurred **$8.0 million** in deferred financing costs for the Amended Credit Facility[64](index=64&type=chunk) - At July 31, 2025, the company was in compliance with all credit facility covenants, including leverage and interest coverage ratios[61](index=61&type=chunk) Long-Term Debt Maturities (in millions) | Year | Amount | | :--- | :----- | | 2025 | $7.5 | | 2026 | $30.0 | | 2027 | $30.0 | | 2028 | $30.0 | | 2029 | $30.0 | | 2030 | $1,405.0 | - Utilizes interest rate swap agreements to fix variable interest rates on portions of debt, designated as cash flow hedges[66](index=66&type=chunk) [9. Common Stock](index=21&type=section&id=9.%20COMMON%20STOCK) The Board expanded the share repurchase program by **$150.0 million** in December 2023, with **0.97 million** shares repurchased for **$48.3 million** during the nine months ended July 31, 2025 - Board expanded the share repurchase program by an additional **$150.0 million** effective December 13, 2023[67](index=67&type=chunk) Share Repurchase Activity (in millions, except per share amounts) | Metric | Three Months Ended July 31, 2025 | Nine Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------ | | Total number of shares purchased | 0.56 | 0.97 | | Average price paid per share | $48.77 | $49.82 | | Total cash paid for share repurchases | $27.1 | $48.3 | - At July 31, 2025, **$106.1 million** of authorization remained under the share repurchase program[68](index=68&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20COMMITMENTS%20AND%20CONTINGENCIES) ABM has **$29.7 million** in letters of credit, **$1,018.0 million** in surety bonds, and **$200.6 million** in energy savings guarantees, with **$9.3 million** accrued for probable litigation losses Commitments and Contingencies (as of July 31, 2025, in millions) | Commitment Type | Amount | | :-------------------------------- | :----- | | Letters of credit | $29.7 | | Surety bonds and surety-backed letters of credit | $1,018.0 | | Guaranteed energy savings contracts | $200.6 | | Accrued for probable litigation losses | $9.3 | | Estimated range of reasonably possible losses | $0 - $10.9 | - The company is subject to sales tax laws and regulations, which are routinely audited and could materially impact results[73](index=73&type=chunk) - Litigation outcomes are difficult to predict, and the estimated range of loss does not represent the maximum possible exposure[76](index=76&type=chunk)[77](index=77&type=chunk) [11. Income Taxes](index=22&type=section&id=11.%20INCOME%20TAXES) ABM's effective tax rates for the three and nine months ended July 31, 2025, were **29.6%** and **26.9%**, respectively, with no material impact anticipated from new tax legislation Effective Tax Rates | Period | Effective Tax Rate (2025) | Effective Tax Rate (2024) | | :-------------------------------- | :------------------------ | :------------------------ | | Three Months Ended July 31 | 29.6% | 74.0% | | Nine Months Ended July 31 | 26.9% | 30.7% | - The Q3 2024 effective tax rate was impacted by energy efficiency incentives and non-taxable changes in RavenVolt contingent consideration fair value[81](index=81&type=chunk) - The Q3 2025 effective tax rate benefited from discrete items, primarily return to provision adjustments related to non-U.S. operations[82](index=82&type=chunk) - The company does not anticipate a material impact from the One Big Beautiful Bill Act (OBBBA) or the OECD Pillar Two Model Rules[83](index=83&type=chunk)[84](index=84&type=chunk) - Foreign earnings are planned for reinvestment to fund non-U.S. growth, with no anticipated remittance to the United States[85](index=85&type=chunk) [12. Segment Information](index=24&type=section&id=12.%20SEGMENT%20INFORMATION) ABM operates through five reportable segments, all of which reported revenue growth for both the three and nine months ended July 31, 2025, with Technical Solutions showing the highest percentage growth - ABM's reportable segments are B&I, M&D, Aviation, Education, and Technical Solutions, each offering specialized facility services[87](index=87&type=chunk)[88](index=88&type=chunk) Revenues by Reportable Segment (in millions) | Segment | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Business & Industry | $1,038.7 | $1,010.6 | $3,077.2 | $3,033.4 | | Manufacturing & Distribution | $408.9 | $377.1 | $1,201.2 | $1,166.6 | | Aviation | $291.8 | $268.4 | $822.0 | $756.1 | | Education | $235.1 | $228.3 | $688.2 | $674.0 | | Technical Solutions | $249.5 | $209.7 | $662.0 | $551.9 | | **Total Revenues** | **$2,224.0** | **$2,094.2** | **$6,450.5** | **$6,182.0** | Operating Profit by Reportable Segment (in millions) | Segment | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Business & Industry | $73.8 | $77.8 | $236.2 | $235.0 | | Manufacturing & Distribution | $36.4 | $40.9 | $115.6 | $125.9 | | Aviation | $19.7 | $17.8 | $48.4 | $40.6 | | Education | $21.1 | $18.0 | $48.9 | $42.3 | | Technical Solutions | $19.4 | $17.9 | $49.4 | $41.4 | | Corporate | $(85.7) | $(130.6) | $(251.8) | $(285.0) | [13. Subsequent Events](index=26&type=section&id=13.%20SUBSEQUENT%20EVENTS) ABM initiated a restructuring program in Q4 2025, anticipating **$10.0 million** in charges and **$35.0 million** in annualized cost savings, and expanded its share repurchase program by an additional **$150.0 million** - Implemented a restructuring program in Q4 2025, expecting **$10.0 million** in charges and **$35.0 million** in annualized cost savings by early 2026[91](index=91&type=chunk)[98](index=98&type=chunk) - Board of Directors expanded the Share Repurchase Program by an additional **$150.0 million** on September 3, 2025[92](index=92&type=chunk) - Total authorization for repurchases under the Share Repurchase Program stood at **$233.1 million** as of September 3, 2025[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on ABM's financial condition, performance, liquidity, and capital resources, including the ELEVATE strategy and recent restructuring efforts [Business Overview](index=27&type=section&id=Business%20Overview) ABM is a leading integrated facility solutions provider executing its ELEVATE strategy with planned investments of **$200-$215 million**, and a Q4 2025 restructuring program targeting **$35.0 million** in annualized cost savings - ABM is a leading provider of integrated facility solutions, customized by industry[96](index=96&type=chunk) - The ELEVATE strategy, launched in December 2021, aims to strengthen industry leadership through end-market repositioning and core service enhancement, with expected investments of **$200-$215 million**[97](index=97&type=chunk)[98](index=98&type=chunk) - A restructuring program initiated in Q4 2025 is expected to deliver approximately **$35.0 million** of annualized cost savings by early 2026, with **$10.0 million** in restructuring charges anticipated in Q4[98](index=98&type=chunk) [Segment Reporting](index=28&type=section&id=Segment%20Reporting) ABM's operations are categorized into five reportable segments: Business & Industry, Manufacturing & Distribution, Aviation, Education, and Technical Solutions, each offering distinct facility services - Reportable segments include B&I, M&D, Aviation, Education, and Technical Solutions[101](index=101&type=chunk) - Each segment offers specialized services, such as janitorial, facilities engineering, parking, and technical solutions, with varying contract structures[102](index=102&type=chunk) [Key Financial Highlights](index=29&type=section&id=Key%20Financial%20Highlights) Revenues increased by **6.2%** to **$2,224.0 million** for the three months ended July 31, 2025, driving a significant increase in operating profit, while operating cash flow decreased for the nine months due to ERP transition and contingent consideration - Revenues increased by **$129.8 million (6.2%)** to **$2,224.0 million** for the three months ended July 31, 2025, with **5.0%** organic growth and **1.2%** acquisition growth[104](index=104&type=chunk) - Operating profit increased by **$46.0 million** to **$83.4 million** for the three months ended July 31, 2025, driven by revenue increases, operational efficiencies, and strategic pricing[104](index=104&type=chunk) - Effective tax rates were **29.6% (2025)** and **74.0% (2024)** for the three months, with 2024 impacted by discrete items[104](index=104&type=chunk) - Net cash provided by operating activities decreased to **$101.0 million** for the nine months ended July 31, 2025, from **$196.3 million** in the prior year, primarily due to ERP system transition and contingent consideration payment[104](index=104&type=chunk) - Dividends of **$49.4 million** were paid, and **$0.795** per common share declared for the nine months ended July 31, 2025. Share repurchases totaled **1.46 million** shares for **$71.3 million** in 2025[104](index=104&type=chunk) - Total outstanding borrowings under the Amended Credit Facility were **$1.5 billion** at July 31, 2025, with **$621.7 million** of borrowing capacity remaining[104](index=104&type=chunk) [Three Months Ended July 31, 2025, Compared with the Three Months Ended July 31, 2024](index=30&type=section&id=Three%20Months%20Ended%20July%2031%2C%202025%2C%20Compared%20with%20the%20Three%20Months%20Ended%20July%2031%2C%202024) Consolidated revenues grew by **6.2%** to **$2,224.0 million**, and operating profit significantly increased by **123.0%** to **$83.4 million**, driven by reduced SG&A expenses and operational efficiencies Consolidated Financial Performance (Three Months Ended July 31, in millions, except per share) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :-------------------------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $2,224.0 | $2,094.2 | $129.8 | 6.2% | | Operating expenses | $1,949.6 | $1,831.0 | $118.6 | 6.5% | | Gross margin | 12.3% | 12.6% | (23) bps | - | | Selling, general and administrative expenses | $177.5 | $211.8 | $(34.3) | (16.2)% | | Operating profit | $83.4 | $37.4 | $46.0 | 123.0% | | Net income | $41.8 | $4.7 | $37.1 | NM* | | Diluted EPS | $0.67 | $0.07 | - | NM* | - Revenue growth was **5.0%** organic and **1.2%** from acquisitions (Quality Uptime and LMC)[106](index=106&type=chunk) - Gross margin decreased by **23 bps** due to strategic pricing decisions and managing contract escalation timing, partially offset by operational efficiencies in Aviation and Education[107](index=107&type=chunk) - SG&A decrease was primarily due to the absence of a **$36.0 million** contingent consideration fair value adjustment related to RavenVolt in 2025, partially offset by increased compensation and headcount from acquisitions[108](index=108&type=chunk)[109](index=109&type=chunk) - Interest expense increased by **19.5%** due to higher borrowings for working capital and RavenVolt contingent consideration payment[111](index=111&type=chunk) - Effective tax rate decreased from **74.0%** to **29.6%** due to discrete items in the prior year[112](index=112&type=chunk)[113](index=113&type=chunk) - Interest rate swaps shifted from a **$12.4 million** loss to a **$0.8 million** gain[114](index=114&type=chunk) - Foreign currency translation shifted from a **$2.7 million** gain to a **$1.5 million** loss due to USD/GBP fluctuations[115](index=115&type=chunk) [Business & Industry (B&I)](index=32&type=section&id=Business%20%26%20Industry%20%28B%26I%29) B&I revenues increased by **2.8%** to **$1,038.7 million**, driven by client expansions, but operating profit decreased by **5.2%** to **$73.8 million** due to strategic pricing and contract escalation timing B&I Performance (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $1,038.7 | $1,010.6 | $28.1 | 2.8% | | Operating profit | $73.8 | $77.8 | $(4.0) | (5.2)% | | Operating profit margin | 7.1% | 7.7% | (60) bps | - | - Revenue increase driven by client expansions (domestic and international), strategic pricing, and higher volumes in sports and entertainment[118](index=118&type=chunk) - Operating profit margin decreased due to strategic pricing decisions for contract rebids and proactive extensions, combined with managing contract escalation timing[119](index=119&type=chunk) [Manufacturing & Distribution (M&D)](index=33&type=section&id=Manufacturing%20%26%20Distribution%20%28M%26D%29) M&D revenues grew by **8.4%** to **$408.9 million** due to client expansion, but operating profit decreased by **11.1%** to **$36.4 million** due to strategic pricing and investments in technical expertise M&D Performance (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $408.9 | $377.1 | $31.8 | 8.4% | | Operating profit | $36.4 | $40.9 | $(4.5) | (11.1)% | | Operating profit margin | 8.9% | 10.9% | (196) bps | - | - Revenue increase driven by expansion with existing clients and new business wins, partially offset by a customer loss in Q1 2025[120](index=120&type=chunk) - Operating profit margin decreased due to strategic pricing on new wins and investments in technical expertise for future growth[121](index=121&type=chunk) [Aviation](index=33&type=section&id=Aviation) Aviation revenues increased by **8.7%** to **$291.8 million**, and operating profit rose by **11.0%** to **$19.7 million**, driven by new business, scope expansions, and operational efficiencies Aviation Performance (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Revenues | $291.8 | $268.4 | $23.4 | 8.7% | | Operating profit | $19.7 | $17.8 | $1.9 | 11.0% | | Operating profit margin | 6.8% | 6.6% | 14 bps | - | - Revenue increase attributable to new business and scope expansions with existing clients, both domestically and internationally[122](index=122&type=chunk) - Operating profit margin increased due to contract mix and operational efficiencies, particularly in managing overhead costs, partially offset by weather-related inefficiencies[123](index=123&type=chunk) [Education](index=33&type=section&id=Education) Education revenues increased by **3.0%** to **$235.1 million**, and operating profit significantly improved by **17.2%** to **$21.1 million**, driven by new business and operational efficiencies Education Performance (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Revenues | $235.1 | $228.3 | $6.8 | 3.0% | | Operating profit | $21.1 | $18.0 | $3.1 | 17.2% | | Operating profit margin | 9.0% | 7.9% | 109 bps | - | - Revenue increase primarily attributable to net new business and scope expansions with existing clients[124](index=124&type=chunk) - Operating profit margin increased due to operational efficiencies in managing overtime, materials and supplies, and general and administrative headcount[125](index=125&type=chunk) [Technical Solutions](index=34&type=section&id=Technical%20Solutions) Technical Solutions revenues surged by **19.0%** to **$249.5 million**, with **6.8%** organic growth and **12.2%** acquisition growth, while operating profit increased by **8.5%** to **$19.4 million** Technical Solutions Performance (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $249.5 | $209.7 | $39.8 | 19.0% | | Operating profit | $19.4 | $17.9 | $1.5 | 8.5% | | Operating profit margin | 7.8% | 8.5% | (75) bps | - | - Revenue growth comprised of **6.8%** organic growth (higher microgrid and infrastructure projects) and **12.2%** acquisition growth (Quality Uptime and LMC)[126](index=126&type=chunk) - Operating profit margin decreased due to service mix and higher amortization of intangible assets[127](index=127&type=chunk) [Corporate](index=34&type=section&id=Corporate) Corporate expenses decreased by **34.4%** to **$85.7 million**, primarily due to the absence of a **$36.0 million** RavenVolt contingent consideration adjustment and reduced self-insurance reserve adjustments Corporate Expenses (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Decrease | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Corporate expenses | $(85.7) | $(130.6) | $44.9 | 34.4% | - Decrease driven by the absence of a **$36.0 million** RavenVolt contingent consideration adjustment and a **$7.1 million** decrease in unfavorable self-insurance reserve adjustment[129](index=129&type=chunk) - Partially offset by a **$4.2 million** increase in compensation and related expenses due to higher salaries and headcount expansion from recent acquisitions[128](index=128&type=chunk) [Nine Months Ended July 31, 2025, Compared with the Nine Months Ended July 31, 2024](index=35&type=section&id=Nine%20Months%20Ended%20July%2031%2C%202025%2C%20Compared%20with%20the%20Nine%20Months%20Ended%20July%2031%2C%202024) Consolidated revenues increased by **4.3%** to **$6,450.5 million**, and operating profit rose by **26.2%** to **$243.3 million**, benefiting from improved gross margin and reduced SG&A expenses Consolidated Financial Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :-------------------------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $6,450.5 | $6,182.0 | $268.5 | 4.3% | | Operating expenses | $5,645.7 | $5,420.8 | $224.9 | 4.1% | | Gross margin | 12.5% | 12.3% | 16 bps | - | | Selling, general and administrative expenses | $521.7 | $526.3 | $(4.6) | (0.9)% | | Operating profit | $243.3 | $192.8 | $50.5 | 26.2% | | Net income | $127.6 | $93.1 | $34.5 | 37.0% | - Revenue growth was **3.4%** organic and **0.9%** from acquisitions (Quality Uptime and LMC)[131](index=131&type=chunk) - Gross margin increased by **16 bps** due to operational efficiencies in Aviation and Education and a decrease in prior year insurance adjustment, partially offset by strategic pricing decisions[132](index=132&type=chunk) - SG&A decrease was primarily due to the absence of a **$36.0 million** contingent consideration fair value adjustment related to RavenVolt in 2025, partially offset by increased compensation and system go-live costs[133](index=133&type=chunk)[140](index=140&type=chunk) - Interest expense increased by **$9.0 million** due to higher borrowings from the Amended Credit Facility[135](index=135&type=chunk) - Effective tax rate decreased from **30.7%** to **26.9%**, benefiting from discrete items related to non-U.S. operations[136](index=136&type=chunk)[137](index=137&type=chunk) - Interest rate swaps loss decreased from **$18.1 million** to **$5.7 million**[138](index=138&type=chunk) - Foreign currency translation gain decreased from **$6.4 million** to **$5.2 million** due to USD/GBP fluctuations[139](index=139&type=chunk) [Business & Industry (B&I)](index=37&type=section&id=Business%20%26%20Industry%20%28B%26I%29) B&I revenues increased by **1.4%** to **$3,077.2 million**, driven by client expansions, while operating profit saw a modest **0.5%** increase to **$236.2 million** B&I Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $3,077.2 | $3,033.4 | $43.8 | 1.4% | | Operating profit | $236.2 | $235.0 | $1.2 | 0.5% | | Operating profit margin | 7.7% | 7.7% | (7) bps | - | - Revenue increase driven by client expansions, partially offset by strategic pricing decisions and attrition of certain engineering clients[142](index=142&type=chunk) - Operating profit margin decreased due to strategic pricing decisions and managing contract escalation timing, partially offset by lower amortization of intangible assets[143](index=143&type=chunk) [Manufacturing & Distribution (M&D)](index=38&type=section&id=Manufacturing%20%26%20Distribution%20%28M%26D%29) M&D revenues increased by **3.0%** to **$1,201.2 million**, but operating profit decreased by **8.1%** to **$115.6 million** due to strategic pricing on new wins and investments in technical expertise M&D Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $1,201.2 | $1,166.6 | $34.6 | 3.0% | | Operating profit | $115.6 | $125.9 | $(10.3) | (8.1)% | | Operating profit margin | 9.6% | 10.8% | (116) bps | - | - Revenue increase primarily attributable to expansion of business with existing clients and new business wins, partially offset by a customer loss[144](index=144&type=chunk) - Operating profit margin decreased due to strategic pricing on new wins and investments in technical expertise for future growth[145](index=145&type=chunk) [Aviation](index=38&type=section&id=Aviation) Aviation revenues increased by **8.7%** to **$822.0 million**, and operating profit grew by **19.5%** to **$48.4 million**, driven by new business, scope expansions, and operational efficiencies Aviation Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Revenues | $822.0 | $756.1 | $65.9 | 8.7% | | Operating profit | $48.4 | $40.6 | $7.8 | 19.5% | | Operating profit margin | 5.9% | 5.4% | 53 bps | - | - Revenue increase primarily attributable to new business and scope expansions with existing clients, both domestically and internationally[146](index=146&type=chunk) - Operating profit margin increased due to contract mix and operational efficiencies, particularly in managing overhead costs, partially offset by base wage increases[147](index=147&type=chunk) [Education](index=38&type=section&id=Education) Education revenues increased by **2.1%** to **$688.2 million**, and operating profit grew by **15.6%** to **$48.9 million**, driven by new business and operational efficiencies Education Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Revenues | $688.2 | $674.0 | $14.2 | 2.1% | | Operating profit | $48.9 | $42.3 | $6.6 | 15.6% | | Operating profit margin | 7.1% | 6.3% | 83 bps | - | - Revenue increase primarily attributable to net new business and expansion of business with existing customers[148](index=148&type=chunk) - Operating profit margin increased due to operational efficiencies in managing overtime, materials and supplies, and general and administrative headcount, partially offset by base wage increases[149](index=149&type=chunk) [Technical Solutions](index=39&type=section&id=Technical%20Solutions) Technical Solutions revenues increased by **20.0%** to **$662.0 million**, with **10.0%** organic and **10.0%** acquisition growth, while operating profit grew by **19.4%** to **$49.4 million** Technical Solutions Performance (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Increase / (Decrease) | Change % | | :---------------- | :----- | :----- | :-------------------- | :------- | | Revenues | $662.0 | $551.9 | $110.1 | 20.0% | | Operating profit | $49.4 | $41.4 | $8.0 | 19.4% | | Operating profit margin | 7.5% | 7.5% | (4) bps | - | - Revenue growth comprised of **10.0%** organic growth (higher microgrid systems projects) and **10.0%** acquisition growth (Quality Uptime and LMC)[150](index=150&type=chunk) - Operating profit margin decreased due to higher amortization of intangible assets[151](index=151&type=chunk) [Corporate](index=39&type=section&id=Corporate) Corporate expenses decreased by **11.6%** to **$251.8 million**, primarily due to the absence of a **$36.0 million** RavenVolt contingent consideration adjustment and reduced self-insurance reserve adjustments Corporate Expenses (Nine Months Ended July 31, in millions) | Metric | 2025 | 2024 | Decrease | Change % | | :---------------- | :----- | :----- | :------- | :------- | | Corporate expenses | $(251.8) | $(285.0) | $33.2 | 11.6% | - Decrease driven by the absence of a **$36.0 million** RavenVolt contingent consideration adjustment and a **$16.8 million** decrease in unfavorable self-insurance reserve adjustment[154](index=154&type=chunk) - Partially offset by a **$9.7 million** increase in compensation and related expenses and a **$5.4 million** increase in costs associated with systems' go-live[154](index=154&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) ABM's liquidity is supported by operating cash flows and its Amended Credit Facility, with operating cash flows decreasing due to ERP transition and contingent consideration payments, but expected to normalize - Primary liquidity sources are operating cash flows and borrowing capacity under the Amended Credit Facility[153](index=153&type=chunk) - The Amended Credit Facility was extended to February 26, 2030, and its revolving credit capacity increased to **$1.6 billion**[157](index=157&type=chunk) - At July 31, 2025, total outstanding borrowings were **$1.5 billion**, with **$621.7 million** of borrowing capacity remaining[159](index=159&type=chunk) - Net cash provided by operating activities decreased to **$101.0 million** for the nine months ended July 31, 2025, from **$196.3 million** in the prior year, mainly due to ERP system transition and contingent consideration payment[167](index=167&type=chunk) - Net cash used in investing activities decreased by **$83.1 million**, primarily due to purchases of property, plant and equipment and the LMC Acquisition[168](index=168&type=chunk) - Net cash used in financing activities remained stable, driven by share repurchases and contingent consideration payments, partially offset by higher net borrowings[169](index=169&type=chunk) - The company plans to reinvest foreign earnings to fund non-U.S. growth and expansion[160](index=160&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no significant changes to the company's critical accounting policies and estimates, which require management's assumptions and judgments in preparing financial statements - No significant changes to critical accounting policies and estimates[171](index=171&type=chunk) - Financial statements are prepared in accordance with U.S. GAAP, requiring management estimates, assumptions, and judgments[171](index=171&type=chunk) [Recently Issued Accounting Pronouncements](index=42&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) The company is evaluating the impact of recently issued ASUs on Segment Reporting, Income Taxes, and Income Statement Reporting, with ASU 2023-07 expected to expand segment disclosures without impacting financial position Recently Issued Accounting Standards Updates | Accounting Standard Updates | Topic | Summary | Effective Date/Method of Adoption | | :-------------------------- | :---- | :------ | :------------------------------ | | 2023-07 | Segment Reporting (Topic 280) | Improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses | Fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 | | 2023-09 | Income Taxes (Topic 740) | Enhances transparency and decision usefulness of income tax disclosures, primarily through changes to rate reconciliation and income taxes paid information | Fiscal years beginning after December 15, 2024 | | 2024-03 | Income Statement Reporting Comprehensive Income Expense Disaggregation (Subtopic 220-40) | Requires public entities to disclose additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods | Fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 | - ASU 2023-07 will result in expanded disclosures related to each reportable segment but will have no impact on the company's financial position or results of operations[172](index=172&type=chunk) - The company is currently evaluating the impact of implementing ASU 2023-09 and ASU 2024-03 on its financial statements[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There are no material changes to the market risk disclosures from the company's Annual Report on Form 10-K for the year ended October 31, 2024 - No material changes to market risk disclosures compared to the Annual Report on Form 10-K for the year ended October 31, 2024[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of July 31, 2025, with a new ERP system implementation constituting a material change in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of July 31, 2025[175](index=175&type=chunk) - Implementation of a new ERP system and key boundary systems for Education, B&I, and M&D segments constitutes a material change in internal control over financial reporting[176](index=176&type=chunk) - The new ERP system is intended to enhance transactional processing, management tools, and internal controls over financial reporting[176](index=176&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Material developments in legal proceedings are discussed in Note 10, 'Commitments and Contingencies,' of the unaudited Consolidated Financial Statements - Material developments in litigation matters are detailed in Note 10, 'Commitments and Contingencies'[178](index=178&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors identified in the company's Annual Report on Form 10-K for the year ended October 31, 2024 - No material changes to risk factors identified in the Annual Report on Form 10-K for the year ended October 31, 2024[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board expanded the share repurchase program by an additional **$150.0 million** in December 2023, with **0.56 million** shares repurchased in July 2025 - Board of Directors expanded the existing share repurchase program by an additional **$150.0 million** effective December 13, 2023[180](index=180&type=chunk) Common Stock Repurchases (July 2025, in millions, except per share amounts) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------- | :------------------------------- | :--------------------------- | | 7/1/2025 – 7/31/2025 | 0.56 | $48.77 | [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - No defaults upon senior securities[183](index=183&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable[184](index=184&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) An executive officer and director adopted a Rule 10b5-1 trading arrangement in July 2025 to sell **1,639** shares of common stock - Raul Valentin, Executive Vice President and Chief Human Resources Officer, adopted a Rule 10b5-1 trading arrangement on July 15, 2025, to sell **1,639** shares of common stock[185](index=185&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL documents - Includes certifications of Principal Executive Officer and Principal Financial Officer (31.1, 31.2), Certification pursuant to 18 U.S.C. Section 1350 (32), and various Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[186](index=186&type=chunk) [SIGNATURES](index=46&type=section&id=SIGNATURES) This section contains the official signatures for the Form 10-Q report [Signatures](index=46&type=section&id=Signatures) The report was duly signed by David M. Orr (EVP and CFO) and Dean A. Chin (SVP, CAO, Corporate Controller and Treasurer) on September 5, 2025 - Report signed by David M. Orr (EVP and CFO) and Dean A. Chin (SVP, CAO, Corporate Controller and Treasurer) on September 5, 2025[190](index=190&type=chunk)

Financial Data and Key Metrics Changes - Revenue grew 6.2% year over year to $2.2 billion, driven by 5% organic revenue growth and a 1.2% contribution from recent acquisitions [18] - Net income increased to $41.8 million or $0.67 per diluted share, compared to $4.7 million or $0.07 per diluted share last year [19] - Adjusted EBITDA rose 5% to $125.8 million, with an adjusted EBITDA margin flat at 5.9% [20][21] - Free cash flow was $150 million, an improvement of $135 million over Q2 and up $86 million over the prior year [25] Business Line Data and Key Metrics Changes - Business & Industry (BNI) revenue surpassed $1 billion for the quarter, up 3% from last year, driven by escalations and expansion with existing clients [21] - Aviation revenue grew 9% to $291.8 million, supported by positive travel trends and new wins [22] - Manufacturing & Distribution (M&D) generated $408.9 million in revenue, an 8% increase year over year, fueled by new contract wins and client expansions [23] - Education revenue rose 3% to $235.1 million, with operating profit growing 17% to $21.1 million [24] - Technical Solutions grew 19% to $249.5 million, with 7% from organic growth and 12% from acquisitions [24] Market Data and Key Metrics Changes - The prime office market is showing signs of recovery, with vacancy rates trending down from about 14.5% to closer to 13.6% by year-end [10] - E-commerce growth continues, with U.S. online retail sales rising 5.3% year over year in Q2 2025 to over $300 billion [11] - The aviation market is experiencing strong passenger demand, with TSA data showing daily checkpoint screenings averaging above 2.8 million [13] Company Strategy and Development Direction - The company is focusing on strengthening its presence in core markets and building lasting partnerships through strategic pricing decisions [6] - A company-wide restructuring program is underway, expected to generate at least $35 million in annual run-rate savings [8] - Investments in artificial intelligence are being made to enhance operations and client services, with a focus on integrating AI tools into various business functions [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth trajectory, citing strong cash flow performance and a robust pipeline across segments [8] - The company anticipates fourth-quarter earnings and margins to improve significantly from the third quarter, driven by cost and restructuring actions [17] - Management noted that while some markets are slower to recover, overall trends in prime office, electrification investment, and education remain positive [16] Other Important Information - The company repurchased approximately 1.5 million shares year to date for a total cost of $71.3 million, with an increase in share repurchase authorization by $115 million [8][26] - Total indebtedness stood at $1.6 billion, with available liquidity of $691 million [25] Q&A Session Summary Question: Growth in Manufacturing & Distribution segment - Management indicated that the growth acceleration is due to a combination of lapping previous headwinds and strong end-market focus, particularly in semiconductor and pharma sectors [34] Question: Free cash flow expectations for Q4 - Management confirmed expectations for free cash flow in Q4 to be around $140 million, supported by strong cash collections [36][38] Question: Margin pressures and growth investments - Management clarified that margin pressures are a combination of strategic pricing decisions and growth investments, particularly in BNI and M&D segments [42][43] Question: Competitive environment and new entrants - Management noted that while there are always strong competitors, the current environment is characterized by clients under pressure, leading to renegotiations rather than new bids [62][64] Question: Visibility on contract lengths and retention - Management emphasized the importance of long-term contracts and the ability to restructure them for future margin recovery [80][81]

Financial Data and Key Metrics Changes - Revenue grew 6.2% year over year to $2.2 billion, driven by 5% organic revenue growth and a 1.2% contribution from recent acquisitions [18] - Net income increased to $41.8 million or $0.67 per diluted share, compared to $4.7 million or $0.07 per diluted share last year [19] - Adjusted EBITDA was up 5% to $125.8 million, with an adjusted EBITDA margin flat at 5.9% [19][20] Business Line Data and Key Metrics Changes - Business & Industry (BNI) revenue surpassed $1 billion for the quarter, up 3% from last year, driven by escalations and expansion with existing clients [20] - Aviation revenue grew 9% to $291.8 million, supported by positive travel trends and new wins [21] - Manufacturing & Distribution (M&D) generated $408.9 million in revenue, an 8% increase year over year, fueled by new contract wins and client expansions [22] - Education revenue rose 3% to $235.1 million, with operating profit growing 17% to $21.1 million [23] - Technical Solutions grew 19% to $249.5 million, with 7% from organic growth and 12% from acquisitions [23] Market Data and Key Metrics Changes - The prime office market is showing signs of recovery, with vacancy rates trending down from about 14.5% to closer to 13.6% by year-end [10] - E-commerce growth continues, with U.S. online retail sales rising 5.3% year over year in Q2 of 2025 [12] - The aviation market is experiencing strong passenger demand, with TSA data showing daily checkpoint screenings averaging above 2.8 million [12] Company Strategy and Development Direction - The company is focusing on strengthening its presence in core markets and building lasting partnerships through thoughtful pricing decisions [5] - A company-wide restructuring program is underway, expected to generate at least $35 million in annual run-rate savings [8] - Investments in artificial intelligence are being made to enhance operational efficiency and client service [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth trajectory, citing strong free cash flow and a robust pipeline of new business [8][16] - The company expects fourth-quarter earnings and margins to improve significantly from the third quarter, driven by cost and restructuring actions [17] - Management noted that the current operating environment remains dynamic, with some markets recovering slower than others [5][11] Other Important Information - The company repurchased approximately 1.5 million shares year to date for $71.3 million, with an increase in share repurchase authorization by $115 million [8][25] - Free cash flow was reported at $150 million, an improvement of $135 million over Q2 [24] Q&A Session Summary Question: Growth in Manufacturing & Distribution segment - Management indicated that the growth acceleration is due to a combination of lapping previous headwinds and strong end market focus, particularly in semiconductors and pharmaceuticals [31][32] Question: Free cash flow expectations for Q4 - Management confirmed expectations for free cash flow in Q4 to be around $170 million, aligning with previous guidance [33][34] Question: Margin pressures and growth investments - Management categorized margin pressures as a combination of growth investments and strategic pricing decisions to protect client relationships [40][41] Question: Competitive environment and new entrants - Management noted that while there are always strong competitors, the current environment is not seeing significant new entrants, and the focus remains on collaborative negotiations with clients [59][60] Question: Visibility on contract lengths and retention - Management emphasized the importance of long-term contracts and the ability to restructure them for future margin recovery [78][80]

ABM Industries (ABM) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.68%. A quarter ago, it was expected that this provider of cleaning and other maintenance services for commercial buildings, hospitals and airports would post earnings of $0.87 per share when it actually produced ...