Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $2.3 billion, a 5.4% year-over-year increase, driven by 4.8% organic growth and a modest contribution from a recent acquisition in Ireland [16] - Adjusted EPS was $0.88, reflecting a $0.26 headwind from prior-year self-insurance adjustments, indicating strong underlying performance when adjusted [18] - Adjusted EBITDA was $124.2 million with an adjusted EBITDA margin of 5.6%, compared to $125.6 million and 6% in the prior year [18] Business Line Data and Key Metrics Changes - Business and Industry (B&I) revenue surpassed $1 billion, up 2% year-over-year, with operating profit of $80.6 million and a margin of 7.7% [19] - Aviation revenue grew 7% to $296.7 million, with an operating profit of $16.8 million and a margin of 5.7% [20] - Manufacturing and Distribution (M&D) revenue increased 8% to $417.4 million, with an operating profit of $35.8 million and a margin of 8.6% [20] - Education revenue rose 2% to $233.7 million, with operating profit increasing 44% to $18.8 million and margins expanding to 8% [21] - Technical Solutions revenue increased 16% to $298.7 million, with an operating profit of $37.1 million and a margin of 12.4% [22] Market Data and Key Metrics Changes - The company reported strong demand across key end markets, particularly in technical solutions, aviation, and manufacturing and distribution, indicating a healthy market environment heading into fiscal 2026 [12] - The acquisition of WGNSTAR is expected to significantly enhance the company's position in the semiconductor market, which is experiencing multi-year growth [10] Company Strategy and Development Direction - The company is focused on enhancing its portfolio and expanding technical and data-enabled capabilities, aiming to evolve into a higher-growth organization [31] - The acquisition of WGNSTAR is seen as a strategic move to penetrate the semiconductor sector more deeply, leveraging existing client relationships and expanding service offerings [40][82] - The company plans to continue investing in AI capabilities and technology to improve operational efficiency and unlock new revenue streams [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into fiscal 2026, expecting organic revenue growth of 3%-4% and adjusted EPS in the range of $3.85-$4.15 [13][25] - The restructuring program is expected to yield annual savings of $35 million, with most benefits realized in fiscal 2026 [11] - Management highlighted the importance of disciplined cost management and operational efficiency in navigating a complex operating environment [12] Other Important Information - The company ended the year with total indebtedness of $1.6 billion and available liquidity of $681.6 million [22] - Free cash flow for the fourth quarter was $112.7 million, a significant improvement from the prior year [23] Q&A Session Summary Question: Margin trajectory and segment operating margin - Management introduced a new segment operating margin metric to better reflect operational health, indicating a blend of restructuring benefits and pricing decisions affecting margins [34][36] Question: Strategic attraction of the WGNSTAR deal - The acquisition is strategically compelling due to the growth potential in the semiconductor space, with expectations for accretion in year two driven by growth and margin expansion [38][42] Question: Pricing concessions in the B&I business - Pricing discussions have stabilized, with no dramatic changes noted in the fourth quarter compared to previous quarters [48][50] Question: ERP roadmap and free cash flow outlook - The majority of transactions are now on the new ERP system, with a target of around $250 million in normalized cash flow for the upcoming year [51][53] Question: Self-insurance adjustments impact - The prior-year self-insurance adjustments are within industry standards, with no significant changes expected moving forward [70][73] Question: Future M&A opportunities - The company is actively looking for acquisition opportunities that align with strategic growth areas, maintaining a balanced approach to leverage [97]

Financial Data and Key Metrics Changes - The company reported record annual revenue of $8.7 billion, a 5% increase over the previous year, with fourth-quarter revenue growing 5.4% year-over-year to $2.3 billion, driven by 4.8% organic growth [7][16] - Adjusted EPS was $0.88, reflecting a $0.26 headwind from prior-year self-insurance adjustments, while adjusted EBITDA was $124.2 million with a margin of 5.6% [18][19] - Net income for the quarter increased to $34.8 million, or $0.56 per diluted share, compared to a loss of $11.7 million in the prior year [17] Business Line Data and Key Metrics Changes - Business and Industry (B&I) revenue surpassed $1 billion, up 2% year-over-year, with operating profit of $80.6 million and a margin of 7.7% [19] - Aviation revenue grew 7% to $296.7 million, with an operating profit of $16.8 million and a margin of 5.7% [20] - Manufacturing and Distribution (M&D) generated $417.4 million in revenue, an 8% increase year-over-year, with an operating profit of $35.8 million and a margin of 8.6% [20] - Technical Solutions had revenue of $298.7 million, a 16% increase, with an operating profit of $37.1 million and a margin of 12.4% [22] Market Data and Key Metrics Changes - The company noted strong demand across key end markets, particularly in Technical Solutions, Aviation, and Manufacturing and Distribution, with expectations for continued growth in fiscal 2026 [12][24] - The acquisition of WGNSTAR is expected to strengthen the company's position in the semiconductor market, which is experiencing multi-year growth [10][81] Company Strategy and Development Direction - The company is focused on enhancing its portfolio and expanding technical and data-enabled capabilities, with a commitment to disciplined capital allocation [30][31] - The acquisition of WGNSTAR is seen as a strategic move to penetrate the semiconductor fabrication sector, which has significant growth potential [10][40] - The company aims to achieve organic revenue growth of 3%-4% in fiscal 2026, with expectations for adjusted EPS in the range of $3.85-$4.15 [13][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into fiscal 2026, citing a strong backlog and healthy demand across key markets [12][30] - The restructuring program is expected to yield annualized savings of $35 million, with over three-quarters of the savings realized in fiscal 2026 [11][13] - Management acknowledged the challenges of the macro environment but highlighted the company's adaptability and operational excellence [29][30] Other Important Information - The company repurchased 1.6 million shares in the fourth quarter at an average price of $45.84, totaling $73 million, and reduced its outstanding share count by 4% [23] - The company ended the year with total indebtedness of $1.6 billion and available liquidity of $681.6 million [22] Q&A Session Summary Question: Margin trajectory and segment operating margin - Management introduced a new segment operating margin metric to better reflect operational health, with benefits from restructuring and mix expected to influence margins in 2026 [34][36] Question: Strategic attraction of the WGNSTAR deal - The acquisition is seen as a compelling strategic imperative due to the growth potential in the semiconductor space, with expectations for significant revenue synergies [38][40] Question: Pricing concessions in the B&I business - Management noted that pricing discussions have stabilized, with no dramatic concessions observed in the fourth quarter [48][50] Question: Free cash flow outlook for 2026 - The company anticipates normalized free cash flow of around $250 million, factoring in transformation and integration costs [53][56] Question: Future M&A opportunities - Management indicated a balanced approach to acquisitions, with a focus on compelling strategic opportunities in high-growth markets [96]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $2.3 billion, a 5.4% year-over-year increase, driven by 4.8% organic growth and contributions from a recent acquisition in Ireland [15][16] - Adjusted EPS was $0.88, reflecting a $0.26 headwind from prior-year self-insurance adjustments, indicating strong underlying performance when adjusted [17][24] - Adjusted EBITDA was $124.2 million with a margin of 5.6%, compared to $125.6 million and 6% in the prior year, impacted by prior-year self-insurance adjustments [17][18] Business Line Data and Key Metrics Changes - Business and Industry (B&I) revenue surpassed $1 billion, up 2% year-over-year, with operating profit of $80.6 million and a margin of 7.7% [18] - Aviation revenue grew 7% to $296.7 million, with operating profit of $16.8 million and a margin of 5.7% [18][19] - Manufacturing and Distribution (M&D) revenue increased 8% to $417.4 million, with operating profit of $35.8 million and a margin of 8.6% [19][20] - Education revenue rose 2% to $233.7 million, with operating profit increasing 44% to $18.8 million and margins expanding to 8% [20][21] - Technical Solutions revenue increased 16% to $298.7 million, with operating profit rising 32% to $37.1 million and a margin of 12.4% [21] Market Data and Key Metrics Changes - The company noted strong demand across key end markets, particularly in technical solutions, aviation, and manufacturing and distribution, indicating a healthy market environment heading into fiscal 2026 [10][11] - The acquisition of WGNSTAR is expected to strengthen the company's position in the semiconductor market, which is experiencing multi-year growth due to U.S. semiconductor onshoring [8][10] Company Strategy and Development Direction - The company is focused on enhancing its portfolio and expanding technical and data-enabled capabilities, aiming for long-term growth [29][30] - The acquisition of WGNSTAR is seen as a strategic move to penetrate the semiconductor sector, which has a low current outsourcing rate, providing significant growth opportunities [8][54] - The company plans to continue investing in AI capabilities and ERP implementation to improve operational efficiency and unlock new revenue streams [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into fiscal 2026, expecting organic revenue growth of 3%-4% and adjusted EPS in the range of $3.85-$4.15 [11][24] - The restructuring program is expected to yield annual savings of $35 million, with most benefits realized in fiscal 2026 [9][11] - Management highlighted the importance of maintaining operational excellence and adaptability in a complex operating environment [10][29] Other Important Information - The company ended the year with total indebtedness of $1.6 billion and available liquidity of $681.6 million [22][23] - Free cash flow for the fourth quarter was $112.7 million, significantly improved from the prior year [23] Q&A Session Summary Question: What are the drivers behind the relatively flat margin outlook for 2026 despite restructuring savings? - Management explained that the new Segment Operating Margin metric reflects the operating health of the business and incorporates some mix and pricing decisions affecting margins [32] Question: Can you discuss the strategic attraction of the WGNSTAR acquisition? - The acquisition is compelling due to the growth potential in the semiconductor space, allowing the company to penetrate fabrication centers where it previously could not operate [33][35] Question: What is the outlook for pricing concessions in the B&I business? - Management indicated that pricing discussions have stabilized and are not as dramatic as in previous quarters, reflecting a normalization in the market [38] Question: Can you provide details on the remaining pieces of the ERP roadmap for 2026? - The majority of transactions are now on the new ERP system, with a few less complex groups remaining to be integrated, which is expected to enhance cash flow [40] Question: What is the expected free cash flow for 2026, considering one-time items? - The normalized free cash flow target is around $250 million, with several one-time costs expected to reduce this figure to approximately $185 million [42] Question: What is the expected EBITDA margin for WGNSTAR and the anticipated synergies? - WGNSTAR has mid-teen EBITDA margins, and the company expects significant revenue synergies from cross-selling opportunities in the semiconductor space [56]

Core Insights - ABM Industries reported quarterly earnings of $0.88 per share, missing the Zacks Consensus Estimate of $1.1 per share, and down from $0.9 per share a year ago [1] - The company posted revenues of $2.3 billion for the quarter, exceeding the Zacks Consensus Estimate by 1.19%, and up from $2.18 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -20.00%, following a previous quarter where earnings were $0.82 per share against an expectation of $0.95, resulting in a surprise of -13.68% [2] - Over the last four quarters, ABM Industries has surpassed consensus EPS estimates only once [2] Revenue Insights - The company has consistently topped consensus revenue estimates, achieving this four times over the last four quarters [3] Stock Performance - ABM Industries shares have declined approximately 10.6% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $2.2 billion, and for the current fiscal year, it is $4.00 on revenues of $9.02 billion [8] - The estimate revisions trend for ABM Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Business - Services industry, to which ABM Industries belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Performance - Record revenue reached $2.3 billion, a 5.4% increase[10, 15] - Organic revenue growth was 5%[10] - Adjusted EBITDA was $124.2 million[10] - Adjusted EPS reached $0.88[10] - Free cash flow was $112.7 million, a significant increase from the previous year[10] Segment Performance - Business & Industry revenue increased by 2.3% to $1,048.8 million[23, 24] - Aviation revenue increased by 7.3% to $296.7 million[25] - Manufacturing & Distribution revenue increased by 7.7% to $417.4 million[28] - Education revenue increased by 1.6% to $233.7 million[29, 30] - Technical Solutions revenue increased by 16% to $298.7 million[14, 32] Fiscal Year 2026 Outlook - The company anticipates organic revenue growth of 3%-4%[39] - Total revenue growth is projected to be 4%-5%[39] - Adjusted EPS is expected to be in the range of $3.85-$4.15[39]

Financial Performance - Fourth quarter revenue reached a record $2.3 billion, an increase of 5.4% year-over-year, with organic growth contributing 4.8%[4] - Net income for the quarter was $34.8 million, or $0.56 per diluted share, compared to a net loss of $(11.7) million, or $(0.19) per share in the prior year[7] - Adjusted EBITDA for the quarter was $124.2 million, with an adjusted EBITDA margin of 5.6%, compared to $125.6 million and 6.0% in the prior year[9] - Full year fiscal 2025 revenue was $8.7 billion, a 4.6% increase over the prior year, driven by 3.8% organic growth and 0.8% from acquisitions[12] - Revenues for the three months ended October 31, 2025, were $2,295.3 million, representing a 5.4% increase from $2,177.3 million in the same period of 2024[33] - For the fiscal year ended October 31, 2025, total revenues reached $8,745.9 million, up 4.6% from $8,359.4 million in 2024[34] - Total revenues for the three months ended October 31, 2025, increased by 5.4% to $2,295.3 million compared to $2,177.3 million in the same period of 2024[38] - For the fiscal year ended October 31, 2025, total revenues increased by 4.6% to $8,745.9 million from $8,359.4 million in 2024[39] Profitability - Operating profit for the same period was $68.4 million, a significant increase from $19.2 million in the prior year, indicating a notable improvement in operational efficiency[33] - The company reported an operating profit of $311.7 million for the fiscal year 2025, a 47.0% increase from $212.0 million in 2024[34] - Net income for the fiscal year 2025 was $162.4 million, a 99.6% increase from $81.4 million in 2024[39] - The segment operating margin for the three months ended October 31, 2025, improved to 8.2%, up from 7.9% in the same period of the previous year[38] - The company incurred $27.9 million in items impacting comparability for the three months ended October 31, 2025, compared to $77.5 million in the same period of 2024[41] Cash Flow and Investments - Net cash provided by operating activities for the three months ended October 31, 2025, was $133.4 million, significantly higher than $30.3 million in the same period of 2024[36] - Free cash flow for the three months ended October 31, 2025, reached $112.7 million, compared to $15.5 million in the same period of 2024[42] - Total cash used in investing activities for the fiscal year 2025 was $115.6 million, a decrease from $171.9 million in 2024, indicating a more conservative investment approach[36] - The company reported additions to property, plant, and equipment of $20.7 million for the three months ended October 31, 2025, up from $14.8 million in 2024[42] Shareholder Returns - The Board approved a 9% increase in the quarterly dividend to $0.29 per common share, marking the 58th consecutive year of annual dividend increases[19] - The company declared dividends of $0.265 per common share for the three months ended October 31, 2025, compared to $0.225 in the same period of 2024[33] - The company repurchased $73.0 million of common stock in the fourth quarter and $121.3 million for the full year, reducing outstanding shares by 4%[4] Debt and Liquidity - The company ended the quarter with total indebtedness of $1.6 billion and a leverage ratio of 2.7x, with available liquidity of $681.6 million[17] - Current liabilities decreased to $1,305.7 million in 2025 from $1,348.4 million in 2024, reflecting improved financial management[37] - Interest expense for the fiscal year 2025 was $96.4 million, up from $85.0 million in 2024, reflecting increased borrowing costs[34] Future Outlook - For fiscal 2026, adjusted EPS is projected to be in the range of $3.85 to $4.15, excluding any potential prior year self-insurance adjustments[20] - Organic revenue growth for fiscal 2026 is expected to be between 3% to 4%, with an additional point of growth anticipated from the WGNSTAR acquisition[20] Operational Efficiency - The company incurred costs associated with restructuring programs aimed at improving operational efficiency[44] - Discrete transformational costs for developing technological needs amounted to significant investments in new systems and tools[45] - The company revised its non-GAAP financial measures to include prior year self-insurance adjustments for better comparability[43] Taxation - The tax impact for FY2025 was calculated using a federal and state statutory rate of 27.72%[47]

Core Insights - ABM reported record quarterly revenue of $2.3 billion for Q4 2025, reflecting a 5.4% increase year-over-year, driven by 4.8% organic growth and contributions from acquisitions [2][4][10] - The company achieved a full-year revenue of $8.7 billion, marking a 4.6% increase from the previous year, with all segments showing organic growth [10][11] - Adjusted EPS for Q4 was $0.88, unchanged from the previous year, while adjusted EBITDA was $124.2 million, slightly down from $125.6 million [4][8][12] Financial Performance - Q4 net income was $34.8 million, or $0.56 per diluted share, a significant improvement from a net loss of $(11.7) million in the prior year [4][6] - Full-year net income reached $162.4 million, or $2.59 per diluted share, compared to $81.4 million, or $1.28 per diluted share, in the previous year [11][12] - Adjusted EBITDA margin for Q4 was 5.6%, down from 6.0% in the prior year, impacted by prior year self-insurance adjustments [8][12] Segment Performance - Technical Solutions led revenue growth with a 16% increase, followed by Manufacturing & Distribution at 8%, and Aviation at 7% [5][10] - Business & Industry and Education segments each reported 2% revenue growth, demonstrating resilience in their respective markets [10][11] - For the full year, Technical Solutions grew 10%, Aviation 8%, Manufacturing & Distribution 4%, and both Business & Industry and Education 2% [10][11] Shareholder Returns - The company repurchased $73.0 million of common stock in Q4 and $121.3 million for the full year, reducing the outstanding share count by 4% [2][16] - A 9% increase in the quarterly dividend was approved, raising it to $0.29 per common share, marking the 58th consecutive year of annual dividend increases [17][18] Outlook - For fiscal 2026, ABM expects organic revenue growth of 3% to 4%, with an additional point of growth anticipated from the WGNSTAR acquisition [18] - Adjusted EPS is projected to be in the range of $3.85 to $4.15, excluding impacts from prior year self-insurance adjustments [18]

Core Insights - ABM has announced a definitive agreement to acquire WGNSTAR for approximately $275 million, enhancing its position in the semiconductor and technology manufacturing markets [1][5][6] - WGNSTAR operates in the U.S. and Ireland, providing managed workforce solutions and equipment support services, generating over half of its revenue from integrated workforce programs [2][3] - The acquisition is expected to significantly expand ABM's semiconductor solutions portfolio to approximately $325 million in annual revenue, positioning it among the largest integrated service providers in North America [3][6] Transaction Overview - The acquisition will be funded through cash on hand and existing credit facilities, with the transaction expected to close in ABM's second fiscal quarter of 2026 [7] - WGNSTAR is projected to generate annual revenue of approximately $135 million in calendar 2025, with an anticipated annual growth rate of about 10% [5][6] - The acquisition is expected to be modestly dilutive to adjusted EPS in fiscal 2026 but accretive in fiscal 2027, driven by growth and synergy realization [6] Strategic Rationale - The growth potential in WGNSTAR's core services is significant, with a multi-billion-dollar addressable market that is currently underutilized [3] - The acquisition aligns with U.S. semiconductor onshoring initiatives and is supported by CHIPS Act incentives and record levels of private investment [3] - ABM aims to leverage WGNSTAR's expertise in semiconductor operations to meet the increasing demand for domestic semiconductor production [4]

ABM Industries Incorporated (NYSE:ABM) will release earnings results for the fourth quarter before the opening bell on Wednesday, Dec. 17.Analysts expect the New York-based company to report quarterly earnings at $1.09 per share, up from 90 cents per share in the year-ago period. The consensus estimate for ABM's quarterly revenue is $2.27 billion, compared to $2.18 billion a year earlier, according to data from Benzinga Pro.On Oct. 30, ABM announced the appointment of Barry Hytinen to its Board of Directors ...

Group 1 - ABM Industries Incorporated is set to release its fourth-quarter earnings results on December 17, with expected earnings of $1.09 per share, an increase from $0.90 per share in the same period last year [1] - The consensus estimate for ABM's quarterly revenue is $2.27 billion, compared to $2.18 billion a year earlier [1] Group 2 - Barry Hytinen was appointed to ABM's Board of Directors on October 30, and the company's shares fell by 0.9% to close at $46.64 [2] - Analysts have varying ratings on ABM stock, with Freedom Capital Markets initiating coverage with a Buy rating and a price target of $54 [3] - UBS maintained a Buy rating and raised the price target from $54 to $55, while Baird downgraded the stock from Outperform to Neutral, cutting the price target from $56 to $54 [3] - Truist Securities upgraded the stock from Hold to Buy, increasing the price target from $55 to $58, and BTIG initiated coverage with a Buy rating and a price target of $1,115 [3]