Workflow
ABM Industries(ABM) - 2025 Q1 - Quarterly Results
ABMABM Industries(ABM)2025-03-12 11:02

Revenue and Income - Revenue for Q1 fiscal 2025 was 2.1billion,a2.22.1 billion, a 2.2% increase year-over-year, driven by 1.6% organic growth and contributions from acquisitions[5] - Net income for the period was 43.6 million, or 0.69perdilutedshare,comparedto0.69 per diluted share, compared to 44.7 million, or 0.70perdilutedshareintheprioryear[8]−Adjustednetincomewas0.70 per diluted share in the prior year[8] - Adjusted net income was 55.3 million, or 0.87perdilutedshare,upfrom0.87 per diluted share, up from 54.8 million, or 0.86perdilutedshareintheprioryear[9]−Operatingprofitroseby4.70.86 per diluted share in the prior year[9] - Operating profit rose by 4.7% to 77.6 million, up from 74.1millionyear−over−year[31]−Basicanddilutednetincomepersharebothdecreasedby1.474.1 million year-over-year[31] - Basic and diluted net income per share both decreased by 1.4% to 0.69 from 0.70[27]AdjustedMetrics−AdjustedEBITDAfortheperiodwas0.70[27] Adjusted Metrics - Adjusted EBITDA for the period was 120.6 million, with an adjusted EBITDA margin of 5.9%, compared to 116.7millionand5.9116.7 million and 5.9% in the prior year[10] - Adjusted EBITDA for the three months ended January 31, 2025, was 120.6 million, compared to 116.7millionintheprioryear[33]CashFlowandWorkingCapital−Netcashusedinoperatingactivitieswas116.7 million in the prior year[33] Cash Flow and Working Capital - Net cash used in operating activities was 106.2 million, with free cash flow at negative 122.9million,reflectingatemporaryincreaseinworkingcapitalduetothenewERPsystem[11]−FreecashflowforthethreemonthsendedJanuary31,2025,was122.9 million, reflecting a temporary increase in working capital due to the new ERP system[11] - Free cash flow for the three months ended January 31, 2025, was (122.9) million, a decline from (13.7)millioninthesameperiodof2024[36]DividendsandShareRepurchase−Acashdividendof(13.7) million in the same period of 2024[36] Dividends and Share Repurchase - A cash dividend of 0.265 per common share was declared, marking the company's 236th consecutive quarterly cash dividend[15] - The company declared dividends of 0.265percommonshare,anincreasefrom0.265 per common share, an increase from 0.225 per common share in the previous year[27] - The company repurchased 0.4 million shares at an average price of 51.23pershare,totaling51.23 per share, totaling 21.3 million[14] Segment Performance - Technical Solutions and Aviation segments reported revenue increases of 22% and 8%, respectively, while Education grew by 2%[5] - The Technical Solutions segment saw a significant revenue increase of 21.9%, reaching 202.3millioncomparedto202.3 million compared to 165.9 million in the prior year[31] Assets and Liabilities - Total current assets increased to 1,921.5millionasofJanuary31,2025,from1,921.5 million as of January 31, 2025, from 1,788.7 million as of October 31, 2024[30] - Total liabilities rose to 3,438.2millionasofJanuary31,2025,comparedto3,438.2 million as of January 31, 2025, compared to 3,315.2 million at the end of the previous quarter[30] Tax and Claims - The company's tax impact for FY2025 and FY2024 is calculated using a federal and state statutory rate of 28.11%[40] - The three months ended January 31, 2025, included a benefit of 0.1millionforuncertaintaxpositionswithexpiringstatutes,comparedtoabenefitof0.1 million for uncertain tax positions with expiring statutes, compared to a benefit of 0.3 million for the same period in 2024[40] - For the three months ended January 31, 2025, self-insurance claims related to prior period accident years increased by 0million,comparedtoanincreaseof0 million, compared to an increase of 5.3 million for the same period in 2024[37] Outlook - The company raised the lower end of its fiscal 2025 adjusted EPS outlook by 0.05,nowprojectingadjustedEPSbetween0.05, now projecting adjusted EPS between 3.65 and $3.80[16]