ABM Industries(ABM) - 2025 Q2 - Quarterly Results

Revenue and Income - Revenue increased by 4.6% to $2.1 billion, with organic growth contributing 3.8$42.2 million, or $0.67 per diluted share, compared to$43.8 million, or $0.69 per diluted share in the prior year[8] - Adjusted net income grew to$54.1 million, or $0.86 per diluted share, compared to$52.3 million, or $0.82 per diluted share last year[9] - Operating profit for the same period rose by 1.2$82.3 million, up from $81.3 million[32] - Net income decreased by 3.7$42.2 million, compared to $43.8 million in the prior year[32] - Basic net income per share fell by 2.9$0.67 from $0.69[26] - Net income for the six months ended April 30, 2025, decreased by 3.0$85.8 million from $88.4 million in 2024[33] - Adjusted net income for the six months ended April 30, 2025, was$109.4 million, an increase from $103.3 million in 2024[34] Earnings and Adjusted Metrics - Adjusted EBITDA for the period increased to$125.9 million, with an adjusted EBITDA margin of 6.2%[9] - Adjusted EBITDA for the six months ended April 30, 2025, was $246.6 million, compared to$232.3 million in 2024, reflecting a solid operational performance[34] - The company reaffirms its full year adjusted EPS outlook of $3.65 to$3.80[14] Cash Flow and Financial Position - Cash flow from operations increased by $138.5 million compared to the previous quarter, highlighting progress in ERP system deployment[11] - Net cash provided by operating activities for the three months ended April 30, 2025, was$32.3 million, a significant decrease from $117.0 million in 2024[29] - Free cash flow for the six months ended April 30, 2025, was$(107.8) million, a decrease from $87.7 million in 2024, indicating cash flow challenges[36] - Total current assets increased to$2,014.1 million from $1,788.7 million, reflecting a growth of 12.6$3,486.3 million, up from $3,315.2 million, indicating an increase of 5.2$1.6 billion, resulting in a total leverage ratio of 2.9X[12] Segment Performance - The Business & Industry segment grew by 3%, supported by recovery in the U.S. prime office space market[7] - ATS revenue increased by 19%, benefiting from significantly higher microgrid revenue[7] - The Technical Solutions segment saw a revenue increase of 19.3% to $210.2 million compared to$176.2 million in the previous year[32] - The Technical Solutions segment experienced the highest revenue growth of 20.5%, reaching $412.4 million, compared to$342.1 million in the previous year[33] - The company reported an increase in aviation revenue by 8.7%, reaching $530.2 million compared to$487.8 million in 2024[33] Dividends and Expenses - Dividends declared per common share increased to $0.265 from$0.225, representing an increase of 17.8%[26] - Interest expense decreased by 16.1% to $23.9 million from$20.6 million, reflecting improved cost management[32] - The company incurred $33.0 million in items impacting comparability for the six months ended April 30, 2025, up from$21.1 million in 2024[34]