ABM Industries(ABM) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue increased by 6.2% year-over-year to $2.2 billion, driven by 5.0% organic growth and a 1.2% contribution from acquisitions[4] - Net income rose to $41.8 million, or $0.67 per diluted share, compared to $4.7 million, or $0.07 per diluted share, in the prior year[6] - Adjusted net income was $51.7 million, or $0.82 per diluted share, down from $53.6 million, or $0.84 per diluted share, last year[7] - Operating profit for Q3 2025 was $83.4 million, significantly up from $37.4 million in Q3 2024, marking a notable improvement[29] - Net income for Q3 2025 was $41.8 million, compared to $4.7 million in Q3 2024, indicating a substantial increase[29] - For the nine months ended July 31, 2025, revenues totaled $6,450.5 million, a 4.3% increase from $6,182.0 million in the same period of 2024[30] - Operating profit for the same period rose by 26.2% to $243.3 million, up from $192.8 million in 2024[36] - Net income for the nine months ended July 31, 2025, increased by 37.0% to $127.6 million, compared to $93.1 million in 2024[36] - The diluted net income per share for the nine months ended July 31, 2025, was $2.03, up from $1.46 in 2024[39] Cash Flow and Expenses - Operating cash flow increased by 120.1% to $175.0 million, and free cash flow rose by 134.3% to $150.2 million[9] - Net cash provided by operating activities for Q3 2025 was $175.0 million, up from $79.5 million in Q3 2024[31] - The company reported a decrease in selling, general and administrative expenses by 16.2% in Q3 2025, down to $177.5 million from $211.8 million in Q3 2024[29] - Free cash flow for the nine months ended July 31, 2025, was $151.8 million, compared to $42.4 million in 2024[40] - The company experienced a decrease in interest expense by 14.2%, totaling $72.1 million for the nine months ended July 31, 2025[36] - Interest expense for Q3 2025 was $25.3 million, compared to $21.2 million in Q3 2024, reflecting a 19.5% increase[29] Growth and Bookings - The company secured over $1.5 billion in new bookings, a 15% increase year-over-year, positioning for strong revenue and earnings growth[3] - ATS and Aviation segments led revenue growth, with increases of 19% and 9%, respectively[5] - Technical Solutions segment saw the highest revenue growth of 20.0%, reaching $662.0 million, up from $551.9 million in 2024[36] Future Outlook - The restructuring program is expected to deliver approximately $35 million of annualized cost savings, with savings beginning in the fourth quarter[11] - The company expects adjusted EPS for fiscal 2025 to be toward the lower end of the range of $3.65 to $3.80[17] - Adjusted EBITDA margin is a key metric for future planning, although specific forward-looking reconciliations to GAAP are not provided due to forecasting difficulties[27] Balance Sheet - The total indebtedness at the end of the third quarter was $1.6 billion, with a leverage ratio of 2.8X[13] - Total assets as of July 31, 2025, were $5,270.5 million, an increase from $5,097.2 million as of October 31, 2024[34] Dividends and Share Repurchase - The company declared dividends of $0.265 per common share in Q3 2025, up from $0.225 in Q3 2024[29] - The board approved a $150 million increase in share repurchase authorization, reflecting confidence in the company's strategic direction[15]