ABM Industries(US:ABM)2025-12-17 12:10Financial 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]