ABM Reports First Quarter Fiscal 2025 Results

Core Insights - ABM reported a revenue of $2.1 billion for the first quarter of fiscal 2025, marking a 2.2$43.6 million, or $0.69 per diluted share, compared to$44.7 million, or $0.70 per diluted share in the previous year [5][30] - Adjusted net income was$55.3 million, or $0.87 per diluted share, reflecting an increase from$54.8 million, or $0.86 per diluted share in the prior year [6][30] - The company raised the lower end of its fiscal 2025 adjusted EPS outlook by$0.05, now projecting a range between $3.65 and$3.80 [14] Financial Performance - Adjusted EBITDA for the period was $120.6 million, with an adjusted EBITDA margin of 5.9$106.2 million, with free cash flow at negative $122.9 million, primarily due to a temporary increase in working capital related to the new ERP system [8][30] - Total indebtedness at the end of the first quarter was$1,590.2 million, with a leverage ratio of 2.9X [10][11] Strategic Developments - The company successfully launched a cloud-based ERP system for Business & Industry and Manufacturing & Distribution, which is expected to drive cost efficiencies and enhance operational capabilities [3][4] - ABM's confidence in the commercial real estate market is bolstered by a 24% sequential increase in U.S. commercial office leasing activity during the fourth quarter of the previous calendar year [3][4] Market Outlook - The company anticipates that the commercial real estate markets, particularly high-quality office buildings, will return to growth in 2025 [3][4] - ABM expects its other end markets to remain broadly healthy, supported by a strong sales pipeline and market-leading technology [3][4]