ABM Industries(ABM) GlobeNewswire·2025-06-06 10:58Core Insights - ABM reported a return to organic revenue growth in its Business & Industry segment, achieving 3.8% organic revenue growth and a total revenue increase of 4.6% to 1.1 billion in new bookings, marking an 11% year-over-year increase, indicating strong market positioning and innovation focus [2][4] - Adjusted net income rose to 0.86 per diluted share, compared to 0.82 per diluted share, in the prior year [6][7] Financial Performance - Revenue for the second quarter increased to 42.2 million, or 43.8 million, or 125.9 million, maintaining an adjusted EBITDA margin of 6.2% [8][7] Segment Performance - The Business & Industry segment grew by 3%, supported by recovery in the U.S. prime office space market [4][28] - The Manufacturing & Distribution segment saw a 2% increase, attributed to new client wins and favorable comparisons to the prior year [4][28] - Technical Solutions and Aviation segments reported significant revenue increases of 19% and 9%, respectively, with Technical Solutions benefiting from higher microgrid revenue [4][28] Cash Flow and Liquidity - Net cash provided by operating activities was 117.0 million in the prior year, primarily due to elevated working capital related to the ERP transition [9][23] - Free cash flow for the quarter was 101.4 million in the previous year [9][32] - The company had total indebtedness of 657.8 million at the end of the second quarter [10][9] Outlook - ABM reaffirmed its fiscal year 2025 adjusted EPS outlook in the range of 3.80, with an unchanged projected adjusted EBITDA margin of 6.3% to 6.5% [12][7] - The company remains optimistic about core markets, particularly high-quality office buildings, manufacturing and distribution facilities, and commercial aviation [2][12]