ABM Stock Price Decreases 8% Since Reporting Q4 Earnings Miss

Core Viewpoint - ABM reported mixed results for the fourth quarter of fiscal 2025, with earnings per share (EPS) missing estimates while revenues exceeded expectations [1][2]. Financial Performance - ABM's EPS, excluding non-recurring items, was 88 cents, missing the Zacks Consensus Estimate by 20% and declining 2.2% year over year [2]. - Total revenues reached $2.3 billion, surpassing the consensus mark by 1.2% and increasing 5.4% from the previous year [2]. - Adjusted EBITDA was $124.2 million, down 1.1% from the year-ago quarter, with an adjusted EBITDA margin of 5.6%, a decline of 60 basis points from the previous year [6]. Segment Performance - The Business & Industry segment's revenues increased 2.3% year over year to $1 billion, meeting estimates [3]. - The Education segment's revenues were $233.7 million, up 1.6% from the previous year, also meeting projections [3]. - The Manufacturing & Distribution segment's revenues rose 7.7% year over year to $417.4 million, exceeding expectations [4]. - The Aviation segment's revenues increased 7.3% year over year to $296.7 million, surpassing estimates [4]. - Technical solutions revenues gained 16% year over year to $298.7 million but missed estimates [5]. Balance Sheet and Cash Flow - At the end of the fourth quarter of fiscal 2025, ABM had cash and cash equivalents of $104.1 million, up from $69.3 million in the previous quarter [7]. - Long-term debt remained flat at $1.5 billion [7]. - Net cash generated by operating activities was $133.4 million for the quarter, with free cash flow at $112.7 million [7]. Guidance - For fiscal 2026, ABM expects adjusted EPS to be at the lower end of $3.85-$4.15, with the midpoint of $4 being higher than the Zacks Consensus Estimate of $3.98 [8].