Reasons Why You Should Retain ABM Industries Stock in Your Portfolio

Core Insights - ABM Industries (ABM) has a Growth Score of B, indicating a solid quality and sustainability of its growth, with expected earnings growth of 18.9% in fiscal 2026 and 7.9% in fiscal 2027, alongside revenue growth of 5% and 1.6% respectively [2][9] Group 1: Revenue Growth Factors - ABM's revenue growth is driven by recent client acquisitions and expansions in the Aviation and Manufacturing & Distribution sectors, including a new passenger services contract at a major global airport [3][9] - The company is focusing on the aviation sector, with several additional contracts anticipated in 2026 [3] Group 2: Technological Investments - ABM is enhancing its internal processes through investments in AI, which include automation of Request for Proposal, smarter HR support tools, and improved client-facing operations [4] Group 3: Strategic Acquisitions - ABM plans to acquire WGNSTAR, a provider of managed technical workforce solutions, expected to close in Q1 2026, which will enhance its technical capabilities and add over 1,300 skilled employees [5][9] Group 4: Shareholder Value - ABM is committed to enhancing shareholder value through consistent dividends and share buybacks, distributing $57.5 million, $56.5 million, and $65.6 million in dividends, and returning $138.1 million, $56.1 million, and $122.2 million through share repurchases in fiscal years 2023, 2024, and 2025 respectively [6] - The company's current ratio was 1.49 at the end of Q4 fiscal 2025, indicating strong liquidity compared to the industry average of 1.27 [6]