ABM Industries(US:ABM) ZACKS·2026-02-11 13:55Core Insights - ABM Industries (ABM) stock increased by 11.3% over the past three months, outperforming the industry which fell by 11% [1] - The S&P 500 composite gained 2.2% during the same period [1] Financial Performance - Earnings for fiscal 2026 and 2027 are projected to rise by 18.9% and 6.5%, respectively [3] - Revenue growth is expected to be 4.9% in fiscal 2026 and 2.2% in fiscal 2027 [3] Strategic Developments - ABM strengthened its position in the semiconductor and high-technology services market by acquiring WGNSTAR, enhancing its capabilities in cleanroom operations and production tool management [4] - The company is focusing on expanding higher-margin, specialized engineering services and increasing its presence in semiconductor fabrication environments [4] - ABM partnered with the City of Alexandria Transit Company DASH to install an in-route pantograph charger, supporting fleet electrification and improving operational flexibility [5] Shareholder Value - ABM is committed to enhancing shareholder value through disciplined capital returns, including steady dividends and share repurchases [6] - In Q4 of fiscal 2025, ABM repurchased $73.0 million of stock, totaling $121.3 million for the full fiscal year, reducing outstanding shares by 4% [6] - The quarterly dividend was increased by 9% to $0.29 per share, marking 58 consecutive years of annual dividend growth [6] Liquidity Position - ABM's current ratio was 1.49 at the end of Q4 fiscal 2025, above the industry average of 1.27, indicating strong liquidity [8] Cost Pressures - ABM faces rising operating costs, which increased by 4.2% in fiscal 2023, 4.1% in fiscal 2024, and 4.7% in fiscal 2025, potentially impacting margins and earnings growth [9] Macroeconomic Risks - The company is exposed to macroeconomic uncertainties, including tariff pressures and changes in government policies that could affect input costs and project timelines [10]