ABM Stock Price Decreases 11% Since Reporting Q1 Earnings Miss

Core Insights - ABM reported mixed first-quarter fiscal 2026 results, with earnings per share (EPS) missing estimates while revenues exceeded expectations [1][9] Financial Performance - ABM's EPS, excluding non-recurring items, was 83 cents, missing the Zacks Consensus Estimate by 4.6% and declining 4.6% year over year [2][9] - Total revenues reached $2.3 billion, surpassing the consensus mark by 1.3% and increasing 6.1% from the previous year [2][9] - The company's shares have declined 10.7% since the earnings release on March 10 [1][9] Segment Performance - The Business & Industry segment's revenues increased 4.1% year over year to $1.1 billion, exceeding estimates [3] - The education segment's revenues were $228.7 million, up 1.5% year over year, but missed expectations [3] - The Manufacturing & Distribution segment's revenues rose 7.1% to $422.3 million, meeting estimates [4] - The Aviation segment's revenues surged 10.2% to $297.7 million, missing expectations [4] - Technical solutions revenues increased 13.6% to $229.7 million, falling short of estimates [4] Profitability Metrics - Adjusted EBITDA was $117.8 million, a decrease of 2.3% from the previous year, with an adjusted EBITDA margin of 5.2%, down 50 basis points [5] Balance Sheet and Cash Flow - At the end of the first quarter, cash and cash equivalents were $100.4 million, down from $104.1 million in the previous quarter [6] - Long-term debt increased to $1.6 billion from $1.5 billion [6] - Net cash generated by operating activities was $62 million, with free cash flow at $48.9 million [6] Guidance - For fiscal 2026, ABM expects adjusted EPS to be in the range of $3.85 to $4.15, with the midpoint of $4 being lower than the Zacks Consensus Estimate of $4.08 [7][9]