Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $70 million, with adjusted EBITDA of approximately $22 million [14] - The company ended the quarter with $35 million in cash and $169 million in total liquidity, with a net leverage ratio of 0.1 times [19] - The financial outlook for 2025 consists of total revenue between $265 million and $285 million and adjusted EBITDA between $47 million and $57 million [19] Business Segment Data and Key Metrics Changes - The Government segment produced quarterly revenue of approximately $26 million, a decrease primarily due to the termination of the PCC contract and the South Texas Family Residential Center contract [14] - The HFS and All Other segments delivered quarterly revenue of approximately $44 million, benefiting from consistent customer demand [15] - The Workforce Hospitality Solutions segment generated approximately $5 million of revenue in Q1, with the majority of construction revenue expected in Q2 and Q3 [17] Market Data and Key Metrics Changes - The company is experiencing strong demand for hospitality solutions to support significant workforce requirements associated with large industrial projects across the U.S. [8] - The government segment is actively pursuing growth opportunities related to immigration initiatives, with a focus on reactivating facilities and supporting policy objectives [9][10] Company Strategy and Development Direction - The company announced two multi-year contracts expected to generate over $380 million in revenue, illustrating its ability to support critical domestic initiatives [5] - The strategic growth initiatives are focused on expanding and diversifying the contract portfolio across end markets, including both commercial and government sectors [12] - The company is evaluating a robust growth pipeline, particularly in large capital investments aimed at modernizing domestic infrastructure [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the existing customer base and operational flexibility, supporting a resilient business model [12] - The company is optimistic about the growth opportunities stemming from significant domestic capital investments and national security initiatives [20] - Management emphasized the importance of maintaining financial flexibility to react to value-enhancing opportunities as they arise [20] Other Important Information - The company redeemed all outstanding senior notes due in June 2025, resulting in expected annual interest savings of over $19 million [18] - The reactivation of the Dilley, Texas facility is progressing ahead of schedule, with expectations for full activation by September 2025 [14] Q&A Session Summary Question: Opportunities on idle assets in the government side - Management indicated strong interest in West Texas assets and ongoing conversations with the government, emphasizing the facility's readiness for immediate occupancy once funding is secured [28] Question: Contract details on the lithium front - The majority of revenue from the workforce subcontract will come from construction activities, expected to contribute about $65 million this year, with service revenue kicking in through 2027 [30][31] Question: M&A or new asset considerations - Management noted strong bid activity in large domestic infrastructure projects and indicated that immediate government opportunities may not require significant capital investment [38][42] Question: Trends in ADR and demand - Management stated that while utilization is slightly up, ADR is down due to a competitive market, with expectations for the remaining quarters to resemble Q1 [46] Question: Financial cadence for the WorkhorseHub contract - The majority of construction activity is expected in Q3, with Q4 being a minimal wrap-up period [50][52] Question: Opportunities to assist the government on immigration policy - Management plans to utilize existing assets first and then consider open market options or new builds if necessary [54]

Financial Data and Key Metrics Changes - In Q1 2025, revenues increased by 27% year over year to $253.4 million, marking the strongest first quarter performance since 2022 [5] - The net loss for Q1 2025 was $6 million or $0.07 per diluted share, compared to a net loss of $41.5 million or $0.50 per diluted share in Q1 2024 [16] - Adjusted EBITDA for Q1 2025 was positive $1.1 million, compared to a loss of $17.6 million in Q1 2024 [16] - Adjusted net loss for Q1 2025 was $2.4 million or $0.03 per share, compared to an adjusted net loss of $23.1 million or $0.28 per share in Q1 2024 [16] Business Line Data and Key Metrics Changes - Revenues from existing home sales in New York City increased by $17 million or 34% from Q1 2024 [10] - Development marketing's revenues in Q1 2025 increased by $14.6 million or 222% from Q1 2024 [10] - The average price per transaction rose to $2 million per home sale compared to $1.6 million in the comparable 2024 period [11] Market Data and Key Metrics Changes - The average price per home sale transaction for the last twelve months was $1.76 million compared to $1.6 million in the 2024 period [11] - In February, 343 homes sold for approximately $5 million or more, a 73% increase from the same quarter last year [12] - 104 home sales of $10 million or more represented a 76% increase from the same quarter last year [12] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, particularly in the development marketing division, which is crucial for long-term growth [8] - The company is prioritizing expense discipline while optimizing operations and balancing strategic investments with cost management [9] - The strategic M&A and business development unit is evaluating complementary acquisitions in ancillary businesses [9] Management's Comments on Operating Environment and Future Outlook - Management noted challenges such as elevated U.S. mortgage rates, low housing inventory, and soft transaction volume, but expressed optimism due to a 4% increase in average daily cash receipts in April 2025 compared to the same period in 2024 [7] - The company believes ongoing efforts are transforming it into a more diversified and resilient real estate services company [10] - Management is confident that the improvement in financial results positions the company for long-term success [10] Other Important Information - The company maintains active liquidity with cash and cash investments of approximately $137 million as of March 31, 2025 [14] - The decline in cash investments was $8.7 million in Q1 2025 compared to $28.4 million in Q1 2024, showing an improvement of approximately $20 million [15] Q&A Session Summary Question: No questions were raised during the call - The operator concluded the call without any questions from participants [17]

Core Points - ABM has successfully expanded and extended its senior secured credit agreement to a total of $2.2 billion, which includes a $1.6 billion revolving credit facility and a $600 million amortizing term loan, maturing on February 26, 2030 [1][2] - The new credit facility replaces the previous agreement of $1.95 billion, which was set to mature on June 28, 2026, and had an outstanding balance of $528 million on the term loan prior to the amendment [2] - The upsized facility enhances ABM's capital structure, providing increased flexibility for funding strategic growth initiatives and operational advancements, reflecting the company's ongoing growth [3] - The CFO of ABM expressed confidence in the company's long-term strategy and noted that the enhanced facility will support growth initiatives and drive long-term value for stakeholders [4] Company Overview - ABM is one of the largest providers of integrated facility, engineering, and infrastructure solutions, with over 100,000 team members delivering essential services [4][5] - The company serves various market sectors, including commercial real estate, aviation, mission critical, and manufacturing and distribution, generating over $8 billion in annual revenue [5] - ABM is committed to investing in innovative technologies and sustainable solutions to create smarter, more connected spaces, addressing evolving challenges and contributing to a healthier world [5]

Financial Data and Key Metrics Changes - The company reported organic net sales growth of nearly 4% for Q1 fiscal 2025, with adjusted earnings per share increasing by 14% [6][20] - Adjusted gross margin expanded by 50 basis points to 40% [6][18] - Reported net sales were up 2.1%, with organic revenue increasing 3.8% [17][20] - The company paid down $25 million of debt, marking the 10th consecutive quarter of debt reduction [6][20] Business Line Data and Key Metrics Changes - The battery business achieved 4% organic growth, driven by distribution gains and $10 million of hurricane-related sales [17][20] - The auto care segment saw organic growth of 2%, supported by distribution gains and international market expansion [10][18] Market Data and Key Metrics Changes - The battery category volume remained positive both globally and in the U.S., with improving value trends [9][10] - The auto care category showed strong fundamentals, including an increase in the age of the car park and a shift towards DIY car care activities [10] Company Strategy and Development Direction - The company is focused on five strategic growth initiatives: distribution, pricing and revenue management, market expansion, innovation, and digital economy [12][66] - Project Momentum is expected to generate total savings of approximately $60 million for the year and $200 million for the program [11][22] - The company plans to continue investing in growth areas, including digital transformation and product innovation [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives and raised the full-year organic sales guidance to 2% to 3% [20][22] - The consumer environment is described as stable but cautious, with a focus on value-seeking behavior [50][51] - The company anticipates consistent organic growth driven by distribution gains and new product launches [20][22] Other Important Information - The company expects adjusted gross margin expansion of 50 basis points to more than 41% for the full year [22] - Capital expenditures are projected to be in the range of $80 million to $90 million, focusing on IT, operations, and sustainable packaging initiatives [22] Q&A Session Summary Question: Impact of tariffs on manufacturing - Management noted that domestic manufacturing helps minimize exposure to tariffs, with only about 5% of COGS sourced from China [30][32] Question: Consumer behavior during the holiday season - Management described the holiday season as solid, with varying consumer shopping patterns, leading to confidence in raising the sales outlook [34][35] Question: Input cost pressures - Management indicated mixed input cost pressures, with some materials seeing cost increases while others provide modest benefits [41][42] Question: E-commerce growth and competition - E-commerce is a growing source of revenue, with expectations of 30% growth in that segment for fiscal 2025 [93] Question: Distribution gains and shelf space - Distribution gains are broad-based, with some coming from expanded shelf space and others from displacing competitors [60][80]