Core Insights - ABM has been selected by DASH to provide essential EV charging infrastructure, marking a significant step in the electrification of Alexandria's public bus fleet [3][4] - The project includes the installation of an in-route pantograph charger and supporting electrical infrastructure, allowing DASH buses to charge while in service, thus enhancing operational flexibility [4][5] - This initiative is part of a broader electrification plan for DASH, which serves over 15,000 riders daily and aims to reduce greenhouse gas emissions while improving rider experience [5][7] Company Overview - ABM is a leading provider of energy infrastructure and facility solutions, with over 100,000 team members and annual revenues exceeding $8 billion [8][9] - The company serves various sectors, including commercial real estate, aviation, education, and manufacturing, focusing on innovative technologies and sustainable solutions [9] Project Details - The installation was completed under the EV Charging Station Equipment and Services cooperative purchasing agreement, facilitating streamlined procurement for public entities [6] - The project aims to enhance service reliability for DASH riders and provides a scalable solution for future electrification phases [7]

Core Insights - Goodman Financial has fully exited its position in ABM Industries, selling 283,456 shares for an estimated value of $13.07 million [2][3][6] - ABM Industries' stock has underperformed, with a 13% decline over the past year, contrasting with the S&P 500's 17% increase during the same period [4] - Despite the sale, ABM Industries reported strong financial performance, achieving record revenue of $8.7 billion in fiscal 2025, a 4.6% year-over-year increase, and generating $155 million in free cash flow [10] Company Overview - ABM Industries provides integrated facility solutions, including services such as janitorial, engineering, parking, custodial, landscaping, mechanical, and electrical services [8][9] - The company serves a diverse client base across various sectors, including Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions [8] - As of the latest data, ABM Industries has a market capitalization of $2.70 billion and a revenue of $8.75 billion [5] Investment Implications - The sale of ABM shares by Goodman Financial suggests a reassessment of capital allocation, indicating that the firm believes its resources can be more effectively utilized elsewhere [10][11] - Goodman Financial's portfolio is primarily focused on broad equity ETFs and short-duration bond funds, alongside selective growth exposure [11]

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]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $2.3 billion, a 5.4% year-over-year increase, driven by 4.8% organic growth and a modest contribution from a recent acquisition in Ireland [16] - Adjusted EPS was $0.88, reflecting a $0.26 headwind from prior-year self-insurance adjustments, indicating strong underlying performance when adjusted [18] - Adjusted EBITDA was $124.2 million with an adjusted EBITDA margin of 5.6%, compared to $125.6 million and 6% in the prior year [18] Business Line Data and Key Metrics Changes - Business and Industry (B&I) revenue surpassed $1 billion, up 2% year-over-year, with operating profit of $80.6 million and a margin of 7.7% [19] - Aviation revenue grew 7% to $296.7 million, with an operating profit of $16.8 million and a margin of 5.7% [20] - Manufacturing and Distribution (M&D) revenue increased 8% to $417.4 million, with an operating profit of $35.8 million and a margin of 8.6% [20] - Education revenue rose 2% to $233.7 million, with operating profit increasing 44% to $18.8 million and margins expanding to 8% [21] - Technical Solutions revenue increased 16% to $298.7 million, with an operating profit of $37.1 million and a margin of 12.4% [22] Market Data and Key Metrics Changes - The company reported strong demand across key end markets, particularly in technical solutions, aviation, and manufacturing and distribution, indicating a healthy market environment heading into fiscal 2026 [12] - The acquisition of WGNSTAR is expected to significantly enhance the company's position in the semiconductor market, which is experiencing multi-year growth [10] Company Strategy and Development Direction - The company is focused on enhancing its portfolio and expanding technical and data-enabled capabilities, aiming to evolve into a higher-growth organization [31] - The acquisition of WGNSTAR is seen as a strategic move to penetrate the semiconductor sector more deeply, leveraging existing client relationships and expanding service offerings [40][82] - The company plans to continue investing in AI capabilities and technology to improve operational efficiency and unlock new revenue streams [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into fiscal 2026, expecting organic revenue growth of 3%-4% and adjusted EPS in the range of $3.85-$4.15 [13][25] - The restructuring program is expected to yield annual savings of $35 million, with most benefits realized in fiscal 2026 [11] - Management highlighted the importance of disciplined cost management and operational efficiency in navigating a complex operating environment [12] Other Important Information - The company ended the year with total indebtedness of $1.6 billion and available liquidity of $681.6 million [22] - Free cash flow for the fourth quarter was $112.7 million, a significant improvement from the prior year [23] Q&A Session Summary Question: Margin trajectory and segment operating margin - Management introduced a new segment operating margin metric to better reflect operational health, indicating a blend of restructuring benefits and pricing decisions affecting margins [34][36] Question: Strategic attraction of the WGNSTAR deal - The acquisition is strategically compelling due to the growth potential in the semiconductor space, with expectations for accretion in year two driven by growth and margin expansion [38][42] Question: Pricing concessions in the B&I business - Pricing discussions have stabilized, with no dramatic changes noted in the fourth quarter compared to previous quarters [48][50] Question: ERP roadmap and free cash flow outlook - The majority of transactions are now on the new ERP system, with a target of around $250 million in normalized cash flow for the upcoming year [51][53] Question: Self-insurance adjustments impact - The prior-year self-insurance adjustments are within industry standards, with no significant changes expected moving forward [70][73] Question: Future M&A opportunities - The company is actively looking for acquisition opportunities that align with strategic growth areas, maintaining a balanced approach to leverage [97]

Financial Data and Key Metrics Changes - The company reported record annual revenue of $8.7 billion, a 5% increase over the previous year, with fourth-quarter revenue growing 5.4% year-over-year to $2.3 billion, driven by 4.8% organic growth [7][16] - Adjusted EPS was $0.88, reflecting a $0.26 headwind from prior-year self-insurance adjustments, while adjusted EBITDA was $124.2 million with a margin of 5.6% [18][19] - Net income for the quarter increased to $34.8 million, or $0.56 per diluted share, compared to a loss of $11.7 million in the prior year [17] Business Line Data and Key Metrics Changes - Business and Industry (B&I) revenue surpassed $1 billion, up 2% year-over-year, with operating profit of $80.6 million and a margin of 7.7% [19] - Aviation revenue grew 7% to $296.7 million, with an operating profit of $16.8 million and a margin of 5.7% [20] - Manufacturing and Distribution (M&D) generated $417.4 million in revenue, an 8% increase year-over-year, with an operating profit of $35.8 million and a margin of 8.6% [20] - Technical Solutions had revenue of $298.7 million, a 16% increase, with an operating profit of $37.1 million and a margin of 12.4% [22] Market Data and Key Metrics Changes - The company noted strong demand across key end markets, particularly in Technical Solutions, Aviation, and Manufacturing and Distribution, with expectations for continued growth in fiscal 2026 [12][24] - The acquisition of WGNSTAR is expected to strengthen the company's position in the semiconductor market, which is experiencing multi-year growth [10][81] Company Strategy and Development Direction - The company is focused on enhancing its portfolio and expanding technical and data-enabled capabilities, with a commitment to disciplined capital allocation [30][31] - The acquisition of WGNSTAR is seen as a strategic move to penetrate the semiconductor fabrication sector, which has significant growth potential [10][40] - The company aims to achieve organic revenue growth of 3%-4% in fiscal 2026, with expectations for adjusted EPS in the range of $3.85-$4.15 [13][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into fiscal 2026, citing a strong backlog and healthy demand across key markets [12][30] - The restructuring program is expected to yield annualized savings of $35 million, with over three-quarters of the savings realized in fiscal 2026 [11][13] - Management acknowledged the challenges of the macro environment but highlighted the company's adaptability and operational excellence [29][30] Other Important Information - The company repurchased 1.6 million shares in the fourth quarter at an average price of $45.84, totaling $73 million, and reduced its outstanding share count by 4% [23] - The company ended the year with total indebtedness of $1.6 billion and available liquidity of $681.6 million [22] Q&A Session Summary Question: Margin trajectory and segment operating margin - Management introduced a new segment operating margin metric to better reflect operational health, with benefits from restructuring and mix expected to influence margins in 2026 [34][36] Question: Strategic attraction of the WGNSTAR deal - The acquisition is seen as a compelling strategic imperative due to the growth potential in the semiconductor space, with expectations for significant revenue synergies [38][40] Question: Pricing concessions in the B&I business - Management noted that pricing discussions have stabilized, with no dramatic concessions observed in the fourth quarter [48][50] Question: Free cash flow outlook for 2026 - The company anticipates normalized free cash flow of around $250 million, factoring in transformation and integration costs [53][56] Question: Future M&A opportunities - Management indicated a balanced approach to acquisitions, with a focus on compelling strategic opportunities in high-growth markets [96]

Financial Performance - Record revenue reached $2.3 billion, a 5.4% increase[10, 15] - Organic revenue growth was 5%[10] - Adjusted EBITDA was $124.2 million[10] - Adjusted EPS reached $0.88[10] - Free cash flow was $112.7 million, a significant increase from the previous year[10] Segment Performance - Business & Industry revenue increased by 2.3% to $1,048.8 million[23, 24] - Aviation revenue increased by 7.3% to $296.7 million[25] - Manufacturing & Distribution revenue increased by 7.7% to $417.4 million[28] - Education revenue increased by 1.6% to $233.7 million[29, 30] - Technical Solutions revenue increased by 16% to $298.7 million[14, 32] Fiscal Year 2026 Outlook - The company anticipates organic revenue growth of 3%-4%[39] - Total revenue growth is projected to be 4%-5%[39] - Adjusted EPS is expected to be in the range of $3.85-$4.15[39]

Core Viewpoint - Lassila & Tikanoja Plc is undergoing a demerger, creating a new independent company focused on circular economy, named New Lassila & Tikanoja, while the existing company will be renamed Luotea Plc, focusing on facility services [1][3]. Company Overview - The demerger plan was approved on 7 August 2025, with the new company expected to be listed on Nasdaq Helsinki Ltd [1][3]. - The Capital Markets Day is scheduled for 26 November 2025, focusing on the business prospects and strategies of both New Lassila & Tikanoja and Luotea [2][4]. Business Focus and Strategy - Luotea will concentrate on facility services, providing comprehensive solutions throughout the lifecycle of buildings, emphasizing energy efficiency and smart technologies [6][7]. - The target market size for Luotea is approximately EUR 12.2 billion, with an expected annual growth rate of about 4% [8]. Financial Performance - Preliminary unaudited financial information for Luotea shows net sales of EUR 347.4 million, with an adjusted EBITDA of EUR 20.0 million and an adjusted EBITDA margin of 5.8% for the period from 1 October 2024 to 30 September 2025 [15][16]. - The company aims for an average annual organic revenue growth of 4–5% and an adjusted EBITA margin exceeding 5% in the mid-term [17]. Customer Base and Market Position - Luotea has a diverse customer base of over 6,000 clients, with a low turnover rate, and has optimized its contract portfolio to increase high-profitability contracts [10][11]. - The company is positioned to leverage cross-selling opportunities and expand into new segments, particularly in the public sector [14].

Group 1 - The presentation features the Rollins team, including CFO Ken Krause and IR representative Lyndsey Burton, indicating a focus on facility services [1] - The format of the event is a hybrid of a fireside chat and a formal presentation, suggesting an interactive approach to engage the audience [2]

Core Insights - The company reported significant profitability improvement in its Facility Services businesses while maintaining stable performance in its Circular Economy Business [4][5][11] - The outlook for 2025 estimates net sales to remain at the same level as the previous year, with adjusted operating profit projected between EUR 44 million and EUR 48 million [3][83] Financial Performance - For January-September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to EUR 576.5 million in the same period last year [4][14] - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million, indicating improved profitability [14][17] - In the third quarter, net sales increased by 3.8% to EUR 199.5 million, with adjusted operating profit slightly up to EUR 20.1 million [10][14] Business Segments - In the Circular Economy Business, net sales for January-September were EUR 315.5 million, down from EUR 318.6 million, with adjusted operating profit declining to EUR 31.1 million from EUR 33.0 million [21][22] - Facility Services Finland experienced a decrease in net sales to EUR 170.2 million, but adjusted operating profit improved significantly to EUR 11.1 million from EUR 6.8 million [27][28] - Facility Services Sweden saw an increase in net sales to EUR 87.3 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [31][32] Sustainability and Efficiency - The company's carbon footprint decreased by 19% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][47] - An efficiency program was launched aiming for an annual performance improvement of at least EUR 8 million by the end of 2026, with fixed costs decreasing by approximately EUR 3 million in the review period [43][43] Demerger Plans - The company is preparing for a partial demerger to separate its Circular Economy business into a new publicly listed company, with the plan approved by the Board of Directors on August 7, 2025 [9][80] - The demerger is subject to approval at an Extraordinary General Meeting scheduled for December 4, 2025, with an effective date planned for December 31, 2025 [81][82]

Core Insights - The company reported significant profitability improvement in its Facility Services businesses, while the Circular Economy Business showed stable performance despite a slight decline in adjusted operating profit [3][4][11]. Financial Performance - For January to September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to the previous year [6][13]. - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million in the previous year [6][13]. - The third quarter net sales were EUR 199.5 million, representing a year-on-year increase of 3.8% [10][17]. - Adjusted operating profit for the third quarter was EUR 20.1 million, slightly up from EUR 20.0 million in the previous year [10][17]. Business Segments Circular Economy Business - Net sales for the Circular Economy Business in January to September were EUR 315.5 million, down from EUR 318.6 million [19]. - Adjusted operating profit for this segment was EUR 31.1 million, a decline from EUR 33.0 million in the previous year [19]. - Demand for recycling and waste management services decreased, particularly in the construction industry [4][20]. Facility Services - Facility Services Finland reported net sales of EUR 170.2 million, down from EUR 179.2 million, but adjusted operating profit improved to EUR 11.1 million from EUR 6.8 million [26][27]. - Facility Services Sweden saw an increase in net sales to EUR 87.3 million from EUR 80.9 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [29][30]. Outlook - The company estimates that net sales in 2025 will be at the same level as in the previous year, with adjusted operating profit projected to be between EUR 44 million and EUR 48 million [2][77]. Sustainability Performance - The company's carbon footprint decreased by 19% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][45]. - Customer satisfaction reached an all-time high with a Net Promoter Score (NPS) of 41 [8][45]. Demerger Plans - The company is preparing for a partial demerger to separate its Circular Economy business into a new publicly listed company, with the plan approved by the Board of Directors on August 7, 2025 [9][75]. - The demerger is subject to approval at an Extraordinary General Meeting scheduled for December 4, 2025, with an effective date planned for December 31, 2025 [9][76].