Core Insights - ABM reported a return to organic revenue growth in its Business & Industry segment, achieving 3.8% organic revenue growth and a total revenue increase of 4.6% to $2.1 billion for the second quarter of fiscal 2025 [2][4][7] - The company secured $1.1 billion in new bookings, marking an 11% year-over-year increase, indicating strong market positioning and innovation focus [2][4] - Adjusted net income rose to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share, in the prior year [6][7] Financial Performance - Revenue for the second quarter increased to $2.1 billion, driven by 3.8% organic growth and a 0.8% contribution from acquisitions [4][7] - Net income for the quarter was $42.2 million, or $0.67 per diluted share, down from $43.8 million, or $0.69 per diluted share, in the prior year [5][7] - Adjusted EBITDA for the period increased to $125.9 million, maintaining an adjusted EBITDA margin of 6.2% [8][7] Segment Performance - The Business & Industry segment grew by 3%, supported by recovery in the U.S. prime office space market [4][28] - The Manufacturing & Distribution segment saw a 2% increase, attributed to new client wins and favorable comparisons to the prior year [4][28] - Technical Solutions and Aviation segments reported significant revenue increases of 19% and 9%, respectively, with Technical Solutions benefiting from higher microgrid revenue [4][28] Cash Flow and Liquidity - Net cash provided by operating activities was $32.3 million, a decrease from $117.0 million in the prior year, primarily due to elevated working capital related to the ERP transition [9][23] - Free cash flow for the quarter was $15.2 million, down from $101.4 million in the previous year [9][32] - The company had total indebtedness of $1.6 billion and available liquidity of $657.8 million at the end of the second quarter [10][9] Outlook - ABM reaffirmed its fiscal year 2025 adjusted EPS outlook in the range of $3.65 to $3.80, with an unchanged projected adjusted EBITDA margin of 6.3% to 6.5% [12][7] - The company remains optimistic about core markets, particularly high-quality office buildings, manufacturing and distribution facilities, and commercial aviation [2][12]