Group 1 - ABM has been recognized on Selling Power Magazine's list of 60 Best Companies to Sell For 2025, marking the fourth consecutive year of this recognition [1] - The company achieved record-breaking bookings of $1.1 billion in the first half of its fiscal year, reflecting its commitment to sales excellence [1] - Over 200 companies were analyzed for this recognition, highlighting the competitive nature of the sales culture in the industry [1] Group 2 - ABM is one of the largest providers of integrated facility, engineering, and infrastructure solutions, with over 100,000 team members delivering essential services [2] - The company serves various market sectors, including commercial real estate, aviation, education, mission critical, and manufacturing and distribution, generating over $8 billion in annual revenue [3] - ABM focuses on innovative technologies and sustainable solutions to enhance facilities and empower clients, aiming to create smarter, more connected spaces [3]

Company Overview - ABM Industries is a provider of integrated facility solutions in the United States and internationally [12] - The company currently holds a Zacks Rank of 3 (Hold) with a VGM Score of B [12] Investment Insights - ABM has a Momentum Style Score of A, indicating strong upward price movement, with shares up 2.4% over the past four weeks [12] - Four analysts have revised their earnings estimates upwards for fiscal 2025, increasing the Zacks Consensus Estimate by $0.05 to $3.76 per share [13] - The company boasts an average earnings surprise of 9.6%, suggesting a history of exceeding earnings expectations [13] Style Scores and Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in portfolio building [7] - Stocks with a Zacks Rank of 1 (Strong Buy) have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - For optimal investment potential, it is recommended to consider stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B [10]

Core Insights - ABM reported a revenue of $2.1 billion for the first quarter of fiscal 2025, marking a 2.2% increase year-over-year, driven by 1.6% organic growth and contributions from acquisitions [4][24] - The company experienced strong growth in Technical Solutions and Aviation, with revenue increases of 22% and 8% respectively, while Education grew by 2% [4][29] - Net income for the quarter was $43.6 million, or $0.69 per diluted share, compared to $44.7 million, or $0.70 per diluted share in the previous year [5][30] - Adjusted net income was $55.3 million, or $0.87 per diluted share, reflecting an increase from $54.8 million, or $0.86 per diluted share in the prior year [6][30] - The company raised the lower end of its fiscal 2025 adjusted EPS outlook by $0.05, now projecting a range between $3.65 and $3.80 [14] Financial Performance - Adjusted EBITDA for the period was $120.6 million, with an adjusted EBITDA margin of 5.9%, consistent with the prior year [7][30] - Net cash used in operating activities was $106.2 million, with free cash flow at negative $122.9 million, primarily due to a temporary increase in working capital related to the new ERP system [8][30] - Total indebtedness at the end of the first quarter was $1,590.2 million, with a leverage ratio of 2.9X [10][11] Strategic Developments - The company successfully launched a cloud-based ERP system for Business & Industry and Manufacturing & Distribution, which is expected to drive cost efficiencies and enhance operational capabilities [3][4] - ABM's confidence in the commercial real estate market is bolstered by a 24% sequential increase in U.S. commercial office leasing activity during the fourth quarter of the previous calendar year [3][4] Market Outlook - The company anticipates that the commercial real estate markets, particularly high-quality office buildings, will return to growth in 2025 [3][4] - ABM expects its other end markets to remain broadly healthy, supported by a strong sales pipeline and market-leading technology [3][4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Highlight: ABM Industries - ABM Industries, rated 2 (Buy) on the Zacks Rank, has a VGM Score of A and a Value Style Score of A, indicating strong investment potential [11] - The company has a forward P/E ratio of 14.52 and an average earnings surprise of 11.6%, with recent earnings estimates for fiscal 2025 revised upward [12]