Core Insights - ABM reported a strong fiscal third quarter with a revenue increase of 6.2% year-over-year, reaching $2.2 billion, driven by 5.0% organic growth and 1.2% from acquisitions [3][6][34] - The company secured over $1.5 billion in new bookings, marking a 15% increase year-over-year, indicating a robust pipeline for future growth [2][3] - Net income rose significantly to $41.8 million, or $0.67 per diluted share, compared to $4.7 million, or $0.07 per diluted share in the prior year [4][6][34] Financial Performance - Adjusted net income was $51.7 million, or $0.82 per diluted share, slightly down from $53.6 million, or $0.84 per diluted share in the previous year [5][6] - Adjusted EBITDA increased to $125.8 million, maintaining a margin of 5.9% [5][6] - Operating cash flow surged by 120.1% to $175.0 million, while free cash flow increased by 134.3% to $150.2 million [6][8] Segment Performance - Technical Solutions and Aviation segments led revenue growth, with increases of 19% and 9% respectively [3][34] - Manufacturing & Distribution grew by 8% due to new client wins, while Business & Industry and Education segments both saw a 3% increase [3][34] - The company noted slower recovery in some commercial office markets, particularly in select West Coast, Midwest, and Mid-Atlantic areas [2][3] Strategic Initiatives - ABM launched a restructuring program aimed at improving operational efficiency, expected to generate approximately $35 million in annualized cost savings [9][10] - The company is actively investing in AI capabilities and client-facing resources to drive higher growth and improved margins over time [2][9] - Share repurchase activities included the repurchase of approximately 1.5 million shares year-to-date, reflecting confidence in the company's strategic direction [12][13] Outlook - For the full fiscal year, ABM expects adjusted EPS to be toward the low end of the outlook range of $3.65 to $3.80 [15] - The company anticipates improved adjusted EPS and margin results in the fourth quarter, driven by restructuring benefits and strong performance in the ATS segment [2][15]