ABM Industries (NYSE:ABM) Issues Earnings Results

ABM Industries (NYSE:ABM) issued its quarterly earnings results on Wednesday. The business services provider reported $0.88 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.21), FiscalAI reports. ABM Industries had a net margin of 1.34% and a return on equity of 12.12%. The firm had revenue of $2.30 billion for the quarter, compared to the consensus estimate of $2.28 billion. During the same period in the previous year, the business posted $0.90 earnings per share. The business’s revenue for the quarter was up 5.4% compared to the same quarter last year. ABM Industries updated its FY 2026 guidance to 3.850-4.15 EPS.

Here are the key takeaways from ABM Industries’ conference call:

• ABM reported a record quarter and year with $2.3B in Q4 revenue and $8.7B for fiscal 2025, driven by 4.8% organic Q4 growth and a record $1.9B of new sales bookings, supporting a strong growth trajectory into 2026.
• Operational strength was broad-based—Technical Solutions was a standout (+16% revenue, margins up 150bps), while Aviation and Manufacturing & Distribution also showed meaningful organic growth and client wins.
• ABM agreed to acquire WGNSTAR, adding ~1,300 employees and a strategic foothold inside semiconductor fabs (expected close Q1 2026), which management expects to add ~1 point of revenue in 2026 and be modestly dilutive in year one but accretive in 2027 as synergies and growth materialize.
• Following SEC guidance, ABM now includes prior‑year self‑insurance reserve adjustments in non‑GAAP metrics; Q4 carried a $0.26 EPS headwind (about $22.2M pre‑tax), increasing quarter‑to‑quarter earnings volatility and comparability challenges.
• The 2026 outlook assumes organic revenue growth of 3%–4% (4%–5% with WGNSTAR), adjusted EPS of $3.85–$4.15, a 7.8%–8.0% segment operating margin target, and ~$250M of free cash flow before transformation/integration items (normalized ~ $185M), signaling confidence in near‑term revenue and earnings expansion.

ABM Industries Stock Performance

ABM Industries stock opened at $48.23 on Thursday. ABM Industries has a fifty-two week low of $40.00 and a fifty-two week high of $54.90. The firm’s 50 day simple moving average is $43.90 and its 200-day simple moving average is $46.07. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.49 and a quick ratio of 1.49. The company has a market cap of $2.95 billion, a P/E ratio of 26.21 and a beta of 0.74.

ABM Industries declared that its Board of Directors has approved a stock repurchase program on Friday, September 5th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the business services provider to purchase up to 5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On ABM Industries

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its holdings in shares of ABM Industries by 419.5% during the third quarter. Ameriprise Financial Inc. now owns 1,111,320 shares of the business services provider’s stock worth $51,254,000 after acquiring an additional 897,402 shares in the last quarter. Millennium Management LLC raised its stake in shares of ABM Industries by 883.5% during the 3rd quarter. Millennium Management LLC now owns 672,200 shares of the business services provider’s stock worth $31,002,000 after purchasing an additional 603,853 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of ABM Industries by 31.7% during the 3rd quarter. Invesco Ltd. now owns 2,390,863 shares of the business services provider’s stock valued at $110,267,000 after buying an additional 575,273 shares during the last quarter. Simcoe Capital Management LLC bought a new stake in shares of ABM Industries in the 2nd quarter valued at approximately $20,720,000. Finally, Qube Research & Technologies Ltd increased its holdings in ABM Industries by 168.5% in the third quarter. Qube Research & Technologies Ltd now owns 228,372 shares of the business services provider’s stock worth $10,533,000 after buying an additional 143,333 shares during the last quarter. 91.62% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

ABM has been the topic of a number of research analyst reports. Wall Street Zen lowered ABM Industries from a “buy” rating to a “hold” rating in a report on Saturday, December 13th. Robert W. Baird reaffirmed a “neutral” rating and issued a $54.00 price objective (down previously from $56.00) on shares of ABM Industries in a research note on Monday, September 8th. UBS Group boosted their target price on shares of ABM Industries from $54.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, September 8th. Baird R W cut shares of ABM Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, September 8th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of ABM Industries in a research report on Wednesday, October 8th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $55.67.

ABM Industries Company Profile

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments.