ABM Industries (NYSE:ABM) Releases Earnings Results, Misses Expectations By $0.02 EPS

ABM Industries (NYSE:ABM) issued its quarterly earnings results on Friday. The business services provider reported $0.90 earnings per share for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.02), FiscalAI reports. ABM Industries had a return on equity of 11.77% and a net margin of 1.78%.The business had revenue of $2.29 billion for the quarter, compared to analysts’ expectations of $2.21 billion. During the same quarter in the previous year, the firm posted $0.86 EPS. ABM Industries’s revenue was up 8.4% on a year-over-year basis. ABM Industries updated its FY 2026 guidance to 3.850-4.150 EPS.

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

• ABM reported a strong second quarter, with organic revenue growth of 6.1%, total revenue up 8.4% to a record $2.3 billion, and first-half new sales bookings of $1.2 billion, also a record.
• Management said margin and cash flow trends are improving, with sequential segment margin expansion and first-half free cash flow up sharply year over year as working capital management and ERP stabilization improved cash generation.
• ABM continues to see strong demand in growth areas like Technical Solutions, Aviation, M&D, semiconductors, and data centers, and expects the back half to benefit from improving mix and project ramping, especially in ATS and M&D.
• B&I was flat in the quarter and is expected to slow further in the second half due to the exit of a large U.K. client and additional West Coast client exits, which management said will pressure revenue even as margins improve.
• ABM reaffirmed full-year adjusted EPS guidance of $3.85-$4.15 and expects to finish the year with free cash flow of about $250 million before certain items, while also planning to reduce leverage back below 3x by year-end.

ABM Industries Stock Up 6.1%

Shares of ABM opened at $42.33 on Friday. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.50 and a current ratio of 1.50. ABM Industries has a one year low of $36.96 and a one year high of $50.12. The stock has a market capitalization of $2.48 billion, a price-to-earnings ratio of 16.66 and a beta of 0.71. The stock has a 50 day moving average price of $39.61 and a 200 day moving average price of $42.17.

ABM Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Thursday, July 2nd will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Thursday, July 2nd. ABM Industries’s payout ratio is presently 45.67%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Truist Financial decreased their target price on ABM Industries from $47.00 to $45.00 and set a “hold” rating for the company in a report on Wednesday, March 11th. Robert W. Baird decreased their target price on ABM Industries from $52.00 to $45.00 and set a “neutral” rating for the company in a report on Wednesday, March 11th. Weiss Ratings downgraded ABM Industries from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, May 4th. UBS Group decreased their target price on ABM Industries from $51.00 to $45.00 and set a “neutral” rating for the company in a report on Wednesday, March 11th. Finally, Maxim Group raised ABM Industries from a “hold” rating to a “buy” rating and set a $50.00 target price for the company in a report on Wednesday, March 11th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, ABM Industries has a consensus rating of “Hold” and an average target price of $46.25.

Key ABM Industries News

Here are the key news stories impacting ABM Industries this week:

• Positive Sentiment: ABM beat revenue expectations in fiscal Q2, with sales of $2.29 billion and strong year-over-year growth, signaling resilient demand across its facility and infrastructure services business. ABM Industries Logs Higher 2Q Profit, Revenue as Demand Remains Strong
• Positive Sentiment: Management reaffirmed fiscal 2026 adjusted EPS guidance and said it is targeting about $250 million in free cash flow, which may reassure investors about earnings quality and cash returns. ABM outlines $3.85 to $4.15 adjusted EPS outlook while targeting about $250M in 2026 free cash flow
• Positive Sentiment: The board declared a quarterly dividend of $0.29 per share, underscoring continued shareholder returns and a dividend yield of about 2.7%.
• Neutral Sentiment: ABM’s earnings call transcript and earnings-release materials provide additional details on the quarter, but do not add a clearly new catalyst beyond the reported results. ABM Industries Incorporated (ABM) Q2 2026 Earnings Call Transcript
• Negative Sentiment: The main downside in the report was a small EPS miss versus consensus, which could limit upside if investors focus more on margin pressure than on revenue strength. ABM Industries (ABM) Misses Q2 Earnings Estimates

Institutional Trading of ABM Industries

Several large investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC grew its holdings in ABM Industries by 96.7% in the 4th quarter. Corient Private Wealth LLC now owns 13,053 shares of the business services provider’s stock valued at $552,000 after buying an additional 6,416 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in ABM Industries by 21.7% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 8,988 shares of the business services provider’s stock valued at $380,000 after buying an additional 1,600 shares in the last quarter. XTX Topco Ltd grew its holdings in ABM Industries by 695.2% in the 4th quarter. XTX Topco Ltd now owns 47,794 shares of the business services provider’s stock valued at $2,022,000 after buying an additional 41,784 shares in the last quarter. Voloridge Investment Management LLC acquired a new position in shares of ABM Industries in the 4th quarter valued at $3,195,000. Finally, Twinbeech Capital LP acquired a new position in shares of ABM Industries in the 4th quarter valued at $1,931,000. 91.62% of the stock is currently owned by hedge funds and other institutional investors.

About ABM Industries

ABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company’s core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.

Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.