ABM Industries Incorporated (NYSE: ABM) Q2 2025 Earnings Call | 6/6/2025

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ABM Industries Incorporated (NYSE: ABM) reported Q2 2025 results on June 6, 2025, with revenue rising 4.6% year-over-year to $2.11 billion, surpassing analyst expectations of $2.07 billion. The company’s adjusted earnings per share (EPS) came in at $0.86, just below the $0.87 consensus, while net income was $42.2 million ($0.67 per share), slightly down from $43.8 million ($0.69 per share) a year ago. Adjusted net income improved to $54.1 million, and adjusted EBITDA rose to $125.9 million, reflecting continued operational efficiency and segment growth. Segment highlights included: Business & Industry: Revenue up 2.6% to $1.02 billion, with operating profit rising 7% and margin at 8.2%. Aviation: Revenue up 9.2% to $260.1 million, with operating profit climbing 26% and margin at 6.3%. Education: Revenue at $227.8 million, with operating profit up 19% and margin at 6.0%. Manufacturing & Distribution: Revenue up 2.4% to $398.1 million, though operating profit declined 8.5% due to contract mix and investments in technical expertise. Technical Solutions: Revenue surged 19.3% to $210.2 million, benefiting from acquisitions and growth in microgrid services. Gross margin improved to 12.8%, up 19 basis points year-over-year, and operating profit increased 1.2% to $82.3 million. Despite the revenue beat and margin gains, the slight EPS miss and higher interest expenses weighed on investor sentiment, with the stock dropping over 13% in recent trading to $44.62. ABM reaffirmed its full-year adjusted EPS guidance of $3.65–$3.80 and expects normalized free cash flow of $250–$290 million for the year. The company continues to focus on cost efficiencies, ERP system rollout, and expanding its service offerings, with recent contract wins including a $30 million annual deal with a major Silicon Valley tech company and a $40 million agreement at a major airport hub. CEO Scott Salmirs emphasized confidence in the company’s growth outlook, citing a strong sales pipeline, healthy end markets, and ongoing investments in technology and operational excellence. About Inside Ticker: For more expert analysis and real-time updates on ABM Industries Incorporated (NYSE: ABM) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #ABM #EarningsCall #Q22025 #FacilitySolutions #RevenueGrowth #StockMarket #Investing #InsideTicker