ABM Industries slightly beats Q1 revenue expectations, maintains 2026 outlook

ABM Industries

10/03/2026 11:06

Overview

Facility solutions provider's fiscal Q1 revenue slightly beat analyst expectations

Adjusted EPS for fiscal Q1 missed analyst expectations

Company repurchased $91.1 mln of common stock during the quarter

Outlook

Company’s fiscal 2026 outlook remains unchanged

Company expects organic revenue growth of 3% to 4% in fiscal 2026

ABM projects adjusted EPS between $3.85 and $4.15 for fiscal 2026

Company anticipates interest expense of $95 mln to $105 mln in fiscal 2026

Result Drivers

REVENUE GROWTH - Revenue increased 6.1% to $2.2 bln, driven by strong demand in Technical Solutions and Aviation segments

MARGIN PRESSURE - Margin pressures were due to project timing and service mix in Technical Solutions, impacting EPS by $0.05

CASH FLOW IMPROVEMENT - Operating and free cash flow improved significantly due to strong working capital management and ERP advancements

Company press release: ID:nGNX7KsfTb

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$2.2 bln
$2.19 bln (8 Analysts)
Q1 Adjusted EPS
Miss
$0.83
$0.87 (8 Analysts)
Q1 EPS
$0.64
Q1 Adjusted Net Income
Miss
$50.40 mln
$53.20 mln (5 Analysts)
Q1 Net Income
$38.80 mln
Q1 Adjusted EBITDA
Miss
$117.80 mln
$127.08 mln (8 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy."

Wall Street's median 12-month price target for ABM Industries Inc is $53.50, about 23.6% above its March 9 closing price of $43.28

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)