Facilities management firm ABM Industries' Q3 adj EPS beats on lower costs
Facilities management firm ABM Industries' Q3 adj EPS beats on lower costs
Overview
Facility solutions provider's fiscal Q3 revenue up 4.2%, slight miss versus analyst expectations
Adjusted EPS for fiscal Q3 beat analyst expectations
Company raised midpoint of full-year adjusted EPS and free cash flow outlooks
Outlook
ABM raises midpoint of fiscal 2026 adjusted EPS outlook to $3.95-$4.10
Company increases full-year free cash flow outlook to about $210 mln
ABM expects full-year organic revenue growth near top end of 3%-4% range
Result Drivers
SEGMENT GROWTH MIX - M&D and Aviation segments led revenue growth, with M&D boosted by the WGNstar acquisition, client wins, and tech market expansion, and Aviation benefiting from air travel trends and a new Heathrow contract
COST DISCIPLINE - Lower ongoing corporate costs and operational efficiencies supported higher segment operating profit and improved margins
CASH FLOW MANAGEMENT - Strong working capital management and ERP system stabilization drove significant improvement in free cash flow
Company press release: ID:nGNX1F5Jbg
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $2.30 bln | $2.31 bln (7 Analysts) |
Q3 Adjusted EPS | Beat | $1.04 | $1.01 (7 Analysts) |
Q3 EPS |
| $0.84 |
|
Q3 Adjusted Net Income | Beat | $61.50 mln | $60.005 mln (5 Analysts) |
Q3 Net Income |
| $49.70 mln |
|
Q3 Adjusted EBITDA | Miss | $139.60 mln | $145.17 mln (7 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 "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "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 $52.00, about 10.5% above its September 4 closing price of $47.05
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Sept 7 - UK's Standard Life H1 operating profit rises 25%
Sept 8 - UK's Computacenter H1 revenue surges on North America demand
Sept 7 - UK's Ashmore FY26 profit rises 17% as AuM grows 13%
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.)