Infrastructure facility provider ABM's Q3 revenue rose 6.2%, beats estimates

ABM Industries

05/09/2025 12:10

Overview

ABM fiscal Q3 revenue rises 6.2%, beating analyst expectations, per LSEG data

Adjusted EPS for fiscal Q3 misses consensus, reflecting margin pressures

Co announces $150 mln increase in share repurchase authorization

Outlook

ABM expects fiscal 2025 adjusted EPS at low end of $3.65-$3.80 range

Company anticipates Q4 adjusted EPS and margin improvement

Restructuring program expected to yield significant savings by year-end

ABM notes robust pipelines in ATS and M&D segments

Result Drivers

ORGANIC GROWTH - Revenue grew 5% organically, driven by strong performance in Technical Solutions and Aviation segments

NEW BOOKINGS - Secured over $1.5 bln in new bookings, a 15% increase year-over-year, positioning for future growth

MARGIN PRESSURE - Strategic pricing and contract management decisions in certain markets pressured margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.20 bln
$2.15 bln (7 Analysts)
Q3 Adjusted EPS
Miss
$0.82
$0.95 (7 Analysts)
Q3 EPS
$0.67
Q3 Adjusted Net Income
Miss
$51.70 mln
$60.30 mln (6 Analysts)
Q3 Net Income
$41.80 mln
Q3 Adjusted EBITDA
Miss
$125.80 mln
$132.30 mln (7 Analysts)
Q3 Adjusted EBITDA Margin
5.9%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 $56.00, about 14.1% above its September 4 closing price of $48.10

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX5sdnYc

(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.)