Abm Industries Incorporated (ABM)
NYSE:ABM
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ABM Industries
(NYSE:ABM)
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Rating:67Neutral
Price Target:
$46.00
▲(14.00% Upside)
Action:Reiterated
Date:06/08/26
ABM’s score is driven primarily by steady but lower-margin financial performance with generally supportive cash generation, tempered by margin pressure and some historical cash-flow variability. Technicals are moderately positive with the stock above key short/medium-term averages and positive MACD. Valuation is reasonable (P/E ~15.8) with a solid dividend yield (~2.6%). The latest earnings call was constructive with guidance maintained and strong bookings/growth, but margin headwinds, B&I client exits, and leverage/interest expense keep the overall score in the mid-to-high 60s.
Positive Factors
Recurring Contract Revenue
ABM's core model is multi-year, contract-based facility services that produce recurring fees and high client stickiness. Bundling janitorial, engineering, parking and integrated FM increases account density and predictability, supporting stable revenue and renewal leverage over the medium term.
Negative Factors
Thin Margins & Sensitivity
ABM operates with low absolute margins that are highly sensitive to labor costs, mix and amortization. Small adverse shifts in labor, contract mix, or new lower-margin project ramps can materially compress profitability and free cash flow, making margin recovery critical and execution-dependent.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Contract Revenue
ABM's core model is multi-year, contract-based facility services that produce recurring fees and high client stickiness. Bundling janitorial, engineering, parking and integrated FM increases account density and predictability, supporting stable revenue and renewal leverage over the medium term.
Read all positive factors
ABM Industries Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for improvement.
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for improvement.
Data provided by:
The Fly
The FlyABM Industries (ABM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.70B
Dividend Yield2.2%
Average Volume (3M)531.22K
Price to Earnings (P/E)17.2
Beta (1Y)0.82
Revenue Growth6.53%
EPS Growth107.41%
CountryUS
Employees100,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.61
Shares Outstanding58,580,920
10 Day Avg. Volume800,620
30 Day Avg. Volume531,220
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.50
Price to Sales (P/S)0.31
P/FCF Ratio17.27
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda9.91
Forecast
1Y Price Target
$47.67Price Target Upside18.13% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.96
Revenue Forecast (FY)$9.18B
ABM Industries Business Overview & Revenue Model
Company Description
ABM Industries Inc. delivers a comprehensive array of facility management solutions to clients throughout the United States and internationally. The company structures its operations across distinct segments: Business & Industry, Technology & Manu...
How the Company Makes Money
ABM makes money primarily by providing outsourced facility services under contracts with businesses and institutions, generating recurring revenue from labor-intensive, on-site operations. Its revenue model is largely fee-for-service: clients pay ...
ABM Industries Earnings Call Summary
Earnings Call Date:Jun 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 04, 2026
Earnings Call Sentiment Positive
Overall the call conveys a constructive and improving company trajectory: strong top-line growth (record quarterly revenue and robust organic growth), record sales bookings, notable segment outperformance (Technical Solutions, Aviation, M&D), and a large year-over-year improvement in first-half free cash flow. Management is focused on margin recovery in the back half, deleveraging to below 3x, and capital discipline. Offsetting items include margin pressure in certain segments this quarter (mix and acquisition amortization), B&I client exits (notably TfL and West Coast pressure), higher interest expense and temporary leverage above target. Management provided clear plans to address these issues and maintained full-year guidance, and they incorporated prior-year self-insurance volatility into guidance to improve predictability.Positive Updates
Record Quarterly Revenue and Strong Organic Growth
Q2 revenue rose 8.4% year-over-year to a record $2.3 billion, driven by 6.1% organic growth and a 2.3% contribution from acquisitions (primarily WGNSTAR). Consolidated organic growth was the strongest since Q3 2022.
Negative Updates
Business & Industry (B&I) Pressure from Client Exits
B&I revenue was essentially flat at $1.0 billion. Performance was negatively impacted by the mid-quarter exit of a large U.K. client (TfL) and several client exits on the U.S. West Coast. B&I operating profit declined to $76.7 million and margin fell to 7.6% from 8.2% a year ago; TfL exit accounts for roughly a 300-basis-point growth headwind in the back half.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Organic Growth
Q2 revenue rose 8.4% year-over-year to a record $2.3 billion, driven by 6.1% organic growth and a 2.3% contribution from acquisitions (primarily WGNSTAR). Consolidated organic growth was the strongest since Q3 2022.
Read all positive updates
Company Guidance
ABM maintained its fiscal 2026 outlook: full-year adjusted EPS of $3.85–$4.15, organic revenue growth of 3%–4% (now expected toward the higher end), with the WGNSTAR acquisition adding roughly 1 point and pushing total revenue growth toward the high end of a 4%–5% range; segment operating margin is expected toward the low end of 7.8%–8% with margin expansion weighted to the back half of the year, Aviation, M&D and Technical Solutions expected to grow above the organic range while B&I and Education are below. The company forecasts interest expense of about $110 million, a normalized tax rate of 29%–30%, and roughly $250 million of free cash flow in 2026 (before transformation/integration costs, the final RavenVolt earn‑out and any incremental restructuring); it finished Q2 with $1.9 billion of total indebtedness (3.2x pro‑forma adjusted EBITDA), $614 million of available liquidity (including $95 million cash), Q2 cash from operations of $66.2 million and Q2 free cash flow of $22.4 million, and reiterated its priority to reduce leverage below 3x by year‑end.ABM Industries Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.05B | 8.75B | 8.36B | 8.10B | 7.81B | 6.23B |
| Gross Profit | 1.04B | 1.02B | 1.12B | 1.13B | 1.05B | 970.40M |
| EBITDA | 396.20M | 422.00M | 414.40M | 460.60M | 461.10M | 296.10M |
| Net Income | 158.50M | 162.40M | 81.40M | 251.30M | 230.40M | 126.30M |
Balance Sheet | ||||||
| Total Assets | 5.65B | 5.46B | 5.10B | 4.93B | 4.87B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 94.90M | 104.10M | 64.60M | 69.50M | 73.00M | 62.80M |
| Total Debt | 1.97B | 1.69B | 1.45B | 1.44B | 1.40B | 1.03B |
| Total Liabilities | 3.90B | 3.67B | 3.32B | 3.13B | 3.15B | 2.83B |
| Stockholders Equity | 1.75B | 1.79B | 1.78B | 1.80B | 1.72B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 334.00M | 155.10M | 167.30M | 190.70M | -30.40M | 280.00M |
| Operating Cash Flow | 436.50M | 234.40M | 226.70M | 243.30M | 20.40M | 314.30M |
| Investing Cash Flow | -382.30M | -115.60M | -171.90M | -62.10M | -241.50M | -740.00M |
| Financing Cash Flow | -19.10M | -80.20M | -61.50M | -186.30M | 235.50M | 92.40M |
ABM Industries Technical Analysis
Positive
40.35
Price Trends
40.17
Positive
41.46
Positive
42.71
Positive
Market Momentum
1.15
Negative
78.89
Negative
98.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABM, the sentiment is Positive. The current price of 40.35 is below the 20-day moving average (MA) of 40.73, above the 50-day MA of 40.17, and below the 200-day MA of 42.71, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 78.89 is Negative, neither overbought nor oversold. The STOCH value of 98.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABM.
ABM Industries Risk Analysis
ABM Industries disclosed 24 risk factors in its most recent earnings report. ABM Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ABM Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.26B | 9.06 | 21.75% | 1.38% | -1.44% | 33.09% | |
69 Neutral | $4.79B | 35.46 | 6.24% | 0.71% | 0.76% | -8.22% | |
69 Neutral | $2.67B | 316.93 | 0.66% | ― | 53.53% | ― | |
67 Neutral | $2.70B | 17.15 | 8.80% | 2.20% | 6.53% | 107.41% | |
67 Neutral | $1.82B | 13.54 | 8.32% | ― | 28.34% | 67.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.18B | 25.91 | 2.62% | ― | -0.02% | -154.82% |
* Industrials Sector Average
ABM
ABM Industries
46.16
1.00
2.21%
CBZ
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33.94
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MMS
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UNF
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275.65
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47.98%
BV
BrightView Holdings
12.65
-3.17
-20.04%
FA
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15.56
-2.64
-14.51%
ABM Industries Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
ABM Industries Reports Record Q2 Revenue and Reaffirms Outlook
Positive
Jun 5, 2026
ABM Industries reported fiscal second-quarter 2026 results on June 5, 2026, posting an 8.4% year-on-year revenue increase to a record $2.3 billion, driven by 6.1% organic growth and 2.3% from acquisitions, with strong contributions from its Techni...
Executive/Board ChangesShareholder Meetings
ABM Industries Shareholders Back Board, Pay and Auditor
Positive
Mar 25, 2026
At its March 25, 2026 annual meeting, ABM Industries’ stockholders elected 12 directors, including CEO Scott Salmirs and board members such as Quincy L. Allen, LeighAnne G. Baker, and Winifred M. Webb, each to serve until the 2027 annual mee...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
ABM Industries Reports Q1 Results, Reaffirms 2026 Outlook
Positive
Mar 10, 2026
On March 10, 2026, ABM reported fiscal first-quarter 2026 results for the period ended January 31, 2026, posting revenue of $2.2 billion, up 6.1% year on year with 5.5% organic growth, driven by broad-based gains led by Technical Solutions and Avi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.