ABM Industries (ABM)
NYSE:ABM
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ABM Industries
(NYSE:ABM)
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Rating:65Neutral
Price Target:
$42.00
▲(4.09% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by solid financial stability (steady revenue and improved TTM free cash flow) but held back by meaningful margin compression versus prior years. Technicals remain a headwind with price below key longer-term moving averages and a negative MACD, while valuation and yield are reasonable. Corporate updates are generally positive (reaffirmed outlook, cash flow improvement, buybacks/dividend), though added debt from acquisition financing increases risk.
Positive Factors
Recurring contract-based revenue and diversified services
ABM’s core business is recurring, multi-year service contracts across janitorial, engineering, parking and integrated facility management. That contract model creates predictable revenue, higher client retention and cross-sell opportunities, supporting durable cash flow and stability across cycles.
Negative Factors
Meaningful margin compression
Substantially lower operating and net margins reduce the company’s ability to absorb cost inflation and fund investments internally. Persistent margin compression suggests structural pressure from contract mix, project timing and labor costs that could constrain durable profitability and return generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring contract-based revenue and diversified services
ABM’s core business is recurring, multi-year service contracts across janitorial, engineering, parking and integrated facility management. That contract model creates predictable revenue, higher client retention and cross-sell opportunities, supporting durable cash flow and stability across cycles.
Read all positive factors
ABM Industries (ABM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend Yield2.2%
Average Volume (3M)667.56K
Price to Earnings (P/E)17.9
Beta (1Y)0.93
Revenue Growth5.59%
EPS Growth100.00%
CountryUS
Employees100,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.83
Shares Outstanding58,532,820
10 Day Avg. Volume419,818
30 Day Avg. Volume667,556
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 Cap1.70
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit3.87
Enterprise Value/Ebitda9.40
Forecast
1Y Price Target
$50.60Price Target Upside25.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)3.99
Revenue Forecast (FY)$9.18B
ABM Industries Business Overview & Revenue Model
Company Description
ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions segments. It pr...
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 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 Earnings Call Summary
Earnings Call Date:Dec 17, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 09, 2026
Earnings Call Sentiment Neutral
ABM Industries reported strong financial performance with record revenue and new sales bookings, driven by organic growth and strategic acquisitions. However, the results were partially offset by the impact of self-insurance adjustments and restructuring costs. The sentiment is balanced with positive growth outlooks and strategic initiatives, but tempered by certain financial challenges.Positive Updates
Record Quarterly Revenue
ABM posted record quarterly revenue of $2.3 billion, driven by 4.8% organic growth and strong contributions from Technical Solutions, Manufacturing & Distribution, and Aviation.
Negative Updates
Impact of Self-Insurance Adjustments
Prior year self-insurance adjustments created a $0.26 headwind to adjusted EPS in Q4, impacting results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly Revenue
ABM posted record quarterly revenue of $2.3 billion, driven by 4.8% organic growth and strong contributions from Technical Solutions, Manufacturing & Distribution, and Aviation.
Read all positive updates
Company Guidance
During ABM Industries' Q4 2025 earnings call, the company reported record quarterly revenue driven by 4.8% organic growth, culminating in an annual revenue of $8.7 billion, a 5% increase over the previous year. The call highlighted a boost in adjusted EPS and adjusted EBITDA margin, with a record $1.9 billion in new sales bookings, marking a 12% rise from 2024. ABM's strategic acquisition of WGNSTAR, expected to close in Q1 2026, aims to bolster their technical workforce capabilities in the semiconductor sector. The company anticipates a 3% to 4% organic revenue growth for fiscal 2026, with an adjusted EPS forecast of $3.85 to $4.15. ABM's restructuring initiatives have already realized $35 million in annualized savings, with over three-quarters expected in 2026. The year ended with a debt to pro forma adjusted EBITDA ratio of 2.7x and available liquidity of $681.6 million, alongside $112.7 million in free cash flow for the quarter.ABM Industries Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.87B | 8.75B | 8.36B | 8.10B | 7.81B | 6.23B |
| Gross Profit | 1.02B | 1.02B | 1.12B | 1.13B | 1.05B | 970.40M |
| EBITDA | 421.90M | 422.00M | 414.40M | 460.60M | 461.10M | 296.10M |
| Net Income | 157.60M | 162.40M | 81.40M | 251.30M | 230.40M | 126.30M |
Balance Sheet | ||||||
| Total Assets | 5.29B | 5.46B | 5.10B | 4.93B | 4.87B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 100.40M | 104.10M | 64.60M | 69.50M | 73.00M | 62.80M |
| Total Debt | 1.74B | 1.69B | 1.45B | 1.44B | 1.40B | 1.03B |
| Total Liabilities | 3.56B | 3.67B | 3.32B | 3.13B | 3.15B | 2.83B |
| Stockholders Equity | 1.72B | 1.79B | 1.78B | 1.80B | 1.72B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 326.80M | 155.10M | 167.30M | 190.70M | -30.40M | 280.00M |
| Operating Cash Flow | 402.60M | 234.40M | 226.70M | 243.30M | 20.40M | 314.30M |
| Investing Cash Flow | -113.70M | -115.60M | -171.90M | -62.10M | -241.50M | -740.00M |
| Financing Cash Flow | -252.40M | -80.20M | -61.50M | -186.30M | 235.50M | 92.40M |
ABM Industries Technical Analysis
Negative
40.35
Price Trends
41.26
Negative
42.55
Negative
43.94
Negative
Market Momentum
-0.20
Negative
57.06
Neutral
81.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABM, the sentiment is Negative. The current price of 40.35 is above the 20-day moving average (MA) of 38.62, below the 50-day MA of 41.26, and below the 200-day MA of 43.94, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 81.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.44B | 49.97 | 6.24% | 0.71% | 0.76% | -8.22% | |
67 Neutral | $3.56B | 12.60 | 21.76% | 1.38% | -0.15% | 41.72% | |
66 Neutral | $1.82B | 27.64 | 8.32% | ― | 52.08% | 62.60% | |
65 Neutral | $2.33B | 17.89 | 8.80% | 2.20% | 5.59% | 100.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.27B | -72.27 | -2.68% | ― | 83.02% | 70.57% | |
59 Neutral | $1.11B | -19.84 | 2.88% | ― | -1.87% | -99.88% |
* Industrials Sector Average
ABM
ABM Industries
40.80
-6.97
-14.59%
CBZ
CBIZ
30.50
-39.36
-56.34%
MMS
Maximus
65.62
0.33
0.50%
UNF
UniFirst
255.51
76.99
43.13%
BV
BrightView Holdings
11.90
-2.12
-15.12%
FA
First Advantage
12.76
-1.70
-11.76%
ABM Industries Corporate Events
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...
Business Operations and StrategyDividendsM&A TransactionsPrivate Placements and Financing
ABM Industries Secures New Term Loan for Acquisition
Positive
Feb 5, 2026
On February 3, 2026, ABM Industries entered into a first amendment to its existing credit agreement, securing a new $255 million incremental term loan and loosening restrictions on shareholder payouts by increasing the annual cap on certain restri...
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.