ABM Industries (ABM) Q1 2025 earnings summary

Executive summary

• Revenue increased 2.2% year-over-year to $2.1 billion, with 1.6% organic growth and contributions from acquisitions, led by strong Technical Solutions and Aviation performance.

• Adjusted net income was $55.3 million ($0.87 per diluted share), up from $54.8 million ($0.86) year-over-year; net income was $43.6 million ($0.69 per share).

• Adjusted EBITDA rose to $120.6 million, with margin steady at 5.9%.

• ERP system rollout for B&I and M&D caused temporary cash flow delays, expected to normalize in H2 2025.

• Expanded and extended credit facility to $2.2 billion, repurchased 415,000 shares for $21 million, and launched a new brand platform.

Financial highlights

• Q1 revenue: $2,114.9 million (+2.2% YoY); organic growth 1.6%, acquisition growth 0.6%.

• Net income: $43.6 million ($0.69/share), down from $44.7 million ($0.70/share) last year.

• Adjusted EBITDA: $120.6 million, margin flat at 5.9%.

• Free cash flow was negative $123 million, impacted by ERP transition; operating cash flow was negative $106.2 million.

• Dividends paid: $16.4 million ($0.265/share); share repurchases: $21 million; $133 million remains authorized.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $3.65–$3.80.

• Adjusted EBITDA margin outlook unchanged at 6.3%–6.5%.

• Interest expense forecast increased to $80–$84 million.

• Normalized free cash flow expected at $250–$290 million for the year.

• Management expects commercial real estate and most end markets to remain healthy.