ABM Industries (ABM) Q1 2026 earnings summary

Executive summary

• Revenue grew 6.1% year-over-year to $2.2 billion, with 5.5% organic growth and broad-based gains across all segments.

• Net income was $38.8 million ($0.64 per diluted share), down from $43.6 million ($0.69) last year; adjusted net income was $50.4 million ($0.83 per share).

• Free cash flow improved to $48.9 million, supported by working capital management and ERP stabilization.

• 2.1 million shares were repurchased for $91.1 million in Q1; WGNSTAR acquisition closed after quarter-end, strengthening presence in the semiconductor sector.

• The company continued its transformation and cost-saving initiatives, including the ELEVATE plan and a restructuring program targeting $35 million in annualized savings.

Financial highlights

• Adjusted EBITDA was $117.8 million, compared to $120.6 million in the prior year.

• Segment operating margin was 7.1%, down from 7.6% last year, mainly due to project timing and service mix in Technical Solutions.

• Net income margin was 1.7%, down from 2.1% year-over-year.

• Interest expense was $24 million, up $1.1 million year-over-year.

• Free cash flow improved to $48.9 million, a significant increase from the prior year.

Outlook and guidance

• Fiscal 2026 outlook reaffirmed: organic revenue growth of 3–4%, total revenue growth of 4–5%.

• Segment operating margin guidance of 7.8%–8.0%, with margin expansion expected in the second half.

• Adjusted EPS expected in the range of $3.85–$4.15 for the full year.

• Free cash flow guidance of ~$250 million before transformation/integration costs.

• Interest expense projected at $95–$105 million; normalized tax rate 29–30%.