ABM Industries (ABM) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $2.3 billion, up 4.2% year-over-year, with balanced organic and acquisition-driven growth, led by strong performance in Aviation and Manufacturing & Distribution.

• Net income increased 19% to $49.7 million ($0.84 per diluted share), and adjusted net income rose 19% to $61.5 million ($1.04 per diluted share).

• Adjusted EBITDA grew 11% to $139.6 million, reflecting operational improvements and lower corporate costs.

• Free cash flow for the first nine months was $199.6 million, up from $42.4 million in the prior year period, supporting deleveraging and shareholder returns.

• High-growth businesses in semiconductor, microgrids, and data centers now represent over 11% of revenue, growing 26% organically year-to-date.

Financial highlights

• Revenue reached $2.3 billion, up 4.2% year-over-year, with 2.1% organic and 2.1% acquisition growth.

• Adjusted net income was $61.5 million ($1.04 per diluted share), and adjusted EBITDA was $139.6 million.

• Free cash flow for the nine months was $199.6 million, a significant increase from $42.4 million in the prior year period.

• Segment operating margin was 7.7%, flat year-over-year but up 40 basis points sequentially.

• Net income margin improved to 2.1% from 1.9% year-over-year.

Outlook and guidance

• Raised midpoint of adjusted EPS outlook to $3.95–$4.10 for fiscal 2026.

• Full-year organic revenue growth expected at 3–4%, with total growth at the high end of 4–5% including acquisitions.

• Segment operating margin outlook updated to 7.7–7.8%, with Q4 margin projected above 8%.

• Free cash flow guidance raised to $210 million reported, $285 million normalized for fiscal 2026.

• Interest expense forecast at ~$110 million; normalized tax rate expected between 29% and 30%.