Overview

• US facility solutions provider's fiscal Q2 revenue grew 8.4%, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company reaffirmed fiscal 2026 outlook, expects organic revenue growth near top of guidance

Outlook

• Company expects organic revenue growth toward top end of 3%-4% range for fiscal 2026

• ABM sees total revenue growth toward top end of 4%-5% range for fiscal 2026

• Company projects segment operating margin toward low end of 7.8%-8.0% range for 2026

• ABM expects fiscal 2026 adjusted EPS of $3.85-$4.15

Result Drivers

• SEGMENT GROWTH - Technical Solutions and Aviation segments led revenue growth, driven by demand for battery energy storage, datacenter services, and new aviation contracts

• ACQUISITIONS - Recent acquisitions, including WGNSTAR, contributed to growth in Manufacturing & Distribution and Technical Solutions

• COST AND TAX FACTORS - Net income improvement was mainly due to lower tax expense and reduced corporate costs, partly offset by higher interest and amortization expenses from acquisitions

Company press release: ID:nGNX8qFxWf

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$2.30 bln	$2.21 bln (7 Analysts)
Q2 Adjusted EPS	Beat	$0.90	$0.87 (7 Analysts)
Q2 EPS		$0.73
Q2 Adjusted Net Income	Miss	$52.90 mln	$54.51 mln (5 Analysts)
Q2 Net Income		$43.10 mln
Q2 Adjusted EBITDA	Beat	$131.70 mln	$130.08 mln (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for ABM Industries Inc is $50.00, about 25.4% above its June 4 closing price of $39.88

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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