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ABM Industries
(NYSE:ABM)
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Rating:66Neutral
Price Target:
$55.00
▲(16.65% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by solid but not exceptional fundamentals: steady revenue growth and supportive cash generation, tempered by thin margins and some historical volatility in earnings/cash flow. Guidance and management tone are net-positive with strong bookings and a deleveraging focus, while technical signals are mixed (uptrend vs. muted momentum) and valuation appears broadly fair (P/E ~18.2, ~2.24% yield).
Positive Factors
Recurring contracted service model
Recurring contracts across cleaning, maintenance, engineering, transportation, and other facility services provide a durable revenue base. Multi-year agreements and opportunities to cross-sell services can improve customer retention and support steadier revenue through changing economic conditions.
Negative Factors
Thin and pressured operating margins
Low profitability leaves limited room for execution errors or cost increases, making earnings sensitive to labor costs, contract pricing, and service mix. Margin pressure versus earlier periods also suggests that revenue growth may not translate proportionally into durable earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring contracted service model
Recurring contracts across cleaning, maintenance, engineering, transportation, and other facility services provide a durable revenue base. Multi-year agreements and opportunities to cross-sell services can improve customer retention and support steadier revenue through changing economic conditions.
Read all positive factors
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.
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The Fly
The FlyABM Industries (ABM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend Yield2.24%
Average Volume (3M)378.96K
Price to Earnings (P/E)18.2
Beta (1Y)0.81
Revenue Growth6.00%
EPS Growth50.32%
CountryUS
Employees113,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.61
Shares Outstanding58,580,920
10 Day Avg. Volume368,911
30 Day Avg. Volume378,956
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$54.00Price Target Upside14.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.98
Revenue Forecast (FY)$9.21B
ABM Industries Business Overview & Revenue Model
Company Description
ABM Industries, Inc. engages in the provision of facility, infrastructure, and mobility solutions. It operates through the following segments: Business and Industry, Manufacturing and Distribution, Education, Aviation, and Technical Solutions. The...
How the Company Makes Money
ABM primarily makes money by selling contracted facility services to building owners, property managers, institutions, and enterprises. Revenue is generated through (1) ongoing service contracts where ABM provides recurring building operations sup...
ABM Industries Earnings Call Summary
Earnings Call Date:Jun 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 23, 2026
Earnings Call Sentiment Positive
Overall the call conveys a constructive and improving company trajectory: strong top-line growth (record quarterly revenue and robust organic growth), record sales bookings, notable segment outperformance (Technical Solutions, Aviation, M&D), and a large year-over-year improvement in first-half free cash flow. Management is focused on margin recovery in the back half, deleveraging to below 3x, and capital discipline. Offsetting items include margin pressure in certain segments this quarter (mix and acquisition amortization), B&I client exits (notably TfL and West Coast pressure), higher interest expense and temporary leverage above target. Management provided clear plans to address these issues and maintained full-year guidance, and they incorporated prior-year self-insurance volatility into guidance to improve predictability.Positive Updates
Record Quarterly Revenue and Strong Organic Growth
Q2 revenue rose 8.4% year-over-year to a record $2.3 billion, driven by 6.1% organic growth and a 2.3% contribution from acquisitions (primarily WGNSTAR). Consolidated organic growth was the strongest since Q3 2022.
Negative Updates
Business & Industry (B&I) Pressure from Client Exits
B&I revenue was essentially flat at $1.0 billion. Performance was negatively impacted by the mid-quarter exit of a large U.K. client (TfL) and several client exits on the U.S. West Coast. B&I operating profit declined to $76.7 million and margin fell to 7.6% from 8.2% a year ago; TfL exit accounts for roughly a 300-basis-point growth headwind in the back half.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Organic Growth
Q2 revenue rose 8.4% year-over-year to a record $2.3 billion, driven by 6.1% organic growth and a 2.3% contribution from acquisitions (primarily WGNSTAR). Consolidated organic growth was the strongest since Q3 2022.
Read all positive updates
Company Guidance
ABM maintained its fiscal 2026 outlook: full-year adjusted EPS of $3.85–$4.15, organic revenue growth of 3%–4% (now expected toward the higher end), with the WGNSTAR acquisition adding roughly 1 point and pushing total revenue growth toward the high end of a 4%–5% range; segment operating margin is expected toward the low end of 7.8%–8% with margin expansion weighted to the back half of the year, Aviation, M&D and Technical Solutions expected to grow above the organic range while B&I and Education are below. The company forecasts interest expense of about $110 million, a normalized tax rate of 29%–30%, and roughly $250 million of free cash flow in 2026 (before transformation/integration costs, the final RavenVolt earn‑out and any incremental restructuring); it finished Q2 with $1.9 billion of total indebtedness (3.2x pro‑forma adjusted EBITDA), $614 million of available liquidity (including $95 million cash), Q2 cash from operations of $66.2 million and Q2 free cash flow of $22.4 million, and reiterated its priority to reduce leverage below 3x by year‑end.ABM Industries Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.05B | 8.75B | 8.36B | 8.10B | 7.81B | 6.23B |
| Gross Profit | 1.04B | 1.02B | 1.12B | 1.13B | 1.05B | 970.40M |
| EBITDA | 426.40M | 422.00M | 414.40M | 460.60M | 461.10M | 296.10M |
| Net Income | 158.50M | 162.40M | 81.40M | 251.30M | 230.40M | 126.30M |
Balance Sheet | ||||||
| Total Assets | 5.65B | 5.46B | 5.10B | 4.93B | 4.87B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 94.90M | 104.10M | 64.60M | 69.50M | 73.00M | 62.80M |
| Total Debt | 1.97B | 1.69B | 1.45B | 1.44B | 1.40B | 1.03B |
| Total Liabilities | 3.90B | 3.67B | 3.32B | 3.13B | 3.15B | 2.83B |
| Stockholders Equity | 1.75B | 1.79B | 1.78B | 1.80B | 1.72B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 334.00M | 155.10M | 167.30M | 190.70M | -30.40M | 280.00M |
| Operating Cash Flow | 436.50M | 234.40M | 226.70M | 243.30M | 20.40M | 314.30M |
| Investing Cash Flow | -382.40M | -115.60M | -171.90M | -62.10M | -241.50M | -740.00M |
| Financing Cash Flow | -19.00M | -80.20M | -61.50M | -186.30M | 235.50M | 92.40M |
ABM Industries Technical Analysis
Positive
47.15
Price Trends
46.94
Positive
43.90
Positive
43.09
Positive
Market Momentum
-0.09
Positive
49.30
Neutral
40.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABM, the sentiment is Positive. The current price of 47.15 is below the 20-day moving average (MA) of 47.31, above the 50-day MA of 46.94, and above the 200-day MA of 43.09, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.98B | 24.95 | 7.08% | ― | 14.32% | 22.61% | |
71 Outperform | $3.02B | 8.26 | 21.72% | 2.29% | -3.32% | 24.98% | |
67 Neutral | $4.78B | 41.64 | 5.32% | 0.53% | 1.41% | -22.01% | |
66 Neutral | $2.76B | 18.20 | 9.44% | 2.29% | 6.00% | 50.32% | |
65 Neutral | $3.67B | 139.96 | 1.93% | 11.11% | 32.89% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $1.05B | -45.71 | 0.65% | ― | 1.45% | -716.67% |
* Industrials Sector Average
ABM
ABM Industries
50.60
5.90
13.20%
CBZ
CBIZ
54.65
-3.02
-5.24%
MMS
Maximus
56.33
-29.39
-34.29%
UNF
UniFirst
275.66
103.59
60.20%
BV
BrightView Holdings
11.18
-2.54
-18.51%
FA
First Advantage
20.63
4.73
29.75%
ABM Industries Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
ABM Industries Delivers Record Q3 Revenue and Earnings
Positive
Sep 8, 2026
On September 8, 2026, ABM reported fiscal third-quarter results for the period ended July 31, 2026, posting record revenue of $2.3 billion, up 4.2% year on year, driven evenly by organic and acquisition-related growth. Net income rose 19% to $49.7...
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.