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ABM Industries
(NYSE:ABM)
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Rating:69Neutral
Price Target:
$54.00
▲(14.53% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by mid-range financial performance (steady growth and positive free cash flow but thin margins and higher leverage), supported by constructive technical momentum (price above major moving averages with positive MACD). Valuation is reasonable with a moderate P/E and ~2.3% yield, while the latest earnings call provides an added boost due to raised EPS and free-cash-flow guidance despite acknowledged segment and margin headwinds.
Positive Factors
Recurring, diversified facilities-services model
ABM's broad end-market exposure and recurring contracted services can support revenue durability across economic cycles. Its ability to provide janitorial, engineering, technical, parking and integrated facility solutions also creates opportunities to deepen client relationships and cross-sell services.
Negative Factors
Thin and recently compressed profitability
Low net margins leave limited room for execution errors, wage pressure or weaker contract economics to affect earnings. The decline in gross and net margin shows that revenue growth has not fully translated into stronger profitability, making sustained cost and pricing discipline essential.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified facilities-services model
ABM's broad end-market exposure and recurring contracted services can support revenue durability across economic cycles. Its ability to provide janitorial, engineering, technical, parking and integrated facility solutions also creates opportunities to deepen client relationships and cross-sell services.
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.
Data provided by:
The Fly
The FlyABM Industries (ABM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.02B
Dividend Yield2.22%
Average Volume (3M)487.22K
Price to Earnings (P/E)18.8
Beta (1Y)0.71
Revenue Growth6.00%
EPS Growth50.32%
CountryUS
Employees113,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.78
Shares Outstanding58,614,594
10 Day Avg. Volume367,947
30 Day Avg. Volume487,217
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 Cap1.53
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit4.32
Enterprise Value/Ebitda10.54
Forecast
1Y Price Target
$53.92Price Target Upside14.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.01
Revenue Forecast (FY)$9.22B
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:Sep 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 23, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic. Management reported record revenue, 27% adjusted EPS growth, substantial free cash flow improvement, higher EPS and free cash flow guidance, stronger leverage, and significant growth in semiconductor, microgrid, data center, aviation, and manufacturing-related activities. The main challenges were Business and Industry revenue declines, Northern California market pressure, aviation margin concessions tied to elevated fuel costs, Technical Solutions project deferrals, and higher interest and acquisition-related amortization expense. Management characterized the challenges as understood and actively managed, with confidence in fourth-quarter improvement and continued fiscal 2027 growth.Positive Updates
Record Quarterly Revenue
Third-quarter revenue grew 4.2% year over year to an all-time quarterly record of slightly above $2.3 billion, consisting of 2.1% organic growth and a 2.1% contribution from acquisitions, primarily WGNSTAR.
Negative Updates
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Third-quarter revenue grew 4.2% year over year to an all-time quarterly record of slightly above $2.3 billion, consisting of 2.1% organic growth and a 2.1% contribution from acquisitions, primarily WGNSTAR.
Read all positive updates
Company Guidance
ABM raised its fiscal 2026 adjusted EPS range to $3.95 to $4.10, maintained full year organic revenue growth guidance of 3% to 4% and expects to be toward the higher end of that range; Aviation, M&D, and Technical Solutions are expected to grow above that range, while B&I and education are projected to be below that range, with WGNSTAR expected to deliver approximately 1 point of additional revenue growth, bringing total growth to the high end of the 4% to 5% range. Fiscal 2026 segment operating margin is expected to be 7.7% to 7.8%, fourth quarter margin is projected to be meaningfully above the high end of that range, interest expense remains at approximately $110 million, normalized tax rates are expected to be 29% to 30%, normalized free cash flow is expected to be approximately $285 million before the impact of transformation and integration costs, Final RavenVault earnout, and any incremental restructuring, and reported free cash flow is expected to be approximately $210 million versus the prior forecast of $185 million. Fourth quarter ATS is expected to have double digit organic growth and significant sequential increases in revenue, operating profit, and margin; B&I is expected to return to organic growth around the middle of fiscal 2027, M&D is positioned to sustain strong organic growth into fiscal 2027 and beyond, education is expected to have low single digit organic growth as ABM moves into fiscal 2027, and Technical Solutions is expected to have another year of strong growth in fiscal 2027.ABM Industries Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
57
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.15B | 8.75B | 8.36B | 8.10B | 7.81B | 6.23B |
| Gross Profit | 1.07B | 1.02B | 1.12B | 1.13B | 1.05B | 970.40M |
| EBITDA | 437.50M | 422.00M | 414.40M | 460.60M | 461.10M | 296.10M |
| Net Income | 166.40M | 162.40M | 81.40M | 251.30M | 230.40M | 126.30M |
Balance Sheet | ||||||
| Total Assets | 5.60B | 5.46B | 5.10B | 4.93B | 4.87B | 4.44B |
| Cash, Cash Equivalents and Short-Term Investments | 110.50M | 104.10M | 64.60M | 69.50M | 73.00M | 62.80M |
| Total Debt | 1.88B | 1.69B | 1.45B | 1.44B | 1.40B | 1.03B |
| Total Liabilities | 3.81B | 3.67B | 3.32B | 3.13B | 3.15B | 2.83B |
| Stockholders Equity | 1.79B | 1.79B | 1.78B | 1.80B | 1.72B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 312.30M | 155.10M | 167.30M | 190.70M | -30.40M | 280.00M |
| Operating Cash Flow | 408.40M | 234.40M | 226.70M | 243.30M | 20.40M | 314.30M |
| Investing Cash Flow | -356.60M | -115.60M | -171.90M | -62.10M | -241.50M | -740.00M |
| Financing Cash Flow | -11.30M | -80.20M | -61.50M | -186.30M | 235.50M | 92.40M |
ABM Industries Technical Analysis
Positive
47.15
Price Trends
48.66
Positive
46.88
Positive
43.99
Positive
Market Momentum
0.86
Negative
72.13
Negative
89.44
Negative
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 49.74, below the 50-day MA of 48.66, and above the 200-day MA of 43.99, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 72.13 is Negative, neither overbought nor oversold. The STOCH value of 89.44 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $87.42B | 42.91 | 42.08% | 0.85% | 9.51% | 12.19% | |
69 Neutral | $3.02B | 18.81 | 9.44% | 2.22% | 6.00% | 50.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $14.69B | 38.16 | 11.75% | 0.86% | 11.02% | 6.21% | |
57 Neutral | $10.59B | 22.30 | 5.82% | 3.02% | 2.92% | 43.13% | |
51 Neutral | $965.82M | -42.64 | 0.65% | ― | 1.45% | -716.67% | |
41 Neutral | $17.05M | -6.28 | -17.43% | ― | 4.92% | -22.39% |
* Industrials Sector Average
ABM
ABM Industries
52.28
7.99
18.03%
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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.