ABM Industries
ABM
$44.63 0.77%
Exchange: NYSE | Sector: Industrials | Industry: Specialty Business Services
Q2 2025
Published: Jun 6, 2025

Earnings Highlights

  • Revenue of $2.11B up 4.6% year-over-year
  • EPS of $0.67 decreased by 2.9% from previous year
  • Gross margin of 12.2%
  • Net income of 42.20M
  • "We returned to organic growth in both B&I and M&D, significantly improved our cash flow compared to the first quarter and generated $1.1 billion in new bookings during the first half, marking a new record for ABM." - Scott B. Salmirs
ABM
Company ABM

Executive Summary

ABM delivered solid top-line momentum in Q2 2025, supported by a return to organic growth in both the Buildings & Infrastructure (B&I) and Manufacturing & Distribution (M&D) segments, alongside continued strength in Aviation and Education. Total revenue rose 4.6% year-over-year to $2.11 billion, with 3.8% organic growth and contribution from the 2024 Quality Uptime Services acquisition. The quarter featured a larger contribution from Technical Solutions and a rebound in M&D, underscored by a diversified services mix (e.g., material handling and test & balancing) that aims to deepen client relationships and improve margins over time. Management reaffirmed full-year guidance for adjusted EPS of $3.65–$3.80 and projected normalized free cash flow of $250–$290 million, signaling confidence in improving cash generation as ERP-related billing frictions unwind in the second half of the year. Backlog remains healthy at ~$700 million in the Technical Solutions pipeline, with the company reporting $1.1 billion in new bookings in the first half of 2025, a company-wide record. While near-term margin pressure persists in ATS/Microgrid due to project timing and mix, ABM expects a substantial recovery in the second half as delayed projects reaccelerate. The balance sheet shows leverage at ~2.9x debt to pro forma adjusted EBITDA, with liquidity of ~$658 million and free cash flow of $15 million in the quarter, reflecting ERP-related working capital dynamics but improving cash generation as the year progresses.

Key Performance Indicators

Revenue
Increasing
2.11B
QoQ: -0.15% | YoY: 4.63%
Gross Profit
Increasing
257.50M
12.19% margin
QoQ: -0.89% | YoY: 1.10%
Operating Income
Increasing
82.30M
QoQ: 6.06% | YoY: 1.23%
Net Income
Decreasing
42.20M
QoQ: -3.21% | YoY: -3.65%
EPS
Decreasing
0.67
QoQ: -4.29% | YoY: -2.90%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 2,224.00 0.67 +6.2% View
Q2 2025 2,111.70 0.67 +4.6% View
Q1 2025 2,114.90 0.69 +2.2% View
Q4 2024 2,177.40 -0.19 +4.0% View
Q3 2024 2,094.20 0.07 +3.3% View