ABM Q1 2025 Earnings Report
Key Takeaways
ABM delivered a steady Q1 2025, with revenue rising 2.2% year-over-year to $2.11 billion. Net income declined slightly to $43.6 million due to higher corporate investments and legal settlements. Adjusted EBITDA improved to $120.6 million, reflecting margin stability at 5.9%. Technical Solutions led segment performance with a 21.9% revenue increase, driven by expansion in microgrid services.
Total revenue increased 2.2% YoY to $2.11 billion.
Net income declined 2.4% YoY to $43.6 million.
Adjusted EBITDA grew 3.3% YoY to $120.6 million.
Technical Solutions revenue surged 21.9% YoY to $202.3 million.
ABM
ABM
ABM Revenue by Segment
Forward Guidance
ABM raised its lower-end guidance for adjusted EPS in fiscal 2025, now projecting a range of $3.65 to $3.80. The company expects adjusted EBITDA margins to remain stable at 6.3% to 6.5%.
Positive Outlook
- Adjusted EPS outlook raised to $3.65-$3.80 for fiscal 2025.
- Stable adjusted EBITDA margin forecast of 6.3%-6.5%.
- Continued expansion in microgrid and energy solutions.
- Healthy market demand in Aviation and Education segments.
- Strong sales pipeline and improving commercial real estate trends.
Challenges Ahead
- Higher corporate investments impacting profitability.
- Legal settlement costs affecting net income.
- Temporary cash flow disruptions due to ERP system transition.
- Debt levels remain elevated, with a leverage ratio of 2.9x.
- Macroeconomic uncertainties may impact facility management demand.