ABM Q2 2020 Earnings Report
Key Takeaways
ABM Industries reported Q2 fiscal 2020 results, with revenues of approximately $1.5 billion, a decrease of 6.2% compared to Q2 2019. The company reported a net loss of $136.8 million, or $2.05 per diluted share, driven primarily by impairment charges related to Education, Aviation, and UK-based Technical Solutions segments, compared to net income of $29.7 million, or $0.45 per diluted share last year.
COVID-19 pandemic spread rapidly, requiring immediate mobilization to respond to critical client needs and protect team members.
Underlying profit and margin performance demonstrated the ability to rapidly deploy services to meet heightened demand across diversified end-markets.
Variable business model was leveraged to adapt to an ever-changing operating environment.
Significant demand for COVID-19 related Work Orders in Business & Industry, Technology & Manufacturing and Education segments partially offset revenue declines.
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ABM Revenue by Segment
Forward Guidance
The company withdrew its previously issued fiscal 2020 guidance outlook due to the extraordinary and evolving nature of the COVID-19 pandemic.
Positive Outlook
- There is a higher degree of awareness for professional sanitization, hygiene and safety.
- Competitive advantages of national scale, supply chain and advisory resources are unparalleled.
- Proprietary EnhancedClean™ offering will give clients a holistic, programmatic and specialized approach to cleaning and sanitizing.
- There will be a more permanent and robust shift toward the services that differentiate us in the market.
- ABM is in a great position to leverage our strengths in the future.