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Apr 30
ABM Q2 2025 Earnings Report
ABM reported modest revenue growth and consistent adjusted EBITDA margin in Q2 2025, supported by strong segment performance and new business wins.
Key Takeaways
ABM delivered solid results in Q2 2025 with revenue reaching $2.1B and adjusted EBITDA increasing to $125.9M. Business & Industry and Manufacturing & Distribution segments returned to organic growth, while Technical Solutions led segmental revenue gains.
Revenue rose to $2.1B, supported by 3.8% organic growth and 0.8% from acquisitions.
Adjusted EBITDA reached $125.9M, maintaining a 6.2% margin year-over-year.
Net income slightly declined to $42.2M due to higher interest and transformation costs.
ERP system deployment improved sequential cash flow performance.
ABM
ABM
ABM Revenue by Segment
Revenue by Segment
Business & Industry Revenue
CapyFin.comManufacturing & Distribution Revenue
CapyFin.comAviation Revenue
CapyFin.comEducation Revenue
CapyFin.comTechnical Solutions Revenue
CapyFin.com Forward Guidance
ABM reaffirmed its FY2025 guidance with adjusted EPS expected between $3.65 and $3.80, and adjusted EBITDA margin between 6.3% and 6.5%.
Positive Outlook
- Reaffirmed full-year adjusted EPS outlook of $3.65 to $3.80.
- Confirmed adjusted EBITDA margin guidance of 6.3% to 6.5%.
- Expectations of revenue from delayed Q2 projects in Q3.
- Continued growth in core markets including aviation and manufacturing.
- New bookings reached $1.1B in the first half of FY25.
Challenges Ahead
- Higher interest expense impacted net income.
- Transformation and integration costs remained elevated.
- Ongoing ERP transition affecting working capital and cash flow.
- Technical Solutions segment faced unfavorable project timing.
- Net income margin declined slightly to 2.0% from 2.2% YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income