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Jul 31, 2021

ABM Q3 2021 Earnings Report

ABM reported strong financial results driven by continued broad-based demand and efficient execution, with double-digit revenue growth across all business segments.

Key Takeaways

ABM Industries reported a revenue of $1.54 billion, up 10.7% year-over-year. The company reported a GAAP loss from continuing operations of $13.7 million, or $0.20 per diluted share, which included a $1.24 per share reserve to resolve outstanding litigation. Adjusted income from continuing operations was $61.3 million, or $0.90 per diluted share, an increase of 22% and 20%, respectively. The company is increasing its guidance for full year 2021 adjusted income from continuing operations to $3.45 to $3.55 per share.

Revenue increased at a double-digit rate, with each business segment achieving year-over-year growth.

Aviation revenue grew more than 50% with segment operating margin higher than pre-pandemic levels.

Technical Solutions' revenues and operating income increased at double-digit rates.

Client demand for disinfection-related services remained elevated, driving revenue growth and enhancing operating profitability.

Total Revenue
$1.54B
Previous year: $1.39B
+10.7%
EPS
$0.9
Previous year: $0.75
+20.0%
Adjusted EBITDA
$114M
Adjusted EBITDA Margin
7.4%
Gross Profit
$244M
Previous year: $219M
+11.5%
Cash and Equivalents
$505M
Previous year: $229M
+120.3%
Free Cash Flow
$236M
Previous year: $121M
+94.6%
Total Assets
$3.9B
Previous year: $3.67B
+6.2%

ABM

ABM

Forward Guidance

The Company is increasing its guidance for full year 2021 adjusted income from continuing operations to $3.45 to $3.55 per share.

Positive Outlook

  • Excellent execution on the part of ABM’s team members.
  • Accommodated heightened demand for specialized services.
  • Managed labor scarcity in an evolving business environment.
  • Outlook for the fourth quarter is positive.
  • Supported by current business trends.