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Jul 31, 2023

ABM Q3 2023 Earnings Report

ABM reported revenue growth of 3.4% with solid adjusted margin and strong operating cash flow.

Key Takeaways

ABM announced financial results for the third quarter of fiscal 2023, reporting revenue of $2.0 billion, a 3.4% increase year-over-year. Net income increased to $98.1 million, or $1.47 per diluted share, compared to $56.8 million, or $0.85 per diluted share in the prior year. Adjusted EPS was $0.79, versus $0.94 in the prior year.

Grew revenue 3.4% to $2.0 billion, including 2.5% organic growth

Net income of $98.1 million and GAAP EPS of $1.47, compared to $56.8 million and $0.85 in the prior year, respectively

Adjusted EBITDA of $125.3 million, essentially flat with the prior year

Adjusted EPS of $0.79, versus $0.94 in the prior year

Total Revenue
$2.03B
Previous year: $1.96B
+3.4%
EPS
$0.79
Previous year: $0.94
-16.0%
Gross Profit
$243M
Previous year: $247M
-1.7%
Cash and Equivalents
$97.7M
Previous year: $63.9M
+52.9%
Free Cash Flow
$138M
Previous year: $22.7M
+509.3%
Total Assets
$4.97B
Previous year: $4.61B
+7.9%

ABM

ABM

ABM Revenue by Segment

Forward Guidance

The Company is narrowing the range of its forecast for full year 2023 adjusted EPS to $3.40 to $3.50, as compared to its prior forecast of $3.40 to $3.60. The Company’s expectations for adjusted EBITDA margin of 6.5% to 6.8%, and interest expense of approximately $80 million remain unchanged.