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Jul 31
ABM Q3 2025 Earnings Report
ABM reported solid top-line growth and significantly higher net income in Q3 2025 compared to the prior year.
Key Takeaways
ABM Industries delivered strong revenue and cash flow growth in Q3 2025, with notable performance in its Technical Solutions and Aviation segments. Net income rose sharply year-over-year, supported by lower corporate costs and absence of prior-year charges.
Revenue rose to $2.224 billion, driven by 5.0% organic growth and 1.2% from acquisitions.
Net income surged to $41.8 million from $4.7 million a year ago.
Free cash flow more than doubled to $150.2 million.
Adjusted EBITDA grew to $125.8 million, supported by strength in ATS and Aviation.
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 expects Q4 adjusted EPS and margins to improve, but full-year EPS is expected to come in at the low end of the guidance range due to margin and interest expense pressures.
Positive Outlook
- Expected improvement in Q4 adjusted EPS and margins.
- Strong performance anticipated in the ATS segment.
- Restructuring actions projected to yield $35M in annual savings.
- Continued investment in AI and client-facing technology.
- Healthy booking pipeline across multiple segments.
Challenges Ahead
- Full-year adjusted EPS expected at the low end of guidance ($3.65-$3.80).
- Higher interest expenses than initially forecasted.
- Margin pressure due to strategic pricing and contract escalations.
- Slower recovery in some commercial office markets (West Coast, Midwest, Mid-Atlantic).
- Restructuring costs expected to result in ~$10M charge in Q4.
Revenue & Expenses
Visualization of income flow from segment revenue to net income