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Oct 31, 2022

ABM Q4 2022 Earnings Report

ABM generated solid results driven by revenue growth and adjusted EBITDA growth.

Key Takeaways

ABM reported a 19% increase in revenue to $2.0 billion, with 6% organic growth. GAAP net income increased by 43% to $48.9 million, or $0.73 per diluted share. Adjusted EBITDA grew 18% to $130.7 million.

Total revenue growth of 19%, including broad-based organic revenue growth of 6%.

Adjusted EBITDA growth of double-digits.

Strong organic growth in Technical Solutions, Aviation and Manufacturing & Distribution segments.

Benefit from the addition of new clients in Education and solid organic growth in Business & Industry.

Total Revenue
$2.01B
Previous year: $1.7B
+18.6%
EPS
$0.89
Previous year: $0.85
+4.7%
Adjusted EBITDA Margin
6.8%
Gross Profit
$239M
Previous year: $1.7B
-85.9%
Cash and Equivalents
$73M
Previous year: $62.8M
+16.2%
Free Cash Flow
$104M
Previous year: $44.5M
+133.7%
Total Assets
$3.66B
Previous year: $4.44B
-17.5%

ABM

ABM

Forward Guidance

For fiscal 2023, ABM expects GAAP earnings per diluted share of $2.43 to $2.63, and adjusted EPS of $3.40 to $3.60. Adjusted EBITDA margin is anticipated to be in the range of 6.4% to 6.8%, consistent with recent performance. Interest expense is expected to be in the range of $71 million to $74 million for fiscal 2023.

Positive Outlook

  • Leverage unmatched scale and breadth of services.
  • Enhance growth and profitability through ELEVATE investments in technology, people and complementary acquisitions.
  • Core janitorial and engineering solutions generate consistent earnings and cash flows.
  • Reinvest in adjacent growth opportunities.
  • Return cash to shareholders through a growing dividend and share repurchases.

Challenges Ahead

  • Continue to face labor-related pressures in the near-term.