ABM Industries Inc
NYSE:ABM
ABM Industries Inc
ABM Industries Inc. has carved its niche as a formidable player in the facility management services industry, tracing its origins back to 1909. Originally, it began as a small window-cleaning business in San Francisco, but over the years, it has grown into a diversified giant offering an array of essential services that keep modern infrastructure functional and inviting. The company's operations span across building maintenance, janitorial services, energy solutions, HVAC and mechanical services, landscape and grounds maintenance, as well as parking solutions. With ventures spread across various sectors such as education, healthcare, commercial real estate, aviation, and more, ABM ensures that environments are clean, efficient, and sustainable, fulfilling the critical backend operations that form the backbone of everyday business activities.
At its core, ABM makes money by offering end-to-end solutions tailored to meet the specific needs of its clients, a strategy that has afforded it long-standing contracts and recurring revenue streams. It focuses on creating value through operational excellence, productivity improvements, and implementation of state-of-the-art technology and equipment. The company's ability to provide self-performing services ensures cost efficiency and enhanced control over service quality, which is central to its financial success. By aligning its service offerings with the increasing demand for sustainability and energy efficiency, ABM not only meets contemporary needs but also sets the stage for future growth, ensuring its clients are equipped to handle the ever-evolving challenges of facility management.
ABM Industries Inc. has carved its niche as a formidable player in the facility management services industry, tracing its origins back to 1909. Originally, it began as a small window-cleaning business in San Francisco, but over the years, it has grown into a diversified giant offering an array of essential services that keep modern infrastructure functional and inviting. The company's operations span across building maintenance, janitorial services, energy solutions, HVAC and mechanical services, landscape and grounds maintenance, as well as parking solutions. With ventures spread across various sectors such as education, healthcare, commercial real estate, aviation, and more, ABM ensures that environments are clean, efficient, and sustainable, fulfilling the critical backend operations that form the backbone of everyday business activities.
At its core, ABM makes money by offering end-to-end solutions tailored to meet the specific needs of its clients, a strategy that has afforded it long-standing contracts and recurring revenue streams. It focuses on creating value through operational excellence, productivity improvements, and implementation of state-of-the-art technology and equipment. The company's ability to provide self-performing services ensures cost efficiency and enhanced control over service quality, which is central to its financial success. By aligning its service offerings with the increasing demand for sustainability and energy efficiency, ABM not only meets contemporary needs but also sets the stage for future growth, ensuring its clients are equipped to handle the ever-evolving challenges of facility management.
Record Revenue: ABM delivered record quarterly and annual revenue, with Q4 revenue of $2.3 billion (up 5.4% YoY) and full-year revenue reaching $8.7 billion, up 5%.
Strong Bookings: New sales bookings hit a record $1.9 billion in 2025, up 12% from the prior year, supporting confidence for further growth in 2026.
WGNSTAR Acquisition: ABM announced the acquisition of WGNSTAR, a technical workforce provider for the semiconductor industry, expanding ABM's capabilities and presence in a fast-growing market.
2026 Guidance: Management expects organic revenue growth of 3% to 4%, total revenue growth of 4% to 5% with the WGNSTAR acquisition, and adjusted EPS of $3.85 to $4.15 for fiscal 2026.
Margin Focus: Segment operating margin for 2026 is guided at 7.8% to 8%, with restructuring savings and cost discipline expected to support profitability.
Cash Flow Rebound: Free cash flow improved significantly to $112.7 million in Q4, with a 2026 target of around $250 million normalized free cash flow.
ERP Progress: Substantial progress was made on ERP implementation, improving cash performance and operational efficiency.
End-Market Stabilization: The B&I (commercial real estate) segment has stabilized, with growth expected to be in line with GDP, signaling normalization after recent industry challenges.
