ABM ABM INDUSTRIES INC /DE/
Price Chart
Executive Summary
ABM reported fiscal Q2 2026 revenue of $2.29B (+8.4% YoY, record), beating consensus of $2.21B, but adjusted EPS of $0.90 missed the $0.92 Street estimate. Net income improved to $43.1M from $42.2M, and adjusted EBITDA rose to $131.7M. The company reaffirmed its full-year adjusted EPS guidance of $3.85-$4.15 and narrowed organic/total revenue growth to the top end of prior ranges, while segment operating margin guidance was pushed to the low end. The stock will likely trade flat to slightly down on the EPS miss and margin compression, partially offset by strong top-line growth and cash flow.
Key Financial Metrics
Actionable Insight
The EPS miss and margin compression are tempered by strong revenue growth and reaffirmed guidance. Watch for H2 margin recovery commentary on the call — if management signals ATS/M&D volume improvement and cost savings are on track, the stock could recover. The elevated leverage (3.2x) and interest expense guidance increase ($110M vs prior $95-105M) are headwinds. Consider waiting for the conference call for margin trajectory clarity before positioning.
Key Facts
- Q2 revenue of $2.29B (+8.4% YoY) was a second-quarter record and beat consensus of $2.21B
- Adjusted EPS of $0.90 missed Street consensus of $0.92 (miss of ~2.2%)
- GAAP EPS of $0.73 beat prior year $0.67 (+9.0%)
- Adjusted EBITDA rose to $131.7M from $125.9M (+4.6%)
- Segment operating margin compressed to 7.3% from 7.9% a year ago
- Record first-half new sales bookings of $1.2 billion
- FY2026 adjusted EPS guidance reaffirmed at $3.85-$4.15; organic revenue growth guided to top end of 3%-4%
- Total leverage ratio increased to 3.2x from 2.9x in Q1 due to WGNSTAR acquisition debt
- Operating cash flow of $66.2M and free cash flow of $22.4M, both improved YoY
- Quarterly dividend of $0.29 per share declared, payable August 3, 2026
Financial Impact
Revenue beat by ~$80M (+3.6% vs consensus), but adjusted EPS missed by $0.02 (-2.2%). Margin compression of 60bps YoY in segment operating margin signals ongoing cost headwinds from new contracts and ramp inefficiencies.
Risk Factors
- Segment operating margin compression from 7.9% to 7.3% YoY, with guidance at low end of 7.8%-8.0%
- Leverage ratio increased to 3.2x from 2.9x, with interest expense guidance raised to ~$110M
- B&I segment revenue flat YoY, with operating profit down 7.6%
- Adjusted net income declined YoY ($52.9M vs $54.1M) despite higher revenue
- Higher amortization ($15.9M vs $13.2M) and interest ($28.1M vs $23.9M) from WGNSTAR acquisition
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-258367 |
| Document: abm-20260605.htm | 0001193125-26-258367 |
| Document: 0001193125-26-258367-index-headers.html | 0001193125-26-258367 |
| Document: 0001193125-26-258367-index.html | 0001193125-26-258367 |
| Document: 0001193125-26-258367.txt | 0001193125-26-258367 |
| 8-K Data (Synthetic) | 0001193125-26-258367 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 5, 2026
1d ago
|
8-K
| $39.88 awaiting T+5 | awaiting T+5 | — | $42.54 (+6.68%) |
|
Jun 5, 2026
1d ago
|
Press Release
| $39.88 awaiting T+5 | awaiting T+5 | — | $42.54 (+6.68%) |
|
May 22, 2026
15d ago
|
Press Release
| $40.19 $39.10 | ▲ +2.71% | ▲ +4.39% | $42.54 (−5.85%) |
|
Mar 30, 2026
9w ago
|
Court Ruling
| $37.60 $38.30 | ▲ +1.87% | ▼ −2.43% | $42.54 (+13.15%) |
|
Mar 10, 2026
12w ago
|
Press Release
| $40.97 $37.87 | ▼ −7.56% | ▼ −6.65% | $42.54 (+3.83%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access