ABM Industries Inc. reported its financial results for Q3 2025, announcing revenue and operating cash flow growth alongside a decline in earnings per share.
Financial Results for Q3
ABM Industries reported a 6.2% revenue increase for Q3 2025, totaling $2.2 billion. This growth was driven by a mix of organic expansion and acquisitions, with organic growth contributing 5.0% and acquisitions adding 1.2%. Key segments like Technical Solutions and Aviation drove this growth, increasing by 19% and 9% respectively. Although revenue slightly exceeded expectations of $2.15 billion, earnings per diluted share were $0.67, falling short of the anticipated $0.95.
Future Guidance
ABM Industries expects its adjusted earnings per share for the full fiscal year 2025 to be toward the lower end of the previously projected range of $3.65 to $3.80. This outlook accounts for higher than expected interest expenses and ongoing pressure on margins in some markets. The company anticipates its adjusted EBITDA margin to range between 6.3% and 6.5%.
Company Strategic Development
ABM is implementing a restructuring program aimed at streamlining operations and enhancing efficiency, which is expected to generate approximately $35 million in annualized cost savings. The company is also focusing on labor efficiency actions and cost controls to address near-term margin challenges. Additionally, ABM is continuing to invest in AI capabilities and client-facing solutions to drive higher growth and improved margins over time.
Overall, despite positive revenue growth outcomes, the decline in earnings per share and cautious future projections underscore the need for ABM Industries to take measures to optimize and improve its financial performance.
