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ABM Industries Fiscal Second-Quarter Results Top Views; Maintains Full-Year Earnings Outlook

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ABM Industries Fiscal Second-Quarter Results Top Views; Maintains Full-Year Earnings Outlook

ABM Industries' (ABM) fiscal second-quarter results topped market expectations, while the facility services provider reiterated its full-year earnings outlook.

The company on Friday posted adjusted earnings of $0.90 a share for the quarter ended April, up from $0.86 the year before and surpassing the FactSet-polled consensus for $0.88. Revenue improved 8.4% to $2.29 billion, exceeding the Street's view for $2.22 billion.

The stock gained 1.3% in the most recent premarket activity.

"Our second-quarter performance was highlighted by organic revenue growth of 6.1% and record first-half new sales bookings of $1.2 billion," Chief Executive Scott Salmirs said in a statement. "Beyond the top line, we executed well in the quarter, resulting in improved margin on a sequential basis and continued solid free cash flow generation."

For fiscal 2026, ABM continues to project adjusted EPS to come in between $3.85 and $4.15, compared with the average analyst estimate of $3.96. Revenue is now pegged to grow at the top end of the firm's previously issued guidance range of 4% to 5%. The Street is looking for $9.18 billion.

The company expects "meaningfully" higher volume in its technical solutions and manufacturing and distribution businesses in the second half, Salmirs said.

Revenue in the business and industry segment remained unchanged at $1.02 billion in the second quarter, as robust growth in the company's UK operations was largely offset by the exit of certain clients, it said. The manufacturing and distribution division revenue rose 17% to $463.8 million, buoyed by acquisitions, recent client wins and ongoing expansions.

Aviation business sales advanced 20% to $310.8 million, reflecting healthy domestic air travel trends and the continued ramp of new contracts, according to ABM. Revenue in the technical solutions segment jumped 27%, while the education business ticked up 1.9%.

"We are encouraged by constructive demand trends across the majority of our end markets, and remain focused on executing with discipline as the broader macroeconomic environment continues to evolve," Salmirs said.

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