ABM Industries Incorporated is a leading provider of integrated facility solutions, offering a range of essential services including maintenance, janitorial, engineering, and other operational support functions. The company operates across various sectors such as commercial real estate, aviation, and manufacturing, generating over $8 billion in annual revenue.

In its first quarter of fiscal 2025, ABM reported a stable quarter with total revenue of $2.1 billion, reflecting a year-over-year increase of 2.2%. This growth was led by a 1.6% organic revenue increase, alongside contributions from acquired businesses. Profit margins remained stable with adjusted earnings per share (EPS) rising to $0.87, compared to $0.86 in the same quarter of the previous year.

The company’s net income for the quarter decreased slightly to $43.6 million, or $0.69 per diluted share, down from $44.7 million, or $0.70 per share, in the prior year. Adjusted net income increased to $55.3 million for the quarter, supported by a lower share count from repurchase activities. The adjusted EBITDA also showed growth, reaching $120.6 million, which is a 3% increase from $116.7 million a year ago.

ABM’s business segments showed varied performance: Technical Solutions led the way with a revenue increase of 22% to $202.3 million, primarily driven by strong microgrid project activity. Aviation revenue rose by 8% to $270.1 million, aided by positive travel market conditions. Education services grew by 2% to $225.3 million, demonstrating stable demand.

In the Business & Industry (B&I) segment, revenue registered at $1 billion, reflecting a slight decline from the previous year as a result of a focus on high-quality properties. Manufacturing & Distribution (M&D) revenue fell to $394.3 million from $400.9 million a year earlier, impacted by an exit from a contract with a large client.

ABM reported a total EBITDA margin of 5.9%, consistent with the previous year. The company’s total debt at the end of the quarter was $1.6 billion, leading to a total leverage ratio of 2.9x. Liquidity remained healthy, with available cash and equivalents amounting to $296.9 million.

The company announced a cash dividend of $0.265 per share, payable on May 5, 2025.

Looking forward, ABM has raised its full-year adjusted EPS guidance to a range of $3.65 to $3.80, based on the solid start to the year, while holding the adjusted EBITDA margin forecast steady at 6.3% to 6.5%. The company expects full-year interest expense to be between $80 million and $84 million, reflecting a slight upward revision due to increased debt.