ABM Industries Incorporated, a leading provider of facility solutions, reported a second quarter revenue of $2.1 billion for the fiscal year 2025, marking a 4.6% increase compared to $2.018 billion a year prior. This growth was driven by a 3.8% organic revenue increase and contributions from acquisitions. The company posted net income of $42.2 million, or $0.67 per diluted share, down from $43.8 million, or $0.69 per diluted share, in the prior year. Adjusted net income increased to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share, in the previous year.

Adjusted EBITDA grew to $125.9 million, reflecting a year-over-year increase from $121 million. The adjusted EBITDA margin remained flat at 6.2%. The Business & Industry (B&I) segment’s revenue reached $1.015 billion, representing a 2.6% increase driven by improving conditions in prime commercial office markets. Manufacturing & Distribution (M&D) reported revenues of $398.1 million, increasing by 2.4%, while the Aviation segment saw a revenue growth of 9% to $260.1 million.

Free cash flow for the quarter was $15.2 million, down from $101.4 million in the year-ago period, impacted by elevated working capital due to the ongoing transition to a new ERP system. Sequentially, free cash flow improved by $138.5 million compared to the first quarter. Total debt stood at $1.6 billion, with a leverage ratio of 2.9x. The company has reaffirmed its full year adjusted EPS guidance to be in the range of $3.65 to $3.80 and adjusted EBITDA margin expectations between 6.3% and 6.5%.

Overall, ABM’s performance showcases stability, with specific segments like Technical Solutions and Aviation achieving notable growth, while reevaluating and adjusting strategies to optimize profitability amid changes in client needs and market conditions.