Highlights

  • Third quarter revenue rose 4.2% to $2,317.1 million, with 2.1% organic growth and 2.1% from acquisitions.
  • GAAP net income increased to $49.7 million, or $0.84 per diluted share, from $41.8 million, or $0.67.
  • Nine-month operating cash flow reached $275.0 million, compared with $101.0 million a year earlier, as working capital improved.
  • Management raised the midpoint of fiscal 2026 non-GAAP adjusted EPS guidance to a range of $3.95 to $4.10.

ABM Industries (NYSE:ABM) shares were trading near their 52-week high at USD 52.19 on October 21, 2026, up 1.23%. The facility services group completed its WGNSTAR acquisition in February, filed its fiscal third quarter report and held its earnings call on September 8 with a raised full-year adjusted EPS range.

Based in New York, the Delaware corporation calls itself a leading provider of integrated facility solutions, customized by industry. It reports five segments: Business & Industry, its largest, covering janitorial, maintenance, engineering and parking; Manufacturing & Distribution, serving manufacturing, distribution and data center facilities; Aviation, supporting airlines and airports; Education, serving schools and universities; and Technical Solutions, which handles mechanical and electrical systems, EV charging and microgrids. Its fiscal year ends October 31.

Record Quarterly Revenue, With Uneven Segments

Revenue for the three months ended July 31, 2026 was $2,317.1 million, up from $2,224.0 million. Operating profit rose 9.6% to $91.5 million, helped by lower compensation costs after a headcount reduction and partly offset by $7.8 million of restructuring charges. Interest expense climbed to $29.5 million from $25.3 million on higher borrowings tied to the WGNSTAR purchase, and the effective tax rate fell to 21.3% from 29.6% on discrete benefits including research and development credits. On the call, management cited a quarterly revenue record and non-GAAP adjusted EPS up 27% to $1.04.

Manufacturing & Distribution revenue grew 17.6% to $481.0 million, with 7.8 points organic, led by semiconductor work, and 9.9 points from WGNSTAR. Aviation grew 12.5% to $328.1 million on new business, including a U.K. airport. Business & Industry fell 2.6% to $1,012.2 million on client attrition, including a large U.K. transportation client, although its margin widened to 7.4%. Technical Solutions grew 4.2% to $259.9 million, as microgrid project delays offset gains in energy and HVAC work. Management called those delays mainly a timing matter. Aviation margin narrowed to 5.6% from 6.8% on service mix.

Cash Flow, Debt and the Restructuring Program

For the nine months, revenue was $6,850.6 million, up 6.2%, net income was $131.6 million and diluted EPS was $2.20 versus $2.03. Operating cash flow of $275.0 million compared with $101.0 million a year earlier, on better collections and payment timing. Investing outflows rose by $241.0 million, mainly for WGNSTAR, a managed workforce and equipment support provider for semiconductor and technology clients, bought on February 4, 2026 for about $283.4 million.

Total borrowings stood at $1.8 billion on July 31, with up to $495.3 million of borrowing capacity and covenant compliance reported. A $255.0 million incremental term loan was added in February, and on July 28 the company signed a receivables financing agreement of up to $300.0 million, fully drawn at quarter end. Management put total debt at 2.9 times pro forma adjusted EBITDA, a non-GAAP measure.

The Restructuring Program launched in the fourth quarter of 2025 has recorded $28.0 million of charges to date and targets about $35.0 million of annualized savings once fully implemented in 2026, though remaining costs cannot be reasonably estimated. The company paid $51.2 million of dividends over nine months, declared $0.290 per share for the quarter and made no repurchases in the period, leaving $89.0 million of authorization.

Fiscal 2026 Outlook and Next Report

Management raised the midpoint of fiscal 2026 non-GAAP adjusted EPS guidance, now $3.95 to $4.10. Organic revenue growth is still expected at 3% to 4%, toward the high end, with WGNSTAR adding about one point. Segment operating margin is now seen at 7.7% to 7.8%, and fourth quarter margin above 8%. Reported free cash flow is expected near $210 million, up from $185 million, and normalized free cash flow near $285 million, both non-GAAP.

Management expects Business & Industry to return to organic growth around the middle of fiscal 2027 and Technical Solutions to improve sharply in the fourth quarter as deferred projects proceed. It plans to give its fiscal 2027 outlook with fourth quarter results. These are company estimates.