ABM Industries Inc. (NYSE:ABM) shares rose Friday after the facility services provider reported second-quarter results that topped Wall Street estimates and reaffirmed its fiscal 2026 adjusted earnings outlook.
Earnings Beat Expectations
ABM reported adjusted earnings of 90 cents per share for the second quarter, exceeding analysts’ estimates of 87 cents per share. Revenue increased 8.4% year over year to $2.29 billion, ahead of the consensus estimate of $2.21 billion.
Organic revenue growth was 6.1%, while acquisitions contributed an additional 2.3%, primarily from the WGM Star acquisition.
The company said organic growth was its strongest since the third quarter of 2022, led by gains in Technical Solutions, Aviation, and Manufacturing & Distribution.
ABM also reported record first-half new sales bookings of $1.2 billion and generated $22.4 million in free cash flow during the quarter.
At quarter-end, the company had $94.9 million in cash and cash equivalents and $1.9 billion in total debt.
Growth Driven by Aviation, AI and Infrastructure Demand
The Business & Industry segment was flat from a year earlier, reflecting the loss of a large U.K. client and additional customer attrition, particularly in West Coast commercial real estate markets.
The Education segment increased 2% year over year, supported by contract renewals and new business wins, including a $25 million contract with Detroit Public Schools.
Manufacturing & Distribution benefited from the WGM Star acquisition, which expanded the company’s presence in semiconductor-related markets.
Aviation revenue climbed 20% year over year, driven by strong travel demand and new airport contracts, including projects at Orlando, Miami and LaGuardia airports.
Technical Solutions revenue increased 27%, supported by demand for battery storage, AI infrastructure and microgrid projects.
Management highlighted continued strength in semiconductor, energy infrastructure, aviation and AI-related data center markets.
Management pointed to growing demand from AI-related infrastructure as a key driver of momentum, noting that data center construction is expanding at a double-digit pace globally.
The company said strong activity in its Technical Solutions segment helped deliver its strongest organic growth rate since the third quarter of 2022.
ABM Industries Outlook Reaffirmed
ABM reaffirmed its fiscal 2026 adjusted earnings guidance of $3.85 to $4.15 per share. The midpoint of the range remains above the Wall Street consensus estimate of $3.96.
The company also maintained its outlook for 3% to 4% organic revenue growth for the year and said it expects results to strengthen in the second half of fiscal 2026, supported by a growing backlog, favorable business mix, pricing actions and cost controls.
ABM Price Action: ABM Indus shares were up 6.76% at $42.57 at the time of publication on Friday, according to Benzinga Pro data.
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