Latest news with #ScottSalmirs
Yahoo
4 days ago
- Business
- Yahoo
ABM Q1 Earnings Call: Organic Growth Returns, Margin Outlook Steady Amid Project Delays
Facility services provider ABM Industries (NYSE:ABM) exceeded Wall Street's revenue expectations in Q1 CY2025 as sales rose 4.6% year on year to $2.11 billion. Its non-GAAP profit of $0.86 per share was in line with analysts' consensus estimates. Is now the time to buy ABM? Find out in our full research report (it's free). Revenue: $2.11 billion (4.6% year-on-year growth) Adjusted EPS: $0.86 vs analyst estimates of $0.86 (in line) Management reiterated its full-year Adjusted EPS guidance of $3.72 at the midpoint Operating Margin: 3.9%, in line with the same quarter last year Organic Revenue rose 3.8% year on year (1.7% in the same quarter last year) Market Capitalization: $3.19 billion ABM Industries' first-quarter results were shaped by the return to organic growth across its key segments, particularly in Business & Industry (B&I) and Manufacturing & Distribution (M&D), as well as record new bookings in the first half of the year. Management, led by CEO Scott Salmirs, emphasized the improvement in core commercial office markets and new contract wins, while noting that project delays and a shift in service mix temporarily impacted profitability in the Technical Solutions segment. The company also highlighted its ability to expand service offerings into higher-value areas, such as material handling and technical services within M&D, which Salmirs described as 'more strategic, more sticky with the client.' Looking ahead, ABM's management reaffirmed its full-year adjusted EPS guidance and expects delayed projects in Technical Solutions to resume in the third quarter, supporting both revenue and margin recovery. CEO Scott Salmirs cited ongoing momentum in high-quality office properties, manufacturing and distribution facilities, and energy resiliency projects as key growth drivers. CFO Earl Ellis highlighted improved billing and collections processes following ERP system upgrades, which are expected to drive sequential cash flow improvement in the second half of the year. Management acknowledged some uncertainty from potential regulatory changes affecting energy project tax credits, but overall, Salmirs expressed confidence in ABM's ability to 'sustain healthy top line growth and expand margins over time.' Management attributed the quarter's performance to expanded service offerings, new contract wins, and ongoing investments in technology and talent, while project delays in Technical Solutions created temporary margin pressure. Organic growth in core segments: Both Business & Industry and Manufacturing & Distribution divisions returned to organic revenue growth, supported by improved market conditions in prime commercial office space and expanded relationships with e-commerce and semiconductor clients. Technical Solutions faces timing headwinds: Project delays and a shift in service mix—particularly a move from higher-margin engineering work to lower-margin field execution—temporarily reduced margins in the Technical Solutions segment, though management expects a rebound as delayed projects resume. Record new business bookings: ABM secured $1.1 billion in new bookings during the first half of the year, including a $190 million microgrid contract with a major retailer and a large battery energy storage system project. These wins underscore growing demand for ABM's expertise in electrical engineering and sustainability-related services. Expansion of service offerings: The company is evolving its M&D segment from traditional janitorial and maintenance work to include ancillary services like material handling and test and balancing, aiming for higher-margin and more integrated client relationships, especially in sectors like semiconductors and automotive. ERP implementation progress: ABM reported improvements in operational efficiency and billing accuracy following the rollout of a new enterprise resource planning (ERP) platform, which is expected to further reduce friction and support stronger cash flow in the coming quarters. Management's outlook centers on sustained organic growth, margin recovery in Technical Solutions, and expanded service offerings in key end markets. Resumption of delayed projects: The completion of delayed Technical Solutions projects, especially in microgrids and battery storage, is expected to drive margin improvement and revenue growth in the second half, provided regulatory conditions remain stable. Focus on premium segments: Management sees continued opportunity in high-quality office properties, manufacturing facilities, and energy resiliency, with targeted investments in talent and technical capabilities to win larger, more complex contracts and deepen client relationships. Cash flow and operational execution: The ERP system upgrade is anticipated to normalize billing and collections, enabling ABM to meet its full-year cash flow targets. However, risks remain from potential changes in energy project tax credits and the timing of customer approvals. In the coming quarters, the StockStory team will track (1) the resumption and completion of delayed Technical Solutions projects to assess margin recovery, (2) continued expansion of higher-margin service offerings in M&D and their adoption by key clients, and (3) progress in billing and collections as the ERP upgrade is fully implemented. Regulatory changes affecting energy project incentives and new contract wins in premium office and infrastructure markets will also be key indicators. ABM currently trades at a forward P/E ratio of 13.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
4 days ago
- Business
- Yahoo
Why ABM Industries Stock Is Down Today
ABM delivered a quarter roughly in line with expectations, but the full-year forecast suggested some downside to expectations. Given the macro headwinds, investors seem to see more downside potential than upside from here, leading to a sell-off in the stock. 10 stocks we like better than Abm Industries › ABM Industries (NYSE: ABM) largely met Wall Street expectations for the quarter, but costs are on the rise and full-year guidance implies some risk of weakness compared to estimates. Investors are on the defensive, sending ABM shares down 13% as of noon ET. ABM supplies cleaning, parking, and other services to a wide range of facilities from office buildings to factories and airports. The company earned $0.86 per share in its fiscal second quarter ending April 30, a penny shy of expectations, on revenue that was in line at $2.1 billion. The quarter marked a return to organic revenue growth thanks to strength in the prime commercial office market. ABM also secured $1.1 billion in new bookings in the first half of its fiscal year, up 11%. Revenue growth was 3.4%, compared to a 3% rise in operating expenses and a 9% rise in selling, general, and administrative expenses. "We remain constructive on the outlook for our core markets, particularly high-quality office buildings, manufacturing and distribution facilities, commercial aviation, and microgrids," CEO Scott Salmirs said in a statement. "Further, projects delayed in the second quarter are expected to be realized in the third quarter." The quarter was fine, but investors appear to be reacting to the company leaving in place full-year guidance for earnings of $3.65 to $3.80 per share. At the midpoint that's below the $3.77 consensus. Investors came into this earnings season looking for more of an acceleration than what ABM could deliver and given the broader macro uncertainty there appears to be more downside risk than upside in the months to come. A slowdown in manufacturing, or layoffs that eat into office building occupancy, could hit results. Given the uncertainty, investors are likely wise to move to the sidelines right now. Before you buy stock in Abm Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abm Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends ABM Industries. The Motley Fool has a disclosure policy. Why ABM Industries Stock Is Down Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
ABM (NYSE:ABM) Posts Better-Than-Expected Sales In Q1
Facility services provider ABM Industries (NYSE:ABM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 4.6% year on year to $2.11 billion. Its non-GAAP profit of $0.86 per share was in line with analysts' consensus estimates. Is now the time to buy ABM? Find out in our full research report. Revenue: $2.11 billion vs analyst estimates of $2.07 billion (4.6% year-on-year growth, 2.1% beat) Adjusted EPS: $0.86 vs analyst estimates of $0.86 (in line) Adjusted EBITDA: $125.9 million vs analyst estimates of $124.7 million (6% margin, 0.9% beat) Management reiterated its full-year Adjusted EPS guidance of $3.72 at the midpoint Operating Margin: 3.9%, in line with the same quarter last year Free Cash Flow Margin: 0.7%, down from 5% in the same quarter last year Organic Revenue rose 3.8% year on year (1.7% in the same quarter last year) Market Capitalization: $3.19 billion 'ABM's second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry ('B&I') segment, driven by improving conditions in our prime commercial office markets,' said Scott Salmirs, President & Chief Executive Officer. With roots dating back to 1909 as a window washing company, ABM Industries (NYSE:ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $8.50 billion in revenue over the past 12 months, ABM is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. As you can see below, ABM's 5.8% annualized revenue growth over the last five years was decent. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. ABM's recent performance shows its demand has slowed as its annualized revenue growth of 3.4% over the last two years was below its five-year trend. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, ABM's organic revenue averaged 2.9% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, ABM reported modest year-on-year revenue growth of 4.6% but beat Wall Street's estimates by 2.1%. Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. ABM was profitable over the last five years but held back by its large cost base. Its average operating margin of 4% was weak for a business services business. Looking at the trend in its profitability, ABM's operating margin decreased by 3 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. ABM's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, ABM generated an operating margin profit margin of 3.9%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. ABM's EPS grew at a solid 9.7% compounded annual growth rate over the last five years, higher than its 5.8% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. We can take a deeper look into ABM's earnings to better understand the drivers of its performance. A five-year view shows that ABM has repurchased its stock, shrinking its share count by 6%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q1, ABM reported EPS at $0.86, down from $0.87 in the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects ABM's full-year EPS of $3.57 to grow 8.3%. We enjoyed seeing ABM beat analysts' organic revenue expectations this quarter. We were also happy its EBITDA outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance slightly missed. Still, this print had some key positives. The stock remained flat at $51 immediately after reporting. Is ABM an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
4 days ago
- Business
- Associated Press
ABM Reports Fiscal Second Quarter 2025 Results
NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for fiscal second quarter ended April 30, 2025. 'ABM's second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry ('B&I') segment, driven by improving conditions in our prime commercial office markets,' said Scott Salmirs, President & Chief Executive Officer. 'We are also encouraged by the growth in our Manufacturing & Distribution ('M&D') segment, driven by new business wins. We achieved 3.8% organic revenue growth, despite some unfavorable timing on certain projects in Technical Solutions ('ATS'). Additionally, we secured $1.1 billion in new bookings through the first half of the year, an 11% increase year over year, underscoring the strength of our market position, our focus on innovation, and our essential role as a resilient, non-discretionary service provider. We also produced significant sequential improvement in cash flow as we made important strides in deploying our enterprise resource planning ('ERP') system across the B&I and M&D segments.' Looking ahead to the second half of 2025, Mr. Salmirs added, 'We remain constructive on the outlook for our core markets, particularly high-quality office buildings, manufacturing and distribution facilities, commercial aviation, and microgrids. Further, projects delayed in the second quarter are expected to be realized in the third quarter.' Disclosure Update After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. As a result, our adjusted financial measures in the second quarter of 2024 now include unfavorable prior year self-insurance adjustments of $4.3 million, or $0.05 per diluted share, which are recorded as corporate costs. The definitional change had no impact on second quarter 2025 results. (1) When the company provides expectations for adjusted EPS and adjusted EBITDA margin on a forward-looking basis, a reconciliation of the differences between these non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See 'Outlook' and 'Use of Non-GAAP Financial Information' below for additional information. Second Quarter Fiscal 2025 Results Revenue increased 4.6% over the prior year period to $2.1 billion. This growth was driven by 3.8% organic growth and a 0.8% contribution from acquisitions. ATS and Aviation led the way, with revenue increasing 19% and 9%, respectively. ATS benefited from significantly higher microgrid revenue. B&I grew 3% supported by continued recovery in the U.S prime office space market. M&D was up 2%, reflecting both new client wins and favorable comparisons to the prior year. Education delivered growth of 1%. Net income for the quarter was $42.2 million, or $0.67 per diluted share, compared to $43.8 million, or $0.69 per diluted share, in the prior year period. The year over year change largely reflects higher interest expense and higher transformation and integration costs, offset in part by increased segment earnings. Net income margin was 2.0% versus 2.2% in the prior year. Adjusted net income grew to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share, last year. The year over year growth was primarily driven by higher segment earnings and lower corporate costs, partially offset by higher interest expense. Adjusted EBITDA for the period increased to $125.9 million and adjusted EBITDA margin was 6.2% versus $121.0 million and 6.2%, respectively, in the prior year. Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Net cash provided by operating activities was $32.3 million, and free cash flow was $15.2 million, compared to $117.0 million and $101.4 million, respectively in the prior year. These results primarily reflect continued elevated working capital tied to the ongoing transition to the Company's new ERP system. Sequentially, cash flow from operations increased by $138.5 million compared to the previous quarter, highlighting progress reducing the operational friction associated with the ERP conversion. A reconciliation of net cash provided by operating activities to free cash flow can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Liquidity, Capital Structure & Share Repurchases At the end of the second quarter, the Company's total indebtedness stood at $1.6 billion, including $29.7 million in standby letters of credit, resulting in a total leverage ratio of 2.9X, as defined by the Company's credit facility. The Company had available liquidity of $657.8 million, including $58.7 million in cash and cash equivalents. Quarterly Cash Dividend After the quarter's close, the Company's Board of Directors declared a cash dividend of $0.265 per common share, payable on August 4, 2025, to shareholders of record on July 3, 2025. This marks the Company's 237th consecutive quarterly cash dividend. Outlook The Company is reaffirming its outlook for fiscal year 2025 adjusted EPS to be in the range of $3.65 to $3.80. The projected full year adjusted EBITDA margin also remains unchanged at 6.3% to 6.5%. This outlook does not give effect to any potential positive or negative prior year self-insurance adjustments. The Company cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for adjusted EPS in 2025 without unreasonable effort, as we believe a GAAP range would be too large and variable to be meaningful due to the uncertainty of the amount and timing of any gains or losses related to, but not limited to, items such as adjustments to contingent consideration, acquisition and integration related costs, legal costs and other settlements, as well as transformation initiative costs. Conference Call Information ABM will host its quarterly conference call for all interested parties on Friday, June 6, 2025, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the 'Investors' section of the Company's website, located at or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time. A supplemental presentation will accompany the webcast on the Company's website. A replay will be available approximately three hours after the webcast through June 20, 2025, and can be accessed by dialing (844) 512-2921 and then entering ID #13753708. A replay link of the webcast will also be archived on the ABM website for 90 days. About ABM ABM (NYSE: ABM) is one of the world's largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience. ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together. For more information, visit Cautionary Statement under the Private Securities Litigation Reform Act of 1995 This press release contains both historical and forward-looking statements about ABM Industries Incorporated ('ABM') and its subsidiaries (collectively referred to as 'ABM,' 'we,' 'us,' 'our,' or the 'Company'). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'likely,' 'may,' 'outlook,' 'plan,' 'predict,' 'should,' 'target,' or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning ('ERP') and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM's risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. Use of Non-GAAP Financial Information To supplement ABM's consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and six months of fiscal years 2025 and 2024. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM's operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and six months of fiscal years 2025 and 2024. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue excluding management reimbursement. We cannot provide a reconciliation of forward-looking non-GAAP adjusted EBITDA margin measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.) We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31. *Not meaningful (due to variance greater than or equal to +/-100%) *Not meaningful (due to variance greater than or equal to +/-100%) (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. (b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. Of note, the definitional change had no impact in second quarter 2025 results. (c) Represents acquisition and integration related costs associated with recent acquisitions. (d) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives. (e) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years. (f) The Company's tax impact is calculated using the federal and state statutory rate of 28.11% for FY2025 and FY2024. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding. (g) Six months ended April 30 2025 and 2024 include a $0.1 million and a $0.3 million benefit for uncertain tax positions with expiring statues, respectively.
Yahoo
4 days ago
- Business
- Yahoo
ABM Reports Fiscal Second Quarter 2025 Results
Revenue up 4.6% to $2.1 billion, with organic growth contributing 3.8% Business & Industry and Manufacturing & Distribution return to organic revenue growth Net income of $42.2 million and earnings per diluted share of $0.67, versus $43.8 million and $0.69 in the prior year, respectively Adjusted net income of $54.1 million and adjusted earnings per diluted share of $0.86, versus $52.3 million, or $0.82 in the prior year, respectively Adjusted EBITDA of $125.9 million versus $121.0 million in the prior year Reaffirms full year adjusted EPS outlook of $3.65 to $3.80 (1) NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for fiscal second quarter ended April 30, 2025. 'ABM's second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry ('B&I') segment, driven by improving conditions in our prime commercial office markets,' said Scott Salmirs, President & Chief Executive Officer. 'We are also encouraged by the growth in our Manufacturing & Distribution ('M&D') segment, driven by new business wins. We achieved 3.8% organic revenue growth, despite some unfavorable timing on certain projects in Technical Solutions ('ATS'). Additionally, we secured $1.1 billion in new bookings through the first half of the year, an 11% increase year over year, underscoring the strength of our market position, our focus on innovation, and our essential role as a resilient, non-discretionary service provider. We also produced significant sequential improvement in cash flow as we made important strides in deploying our enterprise resource planning ('ERP') system across the B&I and M&D segments.' Looking ahead to the second half of 2025, Mr. Salmirs added, 'We remain constructive on the outlook for our core markets, particularly high-quality office buildings, manufacturing and distribution facilities, commercial aviation, and microgrids. Further, projects delayed in the second quarter are expected to be realized in the third quarter.' Disclosure Update After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. As a result, our adjusted financial measures in the second quarter of 2024 now include unfavorable prior year self-insurance adjustments of $4.3 million, or $0.05 per diluted share, which are recorded as corporate costs. The definitional change had no impact on second quarter 2025 results. (1) When the company provides expectations for adjusted EPS and adjusted EBITDA margin on a forward-looking basis, a reconciliation of the differences between these non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See 'Outlook' and 'Use of Non-GAAP Financial Information' below for additional information. Second Quarter Fiscal 2025 Results Revenue increased 4.6% over the prior year period to $2.1 billion. This growth was driven by 3.8% organic growth and a 0.8% contribution from acquisitions. ATS and Aviation led the way, with revenue increasing 19% and 9%, respectively. ATS benefited from significantly higher microgrid revenue. B&I grew 3% supported by continued recovery in the U.S prime office space market. M&D was up 2%, reflecting both new client wins and favorable comparisons to the prior year. Education delivered growth of 1%. Net income for the quarter was $42.2 million, or $0.67 per diluted share, compared to $43.8 million, or $0.69 per diluted share, in the prior year period. The year over year change largely reflects higher interest expense and higher transformation and integration costs, offset in part by increased segment earnings. Net income margin was 2.0% versus 2.2% in the prior year. Adjusted net income grew to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share, last year. The year over year growth was primarily driven by higher segment earnings and lower corporate costs, partially offset by higher interest expense. Adjusted EBITDA for the period increased to $125.9 million and adjusted EBITDA margin was 6.2% versus $121.0 million and 6.2%, respectively, in the prior year. Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Net cash provided by operating activities was $32.3 million, and free cash flow was $15.2 million, compared to $117.0 million and $101.4 million, respectively in the prior year. These results primarily reflect continued elevated working capital tied to the ongoing transition to the Company's new ERP system. Sequentially, cash flow from operations increased by $138.5 million compared to the previous quarter, highlighting progress reducing the operational friction associated with the ERP conversion. A reconciliation of net cash provided by operating activities to free cash flow can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Liquidity, Capital Structure & Share Repurchases At the end of the second quarter, the Company's total indebtedness stood at $1.6 billion, including $29.7 million in standby letters of credit, resulting in a total leverage ratio of 2.9X, as defined by the Company's credit facility. The Company had available liquidity of $657.8 million, including $58.7 million in cash and cash equivalents. Quarterly Cash Dividend After the quarter's close, the Company's Board of Directors declared a cash dividend of $0.265 per common share, payable on August 4, 2025, to shareholders of record on July 3, 2025. This marks the Company's 237th consecutive quarterly cash dividend. Outlook The Company is reaffirming its outlook for fiscal year 2025 adjusted EPS to be in the range of $3.65 to $3.80. The projected full year adjusted EBITDA margin also remains unchanged at 6.3% to 6.5%. This outlook does not give effect to any potential positive or negative prior year self-insurance adjustments. The Company cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for adjusted EPS in 2025 without unreasonable effort, as we believe a GAAP range would be too large and variable to be meaningful due to the uncertainty of the amount and timing of any gains or losses related to, but not limited to, items such as adjustments to contingent consideration, acquisition and integration related costs, legal costs and other settlements, as well as transformation initiative costs. Conference Call Information ABM will host its quarterly conference call for all interested parties on Friday, June 6, 2025, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the 'Investors' section of the Company's website, located at or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time. A supplemental presentation will accompany the webcast on the Company's website. A replay will be available approximately three hours after the webcast through June 20, 2025, and can be accessed by dialing (844) 512-2921 and then entering ID #13753708. A replay link of the webcast will also be archived on the ABM website for 90 days. About ABM ABM (NYSE: ABM) is one of the world's largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience. ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together. For more information, visit Cautionary Statement under the Private Securities Litigation Reform Act of 1995 This press release contains both historical and forward-looking statements about ABM Industries Incorporated ('ABM') and its subsidiaries (collectively referred to as 'ABM,' 'we,' 'us,' 'our,' or the 'Company'). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'likely,' 'may,' 'outlook,' 'plan,' 'predict,' 'should,' 'target,' or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning ('ERP') and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM's risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. Use of Non-GAAP Financial Information To supplement ABM's consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and six months of fiscal years 2025 and 2024. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM's operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and six months of fiscal years 2025 and 2024. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue excluding management reimbursement. We cannot provide a reconciliation of forward-looking non-GAAP adjusted EBITDA margin measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.) We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31. Contact: Investor Relations: Paul Goldberg (212) 297-9721 ir@ INDUSTRIES INCORPORATED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) Three Months Ended April 30, (in millions, except per share amounts) 2025 2024 Increase / (Decrease) Revenues $ 2,111.7 $ 2,018.2 4.6% Operating expenses 1,841.0 1,763.5 4.4% Selling, general and administrative expenses 175.1 159.9 9.5% Amortization of intangible assets 13.2 13.6 (2.5)% Operating profit 82.3 81.3 1.2% Income from unconsolidated affiliates 1.4 1.7 (19.4)% Interest expense (23.9 ) (20.6 ) (16.1)% Income before income taxes 59.8 62.4 (4.3)% Income tax provision (17.6 ) (18.7 ) 5.8% Net income $ 42.2 $ 43.8 (3.7)% Net income per common share Basic $ 0.67 $ 0.69 (2.9)% Diluted $ 0.67 $ 0.69 (2.9)% Weighted-average common and common equivalent shares outstanding Basic 62.6 63.3 Diluted 62.9 63.5 Dividends declared per common share $ 0.265 $ 0.225 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) Six Months Ended April 30, (in millions, except per share amounts) 2025 2024 Increase / (Decrease) Revenues $ 4,226.6 $ 4,087.8 3.4% Operating expenses 3,696.1 3,589.8 3.0% Selling, general and administrative expenses 344.1 314.5 9.4% Amortization of intangible assets 26.5 28.2 (6.1)% Operating profit 159.9 155.4 2.9% Income from unconsolidated affiliates 2.1 3.0 (28.1)% Interest expense (46.8 ) (41.9 ) (11.5)% Income before income taxes 115.2 116.4 (1.0)% Income tax provision (29.5 ) (28.0 ) (5.3)% Net income $ 85.8 $ 88.4 (3.0)% Net income per common share Basic $ 1.37 $ 1.40 (2.1)% Diluted $ 1.36 $ 1.39 (2.2)% Weighted-average common and common equivalent shares outstanding Basic 62.7 63.4 Diluted 63.1 63.7 Dividends declared per common share $ 0.530 $ 0.450 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESSELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) Three Months Ended April 30, (in millions) 2025 2024 Net cash provided by operating activities $ 32.3 $ 117.0 Additions to property, plant and equipment (17.1 ) (15.6 ) Other — 0.1 Net cash used in investing activities $ (17.1 ) $ (15.5 ) Proceeds from issuance of share-based compensation awards, net 1.1 0.8 Repurchases of common stock, including excise taxes — (23.8 ) Dividends paid (16.5 ) (14.1 ) Deferred financing costs paid (8.0 ) — Borrowings from debt 338.9 255.0 Repayment of borrowings from debt (327.0 ) (313.1 ) Changes in book cash overdrafts (5.5 ) (2.2 ) Repayment of finance lease obligations (1.1 ) (1.0 ) Net cash used in financing activities $ (18.1 ) $ (98.4 ) Effect of exchange rate changes on cash and cash equivalents 2.7 (0.4 )ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESSELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) Six Months Ended April 30, (in millions) 2025 2024 Net cash (used in) provided by operating activities $ (73.9 ) $ 116.9 Additions to property, plant and equipment (33.8 ) (29.1 ) Purchase price adjustment for the Quality Uptime Acquisition 1.9 — Other 0.4 0.6 Net cash used in investing activities $ (31.6 ) $ (28.6 ) Taxes withheld from issuance of share-based compensation awards, net (9.6 ) (8.7 ) Repurchases of common stock, including excise taxes (21.3 ) (23.8 ) Dividends paid (32.9 ) (28.3 ) Deferred financing costs paid (8.0 ) — Borrowings from debt 918.8 556.0 Repayment of borrowings from debt (700.0 ) (597.3 ) Changes in book cash overdrafts (46.0 ) 6.0 Repayment of finance lease obligations (2.2 ) (2.0 ) Net cash provided by (used in) financing activities $ 98.7 $ (98.0 ) Effect of exchange rate changes on cash and cash equivalents 1.0 0.8 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED) (in millions) April 30, 2025 October 31, 2024 ASSETS Current assets Cash and cash equivalents $ 58.7 $ 64.6 Trade accounts receivable 1,603.5 1,384.1 Costs incurred in excess of amounts billed 131.5 162.1 Prepaid expenses 141.7 103.2 Other current assets 78.7 74.8 Total current assets 2,014.1 1,788.7 Other investments 27.4 30.8 Property, plant and equipment 159.6 150.7 Right-of-use assets 100.4 101.2 Other intangible assets, net of accumulated amortization 256.2 282.4 Goodwill 2,576.6 2,575.9 Other noncurrent assets 176.3 167.5 Total assets $ 5,310.7 $ 5,097.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt, net $ 29.3 $ 31.6 Trade accounts payable 319.9 324.3 Accrued compensation 212.5 295.6 Accrued taxes—other than income 64.4 56.2 Deferred Revenue 53.7 63.7 Insurance claims 202.4 197.5 Income taxes payable 9.1 4.8 Current portion of lease liabilities 29.2 26.6 Other accrued liabilities 379.3 348.2 Total current liabilities 1,299.8 1,348.4 Long-term debt, net 1,521.8 1,302.2 Long-term lease liabilities 88.1 92.0 Deferred income tax liability, net 58.6 60.2 Noncurrent insurance claims 429.0 421.8 Other noncurrent liabilities 85.1 86.8 Noncurrent income taxes payable 3.8 3.8 Total liabilities 3,486.3 3,315.2 Total stockholders' equity 1,824.4 1,781.9 Total liabilities and stockholders' equity $ 5,310.7 $ 5,097.2ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESREVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) Three Months Ended April 30, Increase/ (Decrease) (in millions) 2025 2024 Revenues Business & Industry $ 1,015.5 $ 989.6 2.6% Manufacturing & Distribution 398.1 388.6 2.4% Aviation 260.1 238.2 9.2% Education 227.8 225.6 1.0% Technical Solutions 210.2 176.2 19.3% Total Revenues $ 2,111.7 $ 2,018.2 4.6% Operating profit Business & Industry $ 83.0 $ 77.6 7.0% Manufacturing & Distribution 39.9 43.6 (8.5)% Aviation 16.5 13.1 26.2% Education 13.8 11.5 19.4% Technical Solutions 13.4 17.0 (20.7)% Corporate (82.9 ) (79.7 ) (4.0)% Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.4 ) (1.7 ) 19.4% Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.1 ) — NM* Total operating profit 82.3 81.3 1.2% Income from unconsolidated affiliates 1.4 1.7 (19.4)% Interest expense (23.9 ) (20.6 ) (16.1)% Income before income taxes 59.8 62.4 (4.3)% Income tax provision (17.6 ) (18.7 ) 5.8% Net income $ 42.2 $ 43.8 (3.7)% *Not meaningful (due to variance greater than or equal to +/-100%)ABM INDUSTRIES INCORPORATED AND SUBSIDIARIESREVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) Six Months Ended April 30, Increase/ (Decrease) (in millions) 2025 2024 Revenues Business & Industry $ 2,038.4 $ 2,022.8 0.8% Manufacturing & Distribution 792.4 789.5 0.4% Aviation 530.2 487.8 8.7% Education 453.2 445.7 1.7% Technical Solutions 412.4 342.1 20.5% Total Revenues $ 4,226.6 $ 4,087.8 3.4% Operating profit Business & Industry $ 162.4 $ 157.2 3.3% Manufacturing & Distribution 79.3 85.0 (6.7)% Aviation 28.7 22.8 26.1% Education 27.8 24.3 14.4% Technical Solutions 30.0 23.5 27.6% Corporate (166.1 ) (154.4 ) (7.6)% Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (2.1 ) (3.0 ) 28.1% Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.1 ) — NM* Total operating profit 159.9 155.4 2.9% Income from unconsolidated affiliates 2.1 3.0 (28.1)% Interest expense (46.8 ) (41.9 ) (11.5)% Income before income taxes 115.2 116.4 (1.0)% Income tax provision (29.5 ) (28.0 ) (5.3)% Net income $ 85.8 $ 88.4 (3.0) % *Not meaningful (due to variance greater than or equal to +/-100%)ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)(in millions, except per share amounts) Three Months Ended April 30, Six Months Ended April 30, 2025 2024 2025 2024 Reconciliation of Net Income to Adjusted Net Income Net income $ 42.2 $ 43.8 $ 85.8 $ 88.4 Items impacting comparability(a)(b) Legal costs and other settlements 0.3 — 5.1 — Acquisition and integration related costs(c) 3.4 2.3 6.8 3.7 Transformation initiative costs(d) 10.7 9.6 19.0 16.7 Other(e) 2.2 — 2.2 0.8 Total items impacting comparability 16.6 11.9 33.0 21.1 Income tax benefit (f)(g) (4.7 ) (3.4 ) (9.4 ) (6.3 ) Items impacting comparability, net of taxes 11.9 8.6 23.6 14.9 Adjusted net income $ 54.1 $ 52.3 $ 109.4 $ 103.3 Three Months Ended April 30, Six Months Ended April 30, 2025 2024 2025 2024 Reconciliation of Net Income to Adjusted EBITDA Net Income $ 42.2 $ 43.8 $ 85.8 $ 88.4 Items impacting comparability 16.6 11.9 33.0 21.1 Income taxes provision 17.6 18.7 29.5 28.0 Interest expense 23.9 20.6 46.8 41.9 Depreciation and amortization 25.7 26.0 51.6 52.9 Adjusted EBITDA $ 125.9 $ 121.0 $ 246.6 $ 232.3 Net Income margin as a % of revenues 2.0 % 2.2 % 2.0 % 2.2 % Three Months Ended April 30, Six Months Ended April 30, 2025 2024 2025 2024 Revenues Excluding Management Reimbursement Revenue $ 2,111.7 $ 2,018.2 $ 4,226.6 $ 4,087.8 Management Reimbursement (84.5 ) (76.9 ) (166.5 ) (157.0 ) Revenues excluding management reimbursement $ 2,027.2 $ 1,941.4 $ 4,060.1 $ 3,930.8 Adjusted EBITDA margin as a % of revenues excluding management reimbursement 6.2 % 6.2 % 6.1 % 5.9 % Three Months Ended April 30, Six Months Ended April 30, 2025 2024 2025 2024 Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share Net income per diluted share $ 0.67 $ 0.69 $ 1.36 $ 1.39 Items impacting comparability, net of taxes 0.19 0.13 0.37 0.23 Adjusted net income per diluted share $ 0.86 $ 0.82 $ 1.73 $ 1.62 Diluted shares 62.9 63.5 63.1 63.7 Three Months Ended April 30, Six Months Ended April 30, 2025 2024 2025 2024 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provided by (used in) operating activities $ 32.3 $ 117.0 $ (73.9 ) $ 116.9 Additions to property, plant and equipment (17.1 ) (15.6 ) (33.8 ) (29.1 ) Free cash flow $ 15.2 $ 101.4 $ (107.8 ) $ 87.7 (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. (b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. Of note, the definitional change had no impact in second quarter 2025 results. (c) Represents acquisition and integration related costs associated with recent acquisitions. (d) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives. (e) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years. (f) The Company's tax impact is calculated using the federal and state statutory rate of 28.11% for FY2025 and FY2024. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding. (g) Six months ended April 30 2025 and 2024 include a $0.1 million and a $0.3 million benefit for uncertain tax positions with expiring statues, in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
