June 5, 2026

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ABM Industries, Inc. (NYSE: ABM) reported fiscal second-quarter 2026 results with record revenue, solid organic growth, stronger cash flow, and reaffirmed full-year adjusted EPS guidance, but adjusted earnings came in slightly below expectations.
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ABM provides facility, engineering, janitorial, parking, infrastructure, technical, aviation, and maintenance solutions for commercial, industrial, education, aviation, and public-sector customers.
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The company reported adjusted EPS of $0.90, below estimates of $0.92, representing a negative 2.2% earnings surprise. Revenue came in at $2.29 billion, above estimates of $2.22 billion, with revenue growth of 8.4%.

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Results Showed Strong Revenue Growth

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ABM reported second-quarter revenue of $2.3 billion, up 8.4% year-over-year. Organic growth was 6.1%, while acquisitions added another 2.3%.
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Growth was strongest in Technical Solutions and Aviation, which increased 27% and 20%, respectively. Technical Solutions benefited from demand for battery energy storage systems and data center-related services. Aviation was helped by domestic air travel trends and new contract ramps, including the London Heathrow contract.
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Manufacturing & Distribution grew 17%, helped by acquisitions, client wins, and expansions. Education rose 2%, while Business & Industry was roughly flat.
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Net income improved to $43.1 million, or $0.73 per diluted share, compared with $42.2 million, or $0.67, a year earlier. Adjusted net income was $52.9 million, or $0.90 per share. Adjusted EBITDA increased to $131.7 million from $125.9 million.
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Cash flow improved sharply. Operating cash flow was $66.2 million, while free cash flow totaled $22.4 million, both above the prior-year period.

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Guidance Reaffirmed

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ABM reaffirmed its fiscal 2026 adjusted EPS outlook.
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Management said it expects stronger second-half volume in Technical Solutions and Manufacturing & Distribution, improved service mix, ongoing pricing actions, and cost savings to support earnings and margin improvement.

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The Bigger Picture

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ABM’s quarter showed strong top-line momentum but some margin pressure.
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Revenue beat expectations and reached a second-quarter record, but the EPS miss and lower segment operating margin likely kept investors cautious. The key question is whether ABM can turn strong bookings and revenue growth into better earnings and margin performance in the second half.
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