ABM Delivers Record Revenue and Robust Growth in Technical Solutions
ABM Industries (NYSE: ABM) closed out fiscal 2025 with its strongest annual results yet, setting a new company revenue record at $8.75 billion, up 4.6% year over year. This performance was underpinned by exceptional organic growth of 3.8%, complemented by strategic acquisitions. The company’s momentum continued into the fourth quarter with revenue climbing 5.4% to $2.30 billion, largely fueled by double-digit gains in Technical Solutions (up 16%) and solid growth across Aviation, Manufacturing & Distribution, and other segments.
Technical Solutions Drive Performance—Microgrid Projects Take Center Stage
The Technical Solutions segment proved to be the main engine of growth, posting an impressive 18.7% annual revenue increase, reflecting rising demand for ABM’s capabilities in infrastructure, energy, and technology-driven projects. The surge in microgrid project activity was a standout contributor, positioning ABM to benefit from the ongoing push for sustainable and resilient infrastructure. Meanwhile, the Aviation and Manufacturing & Distribution divisions registered notable growth of 8.3% and 4.1% respectively, backed by client wins and market expansions.
| Segment | FY25 Revenue ($M) | Growth YoY (%) |
|---|---|---|
| Technical Solutions | 960.6 | 18.7 |
| Aviation | 1,118.7 | 8.3 |
| Manufacturing & Distribution | 1,618.6 | 4.1 |
| Business & Industry | 4,126.0 | 1.6 |
| Education | 922.0 | 2.0 |
Shareholder Returns: Dividend Raised for the 58th Consecutive Year
Reflecting confidence in its future cash generation, ABM’s Board of Directors approved a 9% increase to the quarterly dividend, raising it to $0.29 per share—marking 58 straight years of annual dividend hikes. The company also repurchased $121.3 million in common stock during fiscal 2025, reducing the share count by 4% and demonstrating a commitment to returning capital to shareholders.
| Capital Return Metric | 2025 Value | 2024 Value | Change (%) |
|---|---|---|---|
| Total Shares Repurchased ($M) | 121.3 | 56.1 | 116.3 |
| Dividend Declared/Share ($) | 1.06 | 0.90 | 17.8 |
Margins Remain Resilient Amid Restructuring
Profitability metrics showed resilience in 2025 despite restructuring costs and one-time self-insurance adjustments. Adjusted EBITDA rose to $496.6 million, while the adjusted EBITDA margin held steady at 5.9%. Adjusted net income improved to $215.8 million ($3.44 per diluted share), supported by operational improvements and a reduced share count. These figures reflect ABM’s ongoing efforts in cost management and strategic restructuring.
| Profitability Metric | 2025 | 2024 | Change (%) |
|---|---|---|---|
| Adjusted EBITDA ($M) | 496.6 | 477.7 | 4.0 |
| Adjusted Net Income ($M) | 215.8 | 212.6 | 1.5 |
| Adjusted EPS ($) | 3.44 | 3.34 | 3.0 |
| Free Cash Flow ($M) | 155.1 | 167.3 | -7.3 |
2026 Outlook: Growth Pipeline Remains Strong With New Sales, Aviation Win, and WGNSTAR Acquisition
Looking to fiscal 2026, ABM is forecasting organic revenue growth of 3% to 4%, bolstered by record 2025 new sales bookings of $1.9 billion and a major new aviation contract set to contribute starting in calendar 2026. The newly announced acquisition of WGNSTAR is expected to add an extra point of growth and solidify ABM’s presence in the semiconductor facility market. Management projects adjusted EPS in the range of $3.85 to $4.15, alongside a targeted segment operating margin between 7.8% and 8.0%.
- 2026 expected organic revenue growth: 3%–4%
- Expected total revenue growth (including WGNSTAR): ~4%–5%
- Projected adjusted EPS: $3.85–$4.15
- Segment operating margin forecast: 7.8%–8.0%
Takeaway: Focused on Strategic Expansion and Long-Term Value
ABM’s strong finish in 2025, record new bookings, dividend growth streak, and a clear pipeline for future expansion highlight a business executing well in complex market conditions. With disciplined cost control, ongoing investments in technology and efficiency, and targeted M&A—especially in high-growth sectors like technical solutions and semiconductor infrastructure—ABM continues to reinforce its position as a sector leader.
Investors and industry watchers may want to follow how the integration of WGNSTAR and ramp-up of large aviation projects unfold through 2026, and whether ABM’s margin expansion and revenue growth targets stay on track amid a dynamic economic backdrop.
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