"We posted 2% organic revenue growth, and delivered adjusted EPS of $0.87. So, we're off to a great start and we're firmly on track to hit our full year financial goals."
— Scott Salmirs
03Detailed Report
ABM
Company ABM
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
ABM’s QQ1 2025 results reflect a diversified portfolio across five reportable segments, with 2% reported organic revenue growth and a robust backlog in Technical Solutions (ATS) that frames a constructive multi-year growth trajectory. Adjusted EPS of $0.87 and Adjusted EBITDA of $120.6 million underscored operating leverage across segments, particularly ATS and Aviation, even as the company advanced a large ERP transition that temporarily pressured cash flow. Management reaffirmed and raised the lower bound of full-year guidance to $3.65–$3.80 per share, while reiterating a normalized free cash flow target of $250–$290 million, excluding integration costs and earnouts. The quarter also featured strategic investments in technology (ABM Connect, AI-enabled deal desk) and governance actions (credit facility upsizing to $2.2 billion), positioning ABM to capitalize on secular demand for power resilience, data-driven facilities management and onshore manufacturing support. However, near-term cash flow volatility remains a theme due to ERP-related working capital timing and the ongoing labor-market dynamics amid immigration policy considerations. The following analysis integrates segment results, liquidity dynamics, and management commentary to present a balanced view for investors.
Key Performance Indicators
Revenue
Increasing
2.11B
QoQ: -2.87% | YoY: 2.19%
Gross Profit
Increasing
259.80M
12.28% margin
QoQ: -26.59% | YoY: 6.78%
Operating Income
Increasing
77.60M
QoQ: 304.17% | YoY: 4.72%
Net Income
Decreasing
43.60M
QoQ: 472.65% | YoY: -2.46%
EPS
Stable
0.70
QoQ: 468.42% | YoY: 0.00%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of QQ1 2025 performance with YoY and QoQ context. Highlights include:
- Revenue: $2.1149 billion, up 2.2% year over year; organic growth 1.6%, with the remainder from the prior-year Quality Uptime Services acquisition.
- Gross margin: 12.28% (0.1228), reflecting segment mix and project-related profitability dynamics; gross profit of $259.8 million.
- Operating income: $77.6 million; operating margin 3.67% (0.0367).
- EBITDA: Adjusted EBITDA $120.6 million, margin 5.9% (0.059).
- Net income: $43.6 million, net margin 2.06% (0.0206); adjusted net income $55.3 million, adjusted EPS $0.87; GAAP EPS $0.69.
- Cash flow and liquidity: Net cash from operating activities negative $106.2 million; free cash flow negative $122.9 million, driven by ERP-related working capital. Cash at period-end $59.0 million; total liquidity including undrawn facilities ~$296.9 million.
- Leverage and capital structure: Total debt $1.600B; total indebtedness $1.6B; debt to pro forma adjusted EBITDA 2.9x; new upsized facility: $2.2B (revolver $1.6B + $600M term loan) as of after-quarter actions.
- Guidance: Adjusted EPS guidance raised to $3.65–$3.80 for 2025; normalized FCF target $250–$290 million.
- Backlog and growth signals: ATS backlog at $490 million; strong demand in Aviation and Enterprise Solutions; pipeline supported by AI-enabled capabilities and a focus on data-driven operations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.11B
2.19%
-2.87%
Gross Profit
259.80M
6.78%
-26.59%
Operating Income
77.60M
4.72%
304.17%
Net Income
43.60M
-2.46%
472.65%
EPS
0.70
0.00%
468.42%
Key Financial Ratios
Gross Profit Margin
Weak
12.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
3.67%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.06%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.84%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.45%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.52
Current ratio shows adequate liquidity to meet short-term obligations
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