ABM Industries, Inc. (ABM)

ABM reported fiscal third-quarter 2026 revenue up 4.2 percent to a quarterly record of $2.3 billion on 8 September 2026, with organic growth of 2.1 percent and acquisitions adding another 2.1 percent 2. Net income rose 19 percent to $49.7 million, or $0.84 per diluted share 2.

Growth came from Manufacturing & Distribution and Aviation, which grew 18 percent and 12 percent 2. The company said the WGNSTAR acquisition, which supplies workers and equipment support to chip factories, and healthy air travel drove those gains 2. Technical Solutions was held back by project deferrals from a large client 2.

The company raised the midpoint of its adjusted earnings per share outlook for fiscal 2026 to a range of $3.95 to $4.10 2. On 28 October 2026 it disclosed that Rene Jacobsen, its Chief Operating Officer, will retire effective 1 February 2027 1.

The fiscal year ends on 31 October 4. The company said it is focused on finishing the year strong, and the filing names no successor to the chief operating officer 21.

ABM began in 1909 as American Building Maintenance Company, a window washing business in San Francisco with one employee 4. It was incorporated in Delaware in 1985 and took the name ABM Industries Incorporated in 1994 4.

In 2015 it began a transformation called 2020 Vision to grow through an industry-based approach, serving sectors such as airports and schools with specialist teams 4. As part of it, the company sold its Security and Government Services businesses, which did not fit that focus 4.

The 2017 purchase of GCA Services Group, which serves schools and commercial buildings, was the largest in ABM's history 4. In 2021 it bought Crown Building Maintenance and Crown Energy Services, known as Able, to add scale in San Francisco and janitorial work 4.

In 2022 ABM added RavenVolt, a maker of turn-key microgrid power systems, and Momentum Support, a janitorial company in Ireland 4. In 2024 it acquired Quality Uptime Services, which maintains backup power systems for data centers, and in 2025 the Dublin firm LMC FM Limited 4. That same 2021 year, the company launched ELEVATE, a multiyear plan to modernize its systems 4.

Revenue grew from $8,096.4 million in fiscal 2023 to $8,359.4 million in 2024 and $8,745.9 million in 2025 4. In 2025 organic growth was 3.8 percent and acquisitions added 0.8 percent 4.

Net income was $251.3 million in 2023, fell to $81.4 million in 2024 and recovered to $162.4 million in 2025 4. The 2024 figure carried a $95.7 million non-taxable increase in the fair value of the contingent consideration owed on the RavenVolt purchase 4.

By group in 2025, Technical Solutions revenue rose 18.7 percent to $960.6 million on higher microgrid projects, partly offset by lower electric vehicle charging revenue 4. Manufacturing & Distribution margin fell to 9.4 percent from 10.7 percent because of strategic pricing on select new wins 4.

In the fourth quarter of 2025 ABM started a restructuring program to streamline support functions 3. It had recorded $28.0 million of cumulative charges under it through the third quarter of 2026 3.

The five industry groups

Business & Industry is the largest group, with fiscal 2025 revenue of $4,126.0 million 4. It cleans and maintains offices, hospitals and sports venues, runs facilities engineering, and manages parking 4.

Manufacturing & Distribution serves factories, warehouses and data centers, and had revenue of $1,618.6 million 4. One client was about 32 percent of this group's revenue in 2025 4. It now includes WGNSTAR, a provider of managed workforce solutions and equipment support for semiconductor makers in the United States and Ireland 3.

Aviation supports airlines and airports with passenger assistance, cabin cleaning and parking, and had revenue of $1,118.7 million 4. Two clients made up about 27 percent of its revenue 4. The company said the London Heathrow contract is ramping 2.

Education cleans and maintains schools and universities, with revenue of $922.0 million 4. Technical Solutions installs and maintains electrical and mechanical systems, microgrids, backup power and EV charging stations, with revenue of $960.6 million, and one client was about 30 percent of it 4.

People and places

Scott Salmirs is President and Chief Executive Officer 2. ABM employed about 113,000 people at 31 October 2025, and about 45 percent were under local collective bargaining agreements 4. The corporate headquarters is a leased 44,000 square foot office in New York 4.

Rivals and problems

The annual report says each part of the business is highly competitive, on price, quality of service and efficiency 4. In the newest quarter, Business & Industry revenue fell 2.6 percent on the exit of a large UK client and softness on the US west coast 2.

The quarterly report lists the new ERP (enterprise resource planning) system as a risk to operations and reporting 3. It also records $8.8 million accrued for probable litigation losses at 31 July 2026 3.

The umbrella, in words

The brands named in the annual report include ABM, ABM GreenCare, ABM EnhancedClean, Linc Service, TEGG and RavenVolt 4. Linc Service and TEGG are franchised engineering services 4.

The subsidiary list filed with the annual report names, among others, ABM Aviation, Inc. in Georgia and ABM Onsite Services - Canada ULC in Canada 5. It omits subsidiaries that together are not significant 5.

ABM owns all the equity of WGNSTAR, bought on 4 February 2026 for about $283.4 million, which makes it a subsidiary 3. Its other equity investments were carried at $14.1 million at 31 July 2026 3.

For fiscal 2026 the company expects organic revenue growth near the top end of 3 percent to 4 percent and total revenue growth toward the top end of 4 percent to 5 percent 2. It expects segment operating margin of 7.7 percent to 7.8 percent, lower than the earlier 7.8 percent to 8.0 percent 2.

It expects adjusted earnings per share of $3.95 to $4.10, operating cash flow of about $300 million and free cash flow of about $210 million 2. Interest expense is expected near $110 million and the normalized tax rate between 29 percent and 30 percent 2.

The chief executive said Technical Solutions is expected to ramp sequentially in the fourth quarter as deferred projects are carried out 2. The company also expects to reduce its total leverage ratio further by fiscal year-end 2.

Rene Jacobsen moves to Executive Advisor on 1 November 2026 and retires on 1 February 2027 1. The restructuring program is expected to finish in 2026 3. The WGNSTAR purchase includes $7.3 million payable in three equal installments in October 2026, 2027 and 2028 3.

At announcement, ABM said the WGNSTAR deal would bring its semiconductor solutions portfolio to about $325 million in annualized revenue 6. It also said the deal was expected to be $0.05 to $0.07 accretive to adjusted earnings per share in fiscal 2027 6.