ABM Raises 2026 Earnings View After Strong Third Quarter

ABM Industries raised its fiscal 2026 adjusted earnings outlook after reporting third-quarter results above consensus estimates. Adjusted earnings were $1.04 per share, up 27% year over year, while revenue rose 4.2% to $2.32 billion.

The company now expects adjusted earnings of $3.95 to $4.10 per share, compared with its previous range of $3.85 to $4.15. ABM also lifted its full-year operating cash flow outlook to about $300 million and free cash flow to about $210 million.

M&D revenue climbed 17.6% to $481 million, and Aviation revenue rose 12.5% to $328.1 million. Business & Industry revenue fell 2.6% to $1.01 billion, while Education revenue was nearly flat.

Technical Solutions revenue increased 4.2% to $259.9 million. ABM said about $15 million in projects were deferred during the quarter, with nearly all expected in the fourth quarter and a small portion in the first quarter of fiscal 2027.

The report said ABM shares had fallen about 2% in the month since its last earnings release, underperforming the S&P 500. As of 15:45 UTC on Oct. 8, shares traded at $48.74, down 0.03% since the previous close.