ABM’s infrastructure growth meets commercial real estate headwinds
ABM’s infrastructure businesses and higher cash flow support growth, but commercial softness and debt costs remain concerns.
Key takeaways
- ABM shares gained 28.2% over six months, according to the article.
- Infrastructure markets generated nearly $775 million in revenue in the first nine months of fiscal 2026.
- Management raised fiscal 2026 free cash flow guidance to $210 million.
ABM shares rose 28.2% over the six months covered in the article, while the industry fell 2.4%. As of 16:56 UTC on Oct. 13, ABM traded at $50.38, up 0.42% since the previous close.
Zacks consensus estimates put ABM’s fiscal 2026 revenue at $9.2 billion, up 5.3% year over year. The consensus earnings-per-share estimate is $4, a projected 16.3% increase.
Semiconductor, microgrid and data center businesses generated nearly $775 million in revenue in the first nine months of fiscal 2026, more than 11% of ABM’s total. Their revenue grew 26% organically year over year, according to the article.
ABM reported $199.6 million in free cash flow for the first nine months, compared with $42.4 million a year earlier. Management raised its fiscal 2026 free cash flow guidance to $210 million from $185 million.
Commercial softness remains a constraint. Business & Industry revenue fell 2.6% in the fiscal third quarter, and management expects the trend to continue in the fourth quarter. ABM ended the quarter with $1.8 billion in borrowings, while quarterly interest expense rose to $29.5 million from $25.3 million a year earlier.
This article was produced with the help of AI technology. Source: Yahoo Finance
