ABM Industries Incorporated
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ITEM 1. BUSINESS.
General
ABM Industries Incorporated, which operates through its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”), is a leading provider of facility maintenance, engineering and infrastructure solutions with a mission to make a difference, every person, every day. Our history dates back to 1909, when American Building Maintenance Company began as a window washing company in San Francisco with one employee. In 1985, we were incorporated in Delaware under the name American Building Maintenance Industries, Inc., as the successor to the business originally founded in 1909. In 1994, we changed our name to ABM Industries Incorporated. Since that time, we have grown into a multi-segment facility solutions company, primarily through strategic acquisitions and new service offerings, increasing our revenue to more than $8.5 billion.
The acquisitions of OneSource and Linc Group in the early 2000s established ABM as a leader in the commercial janitorial market and also enhanced our ability to be a full-service facility solutions provider with new service offerings, including lighting, mechanical, and electrical “technical solutions.” With demand increasing for industry-specific service providers, the acquisition of Air Serv established “Aviation” as our first industry group. In recent years, we have strategically acquired companies in the United Kingdom (“UK”) and the Republic of Ireland (“Ireland”), which expanded our janitorial and technical solutions businesses overseas.
In 2015, we began a comprehensive transformational initiative (“2020 Vision”) to drive long-term, profitable growth through an industry-based, go-to-market approach. Through this initiative, we centralized key functional areas and industry groups, strengthened our sales capabilities, and initiated investments in service delivery tools and processes to help support standard operating practices that we believe remain foundational to our long-term success.
As part of the transformation initiative, we also evaluated all of our service offerings and sold our Security and Government Services businesses, which did not align with our long-term focus on specialized industry groups.
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In 2017, we acquired GCA Services Group (“GCA”), a provider of integrated facility services to educational institutions and commercial facilities representing the largest acquisition in ABM history. The acquisition accelerated the Company’s position as a leading facility solutions provider in the education market.
In 2021, we acquired Crown Building Maintenance Co. and Crown Energy Services, Inc. (collectively, “Able”), a leading facilities services company headquartered in San Francisco, California, with the goal to provide additional scaling to the Company’s core businesses and key geographies and to bolster ABM’s janitorial and facilities services service lines. In addition, the acquisition of Able further expanded ABM’s sustainability and energy efficiency offerings amid growing demand for environmentally responsible solutions.
In 2022, we acquired RavenVolt, Inc. (“RavenVolt”), a leading nationwide provider of advanced turn-key microgrid systems utilized by diversified commercial and industrial customers, national retailers, utilities, and municipalities. A complementary extension of ABM’s Technical Solutions service offerings, the addition of RavenVolt enhanced ABM’s position as a market leader in electric vehicle (“EV”) charging infrastructure, power, and bundled energy solutions.
In 2022, we acquired Momentum Support (“Momentum”), a leading independent provider of facility services, primarily janitorial, across Ireland and Northern Ireland. The addition of Momentum provided greater access to Momentum’s blue-chip customer base as well as an opportunity to cross sell ABM services to existing U.S.- and UK-based clients who also have an operational footprint in Ireland and Northern Ireland.
In 2024, we acquired Quality Uptime Services, Inc. (“Quality Uptime”), an independent uninterrupted power supply system (“UPS”) maintenance company providing customized preventive and emergency service programs for mission-critical data centers and other facilities across the United States. With the addition of Quality Uptime, we now offer comprehensive and complementary critical infrastructure solutions for data centers and similar crucial facilities, including electrical testing, electrical switchgear maintenance, breaker testing, UPS service and maintenance, and battery and power distribution unit service and maintenance.
In 2025, we acquired LMC FM Limited (“LMC”), a Dublin-based facilities services company with coverage across Ireland.
The acquisitions and divestitures we have made since 2015 largely reflect strategies first introduced in our 2020 Vision initiative and strategies included in our follow-on strategic modernization plan called ELEVATE, which was introduced in 2021 and is described below.
As a result of these strategic initiatives and investments, we have strengthened our ability to offer janitorial, engineering, parking and eMobility, infrastructure, electrical, lighting and energy solutions, HVAC and mechanical services, landscaping and turf services, and mission critical solutions across aviation, education, manufacturing and distribution, and commercial business industries, on a standalone basis or in combination, and have positioned ourselves as a leading integrated facilities management company.
Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31.
Strategic Transformation and Systems Modernization Plan
In 2021, ABM launched its multiyear ELEVATE transformation and systems modernization plan to strengthen our industry leadership, enhance our core service capabilities, and modernize ABM’s systems, processes, and tools — with a goal of advancing data integrity, technology enablement, and operational consistency to support long-term growth and value creation.
As this work progresses, ABM is entering a phase of turning modernization efforts into measurable performance improvements across our enterprise.
Looking ahead, ABM will continue to advance this transformation and modernization program where appropriate while optimizing systems and processes company-wide that we expect to drive performance, strengthen client trust, and create long-term value for shareholders.
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Contract Types
We generate revenues under several types of contracts, as explained below. Generally, the type of contract is determined by the nature of the services. Although many of our service agreements are cancelable on short notice, we have historically had a high rate of client retention and expect to continue maintaining long-term relationships with our clients. See Note 2, “Basis of Presentation and Significant Accounting Policies,” in the Notes to consolidated financial statements for additional information regarding the contract types that are most common in each of our service lines.
| Contract Type | Description | ||||||
| Monthly Fixed-Price | These arrangements are contracts in which the client agrees to pay a fixed fee every month over a specified contract term. | ||||||
| Square-Foot | Square-foot arrangements are contracts in which the client agrees to pay a fixed fee every month based on the actual square footage serviced over a specified contract term. | ||||||
| Cost-Plus | These arrangements are contracts in which the clients reimburse us for the agreed-upon amount of wages and benefits, payroll taxes, insurance charges, and other expenses associated with the contracted work, plus a profit margin. | ||||||
| Work Orders | Work orders generally consist of supplemental services requested by clients outside of the standard service specification and include cleanup after tenant moves, construction cleanup, flood cleanup, snow removal, and high touchpoint disinfecting services. | ||||||
| Transaction-Price | These are arrangements in which customers are billed a fixed price for each transaction performed on a monthly basis (e.g., wheelchair passengers served or airplane cabins cleaned). | ||||||
| Hourly | In hourly arrangements, the client is billed a fixed hourly rate for each labor hour provided. | ||||||
| Management Reimbursement | Under these parking arrangements, we manage a parking facility for a management fee and pass through the revenue and expenses associated with the facility to the owner. | ||||||
| Leased Location | Under these parking arrangements, we pay a fixed amount of rent plus a percentage of revenues derived from monthly and transient parkers to the property owner. We retain all revenues received and are responsible for most operating expenses incurred. | ||||||
| Allowance | Under these parking arrangements, we are paid a fixed amount or hourly fee to provide parking services, and we are responsible for certain operating expenses, as specified in the contract. | ||||||
| Energy Savings Contracts and Fixed-Price Repair and Refurbishment | Under these arrangements, we agree to develop, design, engineer, and construct various types of energy saving projects. Additionally, as part of infrastructure solutions arrangements, we guarantee the project will satisfy agreed-upon performance standards. The client agrees to pay us based on a predetermined contractual milestone schedule. | ||||||
| Franchise | We franchise certain engineering services through individual and area franchises under the Linc Service and TEGG brands, which are part of ABM Technical Solutions. | ||||||
Microgrid and Uninterrupted Power Supply Systems Installation | Under these arrangements, we provide electrical contracting services for energy-related products such as design, installation and maintenance of distributed generation equipment, UPS systems, power distribution units, and other specialized electric trades. The client agrees to pay us based on a predetermined contractual milestone schedule. | ||||||
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Segment and Geographic Financial Information
Our current reportable segments consist of Business & Industry (“B&I”), Manufacturing & Distribution (“M&D”), Education, Aviation, and Technical Solutions. For segment and geographic financial information, see Note 18, “Segment and Geographic Information,” in the Notes to consolidated financial statements.
| REPORTABLE SEGMENTS AND DESCRIPTIONS | |||||
B&I, our largest reportable segment, encompasses comprehensive facility solutions, including janitorial and maintenance, facilities engineering, and parking and transportation management to a diverse range of clients. Our expertise extends to commercial real estate properties, including corporate offices for high-tech clients, sports and entertainment venues, and both traditional hospitals and non-acute healthcare facilities. We typically provide these services pursuant to monthly fixed-price, square-foot, cost-plus, and parking arrangements (i.e., management reimbursement, leased location, or allowance) that are obtained through a competitive bid process as well as pursuant to work orders. | |||||
M&D provides integrated facility services, engineering, janitorial and maintenance, and other specialized solutions to a variety of manufacturing, distribution, and data center facilities. We typically provide these services pursuant to monthly fixed-price, square-foot, and cost-plus, that are obtained through a competitive bid process as well as pursuant to work orders. One client accounted for approximately 32% of revenues for this segment in 2025. | |||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following MD&A is intended to facilitate an understanding of the results of operations and financial condition of ABM. This MD&A is provided as a supplement to, and should be read in conjunction with, our Financial Statements. This MD&A contains both historical and forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. We make forward-looking statements related to future expectations, estimates, and projections that are uncertain and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. Factors that might cause such differences include, but are not limited to, those discussed in Part 1. of this Form 10-K under Item 1A., “Risk Factors,” which are incorporated herein by reference. Our future results and financial condition may be materially different from those we currently anticipate. Throughout the MD&A, amounts and percentages may not recalculate due to rounding. Unless otherwise indicated, all information in the MD&A and references to years are based on our fiscal year, which ends on October 31.
ABM is a leading provider of integrated facility solutions, customized by industry, with a mission to make a difference, every person, every day. Our principal operations are in the United States, and in 2025 our U.S. operations generated approximately 92% of our revenues.
Strategic Growth
We remain focused on long-term, profitable growth by delivering valued service offerings to both new and existing clients within our industry groups and across our many service lines. Our revenue growth strategy is predicated on pursuing new sales and targeting a favorable retention rate among existing contracts. Cross-selling and up-selling projects and services is also an integral part of our strategy. We believe our strategic growth initiatives, coupled with our continued focus on marketing, capital, and sales resources, will increase profitability.
ELEVATE Transformation
Through our ELEVATE strategy, as described in Item 1., “Business,” we continue to focus our efforts on:
•the client experience, by serving as a trusted advisor who can provide innovative multiservice solutions and consistent service delivery;
•the team member experience, by investing in workforce management, training, developing the next generation of ABM leaders, and building on our inclusive culture; and
•our use of technology and data to power client and employee experiences with cutting-edge data and analytics, processes, and tools that we expect to fundamentally change how we operate our business.
We believe that our technology and data investments will enable: the development and deployment of client-facing technology to improve service delivery to our clients; the use of advanced data analytics for sales targeting, employee retention, and recruiting; and the upgrade of our Enterprise Resource Planning and payroll systems.
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Developments and Trends
Restructuring Program
In the fourth quarter of 2025, we launched a restructuring program to further streamline our operations and improve the efficiency of our support functions. This initiative is intended to enhance overall organizational effectiveness and ensure alignment between our cost structure and strategic growth objectives. Once fully implemented in 2026, this program is expected to deliver approximately $35.0 million of annualized cost savings. During the fourth quarter of 2025, we recorded $13.4 million in restructuring charges related to these actions and expect to record additional $2.0 - $3.0 million in 2026.
We will continue to review our overhead and cost structure for efficiency opportunities under this program.
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Key Financial Highlights
•Revenues increased by $386.5 million, or 4.6%, to $8,745.9 million during 2025, as compared to 2024. Revenue growth was comprised of organic growth of 3.8% and acquisition growth of 0.8%. The organic revenue growth was due to the net new business and expansion of business with existing customers within Aviation, B&I, M&D, and Education and higher microgrid projects within Technical Solutions. The increase in revenues was partially offset by strategic pricing decisions, including for contract rebids within B&I. Acquisition growth of $68.4 million was driven by revenue from the Quality Uptime and LMC acquisitions.
•Operating profit increased by $99.7 million to $311.7 million during 2025, as compared to 2024. The increase in operating profit was attributable to:
•respective revenue increases for all industry groups,
•operational efficiencies within Aviation and Education, and
•service mix within Technical Solutions.
The increase was partially offset by:
•strategic pricing decisions for contract rebids and proactive extensions, combined with managing the timing of contract escalations to maintain and expand certain customer accounts within B&I, and
•strategic pricing on select new wins within M&D.
•Our effective tax rate on income was 26.2% for 2025, as compared to 39.1% during 2024. Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable change to increase the fair value of the contingent consideration related to the RavenVolt Acquisition.
•Net cash provided by operating activities was $234.4 million during 2025. Our net cash provided by operating cash activities was higher than prior year, primarily due to the timing of certain working capital requirements.
•Dividends of $65.6 million were paid to shareholders, and dividends totaling $1.06 per common share were declared during 2025. Additionally, we repurchased 2.6 million shares for $121.3 million, excluding excise taxes, during 2025.
•At October 31, 2025, total outstanding borrowings under our Amended Credit Facility were $1,569.0 million, and we had up to $577.5 million of borrowing capacity.
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Results of Operations
Consolidated
| Years Ended October 31, | 2025 vs. 2024 | |||||||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | Increase/(Decrease) | ||||||||||||||||||||||||
| Revenues | $ | 8,745.9 | $ | 8,359.4 | $ | 8,096.4 | $ | 386.5 | 4.6% | |||||||||||||||||||
| Operating expenses | 7,670.8 | 7,325.9 | 7,037.6 | 344.9 | 4.7% | |||||||||||||||||||||||
| Gross margin | 12.3 | % | 12.4 | % | 13.1 | % | (7) bps | |||||||||||||||||||||
| Selling, general and administrative expenses | 697.4 | 765.3 | 572.8 | (67.9) | (8.9)% | |||||||||||||||||||||||
| Restructuring and related expenses | 13.4 | — | — | 13.4 | NM* | |||||||||||||||||||||||
| Amortization of intangible assets | 52.5 | 56.1 | 76.5 | (3.6) | (6.4)% | |||||||||||||||||||||||
| Operating profit | 311.7 | 212.0 | 409.5 | 99.7 | 47.0% | |||||||||||||||||||||||
| Income from unconsolidated affiliates | 4.6 | 6.5 | 3.9 | (1.9) | (29.3)% | |||||||||||||||||||||||
| Interest expense | (96.4) | (85.0) | (82.3) | (11.4) | (13.4)% | |||||||||||||||||||||||
Income before income taxes | 219.9 | 133.6 | 331.1 | 86.3 | 64.6% | |||||||||||||||||||||||
| Income tax provision | (57.6) | (52.2) | (79.7) | (5.4) | (10.2)% | |||||||||||||||||||||||
| Net income | 162.4 | 81.4 | 251.3 | 81.0 | 99.6% | |||||||||||||||||||||||
| Other comprehensive (loss)/income | ||||||||||||||||||||||||||||
| Interest rate swaps | (9.3) | (22.9) | (0.5) | 13.6 | (59.3)% | |||||||||||||||||||||||
| Foreign currency translation and other | 5.5 | 6.8 | 7.3 | (1.3) | (19.5)% | |||||||||||||||||||||||
| Income tax provision | 2.4 | 6.3 | 0.1 | (3.9) | (62.0)% | |||||||||||||||||||||||
| Comprehensive income | $ | 161.0 | $ | 71.6 | $ | 258.1 | $ | 89.4 | NM* | |||||||||||||||||||
*Not meaningful
The Year Ended October 31, 2025, Compared with the Year Ended October 31, 2024
Revenues
Revenues increased by $386.5 million, or 4.6%, to $8,745.9 million during 2025, as compared to 2024. Revenue growth was comprised of organic growth of 3.8% and acquisition growth of 0.8%. The organic revenue growth was due to the net new business and expansion of business with existing customers within Aviation, B&I, M&D, and Education and higher microgrid projects within Technical Solutions. The increase in revenues was partially offset by strategic pricing decisions on contract rebids within B&I. Acquisition growth of $68.4 million was driven by revenue from the Quality Uptime and LMC acquisitions.
Operating Expenses
Operating expenses increased by $344.9 million, or 4.7%, to $7,670.8 million during 2025, as compared to 2024. Gross margin decreased by 7 bps to 12.3% in 2025, as compared to 12.4% in 2024. The decrease in gross margin was primarily driven by strategic pricing decisions within M&D and B&I as well as the management of contract escalation timing to maintain and expand certain customer accounts within B&I. This was partially offset by operational efficiencies within Education and service mix within ATS.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased by $67.9 million, or 8.9%, to $697.4 million during 2025, as compared to 2024. The decrease in selling, general and administrative expenses was primarily attributable to:
•an absence of a $95.7 million adjustment to increase the fair value of the contingent consideration related to the RavenVolt Acquisition in 2024, compared to a $1.6 million adjustment to decrease the fair value in 2025.
This decrease was partially offset by:
•an $18.9 million increase in compensation and related expenses primarily due to headcount expansion from recent acquisitions; and
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•a $6.6 million increase in costs associated with systems’ go-live.
Amortization of Intangible Assets
Amortization of intangible assets decreased by $3.6 million, or 6.4%, to $52.5 million during 2025, as compared to 2024. This decrease was due to lower amortization of intangibles, primarily intangibles acquired as part of the Able and GCA acquisitions, partially offset by amortization of intangibles from the Quality Uptime and LMC acquisitions.
Interest Expense
Interest expense increased by $11.4 million, or 13.4%, to $96.4 million during 2025, as compared to 2024. This increase was primarily driven by higher borrowings from our Amended Credit Facility to fund working capital requirements due to the transition to the Company’s new ERP system for our B&I and M&D segments that temporarily delayed invoicing to certain clients within these industry groups in the first half of 2025, and payment of the $75.0 million contingent consideration liability related to the RavenVolt Acquisition.
Income Taxes
During 2025 and 2024, we had effective tax rates of 26.2% and 39.1%, respectively, resulting in an income tax provision of $57.6 million and $52.2 million, respectively. Our effective tax rate for 2025 was benefited by a $3.1 million return to provision adjustment related to our non-U.S. operations. Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable change to increase the fair value of the contingent consideration related to the RavenVolt Acquisition, partially offset by a $7.3 million tax benefit for return to provision adjustments related to our non-U.S. operations, and a $5.5 million benefit related to energy efficiency incentives.
Interest Rate Swaps
We had a loss of $9.3 million and $22.9 million on interest rate swaps during the years ended October 31, 2025 and October 31, 2024, respectively, primarily due to underlying changes in the fair value of our interest rate swaps. Our interest rate swaps will mature in 2026.
Foreign Currency Translation and Other
We had a foreign currency translation gain of $5.5 million and $6.8 million during the years ended October 31, 2025 and October 31, 2024, respectively. This change was due to fluctuations in the exchange rate between the U.S. Dollar (“USD”), the British pound sterling (“GBP”), and the euro (“EUR”). Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.
The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023
For a comparison of our Results of Operations for the year ended October 31, 2024, to the year ended October 31, 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 19, 2024.
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Segment Information
Our current reportable segments consist of B&I, M&D, Aviation, Education, and Technical Solutions.
Financial Information for Each Reportable Segment
| Year Ended October 31, | 2025 vs. 2024 | |||||||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | Increase/(Decrease) | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Business & Industry | $ | 4,126.0 | $ | 4,059.1 | $ | 4,089.4 | $ | 66.9 | 1.6% | |||||||||||||||||||
| Manufacturing & Distribution | 1,618.6 | 1,554.3 | 1,526.7 | 64.3 | 4.1% | |||||||||||||||||||||||
| Aviation | 1,118.7 | 1,032.6 | 925.7 | 86.1 | 8.3% | |||||||||||||||||||||||
| Education | 922.0 | 904.0 | 880.4 | 18.0 | 2.0% | |||||||||||||||||||||||
| Technical Solutions | 960.6 | 809.3 | 674.2 | 151.3 | 18.7% | |||||||||||||||||||||||
| $ | 8,745.9 | $ | 8,359.4 | $ | 8,096.4 | $ | 386.5 | 4.6% | ||||||||||||||||||||
| Operating profit (loss) | ||||||||||||||||||||||||||||
| Business & Industry | $ | 316.9 | $ | 307.0 | $ | 315.6 | $ | 9.9 | 3.2% | |||||||||||||||||||
| Operating profit margin | 7.7 | % | 7.6 | % | 7.7 | % | 12 bps | |||||||||||||||||||||
| Manufacturing & Distribution | 151.4 | 166.3 | 161.7 | (14.9) | (8.9)% | |||||||||||||||||||||||
| Operating profit margin | 9.4 | % | 10.7 | % | 10.6 | % | (134) bps | |||||||||||||||||||||
| Aviation | 65.2 | 59.1 | 60.0 | 6.1 | 10.3% | |||||||||||||||||||||||
| Operating profit margin | 5.8 | % | 5.7 | % | 6.5 | % | 10 bps | |||||||||||||||||||||
| Education | 67.7 | 55.3 | 49.7 | 12.4 | 22.2% | |||||||||||||||||||||||
| Operating profit margin | 7.3 | % | 6.1 | % | 5.6 | % | 122 bps | |||||||||||||||||||||
| Technical Solutions | 86.5 | 69.4 | 53.2 | 17.1 | 24.6% | |||||||||||||||||||||||
| Operating profit margin | 9.0 | % | 8.6 | % | 7.9 | % | 42 bps | |||||||||||||||||||||
| Corporate | (370.5) | (433.1) | (226.6) | (62.6) | 14.5% | |||||||||||||||||||||||
Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (4.6) | (6.5) | (3.9) | 1.9 | 29.3% | |||||||||||||||||||||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.8) | (5.5) | (0.3) | 4.7 | 84.9% | |||||||||||||||||||||||
| $ | 311.7 | $ | 212.0 | $ | 409.5 | $ | 99.7 | 47.0% | ||||||||||||||||||||
*Not meaningful
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The Year Ended October 31, 2025, Compared with the Year Ended October 31, 2024
| Business & Industry | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Increase | |||||||||||||||||||
| Revenues | $ | 4,126.0 | $ | 4,059.1 | $ | 66.9 | 1.6% | |||||||||||||||
| Operating profit | 316.9 | 307.0 | 9.9 | 3.2% | ||||||||||||||||||
| Operating profit margin | 7.7 | % | 7.6 | % | 12 bps | |||||||||||||||||
B&I revenues increased by $66.9 million, or 1.6%, to $4,126.0 million during 2025, as compared to 2024. The revenue increase was primarily driven by client expansions both domestic and international, partially offset by strategic pricing decisions on contract rebids and attrition of certain engineering clients. Management reimbursement revenues for this segment totaled $291.4 million and $281.4 million during 2025 and 2024, respectively.
Operating profit increased by $9.9 million, or 3.2%, to $316.9 million during 2025, as compared to 2024. Operating profit margin increased by 12 bps to 7.7% in 2025 from 7.6% in 2024. The increase in operating profit margin was primarily driven by geographic mix and operational efficiencies achieved through our Restructuring Program. The increase was partially offset by strategic pricing decisions on contract rebids and proactive extensions, combined with managing contract escalation timing to maintain and expand certain customer accounts.
| Manufacturing & Distribution | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Increase/(Decrease) | |||||||||||||||||||
| Revenues | $ | 1,618.6 | $ | 1,554.3 | $ | 64.3 | 4.1% | |||||||||||||||
| Operating profit | 151.4 | 166.3 | (14.9) | (8.9)% | ||||||||||||||||||
| Operating profit margin | 9.4 | % | 10.7 | % | (134) bps | |||||||||||||||||
M&D revenues increased by $64.3 million, or 4.1%, to $1,618.6 million during 2025, as compared to 2024. The increase was primarily attributable to the expansion of business with existing clients and new business wins, including strategic pricing decisions for select new wins. This was partially offset by the loss of a certain customer in the first quarter of 2025.
Operating profit decreased by $14.9 million, or 8.9%, to $151.4 million during 2025, as compared to 2024. Operating profit margin decreased by 134 bps to 9.4% in 2025 from 10.7% in 2024. The decrease in operating profit margin was primarily attributable to strategic pricing for select new wins and additional investments made in the second half of 2025 to hire certain technical expertise to support future growth.
| Aviation | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Increase | |||||||||||||||||||
| Revenues | $ | 1,118.7 | $ | 1,032.6 | $ | 86.1 | 8.3% | |||||||||||||||
| Operating profit | 65.2 | 59.1 | 6.1 | 10.3% | ||||||||||||||||||
| Operating profit margin | 5.8 | % | 5.7 | % | 10 bps | |||||||||||||||||
Aviation revenues increased by $86.1 million, or 8.3% to $1,118.7 million, during 2025, as compared to 2024. The increase was primarily attributable to new business and scope expansions with the existing clients as well as an increase in travel volume. Management reimbursement revenues for this segment totaled $50.2 million and $36.3 million during 2025 and 2024, respectively.
Operating profit increased by $6.1 million, or 10.3%, to $65.2 million during 2025, as compared to 2024. Operating profit margin increased by 10 bps to 5.8% in 2025, from 5.7% in 2024. The increase in operating profit margin was primarily attributable to operational efficiencies, particularly in managing overhead costs.
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| Education | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Increase | |||||||||||||||||||
| Revenues | $ | 922.0 | $ | 904.0 | $ | 18.0 | 2.0% | |||||||||||||||
| Operating profit | 67.7 | 55.3 | 12.4 | 22.2% | ||||||||||||||||||
| Operating profit margin | 7.3 | % | 6.1 | % | 122 bps | |||||||||||||||||
Education revenues increased by $18.0 million, or 2.0%, to $922.0 million during 2025, as compared to 2024. The increase was primarily attributable to net new business wins.
Operating profit increased by $12.4 million, or 22.2% to $67.7 million during 2025, as compared to 2024. Operating profit margin increased by 122 bps to 7.3% in 2025 from 6.1% in 2024. The operating profit margin was primarily attributable to operational efficiencies, particularly in managing overtime, materials and supplies, and general and administrative headcount.
| Technical Solutions | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Increase | |||||||||||||||||||
| Revenues | $ | 960.6 | $ | 809.3 | $ | 151.3 | 18.7% | |||||||||||||||
| Operating profit | 86.5 | 69.4 | 17.1 | 24.6% | ||||||||||||||||||
| Operating profit margin | 9.0 | % | 8.6 | % | 42 bps | |||||||||||||||||
Technical Solutions revenues increased by $151.3 million, or 18.7%, to $960.6 million during 2025, as compared to 2024. Revenue growth was comprised of organic growth of 10.2% and acquisition growth of 8.5%. The organic revenue increase was primarily driven by higher project revenues due to higher microgrid systems projects, partially offset by a decrease in electric vehicle charging station revenues. Acquisition growth was driven by $68.4 million of revenue from the Quality Uptime and LMC acquisitions.
Operating profit increased by $17.1 million, or 24.6%, to $86.5 million during 2025, as compared to 2024. Operating profit margin increased by 42 bps to 9.0% in 2025 from 8.6% in 2024. The increase in operating profit margin was primarily attributable to the service mix, partially offset by higher amortization of intangible assets from recent acquisitions.
| Corporate | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | Decrease | |||||||||||||||||||
| Corporate expenses | $ | (370.5) | $ | (433.1) | $ | (62.6) | 14.5% | |||||||||||||||
Corporate expenses decreased by $62.6 million, or 14.5%, to $370.5 million during 2025, as compared to 2024. The decrease in corporate expenses was primarily related to:
•an absence of a $95.7 million adjustment to increase fair value of the contingent consideration related to the RavenVolt Acquisition in 2024, compared to a $1.6 million adjustment to decrease the fair value in 2025.
This decrease was partially offset by:
•a $7.5 million increase in compensation and related expenses primarily due to higher salaries and certain incentive plans;
•a $6.3 million increase in acquisition and integration costs; and
•a $5.2 million increase in costs associated with systems’ go-live.
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The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023
For a comparison of our Segment Information for the year ended October 31, 2024, to the year ended October 31, 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 19, 2024.
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Liquidity and Capital Resources
Our primary sources of liquidity are operating cash flows and borrowing capacity under our credit facility. We assess our liquidity in terms of our ability to generate cash to fund our short- and long-term cash requirements. As such, we project our anticipated cash requirements as well as cash flows generated from operating activities to meet those needs.
In addition to normal working capital requirements, we anticipate that our short- and long-term cash requirements will include funding insurance claims, dividend payments, capital expenditures, share repurchases, mandatory loan repayments, contingent consideration payments from acquisitions, and systems and technology transformation initiatives under our ELEVATE strategy. We anticipate long-term cash uses may also include strategic acquisitions. On a long-term basis, we will continue to rely on our credit facility for any long-term funding not provided by operating cash flows.
We believe that our operating cash flows and borrowing capacity under our credit facility are sufficient to fund our cash requirements for at least a 12-month period from the issuance of these financial statements. In the event that our plans change or our cash requirements are greater than we anticipate, we may need to access the capital markets to finance future cash requirements. However, there can be no assurance that such financing will be available to us should we need it or, if available, that the terms will be satisfactory to us and not dilutive to existing shareholders.
Credit Facility
On September 1, 2017, we refinanced and replaced our then-existing $800.0 million credit facility with a new senior, secured five-year syndicated credit facility (the “Credit Facility”), consisting of a $900.0 million revolving line of credit and an $800.0 million amortizing term loan. In accordance with the terms of the Credit Facility, the revolving line of credit was reduced to $800.0 million on September 1, 2018.
On February 26, 2025, we amended and restated the Credit Facility (the “Amended Credit Facility”), extending the maturity date to February 26, 2030, and increasing the capacity of the revolving credit facility from $1.3 billion to $1.6 billion and the then-remaining term loan outstanding from $528.1 million to $600.0 million. The Amended Credit Facility provides for the issuance of up to $250.0 million for standby letters of credit and the issuance of up to $100.0 million in swingline advances. The obligations under the Amended Credit Facility are guaranteed by the material, domestic wholly owned subsidiaries of ABM and are secured by a pledge of substantially all of the existing and future property and assets of ABM and the guarantors, including a pledge of the capital stock of the wholly owned domestic subsidiaries held by ABM and the guarantors and 65% of the capital stock of the first-tier foreign subsidiaries held by ABM and the guarantors, in each case subject to exceptions. Additionally, we may repay amounts borrowed under the Amended Credit Facility at any time without penalty.
The Amended Credit Facility contains certain covenants, including a maximum total net leverage ratio of 5.00 to 1.00, a maximum secured net leverage ratio of 4.00 to 1.00, and a minimum interest coverage ratio of 1.50 to 1.00, as well as other financial and non-financial covenants. In the event of a material acquisition, as defined in the Amended Credit Facility, we may elect to increase the maximum total net leverage ratio to 5.50 to 1.00 for a total of four fiscal quarters and increase the maximum secured net leverage ratio to 4.50 to 1.00 for a total of four fiscal quarters. Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At October 31, 2025, we were in compliance with these covenants and expect to be in compliance in the foreseeable future.
During 2025, we made $23.1 million of principal payments under the term loan. At October 31, 2025, the total outstanding borrowings and standby letters of credit were $1,569.0 million and $23.5 million, respectively. At October 31, 2025, we had up to $577.5 million of borrowing capacity.
Reinvestment of Foreign Earnings
We plan to reinvest our foreign earnings to fund future non-U.S. growth and expansion, and we do not anticipate remitting such earnings to the United States. While U.S. federal tax expense had been recognized as a result of the Tax Cuts and Jobs Act of 2017, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized. We believe that our cash on hand in the United States, along
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with our Amended Credit Facility and future domestic cash flows, are sufficient to satisfy our domestic liquidity requirements.
Share Repurchases
Effective September 3, 2025, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million of our common stock. We repurchased shares under the share repurchase program during the year ended October 31, 2025, as summarized below. At October 31, 2025, authorization for $183.1 million of repurchases remained under the Share Repurchase Program.
| Years Ended October 31, | |||||||||||||
| (in millions, except per share amounts) | 2025 | 2024 | |||||||||||
| Total number of shares purchased | |||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-12 | SALMIRS SCOTT B | President and CEO | Sell | -50,000 ×2 | $46.34 | -$2,317,012 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-09-05 10-Q expected by 2026-09-08 (in 82 days)
- ~2026-12-19 10-K expected by 2026-12-31 (in 187 days)
- ~2027-03-10 10-Q expected by 2027-03-13 (in 268 days)
- ~2027-06-05 10-Q expected by 2027-06-08 (in 355 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-05 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-06-05 10-Q Quarterly Report
- 2026-03-10 10-Q Quarterly Report
- 2026-03-10 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-02-05 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2025-12-19 10-K Annual Report
- 2025-12-17 8-K Material Agreement Entered; Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-12-09 8-K/A Officer/Director Change; Financial Statements and Exhibits
- 2025-10-30 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-09-05 10-Q Quarterly Report
- 2025-09-05 8-K/A Officer/Director Change; Financial Statements and Exhibits
- 2025-09-05 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-06-12 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-06-10 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-06-06 10-Q Quarterly Report