TLDR
- ABM jumps 7.82% as record revenue and stronger bookings lift momentum
- Aviation and Technical Solutions growth push ABM stock higher after results
- ABM holds fiscal 2026 outlook as revenue rises 8.4% year over year
- WGNSTAR deal boosts semiconductor reach as ABM targets lower leverage
- ABM gains after strong organic growth, record sales, and steady guidance
ABM Industries (ABM) stock rose 7.82% to $43.00 after the company posted stronger fiscal 2026 revenue growth. The rally followed record quarterly revenue, solid organic expansion, and strength across Aviation and Technical Solutions. However, early gains cooled as the stock consolidated near the session’s higher range.
ABM Industries Incorporated, ABM
Revenue Growth Supports ABM Stock Rally
ABM reported quarterly revenue of $2.29 billion, up 8.4% from $2.11 billion a year earlier. Organic growth reached 6.1%, while acquisitions added further support. The company delivered one of its strongest growth periods since 2022.
Net income rose to $43.1 million from $42.2 million in the prior-year quarter. Diluted earnings per share increased to $0.73, compared with $0.67 a year earlier. Adjusted earnings reached $0.90 per share, despite higher interest and amortization costs.
ABM also recorded $1.2 billion in first-half new sales bookings. The figure marked a new company record and showed stronger demand across major client groups. Besides, recent contract wins improved cross-selling across domestic and international markets.
Aviation and Technical Solutions Lead Segment Growth
Aviation revenue increased 20% to $310.8 million during the quarter. The segment gained from healthy travel demand and new contract wins, including Heathrow-related work. Weather costs and contract ramp-up expenses weighed on operating margin.
Technical Solutions revenue rose 27% to $267.3 million, including 22% organic growth. Data center activity, battery storage systems, microgrids, energy projects, and HVAC work supported the increase. Moreover, management expects this segment to drive stronger second-half margin performance.
Manufacturing and Distribution revenue climbed 17% to $463.8 million. The WGNSTAR acquisition expanded ABM’s reach inside semiconductor fabrication environments. The company gained stronger access to semiconductor clients and related technical service demand.
Outlook Holds as Debt Reduction Remains Priority
ABM maintained its full-year adjusted EPS outlook between $3.85 and $4.15. The company also expects about $250 million in free cash flow before selected costs. Management expects organic revenue growth near the high end of its 3% to 4% range.
Total debt stood at $1.9 billion at quarter-end, including standby letters of credit. Leverage reached 3.2 times after the WGNSTAR acquisition. ABM expects leverage to fall below three times by fiscal year-end.
ABM continues to prioritize debt repayment while funding operational improvements. Its restructuring program and ELEVATE measures supported cost savings and better cash collections. The company enters the second half with stronger bookings, wider technical capacity, and steady guidance.
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