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olivLaw · US equity research

ABM Industries Incorporated ABM

Services-To Dwellings & Other Buildings · SIC 7340 · Vertical: Services-To Dwellings & Other Buildings (SIC 7340)

54.73USD+2.07% · 1 dayClose 04 Nov 2026

ABM Industries provides integrated facility, engineering and infrastructure services, mainly in the United States. Growth comes from contracts with clients and industry segments, but the company is in a phase of systems modernization and restructuring that could affect margins in the coming period.

At the close of 04 Nov 2026, ABM Industries Incorporated (ABM) stock was 54.73 USD (+2.07% on the day), with market capitalisation 3.2 bn USD, P/E 19.7 on diluted EPS of 2.77 USD over the last 12 months, dividend yield 2.07%, beta 0.60, 52-week range 37.39–54.73 USD. Latest reported quarter (Q3 2026): revenue of 2.3 bn USD (+4.2% YoY), net income of 49.7 m USD (+18.9% YoY), diluted EPS 0.84 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
3.2 bn USD
shares as of 08 Sept 2026
P/E (TTM)
19.7
Diluted EPS TTM 2.77 · TTM to 31 Jul 2026
E/P (TTM)
5.07%
TTM to 31 Jul 2026
Dividend yield
2.07%
DPS 12m 1.14
Beta (2y)
0.60
Volatility (1y) 28%
52-week range
37.3954.73

Price history

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Technical reading

RSI (14)
70.6
overbought (≥ 70)
Bollinger (20, 2)
49.08 – 55.55
in the upper half of the band · %B 0.87 · band width 12.4%
SMA 50 / 200
50.14 / 44.98
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
1.27 / 1.16
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+12.9%−1.1%+14.0 pp—
3 months+11.9%−0.5%+12.3 pp—
6 months+34.7%+4.4%+30.3 pp—
Year to date+29.4%+12.3%+17.1 pp—
1 year+27.2%+13.5%+13.6 pp−13.1%
3 years+33.9%+76.4%−42.5 pp+39.6%
5 years+14.0%+63.7%−49.7 pp—
Max drawdown (1y)
−22.5%
17 Dec 2025 → 20 Mar 2026
Max drawdown (5y)
−36.2%
11 Nov 2024 → 20 Mar 2026
Compound annual growth (5y)
+2.7%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 31 Jul 2026

Revenue
2.3 bn USD
+4.2% YoY
Net income
49.7 m USD
+18.9% YoY
Diluted EPS
0.84
+25.4% YoY
net / operating
2.1% / 3.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue2.2 bn2.1 bn2.1 bn2.2 bn2.3 bn2.2 bn2.3 bn2.3 bn
Cost of revenue1.9 bn1.9 bn1.8 bn1.9 bn2.0 bn2.0 bn2.0 bn2.0 bn
SG&A239.0 m169.0 m175.1 m177.5 m175.7 m169.8 m171.1 m171.3 m
Operating income19.2 m77.6 m82.3 m83.4 m68.4 m74.7 m86.9 m91.5 m
Depreciation & amortisation27.1 m25.9 m25.7 m ≈27.3 m ≈26.7 m25.7 m30.2 m ≈30.6 m ≈
Interest expense21.9 m22.9 m23.9 m25.3 m24.3 m24.0 m28.1 m29.5 m
Pre-tax income-800.0 k55.5 m59.8 m59.4 m45.3 m52.1 m59.7 m63.2 m
Income tax10.9 m11.9 m17.6 m17.6 m10.6 m13.4 m16.6 m13.5 m
Net income-11.7 m43.6 m42.2 m41.8 m34.8 m38.8 m43.1 m49.7 m
Diluted EPS-0.18 ≈0.690.670.670.56 ≈0.640.730.84
Operating cash flow30.4 m-106.2 m32.3 m ≈174.9 m ≈133.4 m62.0 m66.2 m ≈146.8 m ≈
Capex14.8 m16.7 m17.1 m ≈24.8 m ≈20.7 m13.2 m43.8 m ≈18.4 m ≈
Dividends paid14.1 m16.4 m16.5 m ≈16.5 m ≈16.2 m17.3 m16.9 m ≈17.0 m ≈
Share repurchases32.3 m21.3 m0 ≈27.2 m ≈73.7 m91.7 m3.0 m ≈0 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 42 percentile of its own 36-quarter history (min 10.4, median 22.5, max 599.6; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue6.4 bn6.5 bn6.0 bn6.2 bn7.8 bn8.1 bn8.4 bn8.7 bn
Revenue YoY+18.1%+0.9%−7.9%+4.0%+25.3%+3.7%+3.2%+4.6%
Net income97.8 m127.4 m300.0 k126.3 m230.4 m251.3 m81.4 m162.4 m
Net income YoY+2,473.7%+30.3%−99.8%+42,000.0%+82.4%+9.1%−67.6%+99.5%
Diluted EPS1.471.900.001.863.413.791.282.59
Diluted EPS YoY+2,000.0%+29.3%−100.0%unavailable+83.3%+11.1%−66.2%+102.3%
net %1.5%2.0%0.0%2.0%3.0%3.1%1.0%1.9%
Free cash flow270.0 m203.1 m419.5 m280.0 m-30.4 m190.7 m167.3 m155.1 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Oct 2025

Cash
104.1 m USD
Financial debt
1.6 bn USD
Net debt
1.5 bn USD
Equity
1.8 bn USD
Total assets
5.3 bn USD
Debt / equity
0.88x
Current ratio
1.48x
ROE
9.1%
ROA
3.1%
FCF margin
1.8%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
8.1 bn
2024
8.4 bn
2025
8.7 bn

SEC (XBRL)· 19 Dec 2025verified

Cost of revenue
2023
7.0 bn
2024
7.3 bn
2025
7.7 bn

SEC (XBRL)· 19 Dec 2025verified

Gross profit
2023
1.1 bn ≈
2024
1.0 bn ≈
2025
1.1 bn ≈

SEC (XBRL)· 19 Dec 2025derived

SG&A
2023
572.8 m
2024
765.3 m
2025
697.4 m

SEC (XBRL)· 19 Dec 2025verified

Operating income
2023
409.5 m
2024
212.0 m
2025
311.7 m

SEC (XBRL)· 19 Dec 2025verified

Depreciation & amortisation
2023
120.7 m
2024
106.6 m
2025
105.6 m

SEC (XBRL)· 19 Dec 2025verified

EBITDA
2023
530.2 m ≈
2024
318.6 m ≈
2025
417.3 m ≈

SEC (XBRL)· 19 Dec 2025derived

Interest expense
2023
82.3 m
2024
85.0 m
2025
96.4 m

SEC (XBRL)· 19 Dec 2025verified

Pre-tax income
2023
331.1 m
2024
133.6 m
2025
219.9 m

SEC (XBRL)· 19 Dec 2025verified

Income tax
2023
79.7 m
2024
52.2 m
2025
57.6 m

SEC (XBRL)· 19 Dec 2025verified

Net income
2023
251.3 m
2024
81.4 m
2025
162.4 m

SEC (XBRL)· 19 Dec 2025verified

Diluted EPS
2023
3.79
2024
1.28
2025
2.59

SEC (XBRL)· 19 Dec 2025verified

Weighted average diluted shares
2023
66.3 m
2024
63.6 m
2025
62.7 m

SEC (XBRL)· 19 Dec 2025verified

Dividend per share
2023
0.88
2024
0.90
2025
1.06

SEC (XBRL)· 19 Dec 2025verified

Balance sheet · USD

Cash
2023
69.5 m
2024
64.6 m
2025
104.1 m

SEC (XBRL)· 19 Dec 2025verified

Current assets
2023
1.7 bn
2024
1.8 bn
2025
1.9 bn

SEC (XBRL)· 19 Dec 2025verified

Property, plant & equipment, net
2023
131.5 m
2024
150.7 m
2025
177.2 m

SEC (XBRL)· 19 Dec 2025verified

Goodwill
2023
2.5 bn
2024
2.6 bn
2025
2.6 bn

SEC (XBRL)· 19 Dec 2025verified

Intangibles (excl. goodwill)
2023
302.9 m
2024
282.4 m
2025
243.2 m

SEC (XBRL)· 19 Dec 2025verified

Total assets
2023
4.9 bn
2024
5.1 bn
2025
5.3 bn

SEC (XBRL)· 19 Dec 2025verified

Accounts payable
2023
299.1 m
2024
324.3 m
2025
401.2 m

SEC (XBRL)· 19 Dec 2025verified

Short-term debt
2023
31.5 m
2024
31.6 m
2025
29.4 m

SEC (XBRL)· 19 Dec 2025verified

Long-term debt
2023
1.3 bn
2024
1.3 bn
2025
1.5 bn

SEC (XBRL)· 19 Dec 2025verified

Current liabilities
2023
1.2 bn
2024
1.3 bn
2025
1.3 bn

SEC (XBRL)· 19 Dec 2025verified

Total liabilities
2023
3.1 bn
2024
3.3 bn
2025
3.5 bn

SEC (XBRL)· 19 Dec 2025verified

Equity
2023
1.8 bn †
2024
1.8 bn †
2025
1.8 bn †

SEC (XBRL)· 19 Dec 2025verified

Cash flow · USD

Operating cash flow
2023
243.3 m
2024
226.7 m
2025
234.4 m

SEC (XBRL)· 19 Dec 2025verified

Capex
2023
52.6 m
2024
59.4 m
2025
79.3 m

SEC (XBRL)· 19 Dec 2025verified

Free cash flow
2023
190.7 m ≈
2024
167.3 m ≈
2025
155.1 m ≈

SEC (XBRL)· 19 Dec 2025derived

Investing cash flow
2023
-62.1 m
2024
-171.9 m
2025
-115.6 m

SEC (XBRL)· 19 Dec 2025verified

Financing cash flow
2023
-186.3 m
2024
-61.5 m
2025
-80.2 m

SEC (XBRL)· 19 Dec 2025verified

Dividends paid
2023
57.5 m
2024
56.5 m
2025
65.6 m

SEC (XBRL)· 19 Dec 2025verified

Share repurchases
2023
138.1 m
2024
56.1 m
2025
122.2 m

SEC (XBRL)· 19 Dec 2025verified

Computed indicators

Growth

Revenue growth (YoY)
4.6%
computed by olivLawFY 2025
Revenue CAGR 3Y
3.9%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
7.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
47.0%
computed by olivLawFY 2025
Net income growth (YoY)
99.5%
computed by olivLawFY 2025
Net income CAGR 3Y
-11.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
252.1%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
102.3%
computed by olivLawFY 2025
EPS CAGR 3Y
-8.8%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-7.3%
computed by olivLawFY 2025

Profitability

Gross margin
12.0%
computed by olivLawTTM to 31 Jul 2026
EBITDA margin
4.8%
computed by olivLawTTM to 31 Jul 2026
EBIT margin
3.5%
computed by olivLawTTM to 31 Jul 2026
Net margin
1.8%
computed by olivLawTTM to 31 Jul 2026
FCF margin
3.4%
computed by olivLawTTM to 31 Jul 2026

Returns

ROE
9.2%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROA
3.1%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROIC
7.2%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROCE
7.7%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Payout ratio (EPS)
40.9%
computed by olivLawTTM to 31 Jul 2026
Payout ratio (FCF)
21.6%
computed by olivLawTTM to 31 Jul 2026

Balance sheet

Net debt
1.7 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
Net debt / EBITDA
3.8x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Debt / equity
1.0x
computed by olivLawbalance sheet at 31 Jul 2026
Interest coverage
3.0x
computed by olivLawTTM to 31 Jul 2026

Liquidity

Current ratio
1.4x
computed by olivLawbalance sheet at 31 Jul 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.1x
computed by olivLawbalance sheet at 31 Jul 2026

Cash

Operating cash flow
408.4 m USD
computed by olivLawTTM to 31 Jul 2026
Capital expenditure
96.1 m USD
computed by olivLawTTM to 31 Jul 2026
Free cash flow
312.3 m USD
computed by olivLawTTM to 31 Jul 2026
FCF conversion
187.7%
computed by olivLawTTM to 31 Jul 2026
Cash conversion
93.9%
computed by olivLawTTM to 31 Jul 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
18 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
3.2 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
Enterprise value
4.9 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
Market cap / net income TTM
19.3x
computed by olivLawTTM to 31 Jul 2026
P/E (TTM)
19.7x
computed by olivLawTTM to 31 Jul 2026
Earnings yield
5.1%
computed by olivLawTTM to 31 Jul 2026
P/B
1.8x
computed by olivLawbalance sheet at 31 Jul 2026
P/S
0.4x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
EV/EBITDA
11.2x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
EV/EBIT
15.2x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
EV/Sales
0.5x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
P/FCF
10.3x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
FCF yield
9.7%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Dividend yield
2.1%
computed by olivLawTTM to 31 Jul 2026
Shareholder yield (distributions)
7.4%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 47 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

54.73 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 3.2 bn USD

Key indicators

Market capitalisation
3.2 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
P/E (TTM)
19.7x
computed by olivLawTTM to 31 Jul 2026
P/B
1.8x
computed by olivLawbalance sheet at 31 Jul 2026
EV/EBITDA
11.2x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROE
9.2%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Net margin
1.8%
computed by olivLawTTM to 31 Jul 2026
Revenue growth (YoY)
4.6%
computed by olivLawFY 2025
Dividend yield
2.1%
computed by olivLawTTM to 31 Jul 2026

Coverage and freshness

33/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Jul 2026
Latest balance sheet date: 31 Jul 2026
Share count (cover of the latest filing), as of: 08 Sept 2026
Source: SEC (XBRL)published 08 Sept 2026
verified 2682derived 221

Score by group

  • Valuation58
  • Balance sheet20
  • Quality55
  • Growth16
  • Returns100

Estimated value range

Low
80.63
USD per share
Mid
97.54
USD per share
High
124.20
USD per share
Price: 54.73 USD
The price is below the range
Potential to the central value: 78.2% (value / price − 1)
Margin of safety: 43.9% (1 − price / value)
Agreement between methods: medium · 3 methods used · 3 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.93 – 164.81 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)80.63 – 164.81 (Mid 110.39)
    WACC 7.6% · starting FCFF 392.2 m USD · terminal value share of EV 79%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -16.8%
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/E82.85 – 124.20 (Mid 97.54)
    3 companies used · median multiple 35.2x · quartiles 29.9x – 44.8x
    APG, FTDR, ROL
  • Dividend discount (DDM)13.93 – 18.73 (Mid 15.98)
Multiple comparisons use the SIC vertical: Services-To Dwellings & Other Buildings (SIC 7340)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 47/100

FactorValueScoreWeight used
ROIC · Quality7.2%40 (on a fixed band)10%
Net margin · Quality1.8%33 (vs peers)6%
FCF conversion · Quality187.7%100 (on a fixed band)6%
Revenue CAGR 3Y · Growth3.9%32 (on a fixed band)8%
EPS CAGR 3Y · Growth-8.8%0 (on a fixed band)8%
Net debt / EBITDA · Balance sheet3.8x5 (on a fixed band)10%
Interest coverage · Balance sheet3.0x24 (on a fixed band)6%
Current ratio · Balance sheet1.4x52 (on a fixed band)4%
P/E (TTM) · Valuation19.7x47 (on a fixed band)10%
EV/EBITDA · Valuation11.2x34 (on a fixed band)10%
FCF yield · Valuation9.7%100 (on a fixed band)8%
Shareholder yield (distributions) · Returns7.4%100 (on a fixed band)6%
Payout ratio (FCF) · Returns21.6%100 (on a fixed band)4%

Score groups

  • Balance sheet20/100 · 3/3 factors with a value
  • Growth16/100 · 2/2 factors with a value
  • Quality55/100 · 3/3 factors with a value
  • Returns100/100 · 2/2 factors with a value
  • Valuation58/100 · 3/3 factors with a value

Memo

ABM INDUSTRIES INCORPORATED (ABM). Latest full fiscal year: 2025; data up to 2026-07-31.

Figures computed from the financial statements: revenue 8.7 bn USD in 2025; YoY growth 4.6%; net margin 1.8%; ROE 9.2%; net debt/EBITDA 3.8x.

The estimated value range is 80.63–124.20 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 97.54 USD, the price of 54.73 USD leaves a potential of 78.2% (value / price − 1) and a margin of safety of 43.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 47/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 187.7%
  • FCF yield: 9.7%
  • Shareholder yield (distributions): 7.4%
  • Payout ratio (FCF): 21.6%
  • The price is below the estimated value range

What contradicts it

  • EPS CAGR 3Y: -8.8%
  • Net debt / EBITDA: 3.8x
  • Interest coverage: 3.0x

Versus the vertical median

Services-To Dwellings & Other Buildings (SIC 7340) · same industry (4-digit SIC) · compared with 6 companies

Multiples and returns vs the median

P/E
19.7x
vertical median 35.2x
below median (−43.9%)
EV/EBITDA
11.2x
vertical median —
P/S
0.4x
vertical median 3.0x
below median (−88.2%)
P/B
1.8x
vertical median 9.3x
below median (−80.7%)
ROE
9.2%
vertical median 34.5%
below median (−73.4%)
Net margin
1.8%
vertical median 8.4%
below median (−78.4%)
EBIT margin
3.5%
vertical median 12.8%
below median (−72.5%)
Revenue YoY
4.6%
vertical median 11.0%
below median (−57.9%)
Net debt/EBITDA
3.8x
vertical median —
Dividend yield
2.1%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
APGAPi Group Corporation18.7 bn54.410.9%4.1%+12.7%+11% / +118%
ROLRollins, Inc.18.3 bn35.236.0%13.2%+11.0%−38% / −6%
FTDRFrontdoor, Inc.6.4 bn24.6101.9%12.8%+13.6%+72% / +170%
ABMAbm Industries Incorporated3.2 bn19.79.2%1.8%+4.6%+27% / +34%
PMECPrimech Holdings Ltd.11.6 m—-13.0%-2.6%+2.5%−71% / −88%
ARAIArrive AI Inc.5.4 m——-52,935.3%unavailable−97% / unavailable
ABNBAirbnb, Inc.——34.5%20.4%+10.3%+51% / +40%

1- and 3-year price returns: for ABM from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
32.91
Total return -38% · Per year -38%
58.19
Total return 9% · Per year 9%
87.68
Total return 63% · Per year 63%
3 years
31.53
Total return -38% · Per year -15%
62.77
Total return 22% · Per year 7%
103.90
Total return 99% · Per year 26%
5 years
30.20
Total return -37% · Per year -9%
67.71
Total return 36% · Per year 6%
123.13
Total return 141% · Per year 19%
What moves the 3-year price the most
  • Exit P/E± 15.69
  • Net margin± 10.99
  • Annual revenue growth± 9.07
  • Annual dilution± 0.92

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

ABM Industries provides integrated facility, engineering and infrastructure services, mainly in the United States. Growth comes from contracts with clients and industry segments, but the company is in a phase of systems modernization and restructuring that could affect margins in the coming period.

SWOT

Strengths

  • The company holds a leading position in integrated facility services and a broad client base with high retention 1.
  • Diversification across industry segments and technical services reduces dependence on one sector 1.
  • Operating cash flow improved substantially in fiscal 2026 3.

Weaknesses

  • Gross margins are relatively low and price pressure in bids limits gains 1.
  • Leverage is high and interest costs have risen 23.
  • The new ERP system temporarily delayed invoicing and working capital 1.

Opportunities

  • Services for data centers and critical infrastructure could extend the technical business 1.
  • Cross-selling to existing clients could raise revenues without new acquisitions 1.
  • Restructuring savings and modernized systems could improve margins if delivered in 2026 2.

Threats

  • Lower office occupancy and high vacancy may reduce demand for cleaning services 1.
  • Regional competitors with lower costs may win contracts through bids 1.
  • Cyber risks and data privacy rules could generate costs and litigation 1.

Risks

  • Price competitionhigh

    Competitive bids could force firms to accept lower rates, which could reduce margins 1.

  • Labor costshigh

    Labor shortages and wage increases could raise operating costs if they cannot be passed on to clients 1.

  • Indebtednessmedium

    High debt and higher interest could limit financial flexibility 23.

  • Cybersecuritymedium

    Attacks on IT systems could cause disruptions and data losses 1.

  • Contract dependencelow

    Most contracts can be cancelled on short notice, which could affect revenues if major clients leave 1.

Investment thesis

What would need to be true (bull case)

  • If restructuring and systems modernization deliver savings and efficiency, margins could rise in the coming years 2.
  • Strong cash generation in fiscal 2026 could allow debt to be reduced faster than planned 3.
  • Growth in technical and infrastructure segments could support revenues over the medium term 12.

What would break the thesis

  • If offices stay under-occupied, demand for Business & Industry services could keep declining 1.
  • Competitive bid pressure could limit margin gains even while revenues grow 1.
  • High leverage could reduce the company's capacity to fund new acquisitions or investments 23.

What to watch

  • Trend of segment operating margin and restructuring progressQ4 2026
  • Realization of annualized cost savings from the restructuring program2026
  • Reduction of the leverage ratio from the end of the fiscal yearfiscal 2026
  • Recovery of deferred projects in the Technical Solutions segmentQ4 2026

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

ABM Industries Incorporated, through its subsidiaries, provides facility maintenance, engineering and infrastructure solutions, with a history starting in 1909 as a window washing company in San Francisco 1. In fiscal 2025 revenues reached 8745.9 million USD, and the company reported about 113000 employees as of October 31, 2025 1. Its main operations are in the United States, which generated about 92% of revenues in 2025 1.

The business model relies on monthly fixed-price, square-foot, cost-plus, parking and work order contracts, many won through competitive bids 1. Growth has come mainly from acquisitions and new service offerings, including infrastructure, EV charging and microgrid solutions 1.

In the third quarter of fiscal 2026 revenues rose to 2317.1 million USD and net income was 49.7 million USD 23. The company launched a restructuring program that could reduce administrative costs if the savings are realized in 2026 2.

Segments

Business & Industry

The largest segment, Business & Industry, generated 4126.0 million USD of revenue in fiscal 2025, up 1.6% 1. It covers janitorial, maintenance, facilities engineering and parking management for offices and hospitals 1.

Manufacturing & Distribution

Manufacturing & Distribution generated 1618.6 million USD in fiscal 2025, up 4.1% 1. Its activity includes integrated services for factories, distribution centers and data centers 1.

Aviation

Aviation generated 1118.7 million USD in fiscal 2025, up 8.3% 1. Services are provided to airlines and airports under master agreements that are usually re-bid at renewal 1.

Market context

The facility services market is highly competitive because entry costs are low and most contracts are won through bids 1. Demand in commercial offices remains affected by hybrid work and elevated vacancy, which could reduce service volumes 1.

Demand for energy infrastructure and data center services has grown, and the technical segment has contributed to growth 12. If projects are deferred or economic conditions weaken, revenues could be affected 2.

Trends

  • Hybrid work modelheadwind

    Commercial offices with lower occupancy may reduce demand for cleaning and work order services 1.

  • Demand for data centers and critical infrastructuretailwind

    The Quality Uptime acquisition and expanded UPS services could support growth in infrastructure segments 1.

  • Labor costsheadwind

    Labor shortages and wage increases could raise costs and weigh on margins if contract rates do not cover the difference 1.

  • Sustainability and energy efficiencymixed

    Demand for energy efficiency projects and microgrids could increase, although it depends on public policy 1.

Competitive position

The company competes mainly with regional and local owner-operated firms that may have lower labor and overhead costs 1. Indirect competition comes from clients that perform some services themselves 1.

Price, service quality and the ability to respond to industry change are the main competitive criteria 1. Price pressure could reduce margins if costs rise faster than contract rates 1.

  • Regional and local owner-operated companies

    Main competitors in local markets, with lower labor and overhead costs according to the source 1.

  • Clients performing services in-house

    Indirect competition, since clients can perform some of the services themselves 1.

  • Aviation and facility service providers

    The source does not name firms, but competition is described through bids and contract renewals 1.

  • Microgrid and EV charging technology firms

    Competition in the technical segment is described only in general terms in the source 1.

News & filings

In the press

The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 28 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-10-31 · SEC / ABM Industries Incorporated · 19 Dec 2025
  2. [2] Form 10-Q, quarter ended 2026-07-31 · SEC / ABM Industries Incorporated · 08 Sept 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / ABM Industries Incorporated · 08 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.