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ABM Industries (ABM) Misses Q4 EPS by 21c, Beats on Revenue; Offers Guidance

December 17, 2025 7:00 AM

ABM Industries (NYSE: ABM) reported Q4 EPS of $0.88, $0.21 worse than the analyst estimate of $1.09. Revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.28 billion.

Looking ahead to fiscal 2026, ABM expects solid performance with organic revenue growth of 3% to 4%, driven by healthy demand across its end markets, particularly within Technical Solutions, Aviation, and Manufacturing & Distribution. The WGNSTAR acquisition is anticipated to contribute an additional point of growth, bringing total expected revenue growth for 2026 to approximately 4% to 5%. Segment operating margin, defined as total segment operating profit, divided by total revenue, is projected to be between 7.8% and 8.0%, reflecting the Company's continued focus on operational efficiencies and the benefits of recent restructuring actions. Adjusted EPS is expected to be in the range of $3.85 to $4.15(1), before any impact from prior-year self-insurance adjustments, with interest expense of $95 million to $105 million and a normalized tax rate of 29% to 30%, excluding discrete and non-taxable items.

The Company cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS in 2026 without unreasonable effort due to the uncertainty of timing of any gains or losses related to, but not limited to, items such as changes in the fair value of contingent consideration, acquisition and integration related costs, as well as legal costs and other settlements. Although we have attempted to estimate the amount of gains and losses of such items for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

For earnings history and earnings-related data on ABM Industries (ABM) click here.

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