09:12 AM EDT, 03/12/2025 (MT Newswires) -- ABM Industries ( ABM ) reported better-than-expected fiscal first-quarter results on Wednesday while the facility solution provider lifted the lower end of its full-year earnings outlook.

The company now anticipates per-share adjusted earnings to be in a range of $3.65 to $3.80 for fiscal 2025, reflecting a higher bottom end than the previous forecast's $3.60 estimate. The current consensus on FactSet is for non-GAAP EPS of $3.73. The stock gained 2.4% in premarket activity.

ABM expects the commercial real estate markets to return to growth this year, following a 24% sequential increase in US commercial office leasing activity during the fourth quarter of the previous calendar year, Chief Executive Scott Salmirs said in a statement. The firm also forecasts the other end markets it serves to "remain broadly healthy," according to Salmirs.

"Coupled with our strong sales pipeline and market-leading technology, these factors strengthen our confidence in achieving our 2025 objectives," Salmirs said. "As a result, we are raising the lower end of our full year adjusted earnings per share outlook."

For the three months through January, the company's adjusted EPS ticked up to $0.87 from $0.86 the year before, defying the Street's view for a decrease to $0.78. Revenue increased 2.2% year over year to $2.11 billion, ahead of the average analyst estimate on FactSet for $2.09 billion.

Revenue in the technical solutions segment climbed nearly 22% to $202.3 million, mainly boosted by a substantial annual expansion in the micro-grid service line, according to the company. Aviation revenue improved 8.2% to $270.1 million, with the division benefitting from healthy market demand and recent "contract wins," ABM said.

Sales in the education segment inclined 2.4% to $225.3 million, while the business and industry and manufacturing and distribution units logged declines of 1% and 1.6%, respectively, amid "some moderating headwinds," according to Salmirs.

Operating expenses rose to $1.86 billion from $1.83 billion in the prior-year quarter. "While we encountered temporary delays in cash flow, we anticipate improvement next quarter and full normalization in the second half," Salmirs said. "Once fully implemented, we expect this system will drive significant cost efficiencies, enhance our ability to capture synergies from (merger and acquisition), and provide real-time analytics and reporting to unlock commercial opportunities."