Overview

* ABM fiscal Q3 revenue rises 6.2%, beating analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 misses consensus, reflecting margin pressures

* Co announces $150 mln increase in share repurchase authorization

Outlook

* ABM expects fiscal 2025 adjusted EPS at low end of $3.65-$3.80 range

* Company anticipates Q4 adjusted EPS and margin improvement

* Restructuring program expected to yield significant savings by year-end

* ABM notes robust pipelines in ATS and M&D segments

Result Drivers

* ORGANIC GROWTH - Revenue grew 5% organically, driven by strong performance in Technical Solutions and Aviation segments

* NEW BOOKINGS - Secured over $1.5 bln in new bookings, a 15% increase year-over-year, positioning for future growth

* MARGIN PRESSURE - Strategic pricing and contract management decisions in certain markets pressured margins

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $2.20 $2.15

Revenue bln bln (7

Analysts

)

Q3 Miss $0.82 $0.95 (7

Adjusted Analysts

EPS )

Q3 EPS $0.67

Q3 Miss $51.70 $60.30

Adjusted mln mln (6

Net Analysts

Income )

Q3 Net $41.80

Income mln

Q3 Miss $125.80 $132.30

Adjusted mln mln (7

EBITDA Analysts

)

Q3 5.9%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for ABM Industries Inc ( ABM ) is $56.00, about 14.1% above its September 4 closing price of $48.10

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)