In This Article:
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Revenue: $2.1 billion, increased 2.2% with 1.6% organic growth.
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Adjusted EPS: $0.87, up from $0.86 in the prior year.
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Net Income: $43.6 million or $0.69 per share, compared to $44.7 million or $0.70 per share last year.
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Adjusted Net Income: $55.3 million.
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Adjusted EBITDA: $120.6 million, increased 3% with a margin of 5.9%.
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Technical Solutions Revenue: Grew 22% to $202.3 million.
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Aviation Revenue: Grew 8% to $270.1 million.
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Education Revenue: Grew 2% to $225.3 million.
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Manufacturing & Distribution Revenue: $394.3 million, down from $400.9 million last year.
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Free Cash Flow: Negative $123 million due to ERP system transition.
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Total Indebtedness: $1.6 billion with a debt to pro forma adjusted EBITDA ratio of 2.9 times.
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Share Repurchase: Approximately 415,000 shares purchased at an average price of $51.23 per share.
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Full Year Adjusted EPS Guidance: Raised to $3.65 to $3.80.
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Interest Expense Forecast: $80 million to $84 million.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ABM Industries Inc (NYSE:ABM) reported a 2% organic revenue growth and adjusted EPS of $0.87, indicating a strong start to the fiscal year.
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The company raised the lower end of its full-year adjusted EPS guidance to between $3.65 and $3.80, reflecting confidence in meeting financial goals.
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ABM Industries Inc (NYSE:ABM) successfully expanded and extended its credit facility to $2.2 billion, showcasing lender confidence in its business model.
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The ERP implementation is expected to drive cost efficiencies, improve synergy capture, and provide real-time analytics for commercial growth opportunities.
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The company secured significant new contracts, including a $30 million annual contract with a major Silicon Valley tech company and a $40 million agreement at a major airport hub.
Negative Points
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The ERP implementation temporarily impacted cash flow, with a negative free cash flow of $123 million in the first quarter.
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Interest expense increased to $22.9 million, reflecting higher debt balances, with expectations for continued pressure in the first half of the year.
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Revenue in the Manufacturing & Distribution segment decreased due to a planned client exit, impacting overall segment performance.
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The company faces potential risks from shifts in immigration policy, which could affect the labor supply for qualified workers.
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The backlog in Technical Solutions decreased from $590 million to $490 million, indicating potential challenges in maintaining project momentum.