ABM Industries (NYSE:ABM), a global leader in facility services and integrated solutions, reported a solid start to its fiscal year 2026 on Tuesday, with first-quarter revenue reaching $2.2 billion.
The 6.1% year-over-year increase was supported by a healthy 5.5% organic growth rate, reflecting sustained demand for facility management across its commercial, aviation, and technical segments.
The company posted net income of $38.8 million, or $0.64 per diluted share.
On an adjusted basis, net income reached $50.4 million, or $0.83 per share.
ABM’s profitability remains consistent with its long-term targets, as the firm reported adjusted EBITDA of $117.8 million for the period.
The quarter was also characterized by strong liquidity management, with operating cash flow totaling $62 million and free cash flow reaching $48.9 million.
Capital allocation remains a priority for the firm; ABM repurchased $91.1 million of its common stock during the quarter, signaling confidence in its current valuation. Additionally, the company successfully closed its acquisition of WGNSTAR early in the second quarter, a move intended to expand its footprint in the high-growth semiconductor and life sciences technical services markets.
Following the quarterly performance, ABM reaffirmed its full-year fiscal 2026 guidance.
The company expects organic revenue growth between 3% and 4%, with total revenue growth projected at 4% to 5%.
Management also maintained its forecast for a segment operating margin of 7.8% to 8.0% and an adjusted EPS range of $3.85 to $4.15.