Lumida
/ABM
⌘K
ABM Industries Inc

ABM Industries Inc

ABM
$47.58USD↓-1.22%-0.59 today

MARKET CAP

2.8B

P/E (TTM)

14.0x

FWD P/E

11.6x

DAY RANGE

$47 – $49

52W RANGE

$37
$50

AI Summary

Stalk
StalkMedium

ABM remains in a Stage 2 advancing regime but has registered a blow-off top at the mid-July highs, rejecting resistance in overbought territory. While the medium-term bias stays bullish with rising EMAs and HH/HL structure, short-term timing is unfavorable given the rejection at key resistance and extreme OB readings. We defer execution and await a pullback into the rising EMA support zone near the recent breakout area before initiating.

  • ↑Q2 revenue rose 8.4% YoY to $2.3B on 6.1% organic growth.
  • ↑Recorded $1.2B in new sales bookings for H1 FY2026.
  • ↓Operating margin compressed to 7.6% from 8.2% last year.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

ABM Industries Incorporated (NYSE: ABM) is a leading provider of integrated facility solutions, specializing in services such as janitorial, engineering, and maintenance across various sectors, including aviation, education, and manufacturing. The company capitalizes on strong demand within critical markets, particularly in energy resiliency and semiconductor manufacturing, positioning itself strategically for growth amidst evolving demand dynamics. As a well-established player in the facilities management sector, ABM is focused on leveraging its capabilities and making strategic investments to enhance its service offerings.

Bull says

  • ↑Q2 revenue rose 8.4% YoY to $2.3B on 6.1% organic growth.
  • ↑Recorded $1.2B in new sales bookings for H1 FY2026.
  • ↑WGN Star acquisition expands semiconductor market footprint.
  • ↑AI-driven initiatives aim for sequential margin improvement in H2.
  • ↑Repurchased $90M of shares recently, reflecting capital discipline.
  • ↑Generated $71.2M FCF in H1 with high earnings yield support.

Bear says

  • ↓Operating margin compressed to 7.6% from 8.2% last year.
  • ↓TFL client exit cut B&I growth by ~300bps.
  • ↓Negative earnings revisions signal skepticism on growth outlook.
  • ↓Low institutional ownership hints at limited market confidence.
  • ↓Rising labor costs and supply chain issues may pressure margins.
  • ↓Interest rate sensitivity could weigh on future cash flows.

Investment themes with ABM

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 06-05-2026neutral

Transcript signals

Bull points

  • We achieved several important milestones this quarter.
  • Overall, we posted 3.8% organic revenue growth, highlighted by continued recovery in our current commercial office markets, new contract wins, and a diminished impact from prior year client exits in M&D.
  • In total, ABM delivered $2.1 billion in revenue and adjusted EPS of 86 cents.

Bear points

  • While growth in ATS remained strong, it could have been even higher had we not experienced some temporary project delays and service mix headwinds that impacted profitability.
  • Operating profit was $39.9 million, with a margin of 10% compared to $43.6 million and 11.2% in the prior year; the year-over-year margin decline reflects investments in technical sales talent and capabilities to drive growth in key sectors.
  • Interest expense in the quarter was $23.9 million, up $3.3 million from last year due to higher average debt balances.
Read full transcript analysis ›