ABM Industries Incorporated (ABM) reports earnings

The report was filed on December 19, 2024

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ABM Industries Incorporated (ABM-0.60%) has submitted its 10-K filing for the fiscal year ended October 31, 2024.

The filing reports total revenues of $8,359.4 million, a 3.2% increase from the previous year. This growth was driven by organic growth of 2.9% and acquisition growth of 0.3%.

Operating profit decreased by 48.2% to $212.0 million, attributed to increased fair value of contingent consideration related to the RavenVolt acquisition, higher corporate expenses, and unfavorable self-insurance reserve adjustments.

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The effective tax rate for the year was 39.1%, impacted by a $95.7 million non-taxable expense related to the RavenVolt acquisition.

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Net income for the year was $81.4 million, down from $251.3 million in the previous year.

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ABM's Business & Industry segment reported revenues of $4,059.1 million, a decrease of 0.7% from the previous year, primarily due to attrition of certain engineering clients and soft commercial office market conditions.

The Manufacturing & Distribution segment saw a revenue increase of 1.8% to $1,554.3 million, driven by expansion with existing customers.

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Aviation segment revenues increased by 11.5% to $1,032.6 million, attributed to new business and scope expansions.

Education segment revenues were $904.0 million, a 2.7% increase from the previous year, driven by net new business wins.

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Technical Solutions segment revenues increased by 20.0% to $809.3 million, due to higher project revenues and acquisition growth from the Quality Uptime acquisition.

ABM's total outstanding borrowings under its Amended Credit Facility were $1,335.3 million, with borrowing capacity of up to $423.6 million.

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The company repurchased 1.17 million shares for $55.8 million during the fiscal year.

ABM continues to focus on strategic growth through its ELEVATE strategy, which aims to enhance client and team member experiences and leverage technology and data.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ABM Industries Incorporated annual 10-K report dated December 19, 2024. To report an error, please email earnings@qz.com.