ABM Industries
ABMNYSEUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $54.28 Prior regular-session close from the quote source.
- $54.05–$54.77 Regular-session low and high so far today.
- 469.4K Regular-session shares traded · Nov 12, 4:00 PM ET.
- Dec 16 projected Projected for 2026-12-16 from the company’s own results filings (SEC 8-K Item 2.02). The company has not confirmed the date.
- $36.96–$55.70 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own ABM if ABM converts scale in janitorial and facilities services into recurring cash and higher-margin technical and mission-critical offerings (eMobility, EV/energy, data center power), using acquisitions plus its ELEVATE systems program to cross-sell and raise margins.
ABM price history
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Investment thesis
What must happen next
ABM can lift operating margins by shifting revenue mix from low-margin janitorial labor to higher-margin technical, energy, and mission-critical services through cross-selling and integration of acquisitions.StrengtheningMateriality: High
OperatingIncomeLoss increased from 212,000,000.0 (FY2024) to 311,700,000.0 (FY2025) while revenue rose modestly, indicating margin expansion in the latest year (10-K Item 1 / MD&A). If true, operating income and free cash flow rise faster than revenue, justifying a higher multiple and enabling buybacks; if false, the business remains low-margin and re-rates lower.
Watch: Large customers insource facilities or award national contracts to competitors (e.g., ISS, Sodexo, other global outsourcers), reducing ABM's cross-sell runway.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
OperatingIncomeLoss increased from 212,000,000.0 (FY2024) to 311,700,000.0 (FY2025) while revenue rose modestly, indicating margin expansion in the latest year (10-K.
Open source ↗ABM's core operations generate stable operating cash flow that funds share repurchases, acquisitions, and credit servicing, anchoring shareholder returns even if top-line growth is modest.StrengtheningMateriality: High
NetCashProvidedByUsedInOperatingActivities was 234,400,000.0 (FY2025), 226,700,000.0 (FY2024) and 243,300,000.0 (FY2023) showing consistent operating cash generation (MD&A). Reliable cash generation supports buybacks and M&A without excessive dilution or equity raises; if cash flow weakens, growth and buybacks are constrained and leverage risk rises.
Watch: Material contingent consideration payments or larger-than-expected working capital needs (timing of collections/payments) that reduce available cash, or an acquisition that materially increases cash use.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
NetCashProvidedByUsedInOperatingActivities was 234,400,000.0 (FY2025), 226,700,000.0 (FY2024) and 243,300,000.0 (FY2023) showing consistent operating cash generation (MD&A).
Open source ↗EPS growth will be driven by a combination of margin improvement and share repurchases rather than by large revenue expansion alone.StrengtheningMateriality: Medium
EarningsPerShareDiluted rose from 1.28 (FY2024) to 2.59 (FY2025), reflecting a mix of higher operating income and active repurchases (MD&A share repurchase disclosures). If EPS gains are mainly buyback- and margin-driven, shareholders benefit without needing aggressive top-line growth; if margin gains are illusory or buybacks stop, EPS could stall even with revenue growth.
Watch: Credit covenant pressure or deteriorating operating cash flow forces management to suspend repurchases.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
EarningsPerShareDiluted rose from 1.28 (FY2024) to 2.59 (FY2025), reflecting a mix of higher operating income and active repurchases (MD&A share.
Open source ↗ABM's ability to pursue buybacks and M&A depends on maintaining credit-facility covenants; a leverage or coverage covenant breach would materially constrain strategic options.HoldingMateriality: Medium
MD&A describes the Amended Credit Facility covenants (maximum total net leverage ratio 5.00x, secured net leverage 4.00x, minimum interest coverage 1.50x) and reports the Company was in compliance at October 31, 2025. A covenant breach could force deleveraging, halt buybacks, or require asset sales at poor prices — damaging growth and returns.
Watch: A material acquisition or sustained operating-income decline that pushes net leverage above covenant thresholds, or a sudden rise in interest rates that reduces interest coverage.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
MD&A describes the Amended Credit Facility covenants (maximum total net leverage ratio 5.00x, secured net leverage 4.00x, minimum interest coverage.
Open source ↗Because direct labor is a dominant input (~68% of revenue), sustained wage inflation or labor disruptions limit margin upside and force price-dependent, contract-level margin pressure.StrengtheningMateriality: Medium
Profile notes direct labor costs represented 68% of total revenue for 2025, making labor the single largest cost exposure (Item 1 Business / profile). If labor cost inflation outpaces the company's ability to raise prices or negotiate contracts, operating margins will compress even if revenue holds.
Watch: Major wage-rate increases mandated by governments or successful large-scale union actions raising labor costs materially above price-recovery capability.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Profile notes direct labor costs represented 68% of total revenue for 2025, making labor the single largest cost exposure (Item.
Open source ↗
Full investment case & evidence
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Original research
ABM can lift operating margins by shifting revenue mix from low-margin janitorial labor to higher-margin technical, energy, and mission-critical services through cross-selling and integration of acquisitions. If true, operating income and free cash flow rise faster than revenue, justifying a higher multiple and enabling buybacks; if false, the business remains low-margin and re-rates lower.
ABM's core operations generate stable operating cash flow that funds share repurchases, acquisitions, and credit servicing, anchoring shareholder returns even if top-line growth is modest. Reliable cash generation supports buybacks and M&A without excessive dilution or equity raises; if cash flow weakens, growth and buybacks are constrained and leverage risk rises.
EPS growth will be driven by a combination of margin improvement and share repurchases rather than by large revenue expansion alone. If EPS gains are mainly buyback- and margin-driven, shareholders benefit without needing aggressive top-line growth; if margin gains are illusory or buybacks stop, EPS could stall even with revenue growth.
ABM's ability to pursue buybacks and M&A depends on maintaining credit-facility covenants; a leverage or coverage covenant breach would materially constrain strategic options. A covenant breach could force deleveraging, halt buybacks, or require asset sales at poor prices — damaging growth and returns.
Because direct labor is a dominant input (~68% of revenue), sustained wage inflation or labor disruptions limit margin upside and force price-dependent, contract-level margin pressure. If labor cost inflation outpaces the company's ability to raise prices or negotiate contracts, operating margins will compress even if revenue holds.
All standing thesis claims
Original report summary
ABM converts scale in janitorial and facilities services into recurring cash and higher-margin technical and mission-critical offerings (eMobility, EV/energy, data center power), using acquisitions plus its ELEVATE systems program to cross-sell and raise margins.
Bull case and bear case
Bull case and bear case for ABM Industries
Where the evidence on ABM Industries stands: Holding on the latest evidence (Nov 12, 2026). Of its 5 thesis points, 4 strengthening and 1 holding.
Bull case: what the evidence supports
ABM can lift operating margins by shifting revenue mix from low-margin janitorial labor to higher-margin technical, energy, and mission-critical services through cross-selling and integration of acquisitions.
ABM's core operations generate stable operating cash flow that funds share repurchases, acquisitions, and credit servicing, anchoring shareholder returns even if top-line growth is modest.
EPS growth will be driven by a combination of margin improvement and share repurchases rather than by large revenue expansion alone.
ABM's ability to pursue buybacks and M&A depends on maintaining credit-facility covenants; a leverage or coverage covenant breach would materially constrain strategic options.
Because direct labor is a dominant input (~68% of revenue), sustained wage inflation or labor disruptions limit margin upside and force price-dependent, contract-level margin pressure.
Bear case: what would count against it
Large customers insource facilities or award national contracts to competitors (e.g., ISS, Sodexo, other global outsourcers), reducing ABM's cross-sell runway.
Material contingent consideration payments or larger-than-expected working capital needs (timing of collections/payments) that reduce available cash, or an acquisition that materially increases cash use.
Credit covenant pressure or deteriorating operating cash flow forces management to suspend repurchases.
Thesis-Break Engine
Thesis-break watch · ABM Industries
No break has crossed ABM Industries’s thesis. Its break conditions are checked against every new filing as it lands.
MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedDirector or principal officer change.
ABM Industries filed an SEC 8-K on 2026-10-28: Director or principal officer change. It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
ABM Industries filed an SEC 8-K on 2026-09-08: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
ABM Industries filed an SEC 8-K on 2026-06-05: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- Large customers insource facilities or award national contracts to competitors (e.g., ISS, Sodexo, other global outsourcers), reducing ABM's cross-sell runway.
- Material contingent consideration payments or larger-than-expected working capital needs (timing of collections/payments) that reduce available cash, or an acquisition that materially increases cash use.
- Credit covenant pressure or deteriorating operating cash flow forces management to suspend repurchases.
- A material acquisition or sustained operating-income decline that pushes net leverage above covenant thresholds, or a sudden rise in interest rates that reduces interest coverage.
- Major wage-rate increases mandated by governments or successful large-scale union actions raising labor costs materially above price-recovery capability.
ABM news
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Financial statements
ABM income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.
ABM: quick answers
- When does ABM Industries (ABM) report earnings next?
- ABM Industries's next results are projected for December 16, 2026, from the dates of its own results filings with the SEC. The company has not confirmed the date. It last reported on September 8, 2026. Earnings calendar
- What is ABM's short interest?
- As of October 30, 2026, 1.9M ABM shares were sold short, 3.25% of its shares outstanding, down 0.5% from the count before. At the stock's average daily volume that is 5.2 days to cover. FINRA publishes the count twice a month. ABM short interest history
- Have members of Congress traded ABM?
- Reports made public in the last 90 days disclose 1 trade in ABM by 1 filer: 0 purchases and 1 sale. They are filed under the STOCK Act by members of Congress, the President and senior officials. Every disclosed ABM trade
- Which well-known investors own ABM?
- 1 of the 37 well-known funds tracked here reported ABM shares in their latest 13F filing. By share of the fund's portfolio: Bridgewater Associates (Ray Dalio), 0.0%. Fund portfolios
ABM in well-known investors’ portfolios
1 of 37 funds reported ABM shares in their latest 13F filing. A 13F shows quarter-end positions and arrives up to 45 days later.
| Fund | Of its portfolio | Value | Change | Quarter |
|---|---|---|---|---|
| Ray DalioBridgewater Associates | 0.01% | $1.5M | +5.4% | Q2 2026 |