Company Overview - A facilities solutions company recently raised its dividend, offering portfolio diversification opportunities [1] - The stock is considered undervalued following a strong earnings report [1] Investment Opportunity - The company's stock is currently on sale, presenting a potential buying opportunity [1] - The company's strong earnings report supports the investment thesis [1] Promotional Offer - Seeking Alpha's premier investing service is offering a 28% discount through specific links in the advertisement [2] - The promotion is part of a holiday sale, with prices set to increase on January 1st [2] - A money-back guarantee is available for unsatisfied customers [3]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $2.2 billion, an increase of 4%, with 3% organic growth and 1% from the acquisition of Quality Uptime Services [33] - Adjusted EPS was $0.90, a decrease of 11% from the prior year, while adjusted net income was $57.5 million, down 13% [36] - Adjusted EBITDA decreased 11% to $128 million, with an adjusted EBITDA margin of 6.1%, down 110 basis points [36] Business Line Data and Key Metrics Changes - Technical Solutions revenue grew 35% to $257.4 million, with 25% organic growth driven by strong microgrid project activity [44] - Aviation revenue increased 11% to $276.5 million, benefiting from strong travel markets and new business wins [40] - Manufacturing & Distribution revenue declined by just under 1% to $387.7 million, primarily due to client rebalancing [41] - Business & Industry (B&I) revenue was approximately $1 billion, declining less than 1%, with operating profit down to $72 million [38] Market Data and Key Metrics Changes - The U.S. commercial real estate market is showing signs of improvement, with declining availability rates and increased leasing activity [20] - The semiconductor market is expected to grow by 15% in the Americas in 2025, while the data center services market is projected to grow 10% annually [22] Company Strategy and Development Direction - The company is focused on strategic investments in artificial intelligence and technology-driven solutions to enhance service offerings and operational efficiency [17][29] - The company aims to return its B&I and Manufacturing & Distribution segments to growth in the back half of 2025, assuming positive market trends continue [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2025, citing strong execution on initiatives and a resilient business model [9][10] - The company expects adjusted EPS for 2025 to be in the range of $3.60 to $3.80, reflecting a 4% increase over 2024 [51] Other Important Information - The company repurchased $56 million of stock in 2024 and announced an 18% increase in its dividend [18][19] - The company has a backlog exceeding $500 million in its microgrid business, indicating strong future demand [28] Q&A Session Summary Question: M&D segment performance and customer rebalancing - Management noted that while the M&D segment performed better than expected, there are still phases of rebalancing to navigate in fiscal year 2025 [60][62] Question: Technical Solutions remediation charge - Management clarified that the $4 million remediation charge was a rare occurrence related to a technical issue with a past project [64][66] Question: B&I segment discrete costs - Management explained that the $4 million to $5 million in discrete costs were one-time expenses, primarily from legal settlements and a bad debt reserve [70][72] Question: Free cash flow impact from ELEVATE costs - Management confirmed that the anticipated impact of $30 million to $40 million in transformation costs reflects updated estimates for the ELEVATE program [78] Question: Labor cost inflation and recovery rates - Management indicated that labor costs have moderated and are predictable due to recent collective bargaining agreements [94] Question: Aviation market share and growth rate - Management expressed confidence in the Aviation segment's growth, predicting high-single-digit growth for 2025 due to ongoing infrastructure investments [108][110] Question: Capital allocation priorities for 2025 - Management reiterated a balanced approach to capital allocation, focusing on dividends, M&A, and opportunistic share buybacks [114] Question: Employee count and business mix - Management stated that employee count will be relative to revenue growth, with a focus on efficiency and moving towards technical hard services [128]

ABM Industries (ABM) reported $2.18 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 4%. EPS of $0.90 for the same period compares to $1.01 a year ago.The reported revenue represents a surprise of +4.30% over the Zacks Consensus Estimate of $2.09 billion. With the consensus EPS estimate being $0.86, the EPS surprise was +4.65%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

ABM Industries (ABM) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.65%. A quarter ago, it was expected that this provider of cleaning and other maintenance services for commercial buildings, hospitals and airports would post earnings of $0.85 per share when it actually produced ea ...

Fourth Quarter 2024 Earnings Presentation December 18, 2024 1 Forward Looking Statements This press release contains both historical and forward-looking statements about ABM Industries Incorporated ("ABM") and its subsidiaries (collectively referred to as "ABM," "we," "us," "our," or the "Company"). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, ...

Revenue Performance - Revenue for Q4 2024 was $2.2 billion, reflecting a 4.0% increase year-over-year, with 3.2% organic growth[1][4] - Full fiscal 2024 revenue totaled $8.4 billion, up 3.2% from the previous year, driven by double-digit growth in Technical Solutions and Aviation[1][8] - Revenues for the three months ended October 31, 2024, were $2,177.3 million, representing a 4.0% increase compared to $2,092.9 million in 2023[33] - For the fiscal year ended October 31, 2024, total revenues were $8,359.4 million, a 3.2% increase from $8,096.4 million in 2023[37] - The Aviation segment saw a revenue increase of 11.4% to $276.5 million, while the Technical Solutions segment grew by 34.9% to $257.4 million[45] Profitability and Loss - Net loss for Q4 2024 was $11.7 million, translating to a loss of $0.19 per share, primarily due to a $59.7 million adjustment related to the RavenVolt acquisition[1][5] - Operating profit decreased significantly by 81.9% to $19.2 million in Q4 2024 from $106.4 million in Q4 2023[33] - Net loss for the three months ended October 31, 2024, was $11.7 million, compared to a net income of $62.8 million in the same period of 2023, marking a 118.7% decline[33] - The net income for the year ended October 31, 2024, was $81.4 million, a decrease of 67.6% from $251.3 million in 2023[49] Adjusted Metrics - Adjusted EBITDA for Q4 2024 was $128.0 million, with an adjusted EBITDA margin of 6.1%[1][6] - Adjusted EPS for fiscal 2024 was $3.57, slightly up from $3.50 in fiscal 2023[1][11] - Adjusted net income for the three months ended October 31, 2024, was $57.5 million, down from $66.2 million in the prior year[52] - Adjusted EBITDA for the three months ended October 31, 2024, was $128.0 million, compared to $144.2 million in the prior year[52] Cash Flow and Capital Management - Net cash provided by operating activities was $30.3 million, with free cash flow at $15.5 million, both down significantly from the prior year[1][7] - Free cash flow for the three months ended October 31, 2024, was $15.5 million, significantly lower than $121.2 million in the same period of 2023[56] - The company repurchased $32.0 million of common stock in Q4 2024, totaling $55.8 million for the full fiscal year[1][14] Expenses and Liabilities - Operating expenses for the fiscal year 2024 were $7,325.9 million, up 4.1% from $7,037.6 million in 2023[37] - The company reported a significant increase in selling, general and administrative expenses, which rose by 48.2% to $239.0 million in Q4 2024 from $161.3 million in Q4 2023[33] - The company experienced a 33.6% increase in selling, general and administrative expenses for the fiscal year 2024, totaling $765.3 million compared to $572.8 million in 2023[37] - Total indebtedness at the end of Q4 2024 was $1.4126 billion, with a leverage ratio of 2.6x[1][13] Future Outlook - For fiscal 2025, the company expects adjusted EPS in the range of $3.60 to $3.80 and an adjusted EBITDA margin of 6.3% to 6.5%[1][16] - The company raised its quarterly dividend by 18%, now set at $0.265 per share, marking the 57th consecutive year of dividend increases[1][15] - The company expects to continue focusing on transformation initiatives and integration costs related to acquisitions in the upcoming quarters[57]

Revenue of $2.2 billion in the fourth quarter, including 3.2% organic growth Net loss of $11.7 million and GAAP loss per share of $0.19 in the fourth quarter, largely reflecting a $59.7 million adjustment to the RavenVolt acquisition cash earn-out Adjusted EBITDA of $128.0 million in the fourth quarter Adjusted EPS of $0.90 in the fourth quarterRepurchased $32.0 million of common stock in the fourth quarter and $55.8 million for full fiscal 2024Raises quarterly dividend 18%, as previously announcedFiscal 20 ...

In its upcoming report, ABM Industries (ABM) is predicted by Wall Street analysts to post quarterly earnings of $0.86 per share, reflecting a decline of 14.9% compared to the same period last year. Revenues are forecasted to be $2.09 billion, representing a year-over-year decrease of 0.3%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over ...

Core Viewpoint - ABM is set to release its financial results for the fiscal fourth quarter of 2024 on December 18, 2024, before the market opens [1]. Group 1: Financial Results Announcement - The financial results will be announced on December 18, 2024, before market open [1]. - A quarterly conference call will be held on the same day at 8:30 AM (ET) for interested parties [2]. - The conference call can be accessed via audio webcast or by dialing specific numbers for domestic and international participants [2]. Group 2: Supplemental Information - A supplemental presentation will accompany the webcast and will be available on the company's website [3]. - A replay of the conference call will be available approximately three hours after the live event and can be accessed until January 1, 2025 [3]. Group 3: Company Overview - ABM is one of the largest providers of integrated facility services, with annualized revenue exceeding $8 billion [4]. - The company offers a wide range of facility services, including janitorial, engineering, parking, and energy solutions, among others [4]. - ABM operates over 350 offices globally, employing more than 100,000 team members [4].

ABM Industries Incorporated's (ABM) shares have gained 17.1% in the past year, outperforming the industry and the Zacks S&P 500 composite's growth of 10.3% and 11%, respectively. One Year Price Performance Image Source: Zacks Investment Research ABM Industries reported impressive third-quarter fiscal 2024 results. The company's EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% year over year. Total revenues of $2.1 billion sur ...