ABM Industries(ABM) - 2024 Q4 - Annual Results

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]