ABM Industries reported third-quarter fiscal 2025 revenue of $2.2 billion, a 6.2% increase year-over-year, driven by 5.0% organic growth. Adjusted earnings per diluted share were $0.82, a decrease from $0.84 in the prior year period, missing analyst estimates.
Net income for the quarter rose to $41.8 million, or $0.67 per diluted share, significantly up from $4.7 million, or $0.07 per diluted share, in the prior year. This increase was largely due to the absence of a $36 million contingent consideration adjustment recorded in the prior year and lower corporate costs.
All segments delivered organic growth, with Technical Solutions (ATS) revenue up 19%, Aviation up 9%, Manufacturing & Distribution (M&D) up 8%, Business & Industry (B&I) up 3%, and Education up 3%. New bookings through the first three quarters totaled over $1.5 billion, a 15% increase year-over-year.
The company launched a restructuring program in August 2025 to streamline operations and improve efficiency of its support functions, expected to generate approximately $35 million of annualized cost savings by early fiscal 2026. ABM anticipates recording about $10 million in restructuring charges related to these actions in the fourth quarter.
Net cash provided by operating activities was $175.0 million, and free cash flow was $150.2 million, reflecting strong progress in cash collection efforts amid its ERP conversion. ABM also repurchased 0.6 million shares for $27.1 million in Q3 and increased its share repurchase authorization by $150 million, bringing the total remaining to $233 million.
For fiscal 2025, ABM expects adjusted EPS to be toward the low end of its $3.65 to $3.80 range and adjusted EBITDA margin toward the low end of 6.3% to 6.5%. This reflects higher anticipated interest expense and margin dynamics, partially offset by expected improvements from restructuring actions.
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