Wed, Mar 12, 3:00 PM (46 days ago)
**ABM Industries Incorporated (ABM) Q1 2025 Financial Summary** **Financial Performance:** - **Revenue:** $2,114.9 million, up 2.2% year-over-year (YoY), driven by organic growth (1.6%) and acquisitions (0.6%). - **Operating Profit:** $77.6 million, a 4.7% increase YoY, attributed to revenue growth, operational efficiencies, and the absence of prior-year self-insurance reserve adjustments. - **Net Income:** $43.6 million, a 2.4% decrease YoY, due to higher effective tax rates and increased selling, general, and administrative expenses. - **Earnings per Share (EPS):** Basic and diluted EPS were $0.69, unchanged YoY. - **Cash Flow:** Net cash used in operating activities was $106.2 million, primarily due to working capital changes from ERP system transitions. **Segment Performance:** - **Business & Industry (B&I):** Revenue decreased 1.0% to $1,022.9 million; operating profit margin increased to 7.8%. - **Manufacturing & Distribution (M&D):** Revenue decreased 1.6% to $394.3 million; operating profit margin decreased to 10.0%. - **Aviation:** Revenue increased 8.2% to $270.1 million; operating profit margin increased to 4.5%. - **Education:** Revenue increased 2.4% to $225.3 million; operating profit margin increased to 6.2%. - **Technical Solutions:** Revenue increased 21.9% to $202.3 million; operating profit margin increased to 8.2%. **Uncertainties and Future Operations:** - **ELEVATE Strategy:** Continued investments in technology, workforce, and client experience. - **Insurance:** Regular reviews and adjustments to self-insurance reserves. - **Credit Facility:** Amended and restated, extending maturity to February 26, 2030, and increasing capacity. - **Share Repurchases:** $21.3 million spent on repurchasing 0.42 million shares. - **Market Risks:** No material changes from prior disclosures. - **Controls and Procedures:** Implementation of new ERP systems may affect internal controls.