Thu, Jun 6, 4:02 PM (50 days ago)
ABM Industries Inc. reported a slight increase in revenues for Q2 2024, up 1.7% to $2,018.2 million driven by net new business and expansion with existing customers in the Aviation, Manufacturing & Distribution (M&D), and Education segments. However, commercial office market softness impacted the Business & Industry (B&I) segment negatively. Operating profit dropped by 12.3% to $81.3 million due to the absence of prior year’s fair value adjustments and unfavorable insurance reserve adjustments. Net income decreased by 15.7% to $43.8 million. Cash flow from operations was strong at $116.9 million, aided by favorable working capital timing and absence of a significant prior year tax payment. The company repurchased shares worth $23.8 million and maintained a robust liquidity position with $501.1 million in borrowing capacity. The outlook remains cautious due to uncertainties in the commercial real estate market and potential impacts from ongoing strategic investments under the ELEVATE strategy.