ABM Industries Incorporated (ABM)

Over the past six months, ABM announced an increase in its equity buyback plan by $150 million, bringing the total authorization to $600 million. The company reported its fiscal third-quarter 2025 results, showing a 6.2% increase in revenue and a significant rise in net income. A cash dividend of $0.265 per common share was also declared. Baird downgraded ABM Industries to "Neutral" and set a $54 price target. David Orr was named Chief Financial Officer, and Carol Clements was appointed to ABM's Board of Directors. ABM partnered with Miami-Dade County to provide integrated facility solutions at Miami International Airport. ABM was included in Selling Power Magazine's "60 Best Companies to Sell For 2025" list for the fourth consecutive year. Siena University outsourced its entire facilities operations to ABM Industries. Concerns were raised about ABM's core business underperforming, with disappointing organic revenue and a decline in its free cash flow margin.

ABM Industries' business experiences some degree of demand seasonality, particularly in its "Seasonal and Specialty Services" offerings, which include snow and ice removal and storm cleanup. Demand for these specific offerings is directly influenced by weather patterns and seasonal changes. While the education market tends to be stable, the company's facility services are subject to seasonal variations.

ABM Industries, Inc. is a business services company primarily operating within the facility management and infrastructure services sector, providing essential services that make spaces cleaner, safer, and more efficient. The company operates through five segments: Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions. These segments provide a range of services including janitorial, facilities engineering, parking, integrated facility services, landscaping, passenger assistance, and infrastructure solutions. The company's capabilities also include energy solutions, commercial cleaning, maintenance and repair, HVAC, electrical, landscaping, and security services.

ABM Industries, Inc. has a substantial geographic footprint, with operations throughout the United States, the United Kingdom, the Republic of Ireland, and other international locations. The company maintains over 350 offices and serves more than 20,000 clients globally, including more than half of the Fortune 500 companies in the U.S., and has a presence in over 20 international locations.

In the past year, ABM Industries has maintained a generally positive brand reputation, marked by strategic growth and industry recognition, though some concerns regarding financial performance have been noted. CEO Scott Salmirs discussed the company's evolution, highlighting its expansion into aviation and power solutions and its increasing focus on electrification for clients. ABM was recognized for the fourth consecutive year on Selling Power Magazine's list of "60 Best Companies to Sell For 2025." The company secured a significant partnership with Siena University to manage all its facilities work. However, concerns were raised about ABM's core business underperforming, with organic revenue disappointing and a decline in free cash flow margin. The downgrade by Baird also represents a less favorable assessment from an analyst perspective.

ABM Industries, Inc. is largely owned by institutional shareholders, who hold approximately 97.76% of the company's stock. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and Dimensional Fund Advisors LP, among others. Individual insider ownership accounts for 12.74% of the company, with the largest individual shareholder being Theodore Rosenberg, who owns 4.82 million shares, representing 7.88% of the company.