ABM Industries Incorporated (NYSE:ABM) reported fiscal first-quarter 2026 results on Tuesday that came in below earnings expectations, even as revenue slightly exceeded analyst estimates. The company posted adjusted earnings per share of $0.83, compared with the consensus forecast of $0.87. Revenue totaled $2.2 billion, just above the $2.19 billion estimate and representing a 6.1% increase from a year earlier.
Shares of the facilities services provider rose 0.51% in pre-market trading following the announcement.
Adjusted EPS declined from $0.87 in the same quarter last year, while revenue increased from $2.1 billion.
The company said margin pressure was mainly driven by its Technical Solutions segment, where project timing challenges — including weather-related delays and an unfavorable service mix — created roughly $0.05 of EPS pressure relative to internal expectations. Segment operating margin narrowed to 7.1% from 7.6% a year earlier.
“ABM is off to a solid start to fiscal 2026, delivering strong organic revenue growth of 5.5% and meaningful improvement in operating cash flow and free cash flow,” said Scott Salmirs, President and Chief Executive Officer. “Growth was broad-based across our portfolio, reflecting healthy demand in our end markets and our team’s continued success in expanding client relationships.”
Revenue expansion was led by Technical Solutions, which rose 14%, and Aviation, which increased 10%. Manufacturing & Distribution revenue grew 7%, while Business & Industry advanced 4% and Education rose 2%.
Operating cash flow improved sharply to $62.0 million, compared with negative $106.2 million in the prior-year period. Free cash flow reached $48.9 million, compared with negative $122.9 million a year earlier.
ABM reaffirmed its fiscal 2026 outlook, maintaining guidance for organic revenue growth of 3% to 4% and adjusted earnings per share between $3.85 and $4.15. The midpoint of $4.00 represents the company’s earnings target for the year.