ABM Industries (NYSE:ABM) reported record revenue for the fourth quarter on Wednesday, surpassing market expectations, but fell short on earnings as results were weighed down by self-insurance adjustments related to the prior year. The facility services provider’s shares slipped 1.07% in premarket trading following the release.
For the quarter ended October 31, 2025, ABM generated revenue of $2.3 billion, representing a 5.4% increase from a year earlier and slightly exceeding the consensus forecast of $2.28 billion. Organic growth of 4.8% was a key contributor to the top-line performance. However, adjusted earnings per share came in at $0.88, missing analyst expectations of $1.09 by $0.21.
The earnings shortfall was primarily driven by a $22.2 million pre-tax charge linked to prior-year self-insurance adjustments. This impact reduced the adjusted EBITDA margin by roughly 100 basis points. Net income for the quarter reached $34.8 million, or $0.56 per diluted share, compared with a net loss of $11.7 million, or $0.19 per share, in the same period last year.
“ABM finished the year on a high note with record quarterly revenue, supported by 4.8% organic growth,” said Scott Salmirs, President and Chief Executive Officer. “Excluding prior year self-insurance adjustments, fourth quarter adjusted EPS, adjusted EBITDA and adjusted EBITDA margin all exceeded our expectations, reflecting strong volume, favorable mix, and the benefits of our cost discipline and restructuring actions.”
Growth across business lines was led by the Technical Solutions segment, which posted a 16% year-on-year increase in revenue, followed by Manufacturing & Distribution with 8% growth. The Aviation segment also delivered solid performance, recording a 7% revenue increase supported by recent customer wins and expanded client relationships.
Looking ahead to fiscal 2026, ABM expects adjusted earnings per share to range between $3.85 and $4.15. The company forecasts organic revenue growth of 3% to 4%, with the recently announced acquisition of WGNSTAR expected to add an additional percentage point, lifting total projected revenue growth to approximately 4% to 5%.
ABM also announced a 9% increase in its quarterly dividend, raising the payout to $0.29 per common share. This marks the company’s 58th consecutive year of annual dividend increases.