ABM Industries Incorporated (ABM) Q3 FY2026 earnings

Reported results

• Revenue increased 4.2% to $2.3 billion (record quarterly), comprising 2.1% organic growth and 2.1% acquisition-related growth
• GAAP net income increased 19% to $49.7 million, or $0.84 per diluted share, versus $41.8 million, or $0.67 per diluted share, in prior year
• Non-GAAP adjusted net income grew 19% to $61.5 million, or $1.04 per diluted share, versus $51.7 million, or $0.82 per diluted share, in prior year
• Non-GAAP adjusted EBITDA improved 11% to $139.6 million versus $125.8 million in prior year
• Operating cash flow was $146.8 million and free cash flow totaled $128.4 million; year-to-date operating cash flow was $275.0 million and free cash flow was $199.6 million
• Segment operating margin was 7.7%, unchanged sequentially and in line with prior year

Guidance

• Full-year organic revenue growth outlook remains unchanged, expected near top end of 3% to 4% range
• Total revenue growth continues expected toward top end of 4% to 5% range
• Non-GAAP segment operating margin projected in range of 7.7% to 7.8%, versus previous range of 7.8% to 8.0%
• Full-year interest expense remains forecast at approximately $110 million
• Normalized tax rate expected between 29% and 30%
• Raised non-GAAP adjusted EPS outlook to range of $3.95 to $4.10 (versus previous range of $3.85 to $4.15)
• Raised full-year net cash provided from operations outlook to approximately $300 million
• Raised full-year free cash flow outlook to approximately $210 million, up approximately $25 million from prior outlook

Notes

The company revised its non-GAAP definition to no longer exclude prior year self-insurance adjustments. Adjusted net income and adjusted EBITDA exclude items impacting comparability including restructuring costs, legal costs, acquisition and integration costs, and transformation initiative costs. Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment.

Price and volatility reaction

The stock moved +7.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -7.8 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-08 (8-K, Item 2.02). Read the original filing on sec.gov.