ABM Industries Reports Mixed Q2 2025 Results: Revenue Growth Offset by Cash Flow Decline and Stock Drop
ABM Industries posted a 4.6% year-over-year revenue increase to $2.1 billion in Q2 2025, driven by 3.8% organic growth. Key segments like Technical Solutions (ATS) and Aviation surged 19% and 9%, respectively, while Business & Industry rebounded with a 3% gain amid recovering U.S. office markets. Manufacturing & Distribution ROSE 2% on new contracts.
Despite top-line growth, GAAP net income slipped to $42.2 million ($0.67 EPS) from $43.8 million ($0.69 EPS) due to rising interest expenses and transformation costs. Adjusted EPS climbed to $0.86, but operating cash FLOW deteriorated sharply. The stock closed down 9.07% at $46.61, reflecting investor concerns over profitability pressures.