ABM Industries Incorporated, a leading provider of integrated facility solutions, has recently released its 10-Q report, providing insight into its financial condition and results of operations for the three months ended April 30, 2025. The company operates through segments including Business & Industry, Manufacturing & Distribution, Aviation, Education, and Technical Solutions. ABM's ELEVATE strategy, announced in December 2021, aims to strengthen its industry leadership position through end-market repositioning and core service enhancement. The company plans to make significant investments totaling $200 * $215 million to elevate client and team member experiences, as well as its use of technology and data.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), ABM reported a 4.6% increase in revenues to $2,111.7 million during the three months ended April 30, 2025, compared to the prior year period. This growth was driven by organic growth of 3.7% and acquisition growth of 0.8%. Operating profit increased by $1.0 million to $82.3 million during the same period. The effective tax rates from income on operations for the three months ended April 30, 2025, and April 30, 2024, were 29.4% and 29.9%, respectively.
The report highlighted the financial performance of each reportable segment. Revenues for Business & Industry increased by 2.6% to $1,015.5 million, with an operating profit of $83.0 million, representing a 7.0% increase. Manufacturing & Distribution saw a 2.4% increase in revenues to $398.1 million, but a decrease of 8.5% in operating profit to $39.9 million. Aviation experienced a 9.2% increase in revenues to $260.1 million and a 26.2% increase in operating profit to $16.5 million. Education reported a 1.0% increase in revenues to $227.8 million and a 19.4% increase in operating profit to $13.8 million. Technical Solutions showed the highest revenue increase of 19.3% to $210.2 million, but a 20.7% decrease in operating profit to $13.4 million.
The 10-Q report also detailed the company's financial highlights, including the net cash used in operating activities of $73.9 million during the six months ended April 30, 2025, compared to net cash provided by operating activities of $116.9 million during the prior year period. Additionally, dividends of $32.9 million were paid to shareholders, and dividends totaling $0.530 per common share were declared during the six months ended April 30, 2025. At April 30, 2025, total outstanding borrowings under ABM's Amended Credit Facility were $1.6 billion, with up to $599.1 million of borrowing capacity.
Today the company's shares have moved -12.42% to a price of $44.895. Check out the company's full 10-Q submission here.
