ABM reported fiscal third-quarter 2026 revenue of $2.3 billion, up 4.2% from a year earlier and a quarterly record, as organic growth of 2.1% and acquisition-related growth of 2.1% each contributed equally to the increase.
Net income rose 19% to $49.7 million, or $0.84 per diluted share, from $41.8 million, or $0.67 per share. Adjusted net income also increased 19%, to $61.5 million, or $1.04 per diluted share, from $51.7 million, or $0.82 per share.
Adjusted EBITDA climbed 11% to $139.6 million from $125.8 million.
Operating cash flow in the quarter was $146.8 million and free cash flow was $128.4 million, compared with $175.0 million and $150.2 million, respectively, in the same quarter last year. Even with those year-over-year declines, the nine-month picture improved sharply: operating cash flow reached $275.0 million versus $101.0 million a year ago, and free cash flow jumped to $199.6 million from $42.4 million.
Revenue growth was led by manufacturing and distribution, which increased 18%, and aviation, which rose 12%. Technical solutions grew 4%, while business and industry fell 2.6%.
Within profitability, net income margin improved to 2.1% from 1.9%. Segment operating margin was 7.7%, up 40 basis points sequentially and roughly flat with a year earlier.
At quarter-end, total indebtedness was $1.8 billion, including $22.4 million in standby letters of credit, and leverage stood at 2.9x. Available liquidity was $605.8 million, including $110.5 million in cash and cash equivalents.
ABM raised its full-year adjusted EPS outlook to $3.95 to $4.10 from $3.85 to $4.15, lifting the midpoint to $4.025 from $4.00. It also increased expected full-year operating cash flow to about $300 million from the prior outlook and free cash flow to about $210 million, up roughly $25 million from the previous target. Today the company's shares have moved 0.96% to a price of $47.50. Check out the company's full 8-K submission here.
