ABM Industries (NYSE: ABM) delivered solid third-quarter earnings for 2024, marked by significant growth in key segments. Sales increased 3.3% year-over-year (Y/Y), reaching $2.09 billion, surpassing the consensus estimate of $2.037 billion. This growth was fueled by outstanding performance in Technical Solutions, which grew 25% Y/Y, and Aviation, which posted a 13% Y/Y increase. Additionally, Education saw a modest rise of 4% Y/Y.
Despite a 73.1% Y/Y drop in operating profit to $37.4 million, ABM's adjusted earnings per share (EPS) increased by 19% Y/Y, reaching $0.94 and beating market expectations of $0.86. Adjusted EBITDA rose by 2% Y/Y to $128.1 million, with the margin holding steady at 6.4%. However, operating cash flow for the quarter declined to $79.5 million, down from $149.1 million in the same period last year.
ABM’s strategic investments in energy markets, particularly in microgrids, have been pivotal in driving the company's organic growth. CEO Scott Salmirs emphasized that these investments, alongside advancements in technology and market segmentation, allowed the company to maintain resilient margins and performance even amid a challenging commercial real estate environment.
Looking ahead, ABM raised its full-year adjusted EPS guidance to a range of $3.48 to $3.55, up from its prior guidance of $3.40 to $3.50. The company also declared a quarterly cash dividend of $0.225 per share, payable on November 4, 2024.
In summary, ABM Industries demonstrated resilience through strategic investments and effective cost management, positioning itself for continued success despite a volatile macroeconomic environment.
Despite a 73.1% Y/Y drop in operating profit to $37.4 million, ABM's adjusted earnings per share (EPS) increased by 19% Y/Y, reaching $0.94 and beating market expectations of $0.86. Adjusted EBITDA rose by 2% Y/Y to $128.1 million, with the margin holding steady at 6.4%. However, operating cash flow for the quarter declined to $79.5 million, down from $149.1 million in the same period last year.
ABM’s strategic investments in energy markets, particularly in microgrids, have been pivotal in driving the company's organic growth. CEO Scott Salmirs emphasized that these investments, alongside advancements in technology and market segmentation, allowed the company to maintain resilient margins and performance even amid a challenging commercial real estate environment.
Looking ahead, ABM raised its full-year adjusted EPS guidance to a range of $3.48 to $3.55, up from its prior guidance of $3.40 to $3.50. The company also declared a quarterly cash dividend of $0.225 per share, payable on November 4, 2024.
In summary, ABM Industries demonstrated resilience through strategic investments and effective cost management, positioning itself for continued success despite a volatile macroeconomic environment.