Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
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On September 8, 2026, ABM Industries Incorporated (the "Company") issued a press release announcing financial results related to the quarter ended July 31, 2026. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K, which is incorporated into this item by reference.
Item 8.01 Other Events.
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On September 8, 2026, the Company announced that the Board of Directors of the Company declared a quarterly dividend of $0.29 per share, payable November 2, 2026 to stockholders of record on October 1, 2026.
Item 9.01 Financial Statements and Exhibits.
99.1 Press Release issued by ABM Industries Incorporated, dated September 8, 2026, announcing financial results related to the quarter ended July 31, 2026, and the declaration of a dividend payable November 2, 2026, to stockholders of record on October 1, 2026.
• Operating cash flow was $146.8 million and free cash flow totaled $128.4 million
• Through nine months, operating cash flow was $275.0 million and free cash flow was $199.6 million, both significantly improved over the prior year period
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• Company raises outlook for full year adjusted EPS and operating cash flow and free cash flow NEW YORK, NY - September 8, 2026 - ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal third quarter ended July 31, 2026 "Our third quarter results reflected strong operational and financial performance, including record quarterly revenue, robust EPS growth and substantial cash generation. Our team executed well and delivered on our expectations despite a backdrop of macro uncertainty and adverse timing of certain projects," said Scott Salmirs, President and Chief Executive Officer. "Aviation and Manufacturing & Distribution ("M&D") delivered strong organic revenue growth, with M&D benefiting from healthy technology markets and further supported by our recent WGNstar acquisition. Technical Solutions ("ATS") revenue growth was impacted by some project deferrals, while Business & Industry ("B&I") revenue performance was largely as anticipated. We expect ATS to ramp sequentially in the fourth quarter as we execute on many of the deferred projects."
Mr. Salmirs continued, "Disciplined working capital management drove exceptional year-to-date free cash flow, which in turn accelerated our deleveraging ahead of schedule. We also secured a $300 million accounts receivable facility at favorable rates, further strengthening our capital structure. And our focus on cost discipline resulted in a $3 million reduction in ongoing corporate costs versus the prior year. Together, these actions contributed to our third quarter results and helped keep us on track to deliver on our full-year outlook, as well as provide longer-term benefits."
Mr. Salmirs concluded, "As we enter the fourth quarter, we are focused on finishing the year strong and executing with discipline. We are raising the midpoint of our adjusted EPS outlook and increasing our expectations for full year free cash flow based on our strong third quarter results, and are confident in our ability to achieve it."
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Third Quarter Fiscal 2026 Results Revenue increased 4.2% year over year to a record of $2.3 billion, including 2.1% organic growth and 2.1% growth from acquisitions. Revenue growth was led by M&D and Aviation, which grew 18% and 12%, respectively. M&D’s growth was driven by the WGNstar acquisition, recent client wins and ongoing expansions, especially in technology-related markets, while Aviation’s growth reflected healthy air travel trends and the continued ramp of the recently won London Heathrow contract. ATS grew 4%, driven by strong HVAC activity and contributions from its recent acquisition; however, revenue was below expectations due to the deferral of certain projects by a large client. Education grew modestly, while Business & Industry (“ B &I”) declined 2.6%, largely as expected, reflecting the previously announced exit of a large UK-based client and continued softness on the US west coast.
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N et income increased 19% to $49.7 million, or $0.84 per diluted share, compared to $41.8 million, or $0.67 per diluted share, in the prior year period. The increase in net income primarily reflects higher segment operating profit, lower tax expense and reduced ongoing corporate costs, partially offset by higher interest expense related to the WGNstar acquisition. EPS growth of 25% was further driven by the Company’s share repurchase activities earlier in the year. Net income margin was 2.1% versus 1.9% in the prior year.
Segment operating margin improved 40 basis points sequentially to 7.7%, essentially in line with the prior year, as operational efficiencies helped to offset pressures in Aviation and increased acquisition-related amortization in M&D.
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Adjusted net income increased 19% to $61.5 million, or $1.04 per diluted share, compared to $51.7 million, or $0.82 per diluted share in the prior year period. The year-over-year growth primarily reflects the factors discussed above, with per share results further benefiting from the Company's share repurchase activities.
Adjusted EBITDA increased 11% to $139.6 million compared to $125.8 million last year, largely reflecting higher segment operating profit and lower corporate costs.
Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
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Third quarter net cash provided by operating activities was $146.8 million, and free cash flow was $128.4 million, compared to $175.0 million and $150.2 million, respectively, in the prior year period.
For the nine months ended July 31, 2026, net cash provided by operating activities was $275.0 million, and free cash flow was $199.6 million, compared to $101.0 million and $42.4 million, respectively, in the prior year period. This significant improvement was primarily driven by strong working capital management and stabilization in the Company’s enterprise resource planning (“ERP”) system implementation. A reconciliation of net cash provided by operating activities to free cash flow can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
Leverage & Liquidity At the end of the third quarter, the Company’s total indebtedness stood at $1.8 billion, including $22.4 million in standby letters of credit, resulting in a total leverage ratio of 2.9x, as defined by the Company's revolving credit facility. Available liquidity was $605.8 million, including $110.5 million in cash and cash equivalents. The Company expects to further reduce its total leverage ratio by fiscal year-end.
During the quarter, the Company entered into a $300 million trade receivables financing agreement, which diversifies its funding sources at favorable rates relative to its existing revolving credit facility.
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Quarterly Cash Dividend After the quarter’s close, the Board declared a cash dividend of $0.29 per common share, payable on November 2, 2026, to shareholders of record on October 1, 2026.
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Outlook The Company's full year organic revenue growth outlook remains unchanged, with performance expected near the top end of the 3% to 4% range, and total revenue growth continues to be expected toward the top end of the 4% to 5% range. Segment operating margin, defined as total segment operating profit divided by total revenue, is now projected to be in the range of 7.7% to 7.8%, versus the previous range of 7.8% to 8.0%. Full-year interest expense remains forecast at approximately $110 million, and the normalized tax rate is still expected to be between 29% and 30%, excluding discrete and non-taxable items. The Company is raising the midpoint of its adjusted EPS outlook. The range is now $3.95 to $4.10, versus the previous range of $3.85 to $4.15, reflecting its third quarter performance and confidence in the Company’s ability to deliver a strong fourth quarter.
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The Company is raising its full-year outlook for net cash provided from operations and free cash flow and now expects approximately $300 million and $210 million, respectively, with free cash flow up approximately $25 million from the prior outlook, driven by the strong year-to-date performance.
The Company cannot provide a reconciliation of forward-looking non-GAAP segment operating margin or adjusted EPS to the corresponding GAAP measure without unreasonable effort due to the uncertainty of timing and the magnitude of items such as acquisition and integration related costs, legal costs and other settlements. These items are inherently difficult to forecast and may result in a GAAP range that is too large and variable to be meaningful.
Conference Call Information ABM will host its quarterly conference call for all interested parties on Tuesday, September 8, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the “Investors” section of the Company's website, located at www.abm.com , or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.
