ABM Industries Inc. (ABM (ABM)) shares climbed on Friday after the facility services provider delivered second-quarter results that beat Wall Street expectations and confirmed its full-year outlook. The stock was up 6.76% at $42.57 in afternoon trading.
For the quarter, ABM reported adjusted earnings of 90 cents per share, topping the analyst consensus of 87 cents. Revenue rose 8.4% year over year to $2.29 billion, also ahead of the $2.21 billion estimate. Organic revenue growth came in at 6.1%, with acquisitions—primarily the WGM Star deal—adding another 2.3%.
That organic growth rate was the company's strongest since the third quarter of 2022, and it was led by gains in Technical Solutions, Aviation, and Manufacturing & Distribution. ABM also posted record first-half new sales bookings of $1.2 billion and generated $22.4 million in free cash flow during the quarter. At the end of the period, it held $94.9 million in cash and $1.9 billion in total debt.
The Business & Industry segment was flat year over year, reflecting the loss of a large U.K. client and additional customer attrition, particularly in West Coast commercial real estate markets. Education revenue increased 2%, supported by contract renewals and new wins, including a $25 million contract with Detroit Public Schools.
Manufacturing & Distribution benefited from the WGM Star acquisition, which expanded ABM's presence in semiconductor-related markets. Aviation revenue jumped 20%, driven by strong travel demand and new airport contracts at Orlando, Miami, and LaGuardia. Technical Solutions revenue surged 27%, supported by demand for battery storage, AI infrastructure, and microgrid projects.
Management highlighted continued strength in semiconductor, energy infrastructure, aviation, and AI-related data center markets. The company noted that data center construction is expanding at a double-digit pace globally, and that strong activity in Technical Solutions helped deliver its best organic growth in nearly four years.
Looking ahead, ABM reaffirmed its fiscal 2026 adjusted earnings guidance of $3.85 to $4.15 per share. The midpoint of that range sits above the Wall Street consensus estimate of $3.96. The company also maintained its outlook for 3% to 4% organic revenue growth for the full year and said it expects results to strengthen in the second half of fiscal 2026, supported by a growing backlog, favorable business mix, pricing actions, and cost controls.
