--- title: "ABM Industries | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 2.244 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/278600121.md" datetime: "2026-03-10T18:19:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278600121.md) - [en](https://longbridge.com/en/news/278600121.md) - [zh-HK](https://longbridge.com/zh-HK/news/278600121.md) --- # ABM Industries | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 2.244 B Revenue: As of FY2026 Q1, the actual value is USD 2.244 B, beating the estimate of USD 2.193 B. EPS: As of FY2026 Q1, the actual value is USD 0.64, missing the estimate of USD 0.7876. EBIT: As of FY2026 Q1, the actual value is USD 98.7 M. #### Consolidated Financial Performance - **Gross Margin**: Decreased by 69 basis points to 11.6% for the three months ended January 31, 2026, from 12.3% in the prior year period. - **Operating Profit**: Decreased by -3.7% to $74.7 million for the three months ended January 31, 2026, compared to $77.6 million in the prior year period, primarily due to restructuring charges and service mix/timing of project completion in Technical Solutions, partially offset by operational efficiencies from the Restructuring Program. - **Net Income**: Decreased by -11.1% to $38.8 million for the three months ended January 31, 2026, from $43.6 million in the prior year period. - **Comprehensive Income**: Increased by 33.5% to $46.9 million for the three months ended January 31, 2026, from $35.2 million in the prior year period. - **Effective Tax Rate**: Was 25.6% for the three months ended January 31, 2026, compared to 21.4% in the prior year period, with tax provisions of $13.4 million and $11.9 million, respectively. - **Interest Expense**: Increased by 4.9% to $24.0 million for the three months ended January 31, 2026, from $22.9 million in the prior year period, driven by higher borrowings. - **Amortization of Intangible Assets**: Decreased by -10.0% to $11.9 million for the three months ended January 31, 2026, from $13.3 million in the prior year period. - **Restructuring and Related Expenses**: Totaled $3.7 million for the three months ended January 31, 2026, with no comparable amount in the prior year period. - **Foreign Currency Translation**: Resulted in a gain of $9.5 million for the three months ended January 31, 2026, compared to a loss of - $7.6 million in the prior year period. #### Cash Flow - **Net Cash Provided by Operating Activities**: Was $62.0 million for the three months ended January 31, 2026, a $168.2 million improvement from - $106.2 million cash used in the prior year period, primarily due to favorable changes in working capital. - **Net Cash Used in Investing Activities**: Was - $12.6 million for the three months ended January 31, 2026, a decrease of $1.8 million from - $14.4 million in the prior year period, mainly due to lower purchases of property, plant, and equipment. - **Net Cash Used in Financing Activities**: Was - $55.2 million for the three months ended January 31, 2026, compared to $116.9 million cash provided in the prior year period, primarily due to increased share repurchases and lower net borrowings. #### Segmented Financial Metrics (Three Months Ended January 31, 2026 vs. 2025) - **Business & Industry (B&I)**: - **Revenues**: $1,065.1 million (up 4.1% from $1,022.9 million). Management reimbursement revenues were $73.8 million (2026) and $71.3 million (2025). - **Operating Profit**: $79.7 million (up 0.4% from $79.4 million). - **Operating Profit Margin**: 7.5% (down 28 bps from 7.8%). - **Manufacturing & Distribution (M&D)**: - **Revenues**: $422.3 million (up 7.1% from $394.3 million). - **Operating Profit**: $36.3 million (down -7.7% from $39.4 million). - **Operating Profit Margin**: 8.6% (down 139 bps from 10.0%). - **Aviation**: - **Revenues**: $297.7 million (up 10.2% from $270.1 million). Management reimbursement revenues were $15.6 million (2026) and $10.6 million (2025). - **Operating Profit**: $12.6 million (up 2.7% from $12.2 million). - **Operating Profit Margin**: 4.2% (down 31 bps from 4.5%). - **Education**: - **Revenues**: $228.7 million (up 1.5% from $225.3 million). - **Operating Profit**: $21.6 million (up 54.2% from $14.0 million). - **Operating Profit Margin**: 9.4% (up 322 bps from 6.2%). - **Technical Solutions**: - **Revenues**: $229.7 million (up 13.6% from $202.3 million). Acquisition growth from the LMC Acquisition contributed $13.0 million. - **Operating Profit**: $8.4 million (down -49.0% from $16.6 million). - **Operating Profit Margin**: 3.7% (down 452 bps from 8.2%). #### Other Key Financials - **Share Repurchases**: ABM Industries Incorporated repurchased 2.1 million shares for $91.1 million during the three months ended January 31, 2026, compared to 0.42 million shares for $21.3 million in the prior year period. - **Dividends**: $17.3 million in dividends were paid, with $0.290 per common share declared, for the three months ended January 31, 2026. - **Debt**: Total outstanding borrowings under the Amended Credit Facility were $1.6 billion at January 31, 2026, with a borrowing capacity of $507.7 million. - **Restructuring Program**: The program, launched in Q4 2025, aims to streamline operations and improve efficiency, expecting to deliver $35.0 million of annualized cost savings once fully implemented in 2026. Cumulative restructuring charges through Q1 2026 were $17.1 million. #### Future Outlook and Strategy ABM Industries Incorporated is advancing its ELEVATE transformation and modernization program to drive performance, strengthen client trust, and create long-term value. The company expects the Restructuring Program to deliver approximately $35.0 million of annualized cost savings once fully implemented in 2026. On February 4, 2026, ABM Industries Incorporated completed the acquisition of WGNSTAR for approximately $264 million in cash, which was financed through the Amended Credit Facility. ### Related Stocks - [ABM.US](https://longbridge.com/en/quote/ABM.US.md) ## Related News & Research - [ABM Industries Maintains FY26 Outlook - Update](https://longbridge.com/en/news/278547975.md) - [ABM Industries slightly beats Q1 revenue expectations, maintains 2026 outlook](https://longbridge.com/en/news/278542085.md) - [Pineapple Financial Reports Fiscal Q2 2026 Financial Results and Provides Digital Asset Treasury Update | PAPL Stock News](https://longbridge.com/en/news/282587469.md) - [SemiLEDs Reports Second Quarter Fiscal Year 2026 Financial Results | LEDS Stock News](https://longbridge.com/en/news/282650581.md) - [Medpace (MEDP) to Release Earnings on Wednesday](https://longbridge.com/en/news/282787097.md)