ABM NYSE Earnings call
ABM Industries Inc. /de/ (ABM) · Q2 2026 results and valuation
Share price: $54.28 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 8 Sep 2026 and 5 Jun 2026
Net income up 15.3% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+15.3%
Net income vs Q1 2026
Outlook given
Net income 49.7M vs 43.1M
Revenue +1.2%
Against the same quarter last year (Q2 2025) it is +18.9%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
ABM's semiconductor revenue grew 65% organically through nine months and more than doubled when including almost two quarters of WGNSTAR.
Valuation
Is ABM Industries Inc. /de/ undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-10-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.9% growth a year (3-year revenue growth), the model's fair value is $41.80 a share — the stock trades 30% above it. Today's price assumes 7.4% growth a year.
Current price
$54.28
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.4% for 10 yrs
Fair value / share
$41.80
Buy below
$31.35
Price vs fair value
Overvalued 30%
Price vs buy-below price
Overvalued 73%
Read between the lines
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Key theme
The cost actions ABM Industries Inc /de/ has been driving throughout the year combined with disciplined working capital management.
Source quote
“The cost actions we have been driving throughout the year combined with disciplined working capital management, resulted in 27% adjusted... ...on profitability and cash flow. Cash generation has historically been an important strength of ABM Following the disruption associated with our ERP implementation, we have been very focused on restoring that performance And the progress is increasingly visible in our results Given our performance through the...”
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Guidance
Growing backlog and pipeline are expected to convert into meaningful revenue in the coming fiscal period.
Source quote
“Our pipeline and backlog continue to build, including work with many colocation customers And we expect a meaningful portion of that activity to convert into revenue in fiscal...”
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Figure
ABM's semiconductor revenue grew 65% organically through nine months and more than doubled after adding almost two quarters of WGNSTAR, signaling a major growth engine.
Source quote
“Semiconductor revenue grew 65% organically during the first 9 months and more than doubled when including almost 2 quarters of WGNSTAR.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“All the meanwhile, driving below 2.9 driving below 3 times levered at the end of the day.”
“This was partially offset at the net income level and lower tax expense which was $4.1 million below last year.”
“Along with the benefit of lapping certain lower margin contracts entered into in the third quarter of last year.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.32B | 2.29B | +1.2% | 2.22B | +4.2% |
| Gross profit | 286.1M | 277.0M | +3.3% | 274.4M | +4.3% |
| Operating income | 91.5M | 86.9M | +5.3% | 83.4M | +9.7% |
| Net income | 49.7M | 43.1M | +15.3% | 41.8M | +18.9% |
| EPS | 0.84 | 0.73 | +15.1% | 0.67 | +25.4% |
| P/E today 17.6 | 17.4 | 15.7 | +1.7 | 24.9 | −7.5 |
Topics
Most discussed now
- A copy of that release and an accompanying slide presentation can be found on ABM Industries Inc /de/'s website abm.com.
- On the revenue side, most of the business performed largely as ABM Industries Inc /de/ expected.
- These significant year over year increases primarily reflect higher segment operating profit, lower tax expense, and reduced ongoing…
- Segment operating margin increased 40 basis points sequentially to 7.7%.
- Education was up slightly, while Technical Solutions posted organic growth of 2%, reflecting project timing, which I will discuss shortly.
Faded since Q1 2026
- Fading Organic growth was especially strong in Technical Solutions and Aviation, while in M&D, ABM Industries Inc /de/ saw healthy underlying…
- Fading Near term, that means staying focused on deleveraging.
- Fading What ends up happening with that pressure is competitors will start especially when it's prolonged, the way it's been prolonged...
Latest announcements
Official filings, newest first.
- Results of operations; Other events · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Other events · SEC 8-K