ABM Industries Incorporated reported financial results for its fiscal third quarter ended July 31, 2026, achieving record quarterly revenue and raising its outlook for the full year. The company reported revenue increased 4.2% year over year to $2.3 billion, driven by organic growth of 2.1% and acquisition-related growth of 2.1%. Net income for the quarter increased 19% to $49.7 million, or $0.84 per diluted share, compared to $41.8 million, or $0.67 per share, in the prior year.
Adjusted net income grew 19% to $61.5 million, or $1.04 per diluted share, while adjusted EBITDA improved 11% to $139.6 million. The company reported operating cash flow of $146.8 million and free cash flow of $128.4 million for the quarter. For the nine months ended July 31, 2026, operating cash flow totaled $275.0 million and free cash flow was $199.6 million, representing a significant improvement over the prior year period.
ABM raised its full-year guidance, increasing the midpoint of its adjusted EPS outlook to $3.95 to $4.10, up from the previous range of $3.85 to $4.15. The company also increased its expectations for full-year free cash flow to approximately $210 million, an increase of about $25 million from the prior outlook. The company projects full-year organic revenue growth near the top end of the 3% to 4% range and total revenue growth toward the top end of the 4% to 5% range.
On the balance sheet, ABM reported total indebtedness of $1.8 billion and a total leverage ratio of 2.9x at the end of the third quarter. The company secured a $300 million trade receivables financing agreement during the quarter. Additionally, the company’s Board of Directors declared a quarterly cash dividend of $0.29 per common share, payable on November 2, 2026, to shareholders of record on October 1, 2026.
