Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 3

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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20.6)                                   (3.3)                (16.1)%  
  Income before income taxes                                                59.8                     62.4                                   (2.6)                 (4.3)%  
  Income tax provision                                                    (17.6)                   (18.7)                                     1.1                   5.8%  
  Net income                                                                42.2                     43.8                                   (1.6)                 (3.6)%  
  Other comprehensive income                                                                                                                                              
  Interest rate swaps                                                      (5.4)                     10.3                                  (15.7)                    NM*  
  Foreign currency translation and other                                    14.3                    (1.7)                                    16.0                    NM*  
  Income tax benefit (provision)                                             1.4                    (2.7)                                     4.1                    NM*  
  Comprehensive income                                                         $         52.5           $         49.7                          $       2.8         5.7%  

*Not meaningful

Revenues

Revenues increased by $93.5 million, or 4.6%, to $2,111.7 million during the three months ended April 30, 2025, as compared to the prior year period. Revenue growth was comprised of organic growth of 3.7% and acquisition growth of 0.8%. The organic revenue growth was due to higher project revenues due to the higher microgrid projects within Technical Solutions and net new business and expansion of business with existing customers within B& I, Aviation, M& D, and Education. The increase in revenues was partially offset by a loss of a certain customer within M& D in the first quarter of 2025. Acquisition growth was driven by a $16.6 million revenue increase from the Quality Uptime Acquisition, which was completed in June 2024.

Operating Expenses

Operating expenses increased by $77.5 million, or 4.4%, to $1,841.0 million during the three months ended April 30, 2025, as compared to the prior year period. Gross margin increased by 19 bps to 12.8% in the three months ended April 30, 2025, from 12.6% in the prior year period. The increase in gross margin was primarily driven by contract and service mix and operational efficiencies within Aviation and Education as well as an absence of a $4.3 million unfavorable self-ins