Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 9

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 $                                   $      $                          1.4%  
  Operating profit             236.2                           235.0      1.2                        0.5%  
  Operating profit margin      7.7                               7.7      (7) bps                          

B& I revenues increased by $43.8 million, or 1.4%, to $3,077.2 million during the nine months ended July 31, 2025, as compared to the prior year period. The revenue increase was primarily driven by client expansions both domestic and international, partially offset by strategic pricing decisions for contract rebids and attrition of certain engineering clients. Management reimbursement revenues for this segment totaled $218.4 million and $209.0 million for the nine months ended July 31, 2025 and 2024, respectively.

Operating profit increased by $1.2 million, or 0.5%, to $236.2 million during the nine months ended July 31, 2025, as compared to the prior year period. Operating profit margin decreased by 7 bps to 7.7% in the nine months ended July 31, 2025, from 7.7% in the nine months ended July 31, 2024. The decrease in operating profit margin was primarily driven by strategic pricing decisions for contract rebids and proactive extensions combined with managing contract escalation timing to maintain and expand certain customer accounts, partially offset by lower amortization of intangible assets.

  Manufacturing & Distribution                                                                                    
                                    Nine Months Ended July 31,                                                    
  ($ in millions)                   2025                             2024      Increase / (Decrease)              
  Revenues                          $                                   $      $                            3.0%  
  Operating profit                  115.6                           125.9      (10.3)                     (8.1)%  
  Operating profit margin           9.6                              10.8      (116) bps                          

M& D revenues increased by $34.6 million, or 3.0%, to $1,201.2 million during the nine months ended July 31, 2025, as compared to the prior year period. The increase was primarily attributable to the expansion of business with existing clients and new business wins, including strategic pricing decisions for select new wins. This was partially offset by a loss of a certain customer in the first quarter of 2025.

Operating profit decreased by $10.