Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 12

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 12
---
.2 million of repurchases remained under our share repurchase program.

Cash Flows

In addition to revenues and operating profit, our management views operating cash flows as a good indicator of financial performance, because strong operating cash flows provide opportunities for growth both organically and through acquisitions. Operating cash flows primarily depend on: revenue levels; the quality and timing of collections of accounts receivable; the timing of payments to suppliers and other vendors; the timing and amount of income tax payments; and the timing and amount of payments on insurance claims and legal settlements.

                                                           Six Months Ended April 30,                                     
  (in millions)                                                                  2025                    2024             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash (used in) provided by operating activities                               $      (73.9)           $      116.9  
  Net cash used in investing activities                                        (31.6)                  (28.6)             
  Net cash provided by (used in) financing activities                            98.7                  (98.0)             

Operating Activities

Net cash used in operating activities was $73.9 million during the six months ended April 30, 2025, as compared to net cash provided by operating activities of $116.9 million during the prior year period. The change was primarily driven by an increase in working capital due to the transition to the Company’s new ERP systems for our Business and Industry and Manufacturing and Distribution segments that temporarily delayed invoicing to certain clients within these industry groups. We anticipate continued improvement in our operating cash flows and full normalization in the second half of fiscal year 2025.

Investing Activities

Net cash used in investing activities increased by $3.0 million during the six months ended April 30, 2025, as compared to the prior year period. This quarter’s activity was primarily related to purchases of property, plant and equipment.

Financing Activities

Net cash provided by financing activities was $98.7 million during the six months ended April 30, 2025, as compared to net cash used in financing activities of $98.0 million during the prior year period. The change was primarily related to an increase in net borrowings from our Amended Credit Facility to fund $73.9 million of net cash used by operating activities.

Contingencies

For disclosures on contingencies, see Note 10, “ Commitments and Contingencies,” of the Notes to unaudited Consolidated Financial Statements