Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 2

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 2
---
 was partially offset by:

◦ strategic pricing decisions for contract rebids and proactive extensions, combined with managing the timing of contract escalations to maintain and expand certain customer accounts within B& I; and

◦ strategic pricing on select new wins within M& D.

• Our effective tax rates for the three months ended July 31, 2025, and July 31, 2024, were 29.6% and 74.0%, respectively. Our effective tax rate for the three months ended July 31, 2025, was not impacted by any significant discrete items. Our effective tax rate for the three months ended July 31, 2024, was impacted by discrete items related to energy efficiency incentives and the non-taxable change in the fair value of the contingent consideration related to the RavenVolt Acquisition

• Net cash provided by operating activities was $101.0 million and $196.3 million during the nine months ended July 31, 2025, and July 31, 2024, respectively. The decrease was primarily driven by an increase in working capital requirements due to the transition to the Company’s new ERP system for our B& I and M& D segments that temporarily delayed invoicing to certain clients within these industry groups in the first half of 2025. There has been significant improvement in operating cash flows during the third quarter, and we anticipate full normalization in the fourth quarter.

• Dividends of $49.4 million were paid to shareholders, and dividends totaling $0.795 per common share were declared during the nine months ended July 31, 2025. Additionally, in August 2025 we repurchased 0.49 million shares for $23.0 million, excluding excise taxes, making our total share purchases in 2025 1.46 million shares for $71.3 million, excluding excise taxes.

• At July 31, 2025, total outstanding borrowings under our Amended Credit Facility were $1.5 billion. At July 31, 2025, we had up to $621.7 million of borrowing capacity.

Results of Operations

Three Months Ended July 31, 2025, Compared with the Three Months Ended July 31, 2024

Consolidated

                                                    Three Months Ended July 31,                                                                                           
  (in millions, except per share amounts)                                  2025                     2024                   Increase / (Decrease)                          
 ─────────────────────────────────────────────────────────