Company: ABM
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000950170-25-020776
Chunk: 5

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 5
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 Achievements

| We achieved a 3.2% increase in revenue, reaching $8.4 billion, driven by 2.9% organic growth and the remainder from acquisitions. Organic growth was led by our Technical Solutions segment, up 16.1% due to strong microgrid performance, and our Aviation segment, up 11.5% from robust travel markets and client expansion. Our Education and Manufacturing & Distribution segments also delivered solid growth. Our Business & Industry segment remained resilient, supported by diversification and a focus on Class A properties, which helped to partially mitigate the impact of soft commercial real estate markets. Acquisition growth was primarily driven by the mid-2024 addition of Quality Uptime Services, Inc. |
| We delivered net income of $81.4 million, adjusted net income of $227.3 million, and adjusted EBITDA of $498.1 million(1), with an adjusted EBITDA margin of 6.2%(1). While adjusted net income decreased slightly year-over-year, this reflects our proactive investments in corporate initiatives to support long-term growth. Importantly, higher segment earnings and the positive impact of cost controls and price increases demonstrate the strength of our operations and our focus on sustaining profitability.                                                                                                                                                                                                        |
| We generated full year 2024 operating cash flow of $226.7 million and free cash flow of $167.3 million(1).  This solid performance reflects our asset light business model and has enabled us to invest in our business via our ELEVATE initiatives, as well as to return capital to our stockholders.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| We doubled our participation in the high growth mission-critical datacenter market with the acquisition of Quality Uptime Services, Inc., a leader in uninterrupted power supply system (“UPS”) maintenance and UPS battery maintenance company providing customized preventive and emergency service programs for mission-critical data centers and other facilities.                                                                                                                                                                                                                                                                                                                                                          |
| We demonstrated our commitment to balanced capital allocation by returning $112.3 million to stockholders through the repurchase of 1.2 million shares of common stock for $55.8 million and dividend payments totaling $56.5 million. Simultaneously, we invested $114.3 million in the acquisition of Quality Uptime Services, Inc., reinforcing our strategy of delivering value to shareholders while pursuing strategic growth opportunities.                                                                                                                                                                                                                                                                              |
| We maintained our long-standing history of increasing our annual cash dividend to our stockholders, by increasing the dividend for the 57th consecutive year. ABM remains