Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 4

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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.1 million, or 19.5%, to $25.3 million during the three months ended July 31, 2025, as compared to the prior year period, and was driven by higher borrowings from our Amended Credit Facility to fund 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, and payment of the $75.0 million contingent consideration liability related to the RavenVolt Acquisition.

Income Taxes from Operations

Our effective tax rates from income on operations for the three months ended July 31, 2025, and July 31, 2024, were 29.6% and 74.0%, respectively, resulting in provisions for taxes of $17.6 million and $13.3 million, 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.

Interest Rate Swaps

We had a gain of $0.8 million on interest rate swaps during the three months ended July 31, 2025, as compared to a loss of $12.4 million during the three months ended July 31, 2024, primarily due to underlying changes in the fair value of our interest rate swaps.

Foreign Currency Translation

We had a foreign currency translation loss of $1.5 million during the three months ended July 31, 2025, as compared to a foreign currency translation gain of $2.7 million during the three months ended July 31, 2024. This change was due to fluctuations in the exchange rate between the U. S. dollar (“ USD”) and the British pound sterling (“ GBP”). Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.

Segment Information

Financial Information for Each Reportable Segment

                                                                                                                Three Months Ended July 31,                                                                                            
  (in millions)                                                                                                                        2025                      2024                   Increase / (Decrease)                          
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