Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 5

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 by $34.0 million, or 19.3%, to $210.2 million during the three months ended April 30, 2025, as compared to the prior year period. Revenue growth was comprised of organic growth of 9.8% and acquisition growth of 9.5%. The organic revenue growth was primarily driven by higher project revenues due to the higher microgrid projects as well as certain infrastructure solutions projects, partially offset by a decrease in electric vehicle charging station revenues. Acquisition growth was driven by a $16.6 million revenue increase from the Quality Uptime Acquisition, which was completed in June 2024.

Operating profit decreased by $3.6 million, or 20.7%, to $13.4 million during the three months ended April 30, 2025, as compared to the prior year period. Operating profit margin decreased by 323 bps to 6.4% in the three months ended April 30, 2025, from 9.6% in the prior year period. The decrease in operating profit margin was primarily attributable to adverse service mix as compared to the prior year and higher amortization of intangible assets.

  Corporate                                                                                                                   
                          Three Months Ended April 30,                                                                        
  ($ in millions)         2025                                          2024                  Increase                        
  Corporate expenses      $                                 (82.9)      $         (79.7)      $             (3.2)      (4.0)  

Corporate expenses increased by $3.2 million, or 4.0%, to $82.9 million during the three months ended April 30, 2025, as compared to the prior year period. The increase in corporate expenses was primarily attributable to:

• a $2.2 million accrual for a parking tax audit settlement related to 2012-2019;

• a $2.0 million increase in costs associated with systems’ go-live; and

• a $1.1 million increase in acquisition and integration costs.

The increase was partially offset by:

• an absence of a $4.3 million unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the three months ended April 30, 2024.

Results of Operations

Six Months Ended April 30, 2025, Compared with the Six Months Ended April 30, 2024

Consolidated

                                                    Six Months Ended April 30,                                                                                           
  (in millions)