Company: ABM
Filing Date: 2025-03-12
Form Type: 10-Q
Source: 0000771497-25-000005
Chunk: 3

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-03-12
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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5.4                                  (13.0)                     NM*  
  Income tax (provision) benefit                                               0.3                      4.2                                   (3.9)                 (93.3)%  
  Comprehensive income                                                           $         35.2           $         38.2                          $      (3.0)       (8.1)%  

*Not meaningful

Revenues

Revenues increased by $45.3 million, or 2.2%, to $2,114.9 million during the three months ended January 31, 2025, as compared to the prior year period. Revenue growth was comprised of organic growth of 1.6% and acquisition growth of 0.6%. The organic revenue growth was due to the higher project revenues due to the timing of certain microgrid systems design and installation projects within Technical Solutions and net new business and expansion of business with existing customers within Aviation and Education. The increase in revenues was partially offset by attrition of engineering customers within B& I and a loss of a certain customer within M& D. Acquisition growth was driven by a $12.7 million revenue increase from the Quality Uptime Acquisition, which was completed in June 2024.

Operating Expenses

Operating expenses increased by $28.8 million, or 1.6%, to $1,855.1 million during the three months ended January 31, 2025, as compared to the prior year period. Gross margin increased by 53 bps to 12.3% in the three months ended January 31, 2025, from 11.8% in the prior year period. The increase in gross margin was primarily driven by contract and service mix and operational efficiencies as well as an absence of a $5.3 million unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the three months ended January 31, 2024, partially offset by base wage increases within Aviation and Education.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $14.4 million, or 9.3%, to $169.0 million during the three months ended January 31, 2025, as compared to the prior year period. The increase in selling, general and administrative expenses was primarily attributable to:

• an $8.1 million increase in compensation and related expenses primarily due to higher salaries, certain incentive plans, and headcount expansion from recent acquisitions and ongoing business growth within