Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 9

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 the higher microgrid systems projects, partially offset by a decrease in electric vehicle charging station revenues. Acquisition growth was driven by an $29.3 million revenue increase from the Quality Uptime Acquisition, which was completed in June 2024.

Operating profit increased by $6.5 million, or 27.6%, to $30.0 million during the six months ended April 30, 2025, as compared to the prior year period. Operating profit margin increased by 40 bps to 7.3% in the six months ended April 30, 2025, from 6.9% in the six months ended April 30, 2024. The increase in operating profit margin was primarily attributable to the contract mix, partially offset by higher amortization of intangible assets.

  Corporate                                                                                                                     
                          Six Months Ended April 30,                                                                            
  ($ in millions)         2025                                         2024                   Increase                          
  Corporate expenses      $                               (166.1)      $         (154.4)      $             (11.7)      (7.6)%  

Corporate expenses increased by $11.7 million, or 7.6%, to $166.1 million during the six months ended April 30, 2025, as compared to the prior year period. The increase in corporate expenses was primarily attributable to:

• a $4.8 million increase in accruals for actual and potential legal settlements;

• a $4.3 million increase in compensation and related expenses primarily due to higher salaries and certain incentive plans;

• a $3.1 million increase in acquisition and integration costs;

• a $3.0 million increase in costs associated with systems’ go-live;

• a $2.3 million increase in in certain discrete transformational costs under ourELEVATE strategy for developing the new ERP system, client-facing technology, workforce management tools, and data analytics; and

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

This increase was partially offset by:

• an absence of a $9.7 million unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the six months ended April 30, 2024.

Liquidity and Capital Resources

Our primary sources of liquidity are operating cash flows and borrowing capacity under our Amended Credit Facility. We assess our liquidity in terms of our ability to generate cash to fund our short- and long