Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 5

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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M& D revenues increased by $31.8 million, or 8.4%, to $408.9 million during the three months ended July 31, 2025, as compared to the prior year period. The increase was primarily attributable to the expansion of business with existing clients and new business wins, including strategic pricing decisions for select new wins. This was partially offset by a loss of a certain customer in the first quarter of 2025.

Operating profit decreased by $4.5 million, or 11.1%, to $36.4 million during the three months ended July 31, 2025, as compared to the prior year period. Operating profit margin decreased by 196 bps to 8.9% in the three months ended July 31, 2025, from 10.9% in the prior year period. The decrease in operating profit margin was primarily attributable to strategic pricing on select new wins, and investments made in the fourth quarter of 2024 to hire certain technical expertise to support future growth.

  Aviation                                                                                     
                               Three Months Ended July 31,                                     
  ($ in millions)              2025                             2024      Increase             
  Revenues                     $                                   $      $              8.7%  
  Operating profit             19.7                             17.8      1.9           11.0%  
  Operating profit margin      6.8                               6.6      14 bps               

Aviation revenues increased by $23.4 million, or 8.7%, to $291.8 million during the three months ended July 31, 2025, as compared to the prior year period. The increase was primarily attributable to new business and scope expansions with the existing clients both domestically and internationally. Management reimbursement revenues for this segment totaled $13.3 million and $9.6 million for the three months ended July 31, 2025 and 2024, respectively.

Operating profit increased by $1.9 million, or 11.0%, to $19.7 million for the three months ended July 31, 2025, as compared to the prior year period. Operating profit margin increased by 14 bps to 6.8% in the three months ended July 31, 2025. The operating profit margin increased primarily due to contract mix and operational efficiencies, particularly in managing overhead costs, partially offset by weather-related inefficiencies.

  Education                                                                                    
                               Three Months