Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 14

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 operating cash flows provide opportunities for growth both organically and through acquisitions. Operating cash flows primarily depend on: revenue levels; the quality and timing of collections of accounts receivable; the timing of payments to suppliers and other vendors; the timing and amount of income tax payments; and the timing and amount of payments on insurance claims and legal settlements.

                                                 Nine Months Ended July 31,                                     
  (in millions)                                                        2025                    2024             
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash provided by operating activities                               $      101.0            $      196.3  
  Net cash used in investing activities                              (74.8)                 (157.9)             
  Net cash used in financing activities                              (22.5)                  (23.0)             

Operating Activities

Net cash provided by operating activities was $101.0 million and $196.3 million during the nine months ended July 31, 2025, and July 31, 2024, respectively. The decrease was primarily driven by an increase in 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. There has been significant improvement in operating cash flows during the third quarter, and we anticipate full normalization in the fourth quarter. In addition, we made a $75.0 million payment for contingent consideration related to the RavenVolt Acquisition, of which $16.0 million was classified as an operating cash outflow during the nine months ended July 31, 2025.

Investing Activities

Net cash used in investing activities decreased by $83.1 million during the nine months ended July 31, 2025, as compared to the prior year period. This quarter’s activity was primarily related to purchases of property, plant and equipment and payment for the LMC Acquisition.

Financing Activities

Net cash used in financing activities was $22.5 million and $23.0 million during the nine months ended July 31, 2025, and July 31, 2024, respectively. This quarter’s activity was primarily related to an increase in share repurchases and a $75.0 million payment for contingent consideration related to the RavenVolt Acquisition, of which $59.0 million was classified as a financing cash outflow during the nine months ended July 31, 202