Company: ABM
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000771497-25-000022
Chunk: 6

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
, 2025, as compared to the prior year period. Operating profit margin decreased by 75 bps to 7.8% in the three months ended July 31, 2025, from 8.5% in the prior year period. The decrease in operating profit margin was primarily attributable to service mix and higher amortization of intangible assets.

  Corporate                                                                                                                 
                          Three Months Ended July 31,                                                                       
  ($ in millions)         2025                                         2024                   Decrease                      
  Corporate expenses      $                                (85.7)      $         (130.6)      $             44.9      34.4  

Corporate expenses decreased by $44.9 million, or 34.4%, to $85.7 million during the three months ended July 31, 2025, as compared to the prior year period. The decrease in corporate expenses was primarily attributable to:

• an absence of an adjustment to the contingent consideration related to the RavenVolt Acquisition as compared to a $36.0 million fair value adjustment to increase the contingent consideration recorded during the three months ended July 31, 2024; and

• a $7.1 million decrease in unfavorable self-insurance reserve adjustment as a result of actuarial evaluations completed.

The decrease was partially offset by:

• a $4.2 million increase in compensation and related expenses primarily due to higher salaries and headcount expansion from recent acquisitions.

Results of Operations

Nine Months Ended July 31, 2025, Compared with the Nine Months Ended July 31, 2024

Consolidated

                                                    Nine Months Ended July 31,                                                                                           
  (in millions)                                                           2025                     2024                   Increase / (Decrease)                          
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenues                                                                   $      6,450.5           $      6,182.0                          $      268.5         4.3%  
  Operating expenses                                                                5,645.7                  5,420.8                      224.9                    4.1%  
  Gross margin                                                            12.5                     12.3                                  16 bps                          
  Selling, general and administrative expenses                           521.7                    526.3                                   (4.6)                  (0.9)%  
  Amortization of intangible assets                                       39.9