ABM ABM INDUSTRIES INC /DE/

Overview and Growth

Fiscal 2025 results for ABM INDUSTRIES INC /DE/ combined $8.75B of revenue with net income of $162.40M and an operating cash inflow of $234.40M. At $8.75B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 4.6% above fiscal 2024 revenue of $8.36B, marking a year-over-year increase. Diluted earnings per share were $2.59, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 102.3% increase from fiscal 2024 diluted EPS of $1.28. Asset turnover was 1.66x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $1.08B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 12.3% of revenue, showing how much of the top line remained after direct costs. Operating income was $311.70M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 3.6%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $162.40M for the fiscal year. Net margin was 1.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $219.90M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 2.5% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $57.60M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 26.2%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $5.27B, supported by $3.48B of liabilities and $1.79B of shareholder equity. The near-term balance sheet paired $1.94B of current assets with $1.31B of current liabilities at the reporting date. The current ratio was 1.48x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $104.10M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 8.0% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $1.57B, adding a fixed financing obligation alongside the company’s equity capital. Against book equity, debt measured 0.88x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 29.7%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 66.1%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 2.0%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $5.10B in fiscal 2024, the current asset base moved 3.4% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $234.40M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.44x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $79.30M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 33.8% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $155.10M of positive free cash flow for the period. The free-cash-flow margin was 1.8%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 2.9% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Oct 31, 2025. Analysis generated Oct 21, 2026.