Revenue growth has improved to 8.4% as of 2026Q2, yet structural challenges persist as evidenced by a thin 12.1% gross margin and a modest 3.8% operating margin.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 9.05B | 8.75B | 8.36B | 8.1B | 7.81B | 6.23B | 5.99B | 6.5B | 6.44B | 5.45B | 5.14B | 4.9B | 4.65B | 4.43B | 4.3B | 4.25B | 3.5B | 3.48B | 3.62B | 2.84B | 2.79B | 2.59B | 2.42B | 2.26B | 2.19B | 1.95B | 1.81B | 1.63B | 1.5B | 1.25B | 1.09B |
| Revenue Growth % | 6.53% | 4.62% | 3.25% | 3.71% | 25.33% | 4.03% | -7.86% | 0.88% | 18.13% | 6% | 5.04% | 5.34% | 5.01% | 2.96% | 1.26% | 21.49% | 0.4% | -3.91% | 27.46% | 1.8% | 7.92% | 7.1% | 6.8% | 3.22% | 12.41% | 7.88% | 10.91% | 8.52% | 19.91% | 15.23% | 12.59% |
| Cost of Goods Sold | 8.01B | 7.72B | 7.24B | 6.97B | 6.76B | 5.26B | 5.16B | 5.77B | 5.75B | 4.88B | 4.6B | 4.39B | 4.16B | 3.96B | 3.85B | 3.78B | 3.13B | 3.11B | 3.22B | 2.54B | 2.42B | 2.31B | 2.19B | 2.04B | 1.95B | 1.72B | 1.57B | 1.41B | 1.3B | 1.08B | 940.3M |
| COGS % of Revenue | - | 88.31% | 86.66% | 86.05% | 86.56% | 84.42% | 86.13% | 88.75% | 89.21% | 89.5% | 89.48% | 89.68% | 89.48% | 89.53% | 89.63% | 89.04% | 89.65% | 89.46% | 88.99% | 89.35% | 86.71% | 89.37% | 90.54% | 89.98% | 88.81% | 88.32% | 87.08% | 86.74% | 86.46% | 85.92% | 86.51% |
| Gross Profit | 1.04B | 1.02B | 1.12B | 1.13B | 1.05B | 970.4M | 830.6M | 731.1M | 694.8M | 572.4M | 541.3M | 505.5M | 489.2M | 463.7M | 445.9M | 465.58M | 361.73M | 367.12M | 398.89M | 302.67M | 371.12M | 275.07M | 228.56M | 226.75M | 245.21M | 227.7M | 233.56M | 216.18M | 203.4M | 176.39M | 146.63M |
| Gross Margin % | 11.53% | 11.69% | 13.34% | 13.95% | 13.44% | 15.58% | 13.87% | 11.25% | 10.79% | 10.5% | 10.52% | 10.32% | 10.52% | 10.47% | 10.37% | 10.96% | 10.35% | 10.54% | 11.01% | 10.65% | 13.29% | 10.63% | 9.46% | 10.02% | 11.19% | 11.68% | 12.92% | 13.26% | 13.54% | 14.08% | 13.49% |
| Gross Profit Growth % | - | -8.3% | -1.27% | 7.65% | 8.11% | 16.83% | 13.61% | 5.22% | 21.38% | 5.75% | 7.08% | 3.33% | 5.5% | 3.99% | -4.23% | 28.71% | -1.47% | -7.96% | 31.79% | -18.44% | 34.91% | 20.35% | 0.8% | -7.53% | 7.69% | -2.51% | 8.04% | 6.28% | 15.31% | 20.3% | 8.91% |
| Operating Expenses | 713.4M | 697.4M | 903.1M | 719.9M | 700.3M | 764.1M | 734.9M | 522.8M | 556.2M | 470.5M | 486.6M | 431.9M | 374.4M | 358.4M | 343.2M | 348.01M | 252.89M | 275.02M | 299.38M | 222.41M | 212.88M | 209.8M | 181.19M | 171.13M | 174.83M | 172.16M | 157.55M | 146.98M | 142.43M | 126.75M | 104.89M |
| OpEx % of Revenue | - | 7.97% | 10.8% | 8.89% | 8.97% | 12.27% | 12.27% | 8.04% | 8.63% | 8.63% | 9.46% | 8.82% | 8.05% | 8.09% | 7.98% | 8.19% | 7.23% | 7.9% | 8.26% | 7.82% | 7.62% | 8.11% | 7.5% | 7.56% | 7.98% | 8.83% | 8.72% | 9.02% | 9.48% | 10.12% | 9.65% |
| Selling, General & Admin | 694.4M | 697.4M | 751.2M | 713M | 628.3M | 719.2M | 506.1M | 452.9M | 438M | 412.4M | 404.9M | 390.4M | 348.2M | 330.6M | 327.8M | 324.76M | 241.53M | 263.63M | 287.65M | 216.85M | 207.12M | 204.13M | 176.67M | 171.13M | 174.83M | 172.16M | 157.55M | 146.98M | 142.43M | 126.75M | 104.89M |
| SG&A % of Revenue | - | 7.97% | 8.99% | 8.81% | 8.05% | 11.55% | 8.45% | 6.97% | 6.8% | 7.56% | 7.87% | 7.97% | 7.49% | 7.47% | 7.62% | 7.65% | 6.91% | 7.57% | 7.94% | 7.63% | 7.42% | 7.89% | 7.31% | 7.56% | 7.98% | 8.83% | 8.72% | 9.02% | 9.48% | 10.12% | 9.65% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 151.9M | 6.9M | 72M | 44.9M | 228.8M | 69.9M | 118.2M | 58.1M | 81.7M | 41.5M | 26.2M | 27.8M | 0 | 23.25M | 11.36M | 11.38M | 11.73M | 5.57M | 5.76M | 5.67M | 4.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 330.1M | 325.2M | 212M | 409.5M | 348.8M | 206.3M | 95.7M | 208.3M | 138.6M | 101.9M | 54.7M | 73.6M | 114.8M | 105.3M | 96.6M | 117.57M | 108.84M | 92.11M | 99.51M | 80.25M | 158.24M | 65.27M | 47.38M | 55.61M | 70.38M | 55.55M | 76.01M | 69.19M | 60.97M | 49.64M | 41.74M |
| Operating Margin % | 3.65% | 3.72% | 2.54% | 5.06% | 4.47% | 3.31% | 1.6% | 3.21% | 2.15% | 1.87% | 1.06% | 1.5% | 2.47% | 2.38% | 2.25% | 2.77% | 3.11% | 2.65% | 2.75% | 2.82% | 5.67% | 2.52% | 1.96% | 2.46% | 3.21% | 2.85% | 4.21% | 4.25% | 4.06% | 3.96% | 3.84% |
| Operating Income Growth % | - | 53.4% | -48.23% | 17.4% | 69.07% | 115.57% | -54.06% | 50.29% | 36.02% | 86.29% | -25.68% | -35.89% | 9.02% | 9.01% | -17.83% | 8.02% | 18.17% | -7.44% | 23.99% | -49.28% | 142.43% | 37.76% | -14.8% | -20.99% | 26.7% | -26.92% | 9.86% | 13.48% | 22.83% | 18.94% | 18.87% |
| EBITDA | 408.9M | 430.8M | 318.6M | 530.2M | 461.2M | 296.2M | 192.1M | 315.7M | 251.1M | 172M | 112.2M | 130.6M | 171.2M | 164.7M | 147.5M | 140.82M | 120.2M | 103.49M | 127.58M | 99.01M | 178.98M | 84.86M | 65.05M | 70.44M | 85.56M | 81.88M | 99.54M | 89.89M | 80.57M | 65.76M | 55.39M |
| EBITDA Margin % | 4.52% | 4.93% | 3.81% | 6.55% | 5.91% | 4.76% | 3.21% | 4.86% | 3.9% | 3.15% | 2.18% | 2.67% | 3.68% | 3.72% | 3.43% | 3.32% | 3.44% | 2.97% | 3.52% | 3.48% | 6.41% | 3.28% | 2.69% | 3.11% | 3.9% | 4.2% | 5.51% | 5.52% | 5.36% | 5.25% | 5.1% |
| EBITDA Growth % | 27.07% | 35.22% | -39.91% | 14.96% | 55.71% | 54.19% | -39.15% | 25.73% | 45.99% | 53.3% | -14.09% | -23.71% | 3.95% | 11.66% | 4.75% | 17.15% | 16.15% | -18.88% | 28.86% | -44.68% | 110.91% | 30.47% | -7.66% | -17.67% | 4.5% | -17.74% | 10.73% | 11.57% | 22.52% | 18.72% | 18.76% |
| D&A (Non-Cash Add-back) | 79.8M | 105.6M | 106.6M | 120.7M | 112.4M | 89.9M | 96.4M | 107.4M | 112.5M | 70.1M | 57.5M | 57M | 56.4M | 59.4M | 50.9M | 23.25M | 11.36M | 11.38M | 28.07M | 18.75M | 20.75M | 19.59M | 17.67M | 14.83M | 15.18M | 26.33M | 23.52M | 20.7M | 19.59M | 16.12M | 13.65M |
| EBIT | 316.4M | 316.4M | 307.8M | 339.9M | 348.7M | 206.2M | 276.1M | 219.7M | 190.8M | 128.4M | 111.4M | 90.9M | 114.8M | 105.3M | 96.6M | 121.48M | 108.71M | 90.54M | 99.51M | 77.19M | 158.24M | 65.27M | 46.01M | 54.33M | 52.36M | 50.73M | 76.01M | 69.2M | 60.97M | 49.6M | 41.74M |
| Net Interest Income | -101.7M | -96.4M | -85M | -82.3M | -41.1M | -28.6M | -44.6M | -51.1M | -54.1M | -19.2M | -10.4M | -10.2M | -10.7M | -12.9M | 0 | -15.8M | -4.64M | -5.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 101.7M | 96.4M | 85M | 82.3M | 41.1M | 28.6M | 44.6M | 51.1M | 54.1M | 19.2M | 10.4M | 10.2M | 10.7M | 12.9M | 0 | 15.8M | 4.64M | 5.88M | 22.49M | 467K | 0 | 0 | 1.02M | 0 | 0 | 2.6M | 3.32M | 1.96M | 3.46M | 2.67M | 3.63M |
| Other Income/Expense | -113.6M | -105.3M | -78.4M | -78.5M | -38.8M | -26.5M | -42.4M | -48.1M | -50.8M | -15M | -2.8M | -1.2M | -4.2M | -6.6M | -3.9M | -11.89M | -4.77M | -7.45M | -15.19M | -3.52M | 159.5M | -884K | -1.02M | -758K | -9.05M | -2.6M | -3.32M | -1.9M | -3.46M | -2.7M | -3.63M |
| Pretax Income | 216.5M | 219.9M | 133.6M | 331M | 310M | 179.8M | 53.3M | 160.2M | 87.8M | 86.9M | 51.9M | 72.4M | 110.6M | 98.7M | 92.7M | 105.68M | 104.07M | 84.66M | 84.32M | 79.79M | 157.74M | 64.39M | 46.36M | 54.85M | 69.33M | 52.95M | 72.69M | 67.23M | 57.51M | 46.96M | 38.1M |
| Pretax Margin % | 2.39% | 2.51% | 1.6% | 4.09% | 3.97% | 2.89% | 0.89% | 2.47% | 1.36% | 1.59% | 1.01% | 1.48% | 2.38% | 2.23% | 2.16% | 2.49% | 2.98% | 2.43% | 2.33% | 2.81% | 5.65% | 2.49% | 1.92% | 2.42% | 3.16% | 2.72% | 4.02% | 4.13% | 3.83% | 3.75% | 3.51% |
| Income Tax | 58.1M | 57.6M | 52.2M | 79.7M | 79.6M | 53.5M | 53.1M | 32.7M | -8.2M | 8.8M | -10.4M | 18.3M | 43.7M | 36.1M | 30M | 36.98M | 40.2M | 29.17M | 31.59M | 27.35M | 64.54M | 20.83M | 15.89M | 18.45M | 22.6M | 20.12M | 28.35M | 27.57M | 23.58M | 19.73M | 16.39M |
| Effective Tax Rate % | 26.84% | 26.19% | 39.07% | 24.08% | 25.68% | 29.76% | 99.62% | 20.41% | -9.34% | 10.13% | -20.04% | 25.28% | 39.51% | 36.58% | 32.36% | 34.99% | 38.63% | 34.46% | 37.46% | 34.28% | 40.91% | 32.35% | 34.27% | 33.64% | 32.6% | 38% | 39% | 41% | 41% | 42% | 43% |
| Net Income | 158.5M | 162.4M | 81.4M | 251.3M | 230.4M | 126.3M | 300K | 127.4M | 97.8M | 3.8M | 57.2M | 76.3M | 75.6M | 72.9M | 62.7M | 68.5M | 64.12M | 54.29M | 45.43M | 52.44M | 93.2M | 57.94M | 30.47M | 90.46M | 46.73M | 32.83M | 44.34M | 39.67M | 33.93M | 27.24M | 21.72M |
| Net Margin % | 1.75% | 1.86% | 0.97% | 3.1% | 2.95% | 2.03% | 0.01% | 1.96% | 1.52% | 0.07% | 1.11% | 1.56% | 1.63% | 1.65% | 1.46% | 1.61% | 1.83% | 1.56% | 1.25% | 1.84% | 3.34% | 2.24% | 1.26% | 4% | 2.13% | 1.68% | 2.45% | 2.43% | 2.26% | 2.17% | 2% |
| Net Income Growth % | 101.14% | 99.51% | -67.61% | 9.07% | 82.42% | 42000% | -99.76% | 30.27% | 2473.68% | -93.36% | -25.03% | 0.93% | 3.7% | 16.27% | -8.47% | 6.84% | 18.1% | 19.5% | -13.36% | -43.74% | 60.86% | 90.14% | -66.31% | 93.58% | 42.35% | -25.97% | 11.79% | 16.91% | 24.56% | 25.41% | 19.22% |
| Net Income (Continuing) | 158.4M | 162.3M | 81.4M | 251.3M | 230.4M | 126.3M | 200K | 127.5M | 96M | 78.1M | 62.3M | 54.1M | 66.9M | 62.6M | 62.7M | 68.7M | 63.87M | 55.49M | 52.73M | 52.44M | 84.32M | 43.55M | 29.64M | 35.62M | 41.68M | 29.87M | 44.34M | 39.7M | 33.93M | 27.2M | 21.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 100K | -100K | 1.8M | -74.3M | -5.1M | 22.2M | 8.7M | 10.3M | 0 | 0 | 251K | 0 | 0 | 0 | 0 | 0 | 829K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.68 | 2.59 | 1.28 | 3.79 | 3.41 | 1.86 | 0.00 | 1.91 | 1.45 | 1.34 | 1.09 | 0.94 | 1.17 | 1.12 | 1.14 | 1.27 | 1.21 | 1.05 | 0.88 | 1.04 | 1.88 | 1.15 | 0.61 | 1.82 | 0.87 | 0.60 | 0.91 | 0.83 | 0.72 | 0.61 | 0.53 |
| EPS Growth % | 109% | 102.34% | -66.23% | 11.14% | 83.33% | - | -99.84% | 31.72% | 8.21% | 22.94% | 15.96% | -19.66% | 4.46% | -1.75% | -10.24% | 4.96% | 15.24% | 19.32% | -15.38% | -44.68% | 63.48% | 88.52% | -66.48% | 109.2% | 45% | -34.07% | 9.64% | 15.28% | 18.03% | 15.09% | 15.22% |
| EPS (Basic) | - | 2.61 | 1.29 | 3.81 | 3.43 | 1.87 | 0.00 | 1.91 | 1.45 | 1.35 | 1.11 | 0.95 | 1.19 | 1.14 | 1.16 | 1.29 | 1.23 | 1.06 | 0.90 | 1.06 | 1.90 | 1.17 | 0.63 | 1.85 | 0.90 | 0.63 | 0.95 | 0.89 | 0.79 | 0.67 | 0.53 |
| Diluted Shares Outstanding | 59.1M | 62.7M | 63.6M | 66.3M | 67.5M | 68M | 67.3M | 66.9M | 66.4M | 58.3M | 56.9M | 57.4M | 57.1M | 56.07M | 54.91M | 54.1M | 53.37M | 51.84M | 51.39M | 50.63M | 49.68M | 50.37M | 50.06M | 50M | 51.02M | 50.02M | 47.42M | 48.12M | 46.32M | 44.59M | 40.48M |
| Basic Shares Outstanding | 58.9M | 62.3M | 63.2M | 66M | 67.1M | 67.4M | 66.9M | 66.6M | 66.1M | 57.7M | 56.3M | 56.7M | 56.1M | 54.88M | 53.99M | 53.12M | 52.49M | 51.37M | 50.52M | 49.5M | 49.05M | 49.33M | 48.64M | 49.06M | 49.12M | 47.6M | 45.1M | 44.86M | 42.22M | 40.9M | 40.48M |
| Dividend Payout Ratio | - | 40.39% | 69.41% | 22.88% | 22.53% | 40.38% | 16433.33% | 37.44% | 47.03% | 1039.47% | 64.51% | 47.18% | 45.77% | 45.13% | 49.93% | 43.42% | 43.9% | 49.23% | 55.62% | 45.39% | 23.15% | 35.8% | 63.91% | 20.6% | 37.94% | 49.36% | 32.79% | 32.91% | 31.56% | 31.57% | 33.31% |
Margin compression from labor
According to the most recent quarterly filings, ABM's revenue growth has accelerated to 8.4% in 2026Q2, marking a notable improvement from the 1.7% growth observed in 2024Q2, suggesting that the company's strategic focus on technical solutions may be successfully offsetting broader commercial real estate headwinds.
The recent uptick in top-line performance indicates that the company is successfully capturing demand in higher-value service segments. Investors should monitor whether this growth is sustainable or if it remains dependent on project-based work that lacks the recurring nature of the core janitorial business.
As reported in financial statements, ABM maintains a thin gross margin profile, which reached 12.1% in 2026Q2, reflecting the inherent difficulty in scaling a labor-intensive service model where wage inflation frequently outpaces the company's ability to implement price escalators within its long-term service contracts.
The narrow margin spread suggests that ABM possesses limited pricing power, leaving the company vulnerable to any unexpected spikes in labor costs. The inability to consistently expand gross margins beyond the low-teens range warrants further investigation into the efficacy of the ELEVATE initiative.
Based on the provided income statement data, ABM's operating margin of 3.8% in 2026Q2 highlights a lack of significant operating leverage, as administrative overhead and integration costs continue to consume a substantial portion of the gross profit generated by the company's core service operations.
The company's reliance on frequent acquisitions appears to create a recurring drag on operating income due to integration expenses. This structure suggests that management may struggle to achieve meaningful margin expansion until these transition costs are fully absorbed and the business achieves greater operational density.
Analysis of the historical income statements reveals significant earnings volatility, exemplified by the net loss reported in 2024Q4, which appears to be driven by non-operating items and integration costs rather than a fundamental collapse in the company's ability to generate revenue from its service contracts.
The fluctuation in net income suggests that investors should focus on normalized earnings metrics to gauge the true health of the business. The inconsistent impact of stock-based compensation and acquisition-related charges makes it difficult to assess the underlying profitability of the core operations without further adjustment.
Quick answers to the most common questions about buying ABM stock.
For fiscal year 2025, ABM Industries Incorporated (ABM) reported total revenue of $8.75B. This represents a 704.6% increase compared to $1.09B in 1996.
ABM Industries Incorporated (ABM) is profitable, generating $162.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.9%.
ABM Industries Incorporated (ABM) reported an operating income of $325.2M, resulting in an operating profit margin of 3.7%. This margin reflects the operational efficiency of the business before interest and taxes.
ABM Industries Incorporated (ABM) generated $1.02B in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.