ABM Industries Inc. (NYSE:ABM) shares rose Friday after the facility services provider reported second-quarter results that topped Wall Street estimates and reaffirmed its fiscal 2026 adjusted earnings outlook.



<h2>Earnings Beat Expectations</h2>



ABM reported adjusted earnings of 90 cents per share for the second quarter, exceeding analysts’ estimates of 87 cents per share. Revenue increased 8.4% year over year to $2.29 billion, ahead of the consensus estimate of $2.21 billion.



Organic revenue growth was 6.1%, while acquisitions contributed an additional 2.3%, primarily from the WGM Star acquisition.



The company said organic growth was its strongest since the third quarter of 2022, led by gains in Technical Solutions, Aviation, and Manufacturing &amp; Distribution.



ABM also reported record first-half new sales bookings of $1.2 billion and generated $22.4 million in free cash flow during the quarter.



At quarter-end, the company had $94.9 million in cash and cash equivalents and $1.9 billion in total debt.



<h2>Growth Driven by Aviation, AI and Infrastructure Demand</h2>



The Business &amp; Industry segment was flat from a year earlier, reflecting the loss of a large U.K. client and additional customer attrition, particularly in West Coast commercial real estate markets.



The Education segment increased 2% year over year, supported by contract renewals and new business wins, including a $25 million contract with Detroit Public Schools.



Manufacturing &amp; Distribution benefited from the WGM Star acquisition, which expanded the company’s presence in semiconductor-related markets.



Aviation revenue climbed 20% year over year, driven by strong travel demand and new airport contracts, including projects at Orlando, Miami and LaGuardia airports.



Technical Solutions revenue increased 27%, supported by demand for battery storage, AI infrastructure and microgrid projects.



Management highlighted continued strength in semiconductor, energy infrastructure, aviation and AI-related data center markets.



Management pointed to growing demand from AI-related infrastructure as a key driver of momentum, noting that data center construction is expanding at a double-digit pace globally. 



The company said strong activity in its Technical Solutions segment helped deliver its strongest organic growth rate since the third quarter of 2022.



<h2>ABM Industries Outlook Reaffirmed</h2>



ABM reaffirmed its fiscal 2026 adjusted earnings guidance of $3.85 to $4.15 per share. The midpoint of the range remains above the Wall Street consensus estimate of $3.96.



The company also maintained its outlook for 3% to 4% organic revenue growth for the year and said it expects results to strengthen in the second half of fiscal 2026, supported by a growing backlog, favorable business mix, pricing actions and cost controls.



ABM Price Action: ABM Industries shares were up 6.76% at $42.57 at the time of publication on Friday, according to Benzinga Pro data.



Photo via Shutterstock

ABM Industries reported Q2 earnings of $0.90 per share, beating estimates, with revenue up 8.4% to $2.29 billion. Driven by organic growth and the WGM Star acquisition, the company saw its strongest performance since Q3 2022. ABM achieved record $1.2 billion in new bookings, generated $22.4 million in free cash flow, and reaffirmed its fiscal 2026 adjusted earnings forecast.

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