$ABM

ABM INDUSTRIES INC /DE/

CIK:0000771497|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2026	Jul. 31, 2025
Income Statement [Abstract]
Revenues	$ 2,317.1	$ 2,224.0	$ 6,850.6	$ 6,450.5
Operating expenses	2,031.0	1,949.6	6,027.5	5,645.7
Selling, general and administrative expenses	171.3	177.5	512.2	521.7
Restructuring and related expenses	7.8	0.0	14.6	0.0
Amortization of intangible assets	15.5	13.4	43.4	39.9
Operating profit	91.5	83.4	253.0	243.3
Income from unconsolidated affiliates	1.2	1.3	3.6	3.4
Interest expense	(29.5)	(25.3)	(81.6)	(72.1)
Income before income taxes	63.2	59.4	175.0	174.6
Income tax provision	(13.5)	(17.6)	(43.5)	(47.0)
Net income	49.7	41.8	131.6	127.6
Other comprehensive income/(loss)
Interest rate swaps	2.5	0.8	(1.0)	(5.7)
Foreign currency translation and other	(2.3)	(1.5)	3.4	5.2
Income tax (provision) benefit	(0.7)	(0.2)	0.2	1.5
Comprehensive income	$ 49.2	$ 41.0	$ 134.2	$ 128.6
Net income per common share
Basic (in USD per share)	$ 0.84	$ 0.67	$ 2.22	$ 2.04
Diluted (in USD per share)	$ 0.84	$ 0.67	$ 2.20	$ 2.03
Weighted-average common and common equivalent shares outstanding
Basic (in shares)	58.9	62.5	59.4	62.6
Diluted (in shares)	59.3	62.8	59.7	63.0

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2026	Jul. 31, 2025
Cash flows from operating activities
Net income	$ 131.6	$ 127.6
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	86.5	78.9
Deferred income taxes	(2.4)	(3.1)
Share-based compensation expense	25.2	26.8
Provision for bad debt	(0.2)	3.9
Discount accretion on insurance claims	0.5	0.5
Impairment of assets	0.0	1.3
Gain on sale of assets	(0.2)	(0.2)
Income from unconsolidated affiliates	(3.6)	(3.4)
Distributions from unconsolidated affiliates	0.0	5.5
Changes in operating assets and liabilities
Trade accounts receivable and costs incurred in excess of amounts billed	(21.7)	(96.2)
Prepaid expenses and other current assets	(22.3)	(32.7)
Right-of-use assets	5.8	4.9
Other noncurrent assets	(21.9)	(12.0)
Trade accounts payable and other accrued liabilities	99.1	55.0
Long-term lease liabilities	(5.2)	(7.9)
Insurance claims	13.9	6.7
Income taxes payable, net	(4.6)	(17.6)
Other noncurrent liabilities	(5.5)	(37.2)
Total adjustments	143.4	(26.6)
Net cash provided by operating activities	275.0	101.0
Cash flows from investing activities
Additions to property, plant and equipment	(75.4)	(58.6)
Proceeds from sale of assets	1.6	0.5
Purchase of businesses, net of cash acquired	(242.1)	(16.7)
Net cash used in investing activities	(315.8)	(74.8)
Cash flows from financing activities
Taxes withheld from issuance of share-based compensation awards, net	(8.8)	(8.5)
Repurchases of common stock, including excise taxes	(94.7)	(48.5)
Dividends paid	(51.2)	(49.4)
Deferred financing costs paid	(2.7)	(8.0)
Borrowings from debt	1,733.5	1,409.3
Repayment of borrowings from debt	(1,523.9)	(1,212.0)
Changes in book cash overdrafts	(2.4)	(43.0)
Repayment of finance lease obligations	(3.3)	(3.3)
Cash paid to settle the contingent consideration liability	0.0	(59.0)
Net cash provided by (used in) financing activities	46.4	(22.5)
Effect of exchange rate changes on cash and cash equivalents	0.9	1.0
Net increase in cash and cash equivalents	6.4	4.7
Cash and cash equivalents at beginning of year	104.1	64.6
Cash and cash equivalents at end of period	$ 110.5	$ 69.3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jul. 31, 2026	Oct. 31, 2025
Current assets
Cash and cash equivalents	$ 110.5	$ 104.1
Trade accounts receivable, net of allowances of $24.0 and $25.5 at July 31, 2026 and October 31, 2025, respectively	1,478.8	1,471.1
Costs incurred in excess of amounts billed	209.8	193.7
Prepaid expenses	111.3	91.2
Other current assets	82.0	78.6
Total current assets	1,992.4	1,938.7
Other investments	32.1	48.6
Property, plant and equipment, net of accumulated depreciation of $415.8 and $379.8 at July 31, 2026 and October 31, 2025, respectively	211.9	177.2
Right-of-use assets	91.8	95.1
Other intangible assets, net of accumulated amortization of $575.8 and $532.2 at July 31, 2026 and October 31, 2025, respectively	328.5	243.2
Goodwill	2,741.2	2,591.1
Other noncurrent assets	203.0	175.5
Total assets	5,601.0	5,269.5
Current liabilities
Current portion of debt, net	41.8	29.4
Trade accounts payable	430.8	401.2
Accrued compensation	190.5	195.0
Accrued taxes — other than income	44.6	48.1
Deferred revenue	153.4	74.7
Insurance claims	204.5	200.8
Income taxes payable	3.8	4.0
Current portion of lease liabilities	27.7	28.2
Other accrued liabilities	304.7	324.1
Total current liabilities	1,401.8	1,305.7
Long-term debt, net	1,732.2	1,537.1
Long-term lease liabilities	80.4	83.7
Deferred income tax liability, net	69.0	39.9
Noncurrent insurance claims	470.2	459.3
Other noncurrent liabilities	53.1	54.3
Noncurrent income taxes payable	4.1	3.9
Total liabilities	3,810.8	3,483.8
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; 500,000 shares authorized; none issued	0.0	0.0
Common stock, $0.01 par value; 100,000,000 shares authorized; 58,614,592 and 60,176,611 shares issued and outstanding at July 31, 2026 and October 31, 2025, respectively	0.6	0.6
Additional paid-in capital	360.7	437.4
Accumulated other comprehensive loss, net of taxes	(17.9)	(20.5)
Retained earnings	1,446.8	1,368.1
Total stockholders’ equity	1,790.2	1,785.6
Total liabilities and stockholders’ equity	$ 5,601.0	$ 5,269.5