Facility management company ABM Industries, Inc. (ABM) reported Wednesday a profit in its fourth quarter, compared to prior year's loss, amid higher revenues. The company also announced higher dividend, and issued fiscal 2026 outlook, expecting a growth.
In pre-market activity on the NYSE, the shares were gaining around 1.7 percent to trade at $46.55.
In the fourth quarter, net income totaled $34.8 million or $0.56 per share, compared to prior year's net loss of $11.7 million or $0.19 per share.
The year-over-year improvement primarily reflected a $61.3 million benefit resulting from the absence of the large contingent consideration adjustment related to last year's RavenVolt acquisition, as well as higher segment operating earnings.
Adjusted net income was $54.7 million or $0.88 per share, compared to $55.8 million or $0.88 per share in the prior year period.
The Wall Street analysts on average expected the company to report earnings of $1.09 per share. Analysts' estimates typically exclude special items.
Adjusted EBITDA for the quarter was $124.2 million, lower than $125.6 million last year.
In the fourth quarter, revenues grew 5.4 percent to $2.30 billion from $2.18 billion a year ago, with organic growth of 4.8 percent. The Street was looking for revenues of $2.27 billion.
Revenue growth was led by Technical Solutions and Manufacturing & Distribution, which grew 16 percent and 8 percent, respectively.
Further, the Board approved a 9 percent increase to the quarterly dividend, raising the dividend to $0.29 per share.
At year-end, ABM Industries had $183 million of remaining availability under its share repurchase program.
Looking ahead for fiscal 2026, the company expects adjusted earnings per share to be in the range of $3.85 to $4.15, with organic revenue growth to be 3 percent to 4 percent.
Analysts project earnings of $4.02 per share for the year.
In fiscal 2025, net income was $2.59 per share and adjusted net income was $3.44 per share, with 3.8 percent organic revenue growth.
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