Please note that earlier this morning, we issued our press release announcing our fourth quarter 2025 financial results and outlook, as well as a press release announcing our planned acquisition of WGNSTAR. We finished the year on a strong note, posting record quarterly revenue supported by 4.8% organic growth. Encouragingly, if you exclude the impact of the prior-year self-insurance adjustment, our adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin were all ahead of our expectations heading into the quarter. We also saw strong revenue growth in Aviation and Manufacturing and Distribution, fueled by recent client wins and customer expansions.
Our fourth quarter results capped an outstanding year for ABM, highlighted by record annual revenue of $8.7 billion, an increase of 5% over last year. We also generated record new sales bookings of $1.9 billion, a 12% increase over 2024. Those bookings are diversified across the business and provide confidence in our growth trajectory entering fiscal 2026. I'll also note that our pipeline across the enterprise remains strong, and we are targeting another bookings record in 2026.
These investments are expected to provide greater efficiency, scalability, and differentiation, and position ABM to unlock new revenue streams in the years ahead. It significantly expands our technical capability set in fabrication environments, adds a skilled workforce of more than 1,300 employees, and strengthens our position in a sector that is experiencing multi-year growth from U.S. Combined with our existing energy resiliency, mission-critical, and engineering strength, this acquisition positions ABM to be one of the largest integrated service providers to semiconductor facilities in North America. I also want to take a moment to highlight the continued efforts across ABM to improve margin and strengthen earnings power.
| Metric | Period | Current guidance |
|---|---|---|
| Organic revenue growth | FY2026 | 3%-4% (New) |
| Adjusted EPS | FY2026 | $3.85-$4.15 (before prior-year self-insurance adjustments) (New) |
| Normalized free cash flow | FY2026 | ~$250M (implies ~$185M actual after one-time items) (New) |
| WGNSTAR amortization/interest | FY2026 annualized | ~$13M amortization, ~$12M interest (New) |
| Segment operating margin | FY2025 actual / FY2026 guide | FY2026 guided around the middle of the range (New metric introduced) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +5.4% to $2.3B (record) | 4.8% organic growth plus modest contribution from Ireland acquisition |
| Net income | Increased to $34.8M ($0.56/sh) from a loss of $11.7M (-$0.19/sh) | $61.3M benefit from absence of prior-year RavenVolt contingent consideration adjustment and higher segment earnings, partially offset by $15.8M self-insurance impact and $9.5M restructuring costs |
| Adjusted EPS | $0.88 vs $0.88 | $0.26 self-insurance headwind and higher interest, largely offset by higher segment earnings and restructuring benefits |
| Adjusted EBITDA | $124.2M vs $125.6M | $22.2M pre-tax negative self-insurance impact |
| B&I revenue | +2% to over $1B | Higher work orders, expansions, U.K. strength, partially offset by certain client exits |
| Aviation revenue | +7% to $296.7M | Positive travel trends and new wins ramping with frictional upfront costs |
| M&D revenue | +8% to $417.4M | Recent contract wins in technology sector and continued client expansions |
| Education revenue | +2% to $233.7M | Escalations and stable retention rates |
| Technical Solutions revenue | +16% to $298.7M | 11% organic growth plus 5% from acquisitions |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Strategic pricing / office market pressure | Concurrent wave of rebids pressured Q3 margins | Stabilized; pricing discussions continued but were not as dramatic as Q3; total normalization seen | Stabilizing |
| Semiconductor expansion / M&A | Going after semiconductor and pharma submarkets | Announced WGNSTAR acquisition to access inside-fab work; only ~15% of market outsourced | Accelerating via m&a |
| ERP / cash flow | Working capital friction earlier in year | Nearly 90% of transactions on new ERP; DSOs down 11% from Q2 peak | Improving / normalizing |
| Prior-year self-insurance reporting | Excluded from non-GAAP | Now reported above the line per SEC discussions; 4% adjustment within industry norms | Reporting change, ongoing volatility |
| Commercial real estate (B&I) | Under pressure from work-from-home | Crisis viewed as behind; back to steady state growing at GDP rate | Stabilized |