| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 17.8x | 17.8x | Top tier | |
Growth | 60 | 6.0% | 7.1% | Around median | |
Quality | 54 | 7.5% | 4.5% | Around median | |
Safety | 52 | 4.1x | 2.6x | Around median | |
Capital Return | 61 | 2.30% | 2.12% | Around median | |
Momentum | 74 | -2.3% | 2.9% | Top tier | |
Sentiment | 37 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ABM Industries provides operational and technical services across five main segments: Business & Industry, Aviation, Manufacturing & Distribution, Education, and Technical Solutions. The company generates revenue from recurring service contracts and technical projects; in high-growth activities such as semiconductors, microgrids, and data centers, project revenue accounted for approximately 15% to 20% of the mix, while ABM seeks to convert project execution into longer-term maintenance contracts. Its portfolio combines core cash-generating businesses with technical growth platforms that include WGNSTAR, semiconductor facility services, battery energy storage systems, and backup power solutions.
In Q3 fiscal 2026, ABM reported record revenue of $2.32 billion, representing year-over-year growth of 4.2%, evenly split between 2.1% organic growth and a 2.1% contribution from acquisitions, particularly WGNSTAR. According to EDGAR data, gross profit was $286.1 million, equivalent to a gross margin of approximately 12.3%, while net income was $49.7 million and diluted earnings per share were $0.84; net income also increased 19% year over year, while adjusted earnings per share reached $1.04 versus $0.82 a year earlier.
The segment mix showed clear divergence in Q3 fiscal 2026: Manufacturing & Distribution revenue reached $481 million, up 18%; Aviation reached $328.1 million, up 12%; Education reached $235.8 million with modest growth; and Technical Solutions reached $259.9 million, up 4%, while Business & Industry revenue declined 2.6%. The combined segment operating margin was 7.7%, up 40 basis points from the previous quarter, with segment margins ranging from 5.6% for Aviation to 9.7% for Education; meanwhile, net income for the twelve months ended during fiscal 2026 was $166.4 million on revenue of $9.1 billion.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on ABM is “Neutral,” with an average price target of $49 and a narrow range between $48 and $50, indicating convergence in estimates more than broad bullish conviction. The average target is approximately 3.8% below the high of the 52-week range of $50.93, while the annual range extends to $36.96; the available data does not include a valid price-to-earnings multiple that could be used as an additional valuation anchor.
Figures in the text are as of 2026-09-09; the live price is shown at the top of the page.
ABM reported record quarterly revenue of $2.32 billion in Q3 fiscal 2026, an increase of 4.2% year over year. Net income rose 19% to $49.7 million, and diluted earnings per share reached $0.84 versus $0.67 a year earlier. On an adjusted basis, earnings per share were $1.04, exceeding the consensus estimate of $1.01, while the segment operating margin increased by 40 basis points from the previous quarter to 7.7%.
WGNSTAR expanded ABM's technical capabilities within semiconductor manufacturing facilities, rather than limiting services to the perimeter of manufacturing operations. During the first nine months of fiscal 2026, the semiconductor business grew organically by 65%, and its growth exceeded 100% when including approximately two quarters of WGNSTAR's contribution. On the 2026-09-08 call, management said WGNSTAR was tracking above the annual revenue estimate of $120–$130 million, with two or three cross-selling initiatives beginning across the customer bases.
ABM expects most of the delayed microgrid projects, totaling approximately $15 million, to shift into Q4 fiscal 2026, and execution work had already begun by 2026-09-08. Management expects double-digit organic growth in Technical Solutions, with Q4 being seasonally the strongest quarter for this business. It also expects a total segment margin above 8%, supported by Technical Solutions margins that ranged between 10% and 11% in Q4 of fiscal 2024 and 2025.
Operating cash flow was $146.8 million and free cash flow was $128.4 million in Q3 fiscal 2026. During the first nine months of fiscal 2026, free cash flow increased to $199.6 million from $42.4 million, prompting the company to raise its reported free cash flow forecast for the year to approximately $210 million. In contrast, total debt was $1.8 billion and the leverage ratio was 2.9 times, while available liquidity reached $606 million, including $110 million in cash and cash equivalents.
Manufacturing & Distribution was the fastest-growing segment, with revenue rising 18% to $481 million, including 8% organic growth and 10% from WGNSTAR. Aviation grew 12% to $328.1 million, supported by travel demand and the ramp-up of the Heathrow contract, but its margin declined to 5.6% from 6.8%. Business & Industry revenue declined 2.6% due to customer exits, while Education achieved the highest margin among the cited segments at 9.7%.
ABM expects adjusted earnings per share of between $3.95 and $4.10 in fiscal 2026, compared with the previous range of $3.85–$4.15. The company maintained its organic revenue growth forecast at 3%–4%, with results expected to approach the upper end, and added that WGNSTAR could contribute approximately one percentage point, bringing total growth to the upper end of the 4%–5% range. It also expects a segment operating margin of between 7.7% and 7.8% and normalized free cash flow of approximately $285 million before transformation and integration costs and certain other items.
