ABM (ABM) Q2 2026 Earnings Call Transcript

Image source: The Motley Fool.

DATE

Friday, June 5, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Scott Salmirs

• Chief Financial Officer — David Orr

• SVP, Investor Relations, Treasurer — Paul Goldberg

Full Conference Call Transcript

Scott Salmirs: Good morning, everyone, and convey you for joining america to sermon ABM's 2nd 4th fiscal 2026 results. We had a beardown quarter. Organic gross maturation came successful astatine 6.1% and I'm particularly pleased to study that our archetypal fractional caller income bookings reached $1.2 billion, a caller grounds for ABM. Organic maturation was particularly beardown successful Technical Solutions and Aviation, portion successful M&D, we saw steadfast underlying integrated request complemented by the WGNSTAR acquisition, which is performing good and adding meaningfully to the segment's results close retired of the gate. Education continued to station dependable growth, and B&I was level organically.

B&I was impacted by the exit of a ample U.K. lawsuit during the 2nd 4th and by our decisions to exit respective different clients, particularly connected the West Coast, wherever commercialized existent property markets person yet to afloat retrieve creating unit successful the market. Stepping backmost from the apical enactment for a moment, we besides executed good operationally. Margins improved sequentially and escaped currency travel was up importantly successful the archetypal fractional compared to past year, which I'm precise pleased with. As we look up to the 2nd half, the setup is compelling.

We expect measurement to ramp meaningfully successful some ATS and M&D and work premix wrong ATS successful particular, should amended arsenic the task pipeline matures and our backlog execution ramp sequentially. Layered connected apical of that, our outgo subject and terms escalation actions are gaining traction. Taken together, we expect these drivers to nutrient a important step-up successful some net and borderline arsenic we determination done the backmost fractional of the year. While the near-term macroeconomic situation remains dynamic, ABM operates successful markets that connection a compelling operation of secular maturation opportunities successful areas similar vigor infrastructure, semiconductors and airdrome modernization alongside the steady, predictable gross streams that person ever been ABM's foundation.

When taken unneurotic with the beardown operating civilization we person successful place, ABM is good positioned to seizure the semipermanent maturation opportunities ahead. So fto maine stock more. Within Business & Industry, the premier bureau betterment continues to summation traction, though arsenic mentioned, the marketplace is inactive experiencing immoderate softness connected the West Coast. U.S. bureau leasing is approaching 2019 levels. Net absorption turned importantly affirmative successful the archetypal quarter, the strongest since 2020 and premier vacancy rates proceed to tighten. New proviso remains highly constricted with the operation pipeline astir 90% beneath its 2020 peak.