ABM Industries reported first-quarter fiscal 2025 revenue of $2.1 billion, a 2.2% increase over the prior year period, driven by 1.6% organic growth. Adjusted earnings per diluted share were $0.87, slightly up from $0.86 in the prior year.
Net income for the quarter was $43.6 million, or $0.69 per diluted share, compared to $44.7 million, or $0.70 per diluted share, in the previous year. Adjusted EBITDA for the period was $120.6 million, with an adjusted EBITDA margin of 5.9%.
The company successfully launched its cloud-based enterprise resource planning (ERP) system in the first quarter for its Business & Industry and Manufacturing & Distribution segments. This transition resulted in temporary delays in cash flow, with net cash used in operating activities at $106.2 million and free cash flow at negative $122.9 million.
Technical Solutions (ATS) and Aviation segments led revenue growth, increasing 22% and 8% respectively. ABM is raising the lower end of its fiscal year 2025 adjusted EPS outlook by $0.05, now projecting a range of $3.65 to $3.80, while reaffirming its adjusted EBITDA margin forecast of 6.3% to 6.5%.
The company repurchased 0.4 million shares for $21.3 million during the quarter, with $133 million remaining under its share repurchase program. The Board also declared a cash dividend of $0.265 per common share, marking the 236th consecutive quarterly dividend.
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