ABM Industries Inc (NYSE:ABM) stock fell 6.32% (As on December 18, 11:23:53 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY25. The company’s performance was led by exceptional results in Technical Solutions, where the team successfully delivered numerous projects in a complex construction environment. Aviation and Manufacturing & Distribution also posted strong revenue growth, each benefiting from recent client wins and customer expansions, while Business & Industry and Education generated improved margins, demonstrating the resiliency of their end markets and continued focus on operational efficiency. Net income was $34.8 million, or $0.56 per diluted share, compared to a net loss of $(11.7) million, or $(0.19) per share in the prior year period. The year-over-year improvement primarily reflects a $61.3 million year over year benefit resulting from the absence of the large contingent consideration adjustment related to the RavenVolt acquisition recorded in the prior year period, as well as higher segment operating earnings, largely driven by strong ATS performance. Adjusted EBITDA was $124.2 million and adjusted EBITDA margin was 5.6%, compared to $125.6 million and 6.0%, respectively, in the prior year period. Net cash provided by operating activities was $133.4 million, and free cash flow was $112.7 million, compared to $30.3 million and $15.5 million, respectively, in the prior year period. These results primarily reflects continued progress in the implementation of the Company’s enterprise resource planning (“ERP”) system, which drove sequential improvements in working capital management. The Company had available liquidity of $681.6 million, inclusive of cash and cash equivalents of $104.1 million.

ABM in the fourth quarter of FY25 has reported the adjusted earnings per share of 88 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.1, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5.4 percent to $2.3 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue by 1.19%. This includes  including organic growth of 4.8% and an additional contribution from acquisitions. Revenue growth was led by Technical Solutions (“ATS”) and Manufacturing & Distribution (“M&D”), which grew 16% and 8%, respectively. Strong ATS performance was driven primarily by a significant year-over-year increase in microgrid project activity, while M&D’s growth was supported by new client wins and expansions. Aviation grew 7% benefitting from healthy market demand and recent contract wins, while Business & Industry (“B&I”) and Education each delivered 2% revenue growth.