ABM Industries Inc (NYSE:ABM) stock rose 1.77% (As on December 19, 11:40:00 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. Adjusted net income was $57.5 million, or $0.90 per diluted share, compared to $66.2 million, or $1.01 per diluted share, in the prior year period, representing decreases of 13% and 11%, respectively. These decreases are due to higher corporate investments and lower segment operating earnings. Segment operating earnings included a $10 million year over year impact from in-year insurance reserve adjustments, partially offset by lower acquisition-related amortization costs. Adjusted EBITDA decreased 11% to $128.0 million and adjusted EBITDA margin was 6.1%. Net cash provided by operating activities was $30.3 million, and free cash flow was $15.5 million, versus $139.1 million and $121.2 in the prior year, respectively. These results were largely due to increased working capital to support the Company’s strong growth in the final month of the fiscal year, especially at ATS. The Company ended the quarter with total indebtedness of $1,412.6 million, including $57.9 million in standby letters of credit, resulting in a total leverage ratio as defined by the Company’s credit facility, of 2.6x. The Company had available liquidity of $488.2 million, inclusive of cash and cash equivalents of $64.6 million.

ABM in the fourth quarter of FY 24 has reported the adjusted earnings per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 86 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $2.18 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.09 billion. This includes the organic growth of 3.2% and the remainder from acquisitions. Revenue growth was led by Technical Solutions (“ATS”) and Aviation, which grew 35% and 11%, respectively. ATS’ robust growth was largely driven by the significant year-over-year increase in our microgrid service line and a recent acquisition, while Aviation’s growth was reflective of continuing solid market demand and recent wins. Business & Industry’s (“B&I”) and Manufacturing & Distribution’s (“M&D”) revenue declined less than 1% each, as ongoing softness in the broader commercial real estate market was largely mitigated by B&I’s diversification and focus on Class A properties. M&D continues to be impacted by the expected rebalancing of certain work by a large client. Education was essentially flat in the quarter.