ABM Industries, Inc.(NYSE:ABM) stock is trading firm today, rising over 1.6% on March 7th, 2018 (as of 1:30PM EST; Source: Google finance) given a decent first quarter of 2018 update. The group managed to generate a total revenues rise of 19.7% yoy to $1.6 billion, boosted by first full quarter of GCA related revenue and enterprise organic growth of 3%. Organica revenue growth was boosted by Business and Industry and Aviation segments. Their Business and Industry segment had good expansions with some larger scale clients who were growing. The group enhanced their catering and logistics business platform with a multimillion-dollar award from a second client.
ABM Industries also managed to improve their adjusted EBITDA margin to 4.1% against 3.6% in pcp. GAAP EPS from continuing operations rose to $0.42 for the first quarter and $0.26 on an adjusted basis. Now I’d like to discuss our progress against our key strategic priorities for the full year.
As per the segment performance, B&I is their major business with Revenues rising 10.1% to $722 million. B&I showed a good organic growth from new janitorial wins, expansion of a major accounts and strong tag revenue. The Operating profit for the quarters was $28.5 million for a margin of 3.9%. But they expect a full year operating margin in the low 5% range due to the timing of FUI taxes and other burdens.
Aviation segment delivered a revenue rise of 10.5% to $256 million during the period boosted by organic growth attributable to parking, cabin cleaning and catering logistics. Healthcare has been an emerging segment for the group with Revenues over $68 million during the quarter reflecting $8 million in GCA business which was almost entirely within the non-acute commercial space aligning with their business strategy for healthcare.
Meanwhile, the group is focusing on cross-selling and opportunities in both the government as well as commercial markets. They forecast their project and revenue return to begin to normalize in the second half. The group also made an education cross-sell during the first quarter with the school district in Georgia.