- PREMIUM
- LIVE QUOTES
- INSTITUTIONS
Index Options
State Street
CME Group
Nasdaq
Cboe
TradingView
Wall Street JournalABM Stock Soars After $275 Million WGNSTAR Acquisition
ABM Industries Inc. (NYSE:ABM) stock rose Wednesday after the company reported fourth-quarter results and disclosed an acquisition deal.
The company reported revenue of $2.30 billion, up 5.4% year over year (Y/Y), beating the consensus of $2.28 billion.
Adjusted net income was $54.7 million, or 88 cents per diluted share, which missed the consensus of $1.09.
Adjusted EBITDA totaled $124.2 million with a margin of 5.6%, down from $125.6 million and 6.0% in the prior year.
This was negatively impacted by a $(22.2) million pre-tax adjustment related to prior-year self-insurance, which reduced the adjusted EBITDA margin by about 100 basis points.
Operating cash flow stood at $133.4 million, and free cash flow was $112.7 million.
Cash and cash equivalents ended the quarter at $104.1 million, while total indebtedness was $1.6 billion.
Scott Salmirs, President and Chief Executive Officer, said, “We advanced several key strategic initiatives in 2025, including meaningful investments in AI and continued strong progress on our ERP implementation following a challenging start.”
“We also secured one of the largest Aviation awards in ABM history at a major gateway airport, which is expected to generate significant annual revenue when it comes online in calendar 2026. Together, these achievements reflect the great work of our team and our ability to execute at a high level in a challenging macro environment.”
Buyback And Dividend
The company bought back 1.6 million shares for $73.0 million in the quarter. At year-end, $183 million remained available under the share repurchase program.
After the quarter ended, the company’s board approved a 29-cent-per-share quarterly dividend, up 9%.
The dividend is payable Feb. 2, 2026, to shareholders of record Jan. 14, 2026.
Outlook
In 2026, ABM expects organic revenue growth of 3% to 4%, supported by solid demand, particularly in Technical Solutions, Aviation, and Manufacturing & Distribution.
The WGNSTAR acquisition is expected to add about one percentage point, lifting total revenue growth to approximately 4% to 5%.
Additionally, the company expects adjusted EPS to be in the range of $3.85 to $4.15, compared to the consensus estimate of $3.64.
WGNSTAR Acquisition
In a separate release, the company agreed to acquire WGNSTAR, a leading provider of managed workforce and equipment support services for the semiconductor and high-technology industries, in an all-cash deal valued at about $275 million.
The deal is expected to be slightly dilutive to adjusted EPS in fiscal 2026 due to intangible amortization and interest expense, but 5 to 7 cents accretive in fiscal 2027, with accelerating benefits thereafter as growth and synergies materialize.
The transaction is expected to close in ABM’s second fiscal quarter of 2026, subject to regulatory approvals and customary closing conditions. WGNSTAR will be reported within ABM’s Manufacturing & Distribution segment.
The transaction will be funded through a combination of cash on hand and existing credit facilities.
ABM Price Action: ABM Indus shares were up 8.24% at $49.51 at the time of publication on Wednesday, according to Benzinga Pro data.
Read Next:
Image via Shutterstock