ABM Industries, Inc. engages in the provision of facility, infrastructure, and mobility solutions. It operates through the following segments: Business and Industry, ...
ABM Industries Inc. (NYSE: ABM) is a prominent facility management company headquartered in New York, NY. Founded in 1909 by Morris Rosenberg in San Francisco, it has grown to become one of the largest facility services providers in the United States, with over 113,000 employees serving more than 20,000 clients. ...ABM Industries Inc. (NYSE: ABM) is a prominent facility management company headquartered in New York, NY. Founded in 1909 by Morris Rosenberg in San Francisco, it has grown to become one of the largest facility services providers in the United States, with over 113,000 employees serving more than 20,000 clients. The company operates through five segments: Business and Industry, Manufacturing and Distribution, Education, Aviation, and Technical Solutions. Its services include janitorial, facilities engineering, parking, HVAC, electrical, and mechanical services. ABM serves a diverse clientele such as commercial real estate, healthcare facilities, data centers, airports, schools, and universities. Financially, ABM has a market cap of approximately $2.8 billion, with annual revenue around $9 billion (implied from revenue per share and shares outstanding). The company generates strong cash flows, with a free cash flow yield of about 11.7% and a dividend yield of 2.3%. Key leadership includes CEO Scott Salmirs, who has been instrumental in strategic transformations. ABM is committed to innovation and sustainability, aiming to optimize the built environment for efficiency and resilience.
Operator: Greetings, and welcome to the ABM Industries Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host Paul Goldberg, Senior Vice President of Investor Relations. Please go ahead.
Paul Goldberg: Good morning, everyone, and welcome to ABM's Second Quarter 2026 Earnings Call. My name is Paul Goldberg, and I'm the Senior Vice President of Investor Relations at ABM. With me today are Scott Salmirs, our President and Chief Executive Officer; and David Orr, our Executive Vice President and Chief Financial Officer. Please note that earlier this morning, we issued our press release announcing our second quarter 2026 financial results and outlook. A copy of that release and an accompanying slide presentation can be found on our website abm.com. After Scott and David's prepared remarks, we will host a Q&A session. But before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our words of these estimate, expect and similar expressions are intended to identify these statements and they represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation as well as our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of historical non-GAAP numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab. And with that, I would like to now turn the call over to Scott.
Scott Salmirs: Good morning, everyone, and thank you for joining us to discuss ABM's second quarter fiscal 2026 results. We had a strong quarter. Organic revenue growth came in at 6.1% and I'm especially pleased to report that our first half new sales bookings reached $1.2 billion, a new record for ABM. Organic growth was especially strong in Technical Solutions and Aviation, while in M&D, we saw healthy underlying organic demand complemented by the WGNSTAR acquisition, which is performing well and adding meaningfully to the segment's results right out of the gate. Education continued to post steady growth, and B&I was flat organically. B&I was impacted by the exit of a large U.K. client during the second quarter and by our decisions to exit several other clients, especially on the West Coast, where commercial real estate markets have yet to fully recover creating pressure in the market. Stepping back from the top line for a moment, we also executed well operationally. Margins improved sequentially and free cash flow was up significantly in the first half compared to last year, which I'm very pleased with. As we look ahead to the …