ABM Q1 Earnings: Sales And EPS Beat, Cash Flow Challenges, Outlook Boost And More
Earnings Report Highlights: ABM Industries Inc. reported a 2.2% year-over-year sales growth to $2.11 billion, surpassing expectations, with adjusted EPS of 87 cents beating the consensus of 78 cents. The company also declared a cash dividend of $0.265 per share.
Future Outlook: ABM raised its FY25 adjusted EPS outlook and expressed confidence in the recovery of commercial real estate markets, supported by increased leasing activity and a strong sales pipeline, while anticipating improvements from their new ERP system.
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- Tetra Downgrade: Clear Street analyst Tim Moore downgraded Tetra Technologies Inc (NYSE:TTI) from Buy to Hold while raising the price target from $10 to $11, indicating a cautious market outlook despite shares closing at $11.24 on Tuesday.
- Willscot Rating Change: Baird analyst Andrew Wittmann downgraded Willscot Holdings Corp (NASDAQ:WSC) from Outperform to Neutral, increasing the price target from $22 to $23, reflecting a reassessment of growth potential with shares closing at $21.70 on Tuesday.
- Darden Rating Adjustment: Raymond James analyst Brian Vaccaro downgraded Darden Restaurants Inc (NYSE:DRI) from Outperform to Market Perform, signaling concerns about future performance with shares closing at $208.88 on Tuesday.
- ABM Downgrade: Truist Securities analyst Jasper Bibb downgraded ABM Industries Inc (NYSE:ABM) from Buy to Hold and slashed the price target to $47, down from $58, with shares closing at $45.44 on Tuesday, indicating worries about profitability.
- Position Change: Goodman Financial fully exited its position in ABM Industries by selling 283,456 shares for approximately $13.07 million, indicating a reassessment of the company's future performance potential.
- Market Performance: ABM Industries shares are priced at $44.12, down 13% over the past year, significantly underperforming the S&P 500's approximately 17% gain during the same period, reflecting a lack of market confidence in its defensive services.
- Financial Health: Despite market challenges, ABM achieved a record revenue of $8.7 billion in fiscal 2025, up 4.6% year-over-year, with adjusted EBITDA reaching $496.6 million, demonstrating strong fundamentals.
- Capital Allocation: Goodman Financial's portfolio is shifting towards broad equity ETFs and short-duration bond funds, suggesting a strategic move to allocate capital to potentially more productive investment opportunities rather than maintaining its stake in ABM.

- Stake Change: Goodman Financial sold 283,456 shares of ABM Industries in Q4, valued at approximately $13.07 million, marking a complete exit from its investment and indicating a reassessment of capital allocation.
- Market Performance: ABM Industries' stock price has declined by 13% over the past year, while the S&P 500 has risen about 17% in the same period, reflecting relative weakness that may impact investor confidence.
- Financial Status: Despite ABM Industries achieving a record revenue of $8.7 billion in fiscal 2025, up 4.6% year-over-year, its poor stock performance may have prompted Goodman Financial to seek investments with greater growth potential.
- Investment Strategy: Goodman Financial's portfolio is heavily weighted towards broad equity ETFs and short-duration bond funds, and the sale of ABM shares suggests a strategic shift in capital allocation to pursue higher returns in more promising sectors.

- Agreement Finalized: Aben Gold's option agreement with Kingfisher Metals closed on December 23, 2025, with Aben receiving an initial payment of CAD $150,000 and 1,886,792 shares, marking the formal commencement of their collaboration.
- Project Potential: The agreement grants Kingfisher a three-year option to acquire 100% interest in the Forrest Kerr Project for a total of CAD $2.7 million in cash and shares, highlighting the significant mineral resource potential in British Columbia.
- Operational Arrangement: Kingfisher will act as the project operator during the option period, which not only enhances project development efficiency but also strengthens Aben's competitive position in the gold exploration sector.
- Shareholder Value Enhancement: Aben Gold aims to increase shareholder value through new discoveries and developing exploration projects, and this agreement lays the groundwork for future growth, particularly in geopolitically favorable jurisdictions.
Analyst Downgrades Impact ABM Industries: ABM Industries experienced a nearly 10% decline in stock value following downgrades from analysts at Baird and UBS, who adjusted their price targets and recommendations after the company's mixed fourth-quarter results.
Mixed Financial Performance: Despite reporting a record revenue of $2.3 billion for fiscal 2025, ABM's net income fell short of expectations, leading to concerns among investors regarding its profitability and future growth.
Future Guidance: ABM management provided guidance for the upcoming fiscal year, projecting revenue growth of 3% to 4% and an increase in adjusted net income, which may indicate potential recovery despite recent setbacks.
Investment Perspective: The article suggests that the recent dip in ABM's stock price could be viewed as a buying opportunity, especially given its status as a Dividend King with a consistent dividend yield of 2.4%.








