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What changed in ABM INDUSTRIES INC /DE/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of ABM INDUSTRIES INC /DE/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+210 added−222 removedSource: 10-K (2025-12-19) vs 10-K (2024-12-19)

Top changes in ABM INDUSTRIES INC /DE/'s 2025 10-K

210 paragraphs added · 222 removed · 169 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

58 edited+21 added−18 removed140 unchanged
Biggest changeOur Board of Directors receives regular reports from meetings of its Governance Committee, which is responsible for oversight of the Company’s corporate governance and overall corporate 6 responsibility-related framework, as well as from meetings of its Stakeholder and Enterprise Risk Committee, which is responsible for oversight of the Company’s programs, policies, and practices relating to social and environmental matters that may impact the Company’s business and key stakeholders.
Biggest changeThe Board’s Stakeholder and Enterprise Risk Committee is responsible for oversight of the Company’s programs, policies, and practices related to environmental, social, and stakeholder matters that may impact the 6 Company’s business and key stakeholders, as well as of the Company’s execution of its enterprise risk management program.
Additionally, ABM is an Equal Opportunity and Affirmative Action employer in compliance with the requirements of the Executive Order 11246 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act. 8 Available Information Our corporate website is www.abm.com.
Additionally, ABM is an Equal Opportunity and Affirmative Action employer in compliance with the requirements of Executive Order 11246, the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act. 8 Available Information Our corporate website is www.abm.com.
Our business is subject to a complicated set of federal, state, and local laws and regulations as well as stakeholder views addressing, among other things, wage and hour standards, employment and labor relations, various Corporate Responsibility-related practices, leave of absence, cybersecurity, data privacy and protection, occupational health and safety, environmental matters, anti-competition, anti-corruption, and government contracting.
Our business is subject to a complicated set of federal, state, and local laws and regulations as well as stakeholder views addressing, among other things, wage and hour standards, employment and labor relations, various corporate responsibility-related practices, leave of absence, cybersecurity, data privacy and protection, 14 occupational health and safety, environmental matters, anti-competition, anti-corruption, and government contracting.
We cannot guarantee that our business will generate sufficient cash flow from our operations or that future borrowings will be available to us in 15 an amount sufficient to enable us to service our debt, fund other liquidity needs, make planned capital expenditures, or continue our dividend. The degree to which we are leveraged could have important consequences for shareholders.
We cannot guarantee that our business will generate sufficient cash flow from our operations or that future borrowings will be available to us in an amount sufficient to enable us to service our debt, fund other liquidity needs, make planned capital expenditures, or continue our dividend. The degree to which we are leveraged could have important consequences for shareholders.
Weather conditions such as snow storms, heavy flooding, hurricanes, and fluctuations in temperatures can negatively impact portions of our business. Within our Technical Solutions segment, cooler than normal 16 temperatures in the summer could reduce the need for servicing of air conditioning units, resulting in reduced revenues and profitability.
Weather conditions such as snow storms, heavy flooding, hurricanes, and fluctuations in temperatures can negatively impact portions of our business. Within our Technical Solutions segment, cooler than normal temperatures in the summer could reduce the need for servicing of air conditioning units, resulting in reduced revenues and profitability.
We are responsible for claims both within and in excess of our retained limits under our insurance policies, and while we endeavor to purchase insurance coverage that is appropriate to our assessment of risk, we are unable to predict with certainty the frequency, nature, or magnitude of claims for direct or consequential damages.
We are responsible for claims both within and in excess of our retained limits under our insurance policies, and while we endeavor to purchase insurance 13 coverage that is appropriate to our assessment of risk, we are unable to predict with certainty the frequency, nature, or magnitude of claims for direct or consequential damages.
Further, to the extent that we self-insure our losses, deterioration in our loss control and/or our continuing claim management efforts could increase the overall 13 cost of claims within our retained limits.
Further, to the extent that we self-insure our losses, deterioration in our loss control and/or our continuing claim management efforts could increase the overall cost of claims within our retained limits.
We typically provide these services pursuant to monthly fixed-price, square-foot, cost-plus, and parking arrangements (i.e., management reimbursement, leased location, or allowance) that are obtained through a competitive bid process as well as pursuant to work orders. M&D provides integrated facility services, engineering, janitorial, and other specialized services to a variety of manufacturing, distribution, and data center facilities.
We typically provide these services pursuant to monthly fixed-price, square-foot, cost-plus, and parking arrangements (i.e., management reimbursement, leased location, or allowance) that are obtained through a competitive bid process as well as pursuant to work orders. M&D provides integrated facility services, engineering, janitorial and maintenance, and other specialized solutions to a variety of manufacturing, distribution, and data center facilities.
The acquisition accelerated the Company’s position as a leading facility solutions provider in the education market. 2 In 2021, we acquired Crown Building Maintenance Co. and Crown Energy Services, Inc.
The acquisition accelerated the Company’s position as a leading facility solutions provider in the education market. In 2021, we acquired Crown Building Maintenance Co. and Crown Energy Services, Inc.
Energy Savings Contracts and Fixed-Price Repair and Refurbishment Under these arrangements, we agree to develop, design, engineer, and construct various types of energy saving projects. Additionally, as part of bundled energy solutions arrangements, we guarantee the project will satisfy agreed-upon performance standards. The client agrees to pay us based on a predetermined contractual milestone schedule.
Energy Savings Contracts and Fixed-Price Repair and Refurbishment Under these arrangements, we agree to develop, design, engineer, and construct various types of energy saving projects. Additionally, as part of infrastructure solutions arrangements, we guarantee the project will satisfy agreed-upon performance standards. The client agrees to pay us based on a predetermined contractual milestone schedule.
(collectively, “Able”), a leading facilities services company headquartered in San Francisco, California, with the goal to provide additional scaling to the Company’s core businesses and key geographies and bolstering ABM’s janitorial and facilities services service lines. In addition, the acquisition of Able further expanded ABM’s sustainability and energy efficiency offerings amid growing demand for environmentally responsible solutions.
(collectively, “Able”), a leading facilities services company headquartered in San Francisco, California, with the goal to provide additional scaling to the Company’s core businesses and key geographies and to bolster ABM’s janitorial and facilities services service lines. In addition, the acquisition of Able further expanded ABM’s sustainability and energy efficiency offerings amid growing demand for environmentally responsible solutions.
The client agrees to pay us based on a predetermined contractual milestone schedule. 4 Segment and Geographic Financial Information Our current reportable segments consist of Business & Industry (“B&I”), Manufacturing & Distribution (“M&D”), Education, Aviation, and Technical Solutions. For segment and geographic financial information, see Note 17, “Segment and Geographic Information,” in the Notes to consolidated financial statements.
The client agrees to pay us based on a predetermined contractual milestone schedule. 4 Segment and Geographic Financial Information Our current reportable segments consist of Business & Industry (“B&I”), Manufacturing & Distribution (“M&D”), Education, Aviation, and Technical Solutions. For segment and geographic financial information, see Note 18, “Segment and Geographic Information,” in the Notes to consolidated financial statements.
Our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases. We employ approximately 117,000 persons, and our operations depend on the services of a large and diverse workforce. We must attract, train, and retain a large and growing number of qualified employees while controlling related labor costs.
Our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases. We employ approximately 113,000 persons, and our operations depend on the services of a large and diverse workforce. We must attract, train, and retain a large and growing number of qualified employees while controlling related labor costs.
In the event of the termination of a multiemployer pension plan or a complete or partial withdrawal from a multiemployer pension plan, under applicable law we could incur material withdrawal liabilities. We further discuss our participation in multiemployer pension and postretirement plans in Note 12, “Employee Benefit Plans,” in the Notes to consolidated financial statements.
In the event of the termination of a multiemployer pension plan or a complete or partial withdrawal from a multiemployer pension plan, under applicable law we could incur material withdrawal liabilities. We further discuss our participation in multiemployer pension and postretirement plans in Note 13, “Employee Benefit Plans,” in the Notes to consolidated financial statements.
Labor relations With approximately 49,000 union-represented employees, we are party to more than 300 collective bargaining agreements nationwide, with more than 20 major labor unions. Our collective bargaining agreements include regional multiemployer agreements covering thousands of employees, as well as localized site agreements covering smaller groups.
Labor relations With approximately 51,000 union-represented employees, we are party to more than 300 collective bargaining agreements nationwide, with more than 20 major labor unions. Our collective bargaining agreements include regional multiemployer agreements covering thousands of employees, as well as localized site agreements covering smaller groups.
Raúl Valentín 61 Executive Vice President and Chief Human Resources Officer of ABM since September 2021; Senior Vice President, Human Resources of ABM from February 2019 to August 2021; Senior Vice President, Human Resources of Coty Inc. from 2016 to 2018; Vice President, Human Resources of Comcast Strategic & Business Development from 2015 to 2016; Vice President, Talent Acquisition of Comcast from 2011 to 2015.
Raúl Valentín 62 Executive Vice President and Chief Human Resources Officer of ABM since September 2021; Senior Vice President, Human Resources of ABM from February 2019 to August 2021; Senior Vice President, Human Resources of Coty Inc. from 2016 to 2018; Vice President, Human Resources of Comcast Strategic & Business Development from 2015 to 2016; Vice President, Talent Acquisition of Comcast from 2011 to 2015.
Rene Jacobsen 63 Executive Vice President and Chief Operating Officer of ABM since November 2020; Executive Vice President and Chief Facilities Services Officer of ABM from October 2019 to November 2020; President of ABM’s Business & Industry Group from February 2016 to October 2019; Executive Vice President of ABM’s West Region from April 2012 to February 2016; Executive Vice President and Chief Operating Officer of Temco Service Industries from November 2007 to April 2012.
Rene Jacobsen 64 Executive Vice President and Chief Operating Officer of ABM since November 2020; Executive Vice President and Chief Facilities Services Officer of ABM from October 2019 to November 2020; President of ABM’s Business & Industry Group from February 2016 to October 2019; Executive Vice President of ABM’s West Region from April 2012 to February 2016; Executive Vice President and Chief Operating Officer of Temco Service Industries from November 2007 to April 2012.
Dean A. Chin 56 Treasurer of ABM since May 2021; Senior Vice President, Chief Accounting Officer, and Corporate Controller of ABM since June 2010; Interim Chief Financial Officer of ABM from July 2020 to November 2020; Vice President and Assistant Controller of ABM from June 2008 to June 2010. 9 ITEM 1A. RISK FACTORS.
Dean A. Chin 57 Treasurer of ABM since May 2021; Senior Vice President, Chief Accounting Officer, and Corporate Controller of ABM since June 2010; Interim Chief Financial Officer of ABM from July 2020 to November 2020; Vice President and Assistant Controller of ABM from June 2008 to June 2010. 9 ITEM 1A. RISK FACTORS.
Investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives, may not have the desired effects on our financial condition and results of operations.
Investments in and changes to our businesses, operating structure, or personnel relating to our strategic initiatives, including the implementation of strategic transformations, enhanced business processes, and technology initiatives, may not have the desired effects on our financial condition and results of operations.
Since that time, we have grown into a multi-segment facility solutions company, primarily through strategic acquisitions and new service offerings, increasing our revenue to more than $8.0 billion.
Since that time, we have grown into a multi-segment facility solutions company, primarily through strategic acquisitions and new service offerings, increasing our revenue to more than $8.5 billion.
To succeed in a competitive labor market, ABM has developed key recruitment and retention strategies, objectives, and measures that we focus on as part of the overall management of our business. These strategies, objectives, and measures form the pillars of our human capital management framework and are advanced through the programs, policies, and initiatives described below.
To succeed in a competitive labor market, we have developed key recruitment and retention strategies, objectives, and measures that we focus on as part of the overall management of our business. These strategies, objectives, and measures form the pillars of our human capital management framework and are advanced through the programs, policies, and initiatives described below.
Human Capital Given that ABM is a service-oriented business, our employees are the driving force behind our success, and we believe our ability to attract, develop, and retain our employees at all levels of our organization has a direct impact on client satisfaction and our ability to grow the Company.
Human Capital Given that ABM is a widely distributed solutions and service-oriented business, our employees are the driving force behind our success, and we believe our ability to attract, develop, and retain our employees at all levels of our organization has a direct impact on client satisfaction and our ability to grow the Company.
Executive Officers of Registrant Executive Officers on December 19, 2024 Name Age Principal Occupations and Business Experience Scott Salmirs 62 President and Chief Executive Officer of ABM since March 2015; Executive Vice President of ABM from September 2014 to March 2015, with global responsibility for ABM’s Aviation division and all international activities; Executive Vice President of ABM’s Onsite Services division focused on the Northeast from 2003 to September 2014; Member of the Board of Directors of ABM since January 2015.
Executive Officers of Registrant Executive Officers on December 19, 2025 Name Age Principal Occupations and Business Experience Scott Salmirs 63 President and Chief Executive Officer of ABM since March 2015; Executive Vice President of ABM from September 2014 to March 2015, with global responsibility for ABM’s Aviation division and all international activities; Executive Vice President of ABM’s Onsite Services division focused on the Northeast from 2003 to September 2014; Member of the Board of Directors of ABM since January 2015.
Our “Think Safe” approach to safety includes establishing a safety mindset from day one of employment. This safety culture is continuously reinforced through daily moments for safety messaging, relevant monthly training topics, and unique programs and materials created for our employees.
Our “Think Safe, Act Safe, Be Safe” approach to safety includes establishing a safety mindset from day one of employment. This safety culture is continuously reinforced through daily moments for safety messaging, relevant monthly training topics, and unique programs and materials created for our employees.
The failure to make timely and accurate contributions as a result of a systems failure could have a negative impact on our financial position. At October 31, 2024, approximately 42% of our employees were subject to various local collective bargaining agreements, some of which will expire or become subject to renegotiation during 2025.
The failure to make timely and accurate contributions as a result of a systems failure could have a negative impact on our financial position. At October 31, 2025, approximately 45% of our employees were subject to various local collective bargaining agreements, some of which will expire or become subject to renegotiation during 2026.
ITEM 1. BUSINESS. General ABM Industries Incorporated, which operates through its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”), is a leading provider of integrated facility, infrastructure, and mobility solutions with a mission to make a difference, every person, every day .
ITEM 1. BUSINESS. General ABM Industries Incorporated, which operates through its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”), is a leading provider of facility maintenance, engineering and infrastructure solutions with a mission to make a difference, every person, every day .
Moreover, the execution and/or benefits of our ELEVATE strategy may not be realized on the expected timeline and/or may result in expenses in excess of what is currently forecast, which could negatively affect our financial condition. Our ability to preserve long-term client relationships is essential to our continued success.
Moreover, the execution and/or benefits of our strategic initiatives may not be realized on the expected timeline and/or may result in expenses in excess of what is currently forecast, which could negatively affect our financial condition. Our ability to preserve long-term client relationships is essential to our continued success.
Dependence on Significant Client No single client accounted for more than 10% of our consolidated revenues during 2024, 2023, or 2022.
Dependence on Significant Client No single client accounted for more than 10% of our consolidated revenues during 2025, 2024, or 2023.
We typically provide these services pursuant to monthly fixed-price, square-foot, and cost-plus, that are obtained through a competitive bid process as well as pursuant to work orders. One client accounted for approximately 31% of revenues for this segment in 2024.
We typically provide these services pursuant to monthly fixed-price, square-foot, and cost-plus, that are obtained through a competitive bid process as well as pursuant to work orders. One client accounted for approximately 32% of revenues for this segment in 2025.
Risks Relating to Acquisitions, Divestitures, or Strategic Transactions Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations. In furtherance of our business strategy, we routinely evaluate opportunities and may enter into agreements for possible acquisitions, divestitures, or other strategic transactions.
Risks Relating to Acquisitions, including the WGNSTAR Acquisition, Divestitures, or Strategic Transactions Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations. In furtherance of our business strategy, we routinely evaluate opportunities and may enter into agreements for possible acquisitions, divestitures, or other strategic transactions.
One client accounted for approximately 22% of revenues for this segment in 2024. 5 Service Marks, Trademarks, and Trade Names We hold various service marks, trademarks, and/or trade names, such as “ABM,” “ABM Building Value,” “ABM GreenCare,” “ABM EnhancedClean,” “ABM EnhancedFacility,” “Linc Service,” “TEGG,” “ABM Connect,” “ABMVantage,” and “RavenVolt,” which we deem important to our marketing activities, to our business, and, in some cases, to the franchising activities conducted by our Technical Solutions segment.
One client accounted for approximately 30% of revenues for this segment in 2025. 5 Service Marks, Trademarks, and Trade Names We hold various service marks, trademarks, and/or trade names, such as “ABM,” “ABM Building Value,” “ABM GreenCare,” “ABM EnhancedClean,” “ABM EnhancedFacility,” “Linc Service,” “TEGG,” “ABM Connect,” “ABMVantage,” “RavenVolt,” and “Driving Possibility, Together,” which we deem important to our marketing activities, to our business, and, in some cases, to the franchising activities conducted by our Technical Solutions segment.
Sean M. Mahoney 58 Executive Vice President and President, Sales and Marketing of ABM since November 2020; Senior Vice President, Sales of ABM from August 2017 to October 2020; Vice President, Sales of Honeywell from July 2015 to July 2017. Andrea R.
Sean M. Mahoney 59 Executive Vice President and President, Sales and Marketing of ABM since November 2020; Senior Vice President, Sales of ABM from August 2017 to October 2020; Vice President, Sales of Honeywell from July 2015 to July 2017. Miranda R.
Our Code of Business Conduct serves as a critical tool to help all ABM team members to recognize and report unethical conduct, while preserving and nurturing our culture of honesty and accountability. The Company provides comprehensive annual training and certification programs on our Code of Business Conduct for our Board of Directors and all of our staff and management employees.
Our Code of Business Conduct serves as a critical tool to help all ABM employees to recognize and report unethical conduct, while preserving and nurturing our culture of honesty and accountability. We provide comprehensive annual training and certification programs on our Code of Business Conduct for our Board of Directors and all of our staff and management employees.
Direct labor costs represented 68% of our total revenue for 2024. As of October 31, 2024, we employed approximately 117,000 employees, of whom approximately 49,000, or 42%, were subject to various local collective bargaining agreements. As of October 31, 2024, our frontline employees represented 92% of our total workforce, while staff and management employees represented the other 8%.
Direct labor costs represented 68% of our total revenue for 2025. As of October 31, 2025, we employed approximately 113,000 employees, of whom approximately 51,000, or 45%, were subject to various local collective bargaining agreements. As of October 31, 2025, our frontline employees represented 92% of our total workforce, while staff and management employees represented the other 8%.
The above acquisitions and divestitures we’ve made since 2015 largely reflect strategies first introduced in our 2020 Vision initiative and also strategies included in our follow-on launched strategic plan called ELEVATE, which was introduced in 2021 and is described below.
The acquisitions and divestitures we have made since 2015 largely reflect strategies first introduced in our 2020 Vision initiative and strategies included in our follow-on strategic modernization plan called ELEVATE, which was introduced in 2021 and is described below.
Any significant federal fund rate increases may have a material adverse effect on our business, results of operations, and financial condition, and may cause our customers to implement cost saving strategies that could reduce the demand of our services.
Any significant federal fund rate increases may have a material adverse effect on our business, results of operations, and financial condition, and may cause our customers to implement cost saving strategies that could reduce the demand of our services. In addition, increases in and/or elevated levels of our borrowings could adversely affect our results of operations and financial condition.
We may recognize additional tax expense, be subject to additional tax liabilities, or incur losses and penalties due to adverse outcomes in tax audits or changes in laws, regulations, treaties, administrative practices, principles, assessments by authorities, and interpretations related to tax laws, including tax rules in various jurisdictions, which could have an adverse effect on our operating results and financial condition.
We may recognize additional tax expense, be subject to additional tax liabilities, or incur losses and penalties due to adverse outcomes in tax audits or changes in laws, regulations, treaties, administrative practices, principles, assessments by authorities, and interpretations related to tax laws, including tax rules in various jurisdictions, which could have an adverse effect on our operating results and financial condition. 15 Risks Relating to Financial Matters Future increases in the level of our borrowings and interest rates could affect our results of operations.
Microgrid and Uninterrupted Power Supply Systems Installation Under these arrangements, we provide electrical contracting services for energy-related products such as the installation of solar solutions, battery storage, distributed generation, UPS service and maintenance, battery and power distribution unit service and maintenance, and other specialized electric trades.
Microgrid and Uninterrupted Power Supply Systems Installation Under these arrangements, we provide electrical contracting services for energy-related products such as design, installation and maintenance of distributed generation equipment, UPS systems, power distribution units, and other specialized electric trades.
Compensation and employee benefits In addition, we offer competitive wages and salaries in our served markets, and full-time employees have access to a continuum of health and wellness benefits, including medical, dental, vision, disability, and basic and voluntary life and AD&D insurance, 401K employee savings and an employee stock purchase plan, a 24/7 employee assistance program, healthcare flexible spending accounts, telemedicine options, legal support, as well as commuter, fitness, and other discount programs.
Frontline employees also receive role-specific, on-the-job training to ensure safe, efficient, and high-quality service delivery for our clients. 7 Compensation and employee benefits We offer competitive wages and salaries in our served markets, and full-time employees have access to an array of health and wellness benefits, including medical, dental, vision, disability, basic and voluntary life and AD&D insurance, 401K employee savings and an employee stock purchase plan, a 24/7 employee assistance program, healthcare flexible spending accounts, telemedicine options, legal support, as well as commuter, fitness, and other discount programs.
Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities. These services are typically provided pursuant to monthly fixed-price, square-foot, and cost-plus arrangements that are obtained through either a competitive bid process or re-bid upon renewal as well as pursuant to work orders.
Our services include janitorial and custodial services, landscaping and grounds maintenance, facilities engineering, and parking management. These services are typically provided pursuant to monthly fixed-price, square-foot, and cost-plus arrangements that are obtained through either a competitive bid process or re-bid upon renewal as well as pursuant to work orders.
Increased costs of legal and regulatory compliance with this constantly evolving legal and regulatory environment could reduce our profitability and adversely affect our financial condition. 14 A significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns, or similar activities, and union organizing drives.
A significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns, or similar activities, and union organizing drives.
Historically, the cost of complying with these laws, rules, and regulations has not had a material adverse effect on our financial position, results of operations, or cash flows.
Historically, the cost of complying with these laws, rules, and regulations has not had a material adverse effect on our financial position, results of operations, or cash flows. Corporate Responsibility Strategy and Oversight Corporate responsibility is central to how we operate and deliver for our stakeholders.
With the addition of Quality Uptime, we will offer comprehensive and complementary critical infrastructure solutions for data centers and similar crucial facilities, including electrical testing, electrical switchgear maintenance, breaker testing, UPS service and maintenance, and battery and power distribution unit service and maintenance.
With the addition of Quality Uptime, we now offer comprehensive and complementary critical infrastructure solutions for data centers and similar crucial facilities, including electrical testing, electrical switchgear maintenance, breaker testing, UPS service and maintenance, and battery and power distribution unit service and maintenance. In 2025, we acquired LMC FM Limited (“LMC”), a Dublin-based facilities services company with coverage across Ireland.
Culture and inclusion With a widely distributed workforce serving over 20,000 clients across multiple nations and geographic regions, ABM’s culture, and the team member experience it supports, plays a vital role in attracting, retaining, and engaging talent.
Culture With a widely distributed workforce serving over 20,000 clients across multiple nations and geographic regions, ABM’s culture — and the employee experience it enables — remains critical to attracting, retaining, and engaging top talent.
One of the cornerstones of our ThinkSafe program is designed to help leaders identify workplace hazards and implement changes to prevent accident or injury. In our frontline leader training, participants are guided in creating a culture of safety and provided guidance on practices to support our employees receiving the right care at the right time to expedite their recovery.
In our frontline leader training, participants are guided in creating a culture of safety and provided guidance on practices to support our employees receiving the right care at the right time to expedite their recovery.
REPORTABLE SEGMENTS AND DESCRIPTIONS B&I, our largest reportable segment, encompasses janitorial, facilities engineering, and parking services for commercial real estate properties (including corporate offices for high-tech clients), sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities. B&I also provides vehicle maintenance and other services to rental car providers.
REPORTABLE SEGMENTS AND DESCRIPTIONS B&I, our largest reportable segment, encompasses comprehensive facility solutions, including janitorial and maintenance, facilities engineering, and parking and transportation management to a diverse range of clients. Our expertise extends to commercial real estate properties, including corporate offices for high-tech clients, sports and entertainment venues, and both traditional hospitals and non-acute healthcare facilities.
As part of the transformation initiative, we also evaluated all of our service offerings and sold our Security and Government Services businesses, which did not align with our long-term focus on specialized industry groups.
As part of the transformation initiative, we also evaluated all of our service offerings and sold our Security and Government Services businesses, which did not align with our long-term focus on specialized industry groups. 2 In 2017, we acquired GCA Services Group (“GCA”), a provider of integrated facility services to educational institutions and commercial facilities representing the largest acquisition in ABM history.
In addition, with the increasing frequency of cyber-related frauds perpetrated to obtain inappropriate payments, we need to ensure our internal controls related to authorizing the transfer of funds and changing our vendor master files are adequate.
We are required to include our assessment of the effectiveness of the internal controls over financial reporting of entities we acquire in our overall assessment, so we must plan to complete the evaluation and integration of internal controls over financial reporting and report our assessment within the required time frame. 16 In addition, with the increasing frequency of cyber-related frauds perpetrated to obtain inappropriate payments, we need to ensure our internal controls related to authorizing the transfer of funds and changing our vendor master files are adequate.
(For example, during the second quarter of 2020, given the general deterioration in economic and market conditions arising from the COVID-19 Pandemic (“the Pandemic”), we identified a triggering event that resulted in the impairment of goodwill and intangible assets.) The assumptions used to determine impairment require significant judgment, and the amount of the impairment could have a material adverse effect on our reported financial results for the period in which the charge is taken.
The assumptions used to determine impairment require significant judgment, and the amount of the impairment could have a material adverse effect on our reported financial results for the period in which the charge is taken.
More information about our sustainability performance, progress, and goals can be found in the Human Capital section of this report and in the Corporate Responsibility section of the Company’s corporate website.
Additional information is available in the Human Capital section of this report and on the Company’s website under Corporate Responsibility.
Our Board of Directors oversees ABM’s corporate responsibility-related risks and priorities with the assistance of its committees.
Our Board of Directors and its committees oversee corporate responsibility-related risks and priorities. The Board’s Governance Committee is responsible for oversight of the Company’s corporate governance and overall corporate-responsibility framework.
Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. We typically provide services to clients in this segment under master services agreements. These agreements are typically re-bid upon renewal and are generally structured as monthly fixed-price, square-foot, cost-plus, parking, transaction-price, and hourly arrangements .
Aviation provides comprehensive support services to airlines and airports, including parking and transportation management, janitorial and maintenance services, passenger assistance, catering logistics, aircraft cabin maintenance, and transportation solutions. We typically provide services to clients in this segment under master services agreements.
Human resources, hiring, and training With a team of approximately 117,000 employees across the United States, UK, Ireland, and other locations, we have invested in and implemented a variety of systems and tools designed to centralize and standardize hiring and training practices, including regional recruitment strategies, applicant tracking technology, and advanced analytics that provide actionable insights in our HR processes.
Human resources, hiring, and training With a team of approximately 113,000 employees across the United States, UK, Ireland, and other locations, we continue to enhance our hiring, training, and development practices to support an engaged workforce.
Two clients accounted for approximately 26% of revenues for this segment in 2024. Technical Solutions specializes in facility infrastructure, mechanical and electrical services, EV power design, installation and maintenance, microgrid systems design, installation and maintenance, including uninterrupted power supply system and power distribution units.
Technical Solutions specializes in comprehensive facility infrastructure services, including mechanical and electrical systems, as well as design, installation, and maintenance of microgrid systems encompassing UPS systems, power distribution units and EV charging stations. These offerings are strategically leveraged for cross-selling across all our industry groups, both domestically and internationally.
Additionally, our internal culture, environmental sustainability, and inclusion efforts are led by cross functional teams that include employees across the enterprise, and are aimed to advance our corporate responsibility strategies, and regularly present to the Board of Directors’ Stakeholder and Enterprise Risk Committee.
ABM’s cross-functional teams, including representatives from sustainability, human resources, legal, procurement, operations, and communications, are responsible for advancing the Company’s Corporate Responsibility initiative across the enterprise. These teams regularly present to the Board of Directors’ Stakeholder and Enterprise Risk Committee.
Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31. Forward-Looking Strategic Plan Leveraging the various accomplishments achieved through 2020 Vision , the Company embarked on the next step of its journey in 2021 with a multiyear strategic plan called ELEVATE .
Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31.
This program is designed to enhance the management and coaching skills of frontline supervisors to improve the employee experience, create an environment for career growth, and increase retention. In 2024, we re-launched our Leadership Academy designed for middle- and senior-level leaders from across the enterprise.
We continue to invest in employee growth and leadership development programs such as our Frontline Leader Essentials Program and Leadership Foundations, which build supervisory and management skills across our frontline workforce. For middle- and senior-level leaders, our Leadership Academy focuses on strengthening operational and leadership capabilities across the enterprise.
Corporate Responsibility Strategy and Oversight As a company with over 110 years of history, we understand the importance of embedding and integrating responsible and community-minded business practices into our operations and commit to standards to create value and support the long-term success of our business, shareholders, employees, and clients.
With more than 110 years of experience, ABM integrates responsible and community-minded business practices across its operations to create long-term value for shareholders, employees, clients, and the communities we serve. Our mission to make a difference, every person, every day — and our values of respect, excellence, integrity, innovation, trust, and collaboration guide our actions.
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In 2017, we acquired GCA Services Group (“GCA”), a provider of integrated facility services to educational institutions and commercial facilities, for approximately $1.3 billion, representing the largest acquisition in ABM history.
Added
Strategic Transformation and Systems Modernization Plan In 2021, ABM launched its multiyear ELEVATE transformation and systems modernization plan to strengthen our industry leadership, enhance our core service capabilities, and modernize ABM’s systems, processes, and tools — with a goal of advancing data integrity, technology enablement, and operational consistency to support long-term growth and value creation.
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The ELEVATE strategy is designed to strengthen our industry leadership position through end-market repositioning and building on our core services, which we expect together will drive significant long-term value for our stakeholders.
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As this work progresses, ABM is entering a phase of turning modernization efforts into measurable performance improvements across our enterprise.
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We will continue to make significant investments over the life of the program, which are expected to total $200 - $215 million, and we will continue to implement various measures with the aim to ELEVATE : • the client experience, by serving as a trusted advisor who can provide innovative multiservice solutions and consistent service delivery; • the team member experience, by investing in workforce management, training, developing the next generation of ABM leaders, and building on our inclusive culture; and • our use of technology and data to power client and employee experiences with cutting-edge data and analytics, processes, and tools that will fundamentally change how we operate our business. 3 Contract Types We generate revenues under several types of contracts, as explained below.
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Looking ahead, ABM will continue to advance this transformation and modernization program where appropriate while optimizing systems and processes company-wide that we expect to drive performance, strengthen client trust, and create long-term value for shareholders. 3 Contract Types We generate revenues under several types of contracts, as explained below.
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These services can also be leveraged for cross-selling across all of our industry groups, both domestically and internationally. Contracts for this segment are generally structured as electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trade.
Added
These agreements are typically re-bid upon renewal and are generally structured as monthly fixed-price, square-foot, cost-plus, parking, transaction-price, and hourly arrangements. Two clients accounted for approximately 27% of revenues for this segment in 2025. Education delivers comprehensive facility services to public school districts, private schools, colleges, and universities.
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Macro-Economic Environment in Commercial Real Estate On an ongoing basis, we monitor changes to the macro-economic environment and their potential impacts on demand for our services and on our financial condition. One such monitored change is the strength or softness of the commercial real estate industry, especially multi-tenant and owner-occupied commercial office buildings.
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Contracts for this segment are generally structured as electrical contracting services for energy related products.
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The recent softness in that market is primarily attributable to the lingering effects of the Pandemic, especially the normalization of hybrid work, which has resulted in higher office vacancy rates.
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Our corporate responsibility strategy is built around three core pillars: environmental stewardship, our workforce, and responsible business practices. • Environmental stewardship focuses on integrating technologies and practices that reduce environmental impact for us and our clients, improve energy efficiency, and promote responsible use of resources. • Our workforce emphasizes a people-centered culture that values, develops, and empowers employees while fostering inclusion, safety, and community engagement through programs such as ABM Cares. • Responsible business practices ensure operations are conducted ethically and transparently through strong governance, compliance, and supply chain integrity.
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Given that Class A and high-quality commercial office buildings are a key end market for us, we have experienced modest declines in demand for janitorial services and work orders in these markets. We expect the occupancy rates of Class A and high-quality buildings and back-to office trends to improve throughout 2025.
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In 2024, we established a management-level Sustainability Committee to integrate sustainability capabilities across business functions and client offerings and to support innovation and measurable impact. Since 2011, ABM has voluntarily published an annual Corporate Responsibility Report, aligned with GRI, SASB, and IFRS Sustainability Disclosure Standards, to communicate our performance, progress, and goals.
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Since 2011, we have voluntarily published a Corporate Responsibility Report on an annual basis in alignment with the Global Reporting Initiative framework and the Sustainability Accounting Standards Board to address our business, our employees, and the environment.
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We utilize regional recruitment strategies, applicant-tracking technology, and analytics tools to improve efficiency and consistency in our human capital processes, with particular focus on attracting, retaining, and developing our frontline employees, who represent the majority of our workforce.
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These efforts are intended to drive ongoing improvement in the attraction, retention, and engagement of our frontline employees, who constitute the majority of our workforce. As we continue to elevate our employee experience and prepare our next generation of internal leaders, we continued to grow our frontline leadership program, which we launched enterprise-wide in 2022.
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Our online training platform, ABM University, provides employees access to a wide range of on-demand courses and development resources.
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The 2024 class participated in the four-month development program, which provided a broader operational understanding of the organization, identified and closed development gaps, and accelerated such employees’ readiness for future growth as effective leaders. Our online training platform, ABM University, provides our staff and management employees with access to a multitude of training courses, videos, reference material, and other tools.
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One of the cornerstones of our “Think Safe, Act Safe, Be Safe” program is designed to help leaders identify workplace hazards and implement changes to prevent accident or injury.
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Additionally, our frontline employees 7 receive on-the-job training specific to their role and location to enable us to deliver for our clients in a safe and efficient manner.
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The Company continues to strengthen a culture of inclusion and belonging for all employees, where individuals from all backgrounds are empowered to contribute fully, develop their capabilities, and advance their careers. We believe our enterprise-wide focus on our culture enhances engagement, safety, and innovation — key drivers of operational excellence and long-term value creation.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

81 edited+17 added−32 removed44 unchanged
Biggest changeFinancial Information for Each Reportable Segment Year Ended October 31, 2024 vs. 2023 ($ in millions) 2024 2023 2022 Increase/(Decrease) Revenues Business & Industry $ 4,059.1 $ 4,089.4 $ 4,095.9 $ (30.3) (0.7)% Manufacturing & Distribution 1,554.3 1,526.7 1,445.2 27.6 1.8% Aviation 1,032.6 925.7 804.0 106.9 11.5% Education 904.0 880.4 834.7 23.6 2.7% Technical Solutions 809.3 674.2 626.8 135.1 20.0% $ 8,359.4 $ 8,096.4 $ 7,806.6 $ 263.0 3.2% Operating profit (loss) Business & Industry $ 307.0 $ 315.6 $ 334.9 $ (8.6) (2.7)% Operating profit margin 7.6 % 7.7 % 8.2 % (15) bps Manufacturing & Distribution 166.3 161.7 161.8 4.6 2.8% Operating profit margin 10.7 % 10.6 % 11.2 % 11 bps Aviation 59.1 60.0 29.3 (0.9) (1.4)% Operating profit margin 5.7 % 6.5 % 3.6 % (75) bps Education 55.3 49.7 47.1 5.6 11.4% Operating profit margin 6.1 % 5.6 % 5.6 % 48 bps Technical Solutions 69.4 53.2 63.8 16.2 30.4% Operating profit margin 8.6 % 7.9 % 10.2 % 68 bps Government Services — — (0.3) — NM* Operating profit margin NM* NM* NM* NM* Corporate (433.1) (226.6) (284.5) 206.5 (91.1)% Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (6.5) (3.9) (2.4) (2.6) (69.4)% Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (5.5) (0.3) (0.9) (5.2) NM* $ 212.0 $ 409.5 $ 348.8 $ (197.5) (48.2)% *Not meaningful 27 The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023 Business & Industry Year Ended October 31, ($ in millions) 2024 2023 Increase Revenues $ 4,059.1 $ 4,089.4 $ (30.3) (0.7)% Operating profit 307.0 315.6 (8.6) (2.7)% Operating profit margin 7.6 % 7.7 % (15) bps B&I revenues decreased by $30.3 million, or 0.7%, to $4,059.1 million during 2024, as compared to 2023.
Biggest changeFinancial Information for Each Reportable Segment Year Ended October 31, 2025 vs. 2024 ($ in millions) 2025 2024 2023 Increase/(Decrease) Revenues Business & Industry $ 4,126.0 $ 4,059.1 $ 4,089.4 $ 66.9 1.6% Manufacturing & Distribution 1,618.6 1,554.3 1,526.7 64.3 4.1% Aviation 1,118.7 1,032.6 925.7 86.1 8.3% Education 922.0 904.0 880.4 18.0 2.0% Technical Solutions 960.6 809.3 674.2 151.3 18.7% $ 8,745.9 $ 8,359.4 $ 8,096.4 $ 386.5 4.6% Operating profit (loss) Business & Industry $ 316.9 $ 307.0 $ 315.6 $ 9.9 3.2% Operating profit margin 7.7 % 7.6 % 7.7 % 12 bps Manufacturing & Distribution 151.4 166.3 161.7 (14.9) (8.9)% Operating profit margin 9.4 % 10.7 % 10.6 % (134) bps Aviation 65.2 59.1 60.0 6.1 10.3% Operating profit margin 5.8 % 5.7 % 6.5 % 10 bps Education 67.7 55.3 49.7 12.4 22.2% Operating profit margin 7.3 % 6.1 % 5.6 % 122 bps Technical Solutions 86.5 69.4 53.2 17.1 24.6% Operating profit margin 9.0 % 8.6 % 7.9 % 42 bps Corporate (370.5) (433.1) (226.6) (62.6) 14.5% Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (4.6) (6.5) (3.9) 1.9 29.3% Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.8) (5.5) (0.3) 4.7 84.9% $ 311.7 $ 212.0 $ 409.5 $ 99.7 47.0% *Not meaningful 28 The Year Ended October 31, 2025, Compared with the Year Ended October 31, 2024 Business & Industry Year Ended October 31, ($ in millions) 2025 2024 Increase Revenues $ 4,126.0 $ 4,059.1 $ 66.9 1.6% Operating profit 316.9 307.0 9.9 3.2% Operating profit margin 7.7 % 7.6 % 12 bps B&I revenues increased by $66.9 million, or 1.6%, to $4,126.0 million during 2025, as compared to 2024.
Operating cash flows primarily depend on: revenue levels; profitability levels of our jobs; the quality and timing of collections of accounts receivable; the timing of payments to suppliers and other vendors; the timing and amount of income tax payments; the actual payments of contingent consideration made in excess of the acquisition-date fair value; and the timing and amount of payments on insurance claims and legal 32 settlements.
Operating cash flows primarily depend on: revenue levels; profitability levels of our jobs; the quality and timing of collections of accounts receivable; the timing of payments to suppliers and other vendors; the timing and amount of income tax payments; the actual payments of contingent consideration made in excess of the acquisition-date fair value; and the timing and amount of payments on insurance claims and legal settlements.
We may repay amounts borrowed under the Amended Credit Facility at any time without penalty.
Additionally, we may repay amounts borrowed under the Amended Credit Facility at any time without penalty.
See Note 11, “Credit Facility,” in the Financial Statements for further detail of our debt and the timing of expected future principal and interest payments. 33 • Operating and Finance Leases – We enter into various noncancelable l ease agreements for office space, parking facilities, warehouses, vehicles, and equipment used in the normal course of business.
See Note 12, “Credit Facility,” in the Financial Statements for further detail of our debt and the timing of expected future principal and interest payments. • Operating and Finance Leases – We enter into various noncancelable l ease agreements for office space, parking facilities, warehouses, vehicles, and equipment used in the normal course of business.
Insurance claim liabilities represent our estimate of retained risks without regard to insurance coverage. We retain a substantial portion of the risk related to certain workers’ compensation and medical claims. Liabilities associated with these losses include estimates of both filed claims and incurred but not reported claims (“IBNR Claims”).
Insurance claim liabilities represent our estimate of retained risks without regard to insurance coverage. We retain a substantial portion of the risk related to certain workers’ compensation and medical claims. Liabilities associated with these losses include estimates of both claims filed and incurred but not reported (“IBNR”) Claims.
At October 31, 2024, we had $2.6 billion of goodwill. Our goodwill is included in the following segments: $1.1 billion — B&I $502.2 million — M&D $459.3 million — Education $69.4 million — Aviation $449.6 million — Technical Solutions A goodwill impairment analysis was performed for each of our reporting units on August 1, 2024.
At October 31, 2025, we had $2.6 billion of goodwill. Our goodwill is included in the following segments: $1.1 billion — B&I $502.2 million — M&D $459.3 million — Education $69.6 million — Aviation $461.4 million — Technical Solutions A goodwill impairment analysis was performed for each of our reporting units on August 1, 2025.
The Year Ended October 31, 2023, Compared with the Year Ended October 31, 2022 For a comparison of our Results of Operations for the year ended October 31, 2023, to the year ended October 31, 2022, see “Part II, Item 7.
The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023 For a comparison of our Results of Operations for the year ended October 31, 2024, to the year ended October 31, 2023, see “Part II, Item 7.
While U.S. federal tax expense has been recognized as a 31 result of the Tax Cuts and Jobs Act of 2017, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized.
While U.S. federal tax expense had been recognized as a result of the Tax Cuts and Jobs Act of 2017, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized.
After analyzing recent loss development patterns, comparing the loss development patterns against benchmarks, and applying actuarial projection methods to estimate the ultimate losses, we increased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with IBNR Claims during 2024 by $20.3 million.
After analyzing recent loss development patterns, comparing the loss development patterns against benchmarks, and applying actuarial projection methods to estimate the ultimate losses, we increased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with IBNR Claims during 2025 by $23.3 million.
Our principal operations are in the United States, and in 2024 our U.S. operations generated approximately 93% of our revenues. Strategic Growth We remain focused on long-term, profitable growth by delivering valued service offerings to both new and existing clients within our industry groups and across our many service lines.
Our principal operations are in the United States, and in 2025 our U.S. operations generated approximately 92% of our revenues. Strategic Growth We remain focused on long-term, profitable growth by delivering valued service offerings to both new and existing clients within our industry groups and across our many service lines.
The third-party claims administrators establish the case reserves based upon known factors related to the type and severity of the claims, demographic factors, legislative matters, and case law, as appropriate. We compare actual trends to expected trends and monitor claims developments.
The third-party claims administrators establish the case reserves based upon known factors related to the type and severity of the claims, demographic data, legislative matters, and case law, as appropriate. We compare actual trends to expected trends and monitor claims development.
There have been no significant changes to our critical accounting policies and estimates for the year ended October 31, 2024.
There have been no significant changes to our critical accounting policies and estimates for the year ended October 31, 2025.
We have future interest payments based on our hedged borrowings under our Amended Credit Facility of $15.7 million, which is payable within 12 months. The interest payments on our remaining borrowings under the Amended Credit Facility will be determined based upon the average outstanding balance of our borrowings and the prevailing interest rate during that time.
We have future interest payments based on our hedged borrowings under our Amended Credit Facility of $10.0 million, which is payable within 12 months. The interest payments on our remaining borrowings under the Amended Credit Facility will be determined based upon the average outstanding balance of our borrowings and the prevailing interest rate during that time.
The specific case reserves estimated by the third-party administrators are provided to the actuary who assists us in projecting an actuarial estimate of the overall ultimate losses for our self-insured or high deductible programs, which includes the case reserves plus an actuarial estimate of reserves required for additional developments, such as IBNR Claims.
The specific case reserves estimated by the third-party administrators are provided to an actuary who assists us in projecting an actuarial estimate of the overall ultimate losses for our self-insured or high deductible programs. The projection includes the case reserves plus an actuarial estimate of reserves required for additional developments, including IBNR Claims.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2023, filed with the SEC on December 18, 2023. 30 Liquidity and Capital Resources Our primary sources of liquidity are operating cash flows and borrowing capacity under our credit facility.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 19, 2024. 31 Liquidity and Capital Resources Our primary sources of liquidity are operating cash flows and borrowing capacity under our credit facility.
During 2024, 2023, and 2022, contributions made to these plans were $565.9 million, $574.6 million, and $555.1 million, respectively; however, our future contributions to the multiemployer plans are dependent upon a number of factors, including the funded status of the plans, the ability of other participating companies to meet ongoing funding obligations, and the level of our ongoing participation in these plans.
During 2025, 2024, and 2023, contributions made to these plans were $588.0 million, $565.9 million, and $574.6 million, respectively; however, our future contributions to the multiemployer plans are dependent upon a number of factors, including the funded status of the plans, the ability of other participating companies to meet ongoing funding obligations, and the level of our ongoing participation in these plans.
With the assistance of third-party actuaries, we review our estimate of ultimate losses for IBNR Claims on a quarterly basis and adjust our required self-insurance reserves as appropriate. As part of this evaluation, we review the status of existing and new claim reserves as established by third-party claims administrators.
With the assistance of third-party actuaries, we periodically review our estimate of ultimate losses for IBNR Claims and adjust our required self-insurance reserves as appropriate. As part of this evaluation, we review the status of existing and new claim reserves as established by our third-party claims administrators.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2023, filed with the SEC on December 18, 2023. 26 Segment Information Our current reportable segments consist of B&I, M&D, Education, Aviation, and Technical Solutions.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 19, 2024. 27 Segment Information Our current reportable segments consist of B&I, M&D, Aviation, Education, and Technical Solutions.
We believe that our cash on hand in the United States, along with our Amended Credit Facility and future domestic cash flows, are sufficient to satisfy our domestic liquidity requirements. Share Repurchases Effective December 13, 2023, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million of our common stock.
We believe that our cash on hand in the United States, along 32 with our Amended Credit Facility and future domestic cash flows, are sufficient to satisfy our domestic liquidity requirements. Share Repurchases Effective September 3, 2025, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million of our common stock.
Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At October 31, 2024, we were in compliance with these covenants and expect to be in compliance in the foreseeable future. During 2024, we made $32.5 million of principal payments under the term loan.
Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At October 31, 2025, we were in compliance with these covenants and expect to be in compliance in the foreseeable future. During 2025, we made $23.1 million of principal payments under the term loan.
See Note 12, “Employee Benefit Plans,” in the Financial Statements for more information. • Self-Insurance Obligations – We may make payments for exposures for which we are self-insured, including workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. At October 31, 2024, our self-insurance reserves, net of recoverables, were $517.3 million.
See Note 13, “Employee Benefit Plans,” in the Financial Statements for more information. • Self-Insurance Obligations – We may make payments for exposures for which we are self-insured, including workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. At October 31, 2025, our self-insurance reserves, net of recoverables, were $558.6 million.
These amounts are based on expected future service and were calculated using the same assumptions used to measure our benefit obligation at October 31, 2024. • Contingent Consideration Payable Connection with Our Acquisition of RavenVolt – At October 31, 2024, contingent consideration of up to $75.0 million in cash may be paid in calendar year 2025 if the RavenVolt business achieves certain financial targets in calendar year 2024, as defined in the merger agreement .
These amounts are based on expected future service and were calculated using the same assumptions used to measure our benefit obligation at October 31, 2025. 34 • Contingent Consideration Payable in Connection with Our Acquisition of RavenVolt and LMC – At October 31, 2025, contingent consideration related to the RavenVolt Acquisition of up to $205.0 million in cash may be paid in calendar year 2026 if the RavenVolt business achieves certain financial targets in calendar year 2025 or cumulative targets for calendar years 2023-2025, as defined in the merger agreement .
Dollar (“USD”) and the British pound sterling (“GBP”). Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.
Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.
We had contractual payments for these arrangements of $71.4 million, with $25.0 million payable within 12 months. • Information Technology Service Agreement s – Information technology service agreements represent outsourced services and licensing costs pursuant to our information technology agreements.
We had contractual payments for these arrangements of $50.9 million, with $17.9 million payable within 12 months. • Information Technology Service Agreement s – Information technology service agreements represent outsourced services and licensing costs pursuant to our information technology agreements.
Years Ended October 31, (in millions, except per share amounts) 2024 2023 Total number of shares purchased 1.17 3.34 Average price paid per share (1) $ 47.86 $ 41.06 Total cash paid for share repurchases (1) $ 55.8 $ 137.1 (1) Average price paid per share and total cash paid for share repurchases do not include any excise tax for stock repurchases as part of the Inflation Reduction Act of 2022.
Years Ended October 31, (in millions, except per share amounts) 2025 2024 Total number of shares purchased 2.56 1.17 Average price paid per share (1) $ 47.35 $ 47.86 Total cash paid for share repurchases (1) $ 121.3 $ 55.8 (1) Average price paid per share and total cash paid for share repurchases do not include any excise tax for share repurchases as part of the Inflation Reduction Act of 2022.
Dividends On December 5, 2024, we announced a quarterly cash dividend of $0.265 per share on our common stock, payable on February 3, 2025, to shareholders of record on January 2, 2025. We declared a quarterly cash dividend on our common stock every quarter during 2024, 2023, and 2022.
Dividends On December 17, 2025, we announced a quarterly cash dividend of $0.29 per share on our common stock, payable on February 2, 2026, to shareholders of record on January 14, 2026. We declared a quarterly cash dividend on our common stock every quarter during 2025, 2024, and 2023.
We repurchased shares under the share repurchase program during the year ended October 31, 2024, as summarized below. At October 31, 2024, authorization for $154.5 million of repurchases remained under the Share Repurchase Program.
We repurchased shares under the share repurchase program during the year ended October 31, 2025, as summarized below. At October 31, 2025, authorization for $183.1 million of repurchases remained under the Share Repurchase Program.
Material Cash Requirements from Contractual and Other Obligations As of October 31, 2024, our material cash requirements for our known contractual and other obligations were as follows: • Debt Obligations and Interest Payments – Outstanding payments on our Amended Credit Facility were $1,335.3 million, with $32.5 million payable within 12 months.
Material Cash Requirements from Contractual and Other Obligations As of October 31, 2025, our material cash requirements for our known contractual and other obligations were as follows: • Debt Obligations and Interest Payments – Outstanding payments on our Amended Credit Facility were $1,569.0 million, with $30.0 million payable within 12 months.
We had contractual payments for these agreements of $117.1 million, with $49.7 million payable within 12 months. • Benefit Obligations – Expected future payments relating to our defined benefit, postretirement, and deferred compensation plans were $38.1 million, with $3.4 million payable in 12 months.
We had contractual payments for these agreements of $147.7 million, with $68.9 million payable within 12 months. • Benefit Obligations – Expected future payments relating to our defined benefit, postretirement, and deferred compensation plans were $38.8 million, with $3.5 million payable in 12 months.
Year Ended October 31, (in millions) 2024 2023 2022 Net cash provided by operating activities 226.7 243.3 20.4 Net cash used in investing activities (171.9) (62.1) (241.5) Net cash (used in) provided by financing activities (61.5) (186.3) 235.5 Operating Activities Net cash provided by operating activities decreased by $16.6 million during 2024, as compared to 2023.
Year Ended October 31, (in millions) 2025 2024 2023 Net cash provided by operating activities 234.4 226.7 243.3 Net cash used in investing activities (115.6) (171.9) (62.1) Net cash used in financing activities (80.2) (61.5) (186.3) Operating Activities Net cash provided by operating activities increased by $7.7 million during 2025, as compared to 2024.
Based on these studies, the implied fair value of each of our reporting units was substantially in excess of its carrying value, with the exception of the Education reporting unit which had an excess of 25%. Therefore, we concluded there were no indicators of impairment.
Based on these studies, the implied fair value of each reporting units was substantially in excess of its carrying value. Therefore, we concluded there were no indicators of impairment.
Our net cash provided by operating cash activities was lower than prior year, primarily due to the timing of certain working capital requirements. • Dividends of $56.5 million were paid to shareholders, and dividends totaling $0.90 per common share were declared during 2024.
Our net cash provided by operating cash activities was higher than prior year, primarily due to the timing of certain working capital requirements. • Dividends of $65.6 million were paid to shareholders, and dividends totaling $1.06 per common share were declared during 2025.
See Note 10, “Insurance,” in the Financial Statements for further detail. • Unrecognized Tax Benefits – At October 31, 2024, our total liability for unrecognized tax benefits was $7.9 million.
See Note 11, “Insurance,” in the Financial Statements for further detail. • Unrecognized Tax Benefits – At October 31, 2025, our total liability for unrecognized tax benefits was $8.0 million.
The use of the cash received under these arrangements to pay project costs is classified as operating cash flows. Effect of Inflation The rates of inflation experienced in recent years have not had a material impact on our Financial Statements. We attempt to recover increased costs by increasing prices for our services to the extent permitted by contracts and competition.
Effect of Inflation The rates of inflation experienced in recent years have not had a material impact on our Financial Statements. We attempt to recover increased costs by increasing prices for our services to the extent permitted by contracts and competition.
The surety bonds typically remain in force for one to five years and may include optional renewal periods. As of October 31, 2024, these letters of credit totaled $57.9 million, and surety bonds and surety-backed letters of credit totaled $854.7 million, respectively.
The surety bonds typically remain in force for one to five years and may include optional renewal periods. As of October 31, 2025, these letters of credit totaled $23.5 million, and surety bonds and surety-backed letters of credit totaled $1,026.6 million, respectively.
In 2023, we decreased our total reserves related to prior years claims by $14.8 million. It is possible that actual results could differ from recorded self-insurance liabilities. Our insurance claims liabilities as of October 31, 2024 amounted to $619.4 million.
In 2024, we increased our total reserves related to prior years claims by $20.3 million. It is possible that actual results could differ from recorded self-insurance liabilities. Our insurance claims liabilities as of October 31, 2025, amounted to $660.1 million.
Revenue growth was comprised of organic growth of 2.9% and acquisition growth of 0.3%. The organic revenue growth was due to the higher project revenues due to the timing of certain microgrid systems design and installation projects within Technical Solutions, and net new business and expansion of business with existing customers within Aviation, M&D, and Education.
Revenue growth was comprised of organic growth of 3.8% and acquisition growth of 0.8%. The organic revenue growth was due to the net new business and expansion of business with existing customers within Aviation, B&I, M&D, and Education and higher microgrid projects within Technical Solutions.
We paid total annual dividends of $56.5 million, $57.5 million, and $51.9 million during 2024, 2023, and 2022, respectively.
We paid total annual dividends of $65.6 million, $56.5 million, and $57.5 million during 2025, 2024, and 2023, respectively.
Manufacturing & Distribution Year Ended October 31, ($ in millions) 2024 2023 Increase Revenues $ 1,554.3 $ 1,526.7 $ 27.6 1.8% Operating profit 166.3 161.7 4.6 2.8% Operating profit margin 10.7 % 10.6 % 11 bps M&D revenues increased by $27.6 million, or 1.8%, to $1,554.3 million during 2024, as compared to 2023.
Manufacturing & Distribution Year Ended October 31, ($ in millions) 2025 2024 Increase/(Decrease) Revenues $ 1,618.6 $ 1,554.3 $ 64.3 4.1% Operating profit 151.4 166.3 (14.9) (8.9)% Operating profit margin 9.4 % 10.7 % (134) bps M&D revenues increased by $64.3 million, or 4.1%, to $1,618.6 million during 2025, as compared to 2024.
Our effective tax rate for 2023 was primarily impacted by a $45.6 million non-taxable benefit related to the change in the fair value of contingent consideration related to the RavenVolt Acquisition. • Net cash provided by operating activities was $226.7 million during 2024.
Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable change to increase the fair value of the contingent consideration related to the RavenVolt Acquisition. • Net cash provided by operating activities was $234.4 million during 2025.
The decrease was primarily driven by the timing of working capital requirements. The decrease was partially offset by the absence of a $66.0 million payment of deferred payroll taxes done in 2023. Net cash provided by operating activities increased by $222.9 million during 2023, as compared to 2022.
The decrease was primarily driven by the timing of working capital requirements. The decrease was partially offset by the absence of a $66.0 million payment of deferred payroll taxes done in 2023. 33 Investing Activities Net cash used in investing activities decreased by $56.3 million during 2025, as compared to 2024.
The decrease in net cash used was primarily related to lower share buyback repurchases in 2024 and an increase in our book cash overdrafts. Net cash used in financing activities was $186.3 million in 2023, as compared to net cash provided by financing activities of $235.5 million in 2022.
This was partially offset by higher net borrowings from our Amended Credit Facility. Net cash used in financing activities was $61.5 million in 2024, as compared to $186.3 million in 2023. The decrease in net cash used was primarily related to lower share buyback repurchases in 2024 and an increase in our book cash overdrafts.
Additionally, we repurchased 1.17 million of shares for $55.8 million, excluding excise taxes during 2024. • At October 31, 2024, total outstanding borrowings under our Amended Credit Facility were $1,335.3 million, and we had up to $423.6 million of borrowing capacity. 24 Results of Operations Consolidated Years Ended October 31, 2024 vs. 2023 ($ in millions) 2024 2023 2022 Increase/(Decrease) Revenues $ 8,359.4 $ 8,096.4 $ 7,806.6 $ 263.0 3.2% Operating expenses 7,325.9 7,037.6 6,757.5 288.3 4.1% Gross margin 12.4 % 13.1 % 13.4 % (71) bps Selling, general and administrative expenses 765.3 572.8 628.3 192.5 33.6% Amortization of intangible assets 56.1 76.5 72.1 (20.4) (26.6)% Operating profit 212.0 409.5 348.8 (197.5) (48.2)% Income from unconsolidated affiliates 6.5 3.9 2.4 2.6 69.4% Interest expense (85.0) (82.3) (41.1) (2.7) (3.3)% Income before income taxes 133.6 331.1 310.0 (197.5) (59.7)% Income tax provision (52.2) (79.7) (79.6) 27.5 34.5% Net income 81.4 251.3 230.4 (169.9) (67.6)% Other comprehensive (loss)/income Interest rate swaps (22.9) (0.5) 36.7 (22.4) NM* Foreign currency translation and other 6.8 7.3 (19.8) (0.5) (6.5)% Income tax provision 6.3 0.1 (10.5) 6.2 NM* Comprehensive income $ 71.6 $ 258.1 $ 236.9 $ (186.5) (72.3)% *Not meaningful The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023 Revenues Revenues increased by $263.0 million, or 3.2%, to $8,359.4 million during 2024, as compared to 2023.
Additionally, we repurchased 2.6 million shares for $121.3 million, excluding excise taxes, during 2025. • At October 31, 2025, total outstanding borrowings under our Amended Credit Facility were $1,569.0 million, and we had up to $577.5 million of borrowing capacity. 25 Results of Operations Consolidated Years Ended October 31, 2025 vs. 2024 ($ in millions) 2025 2024 2023 Increase/(Decrease) Revenues $ 8,745.9 $ 8,359.4 $ 8,096.4 $ 386.5 4.6% Operating expenses 7,670.8 7,325.9 7,037.6 344.9 4.7% Gross margin 12.3 % 12.4 % 13.1 % (7) bps Selling, general and administrative expenses 697.4 765.3 572.8 (67.9) (8.9)% Restructuring and related expenses 13.4 — — 13.4 NM* Amortization of intangible assets 52.5 56.1 76.5 (3.6) (6.4)% Operating profit 311.7 212.0 409.5 99.7 47.0% Income from unconsolidated affiliates 4.6 6.5 3.9 (1.9) (29.3)% Interest expense (96.4) (85.0) (82.3) (11.4) (13.4)% Income before income taxes 219.9 133.6 331.1 86.3 64.6% Income tax provision (57.6) (52.2) (79.7) (5.4) (10.2)% Net income 162.4 81.4 251.3 81.0 99.6% Other comprehensive (loss)/income Interest rate swaps (9.3) (22.9) (0.5) 13.6 (59.3)% Foreign currency translation and other 5.5 6.8 7.3 (1.3) (19.5)% Income tax provision 2.4 6.3 0.1 (3.9) (62.0)% Comprehensive income $ 161.0 $ 71.6 $ 258.1 $ 89.4 NM* *Not meaningful The Year Ended October 31, 2025, Compared with the Year Ended October 31, 2024 Revenues Revenues increased by $386.5 million, or 4.6%, to $8,745.9 million during 2025, as compared to 2024.
Operating and finance lease obligations were $160.0 million, with $37.4 million payable within 12 months.
Operating and finance lease obligations were $148.4 million, with $38.1 million payable within 12 months.
Interest Rate Swaps We had a loss of $22.9 million on interest rate swaps during the year ended October 31, 2024, as compared to a loss of $0.5 million during the year ended October 31, 2023, primarily due to underlying changes in the fair value of our interest rate swaps.
Interest Rate Swaps We had a loss of $9.3 million and $22.9 million on interest rate swaps during the years ended October 31, 2025 and October 31, 2024, respectively, primarily due to underlying changes in the fair value of our interest rate swaps. Our interest rate swaps will mature in 2026.
Technical Solutions Year Ended October 31, ($ in millions) 2024 2023 Increase Revenues $ 809.3 $ 674.2 $ 135.1 20.0% Operating profit 69.4 53.2 16.2 30.4% Operating profit margin 8.6 % 7.9 % 68 bps Technical Solutions revenues increased by $135.1 million, or 20.0%, to $809.3 million during 2024, as compared to 2023.
Technical Solutions Year Ended October 31, ($ in millions) 2025 2024 Increase Revenues $ 960.6 $ 809.3 $ 151.3 18.7% Operating profit 86.5 69.4 17.1 24.6% Operating profit margin 9.0 % 8.6 % 42 bps Technical Solutions revenues increased by $151.3 million, or 18.7%, to $960.6 million during 2025, as compared to 2024.
At October 31, 2024, the total outstanding borrowings and standby letters of credit were $1,335.3 million and $57.9 million, respectively. At October 31, 2024, we had up to $423.6 million of borrowing capacity.
At October 31, 2025, the total outstanding borrowings and standby letters of credit were $1,569.0 million and $23.5 million, respectively. At October 31, 2025, we had up to $577.5 million of borrowing capacity.
We expect the RavenVolt business to achieve the aforementioned financial targets for calendar year 2024, and as such, we currently expect to make a $75.0 million payment in May 2025 for calendar year 2024.
We expect the RavenVolt business to achieve the financial target that would require a $32.5 million payment for calendar year 2025, and as such, we currently expect to make this payment in May 2026.
The projection includes the case reserves plus an actuarial estimate of reserves required for additional developments, including IBNR Claims. We utilize the results of actuarial studies to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. Our self-insurance liabilities contain uncertainties due to assumptions required and judgment used.
We utilize the results of actuarial studies to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. Our self-insurance liabilities contain uncertainties due to assumptions required and judgment used. Costs to settle our obligations, including legal and healthcare costs, could fluctuate and cause estimates of our self-insurance liabilities to change.
Corporate Year Ended October 31, ($ in millions) 2024 2023 Increase Corporate expenses $ (433.1) $ (226.6) $ 206.5 (91.1)% Corporate expenses increased by $206.5 million, or 91.1%, to $433.1 million during 2024, as compared to 2023.
Corporate Year Ended October 31, ($ in millions) 2025 2024 Decrease Corporate expenses $ (370.5) $ (433.1) $ (62.6) 14.5% Corporate expenses decreased by $62.6 million, or 14.5%, to $370.5 million during 2025, as compared to 2024.
Foreign Currency Translation and Other We had a foreign currency translation gain of $7.5 million during the year ended October 31, 2024, as compared to a foreign currency translation gain of $7.3 million during the year ended October 31, 2023. This change was due to fluctuations in the exchange rate between the U.S.
Foreign Currency Translation and Other We had a foreign currency translation gain of $5.5 million and $6.8 million during the years ended October 31, 2025 and October 31, 2024, respectively. This change was due to fluctuations in the exchange rate between the U.S. Dollar (“USD”), the British pound sterling (“GBP”), and the euro (“EUR”).
Aviation Year Ended October 31, ($ in millions) 2024 2023 Increase / (Decrease) Revenues $ 1,032.6 $ 925.7 $ 106.9 11.5% Operating profit 59.1 60.0 (0.9) (1.4)% Operating profit margin 5.7 % 6.5 % (75) bps Aviation revenues increased by $106.9 million, or 11.5% to $1,032.6 million, during 2024, as compared to 2023.
Aviation Year Ended October 31, ($ in millions) 2025 2024 Increase Revenues $ 1,118.7 $ 1,032.6 $ 86.1 8.3% Operating profit 65.2 59.1 6.1 10.3% Operating profit margin 5.8 % 5.7 % 10 bps Aviation revenues increased by $86.1 million, or 8.3% to $1,118.7 million, during 2025, as compared to 2024.
The increase was primarily attributable to net new business wins, partially offset by a decrease in work orders. Operating profit increased by $5.6 million, or 11.4% to $55.3 million during 2024, as compared to 2023. Operating profit margin increased by 48 bps to 6.1% in 2024 from 5.6% in 2023.
The increase was primarily attributable to net new business wins. Operating profit increased by $12.4 million, or 22.2% to $67.7 million during 2025, as compared to 2024. Operating profit margin increased by 122 bps to 7.3% in 2025 from 6.1% in 2024.
Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable expense related to the change in the fair value of the contingent consideration related to the RavenVolt Acquisition.
Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable change to increase the fair value of the contingent consideration related to the RavenVolt Acquisition, partially offset by a $7.3 million tax benefit for return to provision adjustments related to our non-U.S. operations, and a $5.5 million benefit related to energy efficiency incentives.
Revenue growth was comprised of organic growth of 16.1% and acquisition growth of 3.9%. The organic revenue increase was primarily driven by higher project revenues due to the timing of completions of microgrid systems and generators installation projects, partially offset by a decrease in electric vehicle charging station sales.
Revenue growth was comprised of organic growth of 10.2% and acquisition growth of 8.5%. The organic revenue increase was primarily driven by higher project revenues due to higher microgrid systems projects, partially offset by a decrease in electric vehicle charging station revenues. Acquisition growth was driven by $68.4 million of revenue from the Quality Uptime and LMC acquisitions.
On June 28, 2021, the Company amended and restated the Credit Facility (the “Second Amendment,” and the Credit Facility as amended, the “Amended Credit Facility”), extending the maturity date to June 28, 2026, and increasing the capacity of the revolving credit facility from $800.0 million to $1.3 billion and the then-remaining term loan outstanding from $620.0 million to $650.0 million.
On February 26, 2025, we amended and restated the Credit Facility (the “Amended Credit Facility”), extending the maturity date to February 26, 2030, and increasing the capacity of the revolving credit facility from $1.3 billion to $1.6 billion and the then-remaining term loan outstanding from $528.1 million to $600.0 million.
In addition, certain of these matters may not require cash settlements due to the utilization of credits and net operating loss carryforwards as well as other offsets, including the indirect benefit from other taxing jurisdictions that may be available. • Contingent Consideration Payable in Connection with Our Acquisition of RavenVolt – At October 31, 2024, contingent consideration of up to $205.0 million, of which $34.1 million has been accrued as of October 31, 2024, in cash may be paid in calendar year 2026 if the RavenVolt business achieves certain financial targets in calendar year 2025, as defined in the merger agreement. 34 Off-Balance Sheet Arrangements We have no off-balance sheet arrangements other than unrecorded standby letters of credit and surety bonds.
In addition, certain of these matters may not require cash settlements due to the utilization of credits and net operating loss carryforwards as well as other offsets, including the indirect benefit from other taxing jurisdictions that may be available. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements other than unrecorded standby letters of credit and surety bonds.
The organic revenue growth was due to the higher project revenues due to the timing of certain microgrid systems design and installation projects within Technical Solutions, and net new business and expansion of business with existing customers within Aviation, M&D, and Education.
The organic revenue growth was due to the net new business and expansion of business with existing customers within Aviation, B&I, M&D, and Education and higher microgrid projects within Technical Solutions. The increase in revenues was partially offset by strategic pricing decisions, including for contract rebids within B&I.
The increase was primarily driven by a $143.8 million payment made for the Bucio settlement in 2022 and the related income tax benefit. Investing Activities Net cash used in investing activities changed by $109.8 million during 2024, as compared to 2023. The change was primarily related to the Quality Uptime Acquisition, completed in 2024.
The decrease was primarily related to lower cash outflows for acquisitions in 2025. Net cash used in investing activities increased by $109.8 million during 2024, as compared to 2023. The change was primarily related to the Quality Uptime Acquisition, completed in 2024.
The revenue decrease was primarily driven by attrition of certain engineering clients and soft commercial office market conditions, partially offset by the new clients and existing client expansions both domestically and internationally. Management reimbursement revenues for this segment totaled $281.4 million and $270.1 million during 2024 and 2023, respectively.
The revenue increase was primarily driven by client expansions both domestic and international, partially offset by strategic pricing decisions on contract rebids and attrition of certain engineering clients. Management reimbursement revenues for this segment totaled $291.4 million and $281.4 million during 2025 and 2024, respectively.
We concluded there were no indicators of impairment. 37 38 Description Judgments and Uncertainties Effect if Actual Results Differ from Assumptions Insurance Reserves We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. Insurance claim liabilities represent our estimate of retained risks without regard to insurance coverage.
A 10% decrease in the estimated fair value of any of our reporting units would not have resulted in a different conclusion. 37 Description Judgments and Uncertainties Effect if Actual Results Differ from Assumptions Insurance Reserves We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks.
We believe that our technology and data investments will enable: the development and deployment of client-facing technology to improve service delivery to our clients; the use of advanced data analytics for sales targeting, employee retention, and recruiting; and the upgrade of our Enterprise Resource Planning and payroll systems. 22 Developments and Trends Macro-Economic Environment in Commercial Real Estate and Other On an ongoing basis, we monitor changes to the macro-economic environment and their potential impacts on demand for our services and on our financial condition.
We believe that our technology and data investments will enable: the development and deployment of client-facing technology to improve service delivery to our clients; the use of advanced data analytics for sales targeting, employee retention, and recruiting; and the upgrade of our Enterprise Resource Planning and payroll systems. 23 Developments and Trends Restructuring Program In the fourth quarter of 2025, we launched a restructuring program to further streamline our operations and improve the efficiency of our support functions.
The decrease in operating profit margin was partially offset by contract mix and labor efficiencies primarily due to increases in travel volume. 28 Education Year Ended October 31, ($ in millions) 2024 2023 Increase Revenues $ 904.0 $ 880.4 $ 23.6 2.7% Operating profit 55.3 49.7 5.6 11.4% Operating profit margin 6.1 % 5.6 % 48 bps Education revenues increased by $23.6 million, or 2.7%, to $904.0 million during 2024, as compared to 2023.
The increase in operating profit margin was primarily attributable to operational efficiencies, particularly in managing overhead costs. 29 Education Year Ended October 31, ($ in millions) 2025 2024 Increase Revenues $ 922.0 $ 904.0 $ 18.0 2.0% Operating profit 67.7 55.3 12.4 22.2% Operating profit margin 7.3 % 6.1 % 122 bps Education revenues increased by $18.0 million, or 2.0%, to $922.0 million during 2025, as compared to 2024.
We are currently evaluating the impact of implementing this guidance on our financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. 40
This ASU is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. 39
A 10% change in our projected ultimate losses would have affected net income by approximately $37.2 million for 2024. 39 Accounting Pronouncements Accounting Standard Updates Topic Summary Effective Date/ Method of Adoption 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU, issued in November 2023, improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
A 10% change in our projected ultimate losses would have affected net income by approximately $40.4 million for 2025. 38 Accounting Pronouncements Accounting Standard Updates Topic Summary Effective Date/ Method of Adoption 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU, issued in December 2023, is intended to enhance the transparency and decision usefulness of income tax disclosures.
These estimates are subject to: changes in the regulatory environment; fluctuations in projected exposures, including payroll, revenues, and the number of vehicle units; and the frequency, lag, and severity of claims. The full extent of certain claims, especially workers’ compensation and general liability claims, may not be fully determined for several years.
Incident rates, including frequency and severity, could fluctuate and cause the estimates in our self-insurance liabilities to change. These estimates are subject to: changes in the regulatory environment; fluctuations in projected exposures, including payroll, revenues, and the number of vehicle units; and the frequency, lag, and severity of claims.
Income Taxes During 2024 and 2023, we had effective tax rates of 39.1% and 24.1%, respectively, resulting in a provision for tax of $52.2 million and $79.7 million, respectively.
Income Taxes During 2025 and 2024, we had effective tax rates of 26.2% and 39.1%, respectively, resulting in an income tax provision of $57.6 million and $52.2 million, respectively. Our effective tax rate for 2025 was benefited by a $3.1 million return to provision adjustment related to our non-U.S. operations.
This decrease was primarily due to the lower amortization of intangibles, primarily intangibles acquired as part of the RavenVolt Acquisition. Interest Expense Interest expense increased by $2.7 million, or 3.3%, to $85.0 million during 2024, as compared to 2023, primarily driven by higher borrowings from our Amended Credit Facility to fund the Quality Uptime Acquisition.
This decrease was due to lower amortization of intangibles, primarily intangibles acquired as part of the Able and GCA acquisitions, partially offset by amortization of intangibles from the Quality Uptime and LMC acquisitions. Interest Expense Interest expense increased by $11.4 million, or 13.4%, to $96.4 million during 2025, as compared to 2024.
Acquisition growth of $26.3 million was driven by the Quality Uptime Acquisition, completed in the third quarter of 2024. Operating profit increased by $16.2 million, or 30.4%, to $69.4 million during 2024, as compared to 2023. Operating profit margin increased by 68 bps to 8.6% in 2024 from 7.9% in 2023.
Acquisition growth of $68.4 million was driven by revenue from the Quality Uptime and LMC acquisitions. • Operating profit increased by $99.7 million to $311.7 million during 2025, as compared to 2024.
In 2023, we decreased our total reserves related to prior year claims by $14.8 million. 23 Key Financial Highlights • Revenues increased by $263.0 million, or 3.2%, to $8,359.4 million during 2024, as compared to 2023. Revenue growth was comprised of organic growth of 2.9% and acquisition growth of 0.3%.
We will continue to review our overhead and cost structure for efficiency opportunities under this program. 24 Key Financial Highlights • Revenues increased by $386.5 million, or 4.6%, to $8,745.9 million during 2025, as compared to 2024. Revenue growth was comprised of organic growth of 3.8% and acquisition growth of 0.8%.
The increase was primarily attributable to the expansion of business with existing customers, partially offset by the expected rebalancing of the scope of work with an existing customer and a loss of a certain customer. Operating profit increased by $4.6 million, to $166.3 million during 2024, as compared to 2023.
The increase was primarily attributable to the expansion of business with existing clients and new business wins, including strategic pricing decisions for select new wins. This was partially offset by the loss of a certain customer in the first quarter of 2025. Operating profit decreased by $14.9 million, or 8.9%, to $151.4 million during 2025, as compared to 2024.
Operating profit margin increased by 11 bps to 10.7% in 2024 from 10.6% in 2023. The increase in operating profit margin was primarily attributable to the change in contract mix, partially offset by investments to hire certain technical expertise to support future growth.
Operating profit margin decreased by 134 bps to 9.4% in 2025 from 10.7% in 2024. The decrease in operating profit margin was primarily attributable to strategic pricing for select new wins and additional investments made in the second half of 2025 to hire certain technical expertise to support future growth.
Our effective tax rate for 2024 was primarily impacted by a $95.7 million non-taxable expense related to the change in the fair value of the contingent consideration related to the RavenVolt Acquisition.
The decrease in corporate expenses was primarily related to: • an absence of a $95.7 million adjustment to increase fair value of the contingent consideration related to the RavenVolt Acquisition in 2024, compared to a $1.6 million adjustment to decrease the fair value in 2025.
The Amended Credit Facility provides for the issuance of up to $350.0 million for standby letters of credit and the issuance of up to $75.0 million in swingline advances. The obligations under the Amended Credit Facility are secured on a first-priority basis by a lien on substantially all of our assets and properties, subject to certain exceptions.
The Amended Credit Facility provides for the issuance of up to $250.0 million for standby letters of credit and the issuance of up to $100.0 million in swingline advances.
Operating profit decreased by $8.6 million, or 2.7%, to $307.0 million during 2024, as compared to 2023. Operating profit margin decreased by 15 bps to 7.6% in 2024 from 7.7% in 2023. The decrease in operating profit margin was primarily driven by a change in contract mix and higher legal, bad debt, and insurance expense.
Operating profit increased by $9.9 million, or 3.2%, to $316.9 million during 2025, as compared to 2024. Operating profit margin increased by 12 bps to 7.7% in 2025 from 7.6% in 2024. The increase in operating profit margin was primarily driven by geographic mix and operational efficiencies achieved through our Restructuring Program.
The increase in selling, general and administrative expenses was primarily attributable to: • a $95.7 million fair value adjustment to increase the contingent consideration related to the RavenVolt Acquisition recorded during 2024, as compared to a $45.6 million fair value adjustment to decrease the contingent consideration recorded during 2023; 25 • a $24.3 million increase in costs associated with various systems’ go-live and other investments in technology; • an absence of a $24.0 million benefit from employee retention credits received during 2023; • an $8.8 million increase in accruals for actual and potential legal settlements; and • a $6.5 million increase in compensation and related expenses primarily due to higher compensation under certain incentive plans.
The decrease in selling, general and administrative expenses was primarily attributable to: • an absence of a $95.7 million adjustment to increase the fair value of the contingent consideration related to the RavenVolt Acquisition in 2024, compared to a $1.6 million adjustment to decrease the fair value in 2025.
The decrease was partially offset by: • labor efficiencies within B&I, Aviation, and Education, as well as contract mix within Technical Solutions, Aviation, and M&D; and • a decrease in amortization of intangibles, primarily related to the RavenVolt Acquisition. • Our effective tax rate on income was 39.1% for 2024, as compared to 24.1% during 2023.
The increase was partially offset by: • strategic pricing decisions for contract rebids and proactive extensions, combined with managing the timing of contract escalations to maintain and expand certain customer accounts within B&I, and • strategic pricing on select new wins within M&D. • Our effective tax rate on income was 26.2% for 2025, as compared to 39.1% during 2024.
Management reimbursement revenues for this segment totaled $36.3 million and $31.8 million during 2024 and 2023, respectively. Operating profit decreased by $0.9 million, to $59.1 million during 2024, as compared to 2023. Operating profit margin decreased by 75 bps to 5.7% in 2024, from 6.5% in 2023.
The increase was primarily attributable to new business and scope expansions with the existing clients as well as an increase in travel volume. Management reimbursement revenues for this segment totaled $50.2 million and $36.3 million during 2025 and 2024, respectively. Operating profit increased by $6.1 million, or 10.3%, to $65.2 million during 2025, as compared to 2024.
The Year Ended October 31, 2023, Compared with the Year Ended October 31, 2022 For a comparison of our Segment Information for the year ended October 31, 2023, to the year ended October 31, 2022, see “Part II, Item 7.
This decrease was partially offset by: • a $7.5 million increase in compensation and related expenses primarily due to higher salaries and certain incentive plans; • a $6.3 million increase in acquisition and integration costs; and • a $5.2 million increase in costs associated with systems’ go-live. 30 The Year Ended October 31, 2024, Compared with the Year Ended October 31, 2023 For a comparison of our Segment Information for the year ended October 31, 2024, to the year ended October 31, 2023, see “Part II, Item 7.
Net cash used in investing activities changed by $179.5 million during 2023, as compared to 2022. The change was primarily related to the Momentum and RavenVolt acquisitions, completed in 2022. Financing Activities Net cash used in financing activities was $61.5 million in 2024, as compared to net cash used in financing activities of $186.3 million in 2023.
Financing Activities Net cash used in financing activities was $80.2 million in 2025, as compared to $61.5 million in 2024. The increase in net cash used was primarily related to higher share buyback repurchases and a $75.0 million payment for contingent consideration related to the RavenVolt Acquisition, of which $59.0 million was classified as a financing cash outflow.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeABM provides regular, mandatory training for our employees regarding cybersecurity threats to bring awareness on how they can help prevent and report potential cybersecurity incidents. We also provide regular cybersecurity awareness reminders to our employees.
Biggest changeWe also regularly engage and retain expert independent external assessors and consultants to help continuously improve our security, posture, align with industry best practices, and evaluate external threats. We provide regular, mandatory training for our employees regarding cybersecurity threats to raise awareness of how employees can help prevent and report potential cybersecurity incidents.
The Chief Information Security Officer meets regularly with our executive management team to review our cybersecurity programs, objectives, trends and threats. Our Chief Information Officer has over 20 years of experience as a technology leader, with responsibilities for developing and executing technology strategies across diverse industries, including technology, commercial real estate, manufacturing, healthcare and aviation.
Our Chief Information Security Officer meets regularly with our executive management team to review our cybersecurity programs, objectives, trends, and threats. Our Chief Information Officer has over 20 years of experience as a technology leader, with responsibilities for developing and executing technology strategies across diverse industries, including technology, commercial real estate, manufacturing, healthcare, and aviation.
Item 1C. Cybersecurity Risk Management and Strategy ABM recognizes the importance of cybersecurity risk management, which is integrated within ABM’s overall enterprise risk management framework and is aligned with standard industry information security frameworks. Specifically, cybersecurity is one of the key risk topics covered within ABM’s enterprise risk framework through the Company’s regular identification, assessment, and reporting processes.
Item 1C. Cybersecurity Risk Management and Strategy ABM recognizes the importance of cybersecurity risk management, which is integrated within our overall enterprise risk management framework and is aligned with standard industry information security frameworks. Specifically, cybersecurity is one of the key risk topics covered within ABM’s enterprise risk framework through the Company’s regular identification, assessment, and reporting processes.
To date, the Company is not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition. However, the Company continues to face cybersecurity risks such as those described in "Item 1A.
To date, the Company is not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition. However, the Company continues to face cybersecurity risks such as those described in “Item 1A.
Governance ABM’s management is responsible for the day-to-day administration of the Company’s cybersecurity policies, processes, practices, and risk management. Within management, the Company's Chief Information Security Officer has specific responsibility for cybersecurity risk management, reporting to the Chief Information Officer.
Governance ABM’s management is responsible for the day-to-day administration of our cybersecurity policies, processes, practices, and risk management. Within management, the Company’s Chief Information Security Officer has specific responsibility for cybersecurity risk management and reports to our Chief Information Officer.
Our internal information security program is managed by a dedicated team of cybersecurity professionals led by our Chief Information Security Officer, who reports to our Chief Information Officer. We have implemented cross-functional cybersecurity processes, technologies, and controls to aid in our efforts to assess, identify, and mitigate cybersecurity-related risks, as well as to detect and prevent cybersecurity incidents.
Our internal information security program is managed by a dedicated team of cybersecurity professionals led by our Chief Information Security Officer, who reports to our Chief Information Officer. We have implemented cross-functional cybersecurity processes, technologies, and controls to assess, identify, and mitigate cybersecurity-related risks, and to detect and prevent cybersecurity incidents.
In connection with these updates, the Board of Directors reviews the Company’s cybersecurity programs and oversees the Company’s efforts to continually enhance the Company’s cybersecurity profile and to mitigate the risks relating to cybersecurity. The reports from ABM’s Chief Information Officer and Chief Information Security Officer also include updates on emerging trends and progress on overall enterprise cybersecurity priorities.
In connection with these updates, our Board of Directors reviews the Company’s cybersecurity programs and oversees the Company’s efforts to continually enhance the Company’s cybersecurity posture and to mitigate related risks. The reports from ABM’s Chief Information Officer and Chief Information Security Officer also include updates on emerging trends and progress on overall enterprise cybersecurity priorities.
ABM’s Chief Information Officer and Chief Information Security Officer regularly provide reports and updates to other members of senior management, the Board of Directors, and the Stakeholder and Enterprise Risk Committee.
ABM’s Chief Information Officer and Chief Information Security Officer regularly provide reports and updates to other members of senior management, our Board of Directors, and our Board’s Stakeholder and Enterprise Risk Committee.
In evaluating cybersecurity incidents, management considers the potential impact to our results of operations, control framework, and financial condition, as well as the potential impact, if any, to our business strategy or reputation.
In evaluating cybersecurity incidents, management considers the potential impact on our results of operations, control framework, and financial condition, as well as the potential impact, on our business strategy or reputation.
Our Board of Directors has ultimate oversight of the Company’s risk management and strategy related to its cybersecurity programs, policies, and practices, including (i) the Company’s processes for assessing, identifying, managing, and mitigating material risks from cybersecurity threats and emerging cybersecurity developments and 18 threats; (ii) whether any risks from cybersecurity threats have materially affected or are reasonably likely to materially affect the Company; (iii) the expertise of members of management with respect to assessing and managing risks from cybersecurity threats; and (iv) the Company’s disclosure controls and procedures with respect to material cybersecurity threats and incidents.
Our Board of Directors oversees the Company’s risk management and strategy related to its cybersecurity and artificial intelligence (“AI”) programs, policies, and practices, including (i) the Company’s processes for assessing, identifying, managing, and mitigating material risks from cybersecurity and AI-related threats and emerging developments; (ii) whether any risks from cybersecurity threats or AI technologies have materially affected or are reasonably likely to materially affect the Company; (iii) the expertise of members of management with respect 18 to assessing and managing risks from cybersecurity threats and AI technologies; and (iv) the Company’s disclosure controls and procedures with respect to material cybersecurity or AI-related risks and incidents.
Risk Factors" in this Annual Report on Form 10-K, and there can be no assurance that cybersecurity threats or incidents will not have a material adverse effect on the Company in the future. While the Company maintains cyber risk insurance, such insurance may not be sufficient to cover all losses from cybersecurity incidents.
Risk Factors” of this Annual Report on Form 10-K, and there can be no assurance that cybersecurity threats or incidents will not have a material adverse effect in the future. While we maintain cybersecurity risk insurance, such insurance may not be sufficient to cover all losses from cybersecurity incidents.
Our Chief Information Security Officer also has over 20 years of significant leadership experience in audit, risk, compliance, and security across complex global organizations, and formerly held Chief Information Security Officer roles leading cybersecurity efforts at two Fortune 500 organizations.
Our Chief Information Security Officer also has over 20 years of significant leadership experience in audit, risk, compliance, and security across complex global organizations and formerly served as Chief Information Security Officer at two Fortune 500 organizations.
The Board of Directors is assisted by its Stakeholder and Enterprise Risk Committee, which oversees the Company’s enterprise risk management program and the Company’s identification, evaluation, and mitigation of stakeholder risks, including those relating to cybersecurity.
The Board of Directors is assisted by its Stakeholder and Enterprise Risk Committee, which oversees the Company’s enterprise risk management program and the identification, evaluation, and mitigation of stakeholder risks, including those relating to cybersecurity. In addition, ABM maintains a monitoring system and escalation process to inform senior management and the Board of Directors of any potentially material cybersecurity issues.
Although the Company dedicates significant resources and efforts to protect against cybersecurity risks, the Company has experienced, and expects to continue to be subject to, cybersecurity threats.
We reinforce this training with periodic cybersecurity awareness reminders and phishing simulations. Although the Company dedicates significant resources to protecting against cybersecurity risks, the Company has experienced, and expects to continue to be subject to, cybersecurity threats.
We adhere to a risk-based, multi-layered “defense in depth” approach with multiple layers of security controls, including, but not limited to, security monitoring, endpoint protection, and identity and access management.
We adhere to a risk-based, multilayered “defense in depth” strategy that incorporates multiple layers of security controls, including, but not limited to, security monitoring, endpoint protection, and identity and access management. Our processes are designed to oversee and identify material risks from cybersecurity threats associated with third-party technologies and systems, including those that leverage artificial intelligence.
We maintain processes designed to oversee and identify material risks from cybersecurity threats associated with our use of third-party technologies and systems, including, as appropriate, pre-procurement assessment of contractual terms addressing cybersecurity and data protection, as well as review based on assessed vendor risk.
Where appropriate, these processes include pre-procurement assessments of contractual terms addressing cybersecurity and data protection, as well as reviews based on assessed vendor risk. We regularly test and assess our systems and controls to evaluate the maturity and effectiveness of our information security program.
Removed
We conduct regular testing and assessments of our systems and controls to evaluate our information security program’s maturity and effectiveness, and from time-to-time we engage and retain expert external assessors and consultants to help improve our security, stay aligned with industry best practices, evaluate external threats, and periodically conduct independent security assessments.
Added
Specifically, our cybersecurity operations team monitors and reviews cybersecurity developments and threats, conducts initial assessments of these threats, and escalates any matter requiring senior management’s attention to our Chief Information Officer. We have also developed cyber incident response plans and related playbooks to guide the handling of information security incidents, outlining a coordinated approach to investigate, contain, and mitigate incidents.
Removed
In addition, ABM has a monitoring system and an escalation process in place to inform senior management and the Board of Directors of any potentially material cybersecurity issues.
Added
These response plans establish clear communication protocols for notifying senior management and other key stakeholders based on defined severity thresholds. Under these plans, any significant incident is escalated to a multifunctional materiality committee comprised of management representatives for information technology, legal, compliance, operations, finance, and accounting.
Removed
Specifically, our cybersecurity operations team monitors and reviews cybersecurity developments and threats, makes an initial assessment of such developments and threats, and escalates to ABM’s Chief Information Officer matters determined to require the attention of members of senior management.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changePrincipal Properties as of October 31, 2024 Location Character of Office Approximate Square Feet Lease Expiration Date, Unless Owned Segment Dallas, Texas Warehouse and Operations Support 27,500 9/30/2028 Technical Solutions, B&I, Aviation, Corporate, and M&D Atlanta, Georgia Operations Support 37,000 10/31/2027 All New York, New York Corporate Headquarters 44,000 1/3/2032 Corporate and B&I Sugar Land, Texas Enterprise Services 62,500 3/31/2028 All Tustin, California Operations Support 40,000 7/31/2029 B&I and Technical Solutions San Francisco, California Operations Support 21,324 6/30/2029 B&I and Corporate Cumming, Georgia Operations Support 57,637 1/31/2034 Technical Solutions In addition to the above properties, we have other offices, warehouses, and parking facilities in various locations, primarily in the United States.
Biggest changePrincipal Properties as of October 31, 2025 Location Character of Office Approximate Square Feet Lease Expiration Date, Unless Owned Segment Sugar Land, Texas Enterprise Services 62,500 3/31/2028 All Cumming, Georgia Operations Support 57,637 1/31/2034 Technical Solutions New York, New York Corporate Headquarters 44,000 1/3/2032 Corporate and B&I Tustin, California Operations Support 40,000 7/31/2029 B&I and Technical Solutions Atlanta, Georgia Operations Support 37,000 10/31/2027 All Chicago, Illinois Operations Support 28,109 7/31/2034 B&I, EDU, and Corporate Dallas, Texas Warehouse and Operations Support 27,500 9/30/2028 Technical Solutions, B&I, Aviation, Corporate, and M&D Los Angeles, California Operations Support 25,722 11/30/2032 B&I San Francisco, California Operations Support 21,324 6/30/2029 B&I and Corporate In addition to the above properties, we have other offices, warehouses, and parking facilities in various locations, primarily in the United States.
See Note 5, “Leases,” in the Notes to consolidated financial statements for additional information regarding leases. We believe that these properties are well-maintained, in good operating condition, and suitable for the purposes for which they are used.
See Note 5, “Leases,” in the Notes to consolidated financial statements for additional information regarding leases. We believe that these properties are well-maintained, in good operating condition, and suitable for the purposes for which they are used. 19

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS. Information with respect to legal matters is set forth in Note 13, “Commitments and Contingencies,” in the Notes to consolidated financial statements (included in Part II., Item 8 of this Form 10-K) and is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. 19 PART II
Biggest changeITEM 3. LEGAL PROCEEDINGS. Information with respect to legal matters is set forth in Note 14, “Commitments and Contingencies,” in the Notes to consolidated financial statements (included in Part II., Item 8 of this Form 10-K) and is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. 20 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities (in millions, except per share amounts) Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan Period 8/1/2024 – 8/31/2024 — $ — — $ 186.5 9/1/2024 – 9/30/2024 0.13 $ 51.52 0.13 $ 180.0 10/1/2024 – 10/31/2024 0.49 $ 52.65 0.49 $ 154.5 Total 0.61 $ 52.42 0.61 (1) Average price paid per share does not include any excise tax for stock repurchases as part of the Inflation Reduction Act of 2022. 20 Performance Graph The following graph compares the five-year cumulative total return for our common stock against the Standard & Poor’s 500 Index (“S&P 500”) and the Standard & Poor’s SmallCap 600 Index (“S&P 600”).
Biggest changeIssuer Purchases of Equity Securities (in millions, except per share amounts) Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan Period 8/1/2025 – 8/31/2025 0.49 $ 46.83 0.49 $ 83.1 9/1/2025 – 9/30/2025 — $ — — $ 233.1 10/1/2025 – 10/31/2025 1.10 $ 45.41 1.10 $ 183.1 Total 1.59 $ 45.84 1.59 (1) Average price paid per share does not include any excise tax for share repurchases as part of the Inflation Reduction Act of 2022. 21 Performance Graph The following graph compares the five-year cumulative total return for our common stock against the Standard & Poor’s 500 Index (“S&P 500”) and the Standard & Poor’s SmallCap 600 Index (“S&P 600”).
The comparisons in the performance graph are based on historical data and are not indicative of, or intended to forecast, the possible future performance of our common stock. 21 ITEM 6. [RESERVED]
The comparisons in the performance graph are based on historical data and are not indicative of, or intended to forecast, the possible future performance of our common stock. 22 ITEM 6. [RESERVED]
Future dividends will be determined based on our earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors. At December 18, 2024, there were 2,823 registered holders of our common stock. Common Stock Repurchases Effective December 13, 2023, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million, respectively.
Future dividends will be determined based on our earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors. At December 18, 2025, there were 2,666 registered holders of our common stock. Common Stock Repurchases Effective September 3, 2025, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million.
Repurchased shares are retired and returned to an authorized but unissued status. At October 31, 2024, authorization for $154.5 million of repurchases remained under the Share Repurchase Program.
Repurchased shares are retired and returned to an authorized but unissued status. At October 31, 2025, authorization for $183.1 million of repurchases remained under the Share Repurchase Program.
INDEXED RETURNS Years Ended October 31, Company / Index 2019 2020 2021 2022 2023 2024 ABM Industries Incorporated $ 100.0 $ 97.4 $ 125.6 $ 129.3 $ 116.7 $ 160.4 S&P 500 Index 100.0 109.7 156.8 133.9 147.5 203.5 S&P SmallCap 600 Index 100.0 92.3 146.7 129.3 119.4 155.3 This performance graph shall not be deemed to be “soliciting material” or “filed” with the SEC, or subject to Regulation 14A or 14C, or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.
INDEXED RETURNS Years Ended October 31, Company / Index 2020 2021 2022 2023 2024 2025 ABM Industries Incorporated $ 100.0 $ 128.9 $ 132.8 $ 119.8 $ 164.7 $ 136.4 S&P 500 Index 100.0 142.9 122.0 134.4 185.5 225.3 S&P SmallCap 600 Index 100.0 158.9 140.2 129.4 168.3 177.5 This performance graph shall not be deemed to be “soliciting material” or “filed” with the SEC, or subject to Regulation 14A or 14C, or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInterest Rate Risk We are primarily exposed to interest rate risk through our variable rate borrowings under our Amended Credit Facility, as further described in Note 11 , “Credit Facility,” in the Financial Statements. Under the Amended Credit Facility, the term loan and U.S.-dollar-denominated borrowings under the revolver bear interest at a rate equal to one-month SOFR plus a spread.
Biggest changeInterest Rate Risk We are primarily exposed to interest rate risk through our variable rate borrowings under our Amended Credit Facility, as further described in Note 12 , “Credit Facility,” in the Financial Statements.
If we change our intent with respect to such international investment, we would expect to implement strategies designed to manage those risks in an effort to mitigate the effect of foreign currency fluctuations on our earnings and cash flows. 41
If we change our intent with respect to such international investment, we would expect to implement strategies designed to manage those risks in an effort to mitigate the effect of foreign currency fluctuations on our earnings and cash flows. 40
To limit exposure to upward movements in interest rates associated with our floating-rate, SOFR-based borrowings, we entered into interest rate swap agreements to fix the interest rates on a portion of our outstanding borrowings. At October 31, 2024, we had interest rate swaps with an underlying notional amount of $695.0 million and fixed interest rates ranging from 1.72% to 3.81%.
To limit exposure to upward movements in interest rates associated with our floating-rate, SOFR-based borrowings, we entered into interest rate swap agreements to fix the interest rates on a portion of our outstanding borrowings. At October 31, 2025, we had interest rate swaps with an underlying notional amount of $620.0 million and fixed interest rates ranging from 1.72% to 3.81%.
Based on our average borrowings, interest rates, and interest rate swaps in effect at October 31, 2024 and 2023, a 100 basis point increase in SOFR, EURIBOR, and SONIA would decrease our future earnings and cash flows by $5.6 million and $5.4 million, respectively.
Based on our average borrowings, interest rates, and interest rate swaps in effect at October 31, 2025 and 2024, a 100 basis point increase in SOFR, EURIBOR, and SONIA would decrease our future earnings and cash flows by $7.5 million and $5.6 million, respectively.
Euro- and sterling-denominated borrowings under the revolver bear at rate equal to the EURIBOR and SONIA reference rates, respectively, plus a spread. At October 31, 2024, we had total outstanding borrowings of $1,335.3 million.
Euro and sterling-denominated borrowings under the revolver bear at rate equal to the Euro Interbank Offered Rate (“EURIBOR”) and Sterling Overnight Index Average (“SONIA”) reference rates, respectively, plus a spread. At October 31, 2025, we had total outstanding borrowings of $1,569.0 million.
As actual interest rate movements over time are uncertain, our interest rate swaps pose potential interest rate risks if interest rates decrease. As of October 31, 2024, the fair value of our interest rate swap agreements was an asset of $13.5 million.
As actual interest rate movements over time are uncertain, our interest rate swaps pose potential interest rate risks if interest rates decrease. As of October 31, 2025, the fair values of our interest rate swap agreements were an asset of $4.3 million and a liability of $0.1 million.
Added
Under the Amended Credit Facility, the term loan and U.S.-dollar-denominated borrowings under the revolving line of credit (“Revolver”) bear interest at a rate equal to one-month of Secured Overnight Financing Rate (“SOFR”) plus a spread.

Other ABM 10-K year-over-year comparisons