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ABM Posts Q4 Revenue Beat, Announces $275 Million WGNSTAR Deal as 2026 Outlook Lifts Shares

Management signals near-term dilution from the all-cash WGNSTAR purchase with accretion beginning in 2027.

Overview

  • ABM reported fiscal Q4 revenue of $2.30 billion, topping estimates, with adjusted EPS of $0.88 that missed roughly $1.10 expected by analysts, and shares rose about 8% intraday.
  • The company agreed to buy WGNSTAR for about $275 million in cash, targeting closing in fiscal Q2 2026, with funding from cash and existing credit and reporting under Manufacturing & Distribution.
  • ABM guided for fiscal 2026 organic revenue growth of 3%–4%—about 4%–5% including WGNSTAR—and projected adjusted EPS of $3.85 to $4.15.
  • Quarterly metrics included adjusted EBITDA of $124.2 million and a 5.6% margin after a $22.2 million self-insurance adjustment, operating cash flow of $133.4 million, and total indebtedness of $1.6 billion.
  • Capital returns included repurchasing 1.6 million shares for $73 million with $183 million remaining under authorization and a 9% higher quarterly dividend of $0.29 payable Feb. 2, 2026.