On this page of StockholderLetter.com we present the latest annual shareholder letter from ABM INDUSTRIES INC /DE/ — ticker symbol ABM. Reading current and past ABM letters to shareholders can bring important insights into the investment thesis.

 •  2/14/2025 Letter Continued (Full PDF)
 •  2/10/2023 ABM Stockholder Letter
 •  2/15/2024 ABM Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  ABM Benford's Law Stock Score = 83

ABM Shareholder/Stockholder Letter Transcript:

Annual Report
2024


Dear Stockholders,
I am proud to share ABM   s journey of growth, achievements, and transformation during fiscal year
2024. Despite a dynamic macroeconomic environment, including a challenging commercial real
estate market, ABM demonstrated resilience and delivered signi  cant accomplishments. @uided
by our mission   making a di  erence every person, every day   we continued to create value for our
clients, team members, and stockholders.
2024 Financial and Operational Performance
This year, ABM achieved 3.2% total revenue growth, including 2.9% organic growth, reaching $8.4
billion in annual revenue. Highlights included double-digit revenue increases in our Technical
Solutions and Aviation segments, showcasing the strength of our strategic focus and investments in
innovation. Adjusted earnings exceeded our expectations heading into the year, as disciplined cost
management and operational e  iciencies mitigated challenges such as labor in  ation and
commercial real estate softness.
Segment Highlights
x
Business & Industry: Despite tough markets, our Business & Industry segment performed
well, driven by the strong growth of our United Kingdom business, the expansion of our
Sports & Entertainment business, and the resilience of our parking operations. Investments
in tools like Workforce Productivity Optimization helped to increase labor e  iciency,
bene  ting pro  tability.
x
Manufacturing & Distribution: Rebalancing and planned customer exits presented
challenges to growth within our Manufacturing & Distribution segment, but we overcame
them by strengthening relationships with existing clients and securing new business. These
achievements highlight the resilience of our served markets and the value we consistently
deliver.
x
Technical Solutions: Leading in revenue growth, our Technical Solutions segment
bene  ted from rapid microgrid expansion and data center-related activities, including a
recent ac  uisition. The Raven  olt team executed complex projects and secured signi  cant
new business, positioning us well for future growth.
x
Aviation: Strong domestic and international travel markets, combined with our purposebuilt, Arti  cial Intelligence-based ABM Clean tool, drove growth in our Aviation segment.
This industry-leading tool enables us to enhance maintenance and traveler experiences,
while boosting our clients    ability to drive tra  ic and revenue.
x
Education: Our Education segment delivered steady growth, fueled by the increased
adoption of ABM Performance Solutions. This o  ering improved client satisfaction and
demonstrated our ability to provide exceptional value to school districts, colleges, and
universities.

Advancing Strategic Initiatives
In 2  24, we made signi  cant progress on our ELE  ATE strategy, aimed at rede  ning facilities
management:
x
Migrating the Education segment to a cloud-based Enterprise Resource Planning system
and initiating similar transitions for the Business & Industry and Manufacturing &
Distribution segments.
x
Developing an Arti  cial Intelligence investment roadmap to help identify revenue
opportunities, streamline RFP responses, and enhance employee experiences.
x
Acquiring Quality Uptime Services to strengthen our data center capabilities, including
uninterrupted power supply systems and battery maintenance.
Commitment to Stockholders
We maintained a disciplined approach to capital allocation, repurchasing $56 million in stock, and
subsequent to year-end, raising our annual dividend by 18%, extending our record to 58
consecutive years of dividend growth. Our Corporate Responsibility Report detailed progress in
reducing our environmental impact, enhancing team member experiences, and supporting
communities. This earned us recognition as one of Newsweek   s Most Responsible Companies.
Looking Ahead to 2025
We enter   scal 2  25 with optimism and a clear vision for growth. In our Business & Industry
segment, the slow but steady recovery of commercial real estate signals a potential return to
growth later in the year. Meanwhile, robust activity in Manufacturing & Distribution, particularly
within the semiconductor and data center verticals, positions us well for long-term success.
Our $500 million backlog highlights Technical Solutions as a growth driver, supported by the
expected   vefold expansion of the U.S. microgrid market over the next decade. We expect Aviation
to bene  t from increasing passenger volumes and infrastructure investments, while Education
remains a stable foundation for earnings and cash   ow. These dynamics reinforce our con  dence
in delivering growth and shareholder value in 2025.
A Final Note of Gratitude
To our approximately 125,000 team members, thank you for your dedication, innovation, and
resilience, which made 2024 a remarkable year. To our stockholders, your trust and support enable
ABM to thrive in an ever-evolving marketplace. Together, we are building a stronger ABM, ready to
lead in a dynamic future.
We look forward to another year of growth, innovation, and positive impact in 2025.
Sincerely,
Scott Salmirs
President and Chief Executive O  icer




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 2/14/2025 Letter Continued (Full PDF)