ABM INDUSTRIES INC /DE/ (ABM)

ABM Industries Incorporated is a leading provider of integrated facility, infrastructure, and mobility solutions, tracing its roots to a San Francisco window washing business founded in 1909 and now generating revenue of more than $7.5 billion. Growing largely through acquisitions (including OneSource, Linc Group, Air Serv, GCA Services Group, Able, Momentum Support in Ireland and Northern Ireland, and RavenVolt), it offers janitorial, engineering, parking and eMobility, electrical, lighting and energy solutions, HVAC and mechanical services, landscaping and turf, and mission critical solutions, on a standalone or bundled basis, across the United States, the UK, and Ireland. Its reportable segments are Business & Industry (the largest, covering janitorial, facilities engineering, and parking for commercial real estate, high tech corporate offices, sports and entertainment venues, and hospitals and non-acute healthcare facilities, plus vehicle maintenance for rental car providers, and including Momentum); Manufacturing & Distribution (integrated facility, engineering, janitorial, and specialized services for manufacturing, distribution, and data center facilities); Education (janitorial, custodial, landscaping and grounds, engineering, and parking for public and private schools, colleges, and universities); Aviation (parking, janitorial, passenger assistance, catering logistics, air cabin maintenance, and transportation for airlines and airports, with one client at about 16% of segment revenue in 2022); and Technical Solutions (facility infrastructure, mechanical and electrical services, EV charging power design, installation and maintenance, and microgrid systems installation through RavenVolt, with franchised engineering services under the Linc Service and TEGG brands).

Revenue is earned under monthly fixed-price, square-foot, cost-plus, work order, transaction-price, hourly, parking (management reimbursement, leased location, allowance), energy savings and fixed-price repair, franchise, and microgrid installation contracts, most of which are won through competitive bids. No client exceeded 10% of consolidated revenue in 2022, 2021, or 2020, and the company competes mainly with regional and local owner-operated firms on price, service quality, and efficiency. Its strategy, ELEVATE, launched in 2021 as the successor to the 2020 Vision initiative, focuses on improving client and team member experiences, using technology and data, and expanding core capabilities through acquisitions, with planned investments of $150 to $175 million.

As of October 31, 2022, ABM employed approximately 127,000 people, about 35% covered by collective bargaining agreements, and direct labor costs were 70% of revenue.