ABM Industries Stock

ABM Industries Incorporated (ABM), through its subsidiaries, provides integrated facility, infrastructure, and mobility solutions.

Segments

The company operates through Business & Industry ('B&I'), Manufacturing & Distribution ('M&D'), Education, Aviation, and Technical Solutions segments.

B&I

This 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. The company provides 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

This segment provides integrated facility services, engineering, janitorial, and other specialized services in different types of manufacturing, distribution, and data center facilities. The company typically provides 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 2023.

Education

This segment 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.

Aviation

This segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The company typically provides 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. One client accounted for approximately 18% of revenues for this segment in 2023.

Technical Solutions

This segment specializes in facility infrastructure, mechanical and electrical services, including EV power design, installation, and maintenance, as well as microgrid systems installation. These services can also be leveraged for cross-selling across all of the company's 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.

Service Marks, Trademarks, and Trade Names

The company holds 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, ABM Vantage, Momentum Support Services, and RavenVolt, which the company deems important to its marketing activities, to its business, and, in some cases, to the franchising activities conducted by its Technical Solutions segment.

Sales and Marketing

The company's sales and marketing activities include digital engagement and direct interactions with prospective and existing clients, pricing, proposal management, and customer relationship management by dedicated business development teams, operations personnel, and management. These activities are executed by branch and regional sales, marketing, and operations teams assigned to its industry groups and are supported by centralized sales support teams, inside sales teams, and marketing personnel. The sales and marketing teams acquire, nurture, and manage leads through the sales buying process, as well as train personnel on product offerings, sales tools, and proposal systems, all governed by standard operating procedures.

Strategy

The key elements of the company's strategy are to provide innovative multiservice solutions and consistent service delivery; invest in workforce management, training, developing the next generation of ABM leaders, and building on its inclusive culture; and use of technology and data to power client and employee experiences with cutting-edge data and analytics, processes, and tools.

Acquisitions

In 2022, the company acquired RavenVolt, Inc. (RavenVolt), a leading nationwide provider of advanced turn-key microgrid systems utilized by diversified commercial and industrial customers, national retailers, utilities, and municipalities. A complementary extension of ABM's Technical Solutions service offerings, the addition of RavenVolt enhanced ABM's position as a market leader in electric vehicle (EV) charging infrastructure, power, and bundled energy solutions.

In 2022, the company acquired Momentum Support (Momentum), a leading independent provider of facility services, primarily janitorial, across Ireland and Northern Ireland. The addition of Momentum provided greater access to Momentum's blue-chip customer base, as well as an opportunity to cross sell ABM services to existing U.S. and UK-based clients who also have an operational footprint in Ireland and Northern Ireland.

As a result of these strategic initiatives and investments, the company has strengthened its ability to offer janitorial, engineering, parking and eMobility, infrastructure, electrical, lighting and energy solutions, HVAC and mechanical services, landscaping and turf services, and mission critical solutions across aviation, education, manufacturing and distribution, and commercial business industries, on a standalone basis or in combination, and positioned itself as a leading integrated facilities management company.

History

ABM Industries Incorporated was founded in 1909. The company was incorporated in Delaware in 1985.