ABM Industries Soars in Q2 2026: Strong Organic Revenue Growth and Record First-Half Bookings
The second quarter of 2026 has brought significant success for ABM Industries, with the company posting a strong organic revenue growth rate of 6.1%. This impressive performance was highlighted by President and Chief Executive Officer Scott Salmirs during the company's recent earnings call.
Organic revenue growth was particularly notable in Technical Solutions and Aviation, while Management & Development (M&D) saw healthy underlying demand complemented by the successful integration of the WGNSTAR acquisition. Education continued to show steady growth, with Business & Industry (B&I) posting flat organic numbers due to the exit of a large U.K. client and the company's decision to exit several other clients on the West Coast.
However, even in B&I, ABM executed well operationally, with margins improving sequentially and free cash flow up significantly in the first half compared to last year. As Salmirs noted, "We had a strong quarter." This sentiment was echoed by Executive Vice President and Chief Financial Officer David Orr, who emphasized the company's ability to navigate dynamic market conditions.
Looking ahead to the second half of 2026, ABM expects volume to ramp meaningfully in both Aviation Technical Services (ATS) and M&D. The service mix within ATS is also expected to improve as the project pipeline matures and backlog execution ramps sequentially. Furthermore, the company's cost discipline and price escalation actions are gaining traction, setting the stage for a significant step up in earnings and margins.
As ABM continues to capitalize on long-term growth opportunities, Salmirs emphasized the company's strong operating culture and commitment to capturing secular growth trends in areas like energy infrastructure, semiconductors, and airport monetization. The prime office recovery is also gaining traction, with U.S. office leasing approaching 2019 levels and net absorption turning positive for the first time since 2020.
ABM's success in B&I was highlighted by the company's recent wins, including a significant new facilities contract with one of the nation's leading commercial banks. As Salmirs noted, "This dynamic is translating into real wins." With its strong track record and solid operational performance, ABM Industries remains well-positioned to drive growth and deliver value to shareholders in the second half of 2026."
