ABM Industries Shares Surge Following $275 Million Acquisition of WGNSTAR
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: Benzinga
Quarterly Performance: ABM Industries reported fourth-quarter revenue of $2.30 billion, a 5.4% increase year-over-year, but adjusted net income fell short of expectations at $54.7 million. Adjusted EBITDA decreased to $124.2 million, impacted by a pre-tax adjustment related to self-insurance.
Strategic Initiatives: The company is focusing on investments in AI and has secured a significant aviation contract expected to boost revenue in 2026. CEO Scott Salmirs highlighted the team's execution in a challenging macro environment.
Share Buyback and Dividend: ABM repurchased 1.6 million shares for $73 million and announced a 29-cent quarterly dividend, reflecting a 9% increase, payable in February 2026.
Acquisition of WGNSTAR: ABM plans to acquire WGNSTAR for $275 million, which will enhance its Manufacturing & Distribution segment. The acquisition is expected to be slightly dilutive to adjusted EPS in fiscal 2026 but accretive in fiscal 2027, with closing anticipated in the second fiscal quarter of 2026.
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Analyst Views on ABM
Wall Street analysts forecast ABM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABM is 52.75 USD with a low forecast of 51.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 44.790
Low
51.00
Averages
52.75
High
54.00
Current: 44.790
Low
51.00
Averages
52.75
High
54.00
About ABM
ABM Industries Inc, which operates through its subsidiaries, is a provider of integrated facility, infrastructure, and mobility solutions. The Company’s segments include Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions. The B&I segment encompasses janitorial, facilities engineering, and parking services for commercial real estate properties, sports and entertainment venues, and other facilities. The M&D segment provides integrated facility services, engineering, janitorial, and other specialized services. The Education segment delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services. The Aviation segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The Technical Solutions segment specializes in facility infrastructure, mechanical and electrical services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Allocation: Goodman Financial's portfolio is shifting towards broad equity ETFs and short-duration bond funds, suggesting a strategic move to allocate capital to potentially more productive investment opportunities rather than maintaining its stake in ABM.
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