By Amira McKee

Shares of ABM Industries fell after the company logged lower-than-expected first-quarter profit on a decline in segment income.

The stock slid 6.1% to $40.55 in Tuesday morning trading. The shares have retreated 21% in the past year.

ABM, which offers janitorial, facilities engineering and parking services, recorded a first-quarter net income of $38.8 million, or 64 cents a share, compared with $43.6 million, or 69 cents a share, a year earlier.

Adjusted earnings came in at 83 cents a share, missing the 87 cents a share that analysts polled by FactSet had expected.

The decline in net income reflects lower segment income, most notably in the technical solutions business, and higher interest and tax expense, ABM said.

Revenue rose 6.1% to $2.24 billion, ahead of the $2.19 billion that Wall Street had forecast, according to FactSet.

The top-line growth was led by the technical solutions and aviation businesses, which benefited from strong demand for datacenter-related services and healthy air travel trends, the company said.

ABM reiterated its outlook for adjusted earnings of $3.85 to $4.15 in 2026, while Wall Street is modeling for adjusted earnings of $3.99, according to FactSet. The company expects revenue growth of 4% to 5% in 2026. Analysts polled by FactSet are looking for full-year revenue of $9.15 billion, representing growth of around 4.7%.

Write to Amira McKee at amira.mckee@wsj.com

(END) Dow Jones Newswires

March 10, 2026 11:09 ET (15:09 GMT)

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