Baird Updates ABM Industries (ABM) Forecast After Better-Than-Expected Quarter

With a 5-Year Average Dividend Growth Rate of 8.16%, ABM Industries Incorporated (NYSE:ABM) is included among the Top 11 Dividend Kings to Buy for Safe Dividend Growth.

On June 8, Baird raised the firm’s price recommendation on ABM Industries Incorporated (NYSE:ABM) to $48 from $45. It reiterated a Neutral rating on the shares. Analyst Andrew Wittmann updated his model following the company’s strong quarterly results.

During ABM’s second-quarter 2026 earnings call, President, CEO, and Director Scott Salmirs said the company delivered a strong quarter. He highlighted organic revenue growth of 6.1% and noted that first-half new sales bookings reached $1.2 billion, setting a new record for ABM.

Salmirs also pointed to sequential margin improvement and a significant increase in free cash flow during the first half compared with the previous year. He said the company expects volumes to increase meaningfully in ATS and M&D, which should support stronger earnings and margin growth in the second half of the year.

Executive Vice President and CFO David Orr reported that revenue grew 8.4% year-over-year to a second-quarter record of $2.3 billion. He added that adjusted EBITDA increased by $5.8 million from the prior year to $131.7 million, while segment operating margin improved by 20 basis points sequentially to 7.3%.

ABM Industries Incorporated (NYSE:ABM) provides integrated facility, engineering, and infrastructure solutions. The company’s segments include Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions.

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