ABM INDUSTRIES INC /DE/ABM
ABM INDUSTRIES INC /DE/ Revenue Disclosure
REVENUES
(1) Included in other accrued liabilities and deferred revenue on the Consolidated Balance Sheets.
Disaggregation of Revenues
We generate revenues under several types of contracts, which are further described in Note 2, “Basis of Presentation and Significant Accounting Policies.” Generally, the type of contract is determined by the nature of the services provided by each of our major service lines throughout our reportable segments; therefore, we disaggregate revenues from contracts with customers into major service lines. We have determined that disaggregating revenues into these categories best depicts how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. Our reportable segments are B&I, M&D, Education, Aviation, and Technical Solutions, as described in Note 18, “Segment and Geographic Information.”
| Year ended October 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| (in millions) | B&I | M&D | Aviation | Education | Technical Solutions | Total | ||||||||||||||||||||||||||||||||
| Major Service Line | ||||||||||||||||||||||||||||||||||||||
Janitorial(1) | $ | 2,849.4 | $ | 1,350.5 | $ | 228.1 | $ | 805.0 | $ | — | $ | 5,233.1 | ||||||||||||||||||||||||||
Aviation Services(2) | — | — | 502.6 | — | — | 502.6 | ||||||||||||||||||||||||||||||||
Parking and Transportation(3) | 430.3 | 53.1 | 335.0 | 0.4 | — | 818.8 | ||||||||||||||||||||||||||||||||
| Facility Solutions | $ | 3,279.7 | $ | 1,403.6 | $ | 1,065.8 | $ | 805.4 | $ | — | $ | 6,554.5 | ||||||||||||||||||||||||||
Operations and Maintenance(4) | 841.0 | 213.5 | 52.9 | 116.5 | — | 1,224.0 | ||||||||||||||||||||||||||||||||
Building & Energy Solutions(5) | 5.3 | 1.5 | — | — | 960.6 | 967.4 | ||||||||||||||||||||||||||||||||
| Engineering and Infrastructure Solutions | $ | 846.3 | $ | 215.0 | $ | 52.9 | $ | 116.5 | $ | 960.6 | $ | 2,191.4 | ||||||||||||||||||||||||||
| Total | $ | 4,126.0 | $ | 1,618.6 | $ | 1,118.7 | $ | 922.0 | $ | 960.6 | $ | 8,745.9 | ||||||||||||||||||||||||||
| Year ended October 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| (in millions) | B&I | M&D | Aviation | Education | Technical Solutions | Total | ||||||||||||||||||||||||||||||||
| Major Service Line | ||||||||||||||||||||||||||||||||||||||
Janitorial(1) | $ | 2,781.4 | $ | 1,347.0 | $ | 189.0 | $ | 798.7 | $ | — | $ | 5,116.1 | ||||||||||||||||||||||||||
Aviation Services(2) | — | — | 461.8 | — | — | 461.8 | ||||||||||||||||||||||||||||||||
Parking and Transportation(3) | 418.9 | 51.2 | 334.5 | 0.4 | — | 804.9 | ||||||||||||||||||||||||||||||||
| Facility Solutions | $ | 3,200.2 | $ | 1,398.2 | $ | 985.3 | $ | 799.1 | $ | — | $ | 6,382.8 | ||||||||||||||||||||||||||
Operations and Maintenance(4) | 858.9 | 156.1 | 47.3 | 105.0 | — | 1,167.2 | ||||||||||||||||||||||||||||||||
Building & Energy Solutions(5) | — | — | — | — | 809.3 | 809.3 | ||||||||||||||||||||||||||||||||
| Engineering and Infrastructure Solutions | $ | 858.9 | $ | 156.1 | $ | 47.3 | $ | 105.0 | $ | 809.3 | $ | 1,976.5 | ||||||||||||||||||||||||||
| Total | $ | 4,059.1 | $ | 1,554.3 | $ | 1,032.6 | $ | 904.0 | $ | 809.3 | $ | 8,359.4 | ||||||||||||||||||||||||||
(1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas. These arrangements are often structured as monthly fixed-price, square-foot, cost-plus, and work order contracts.
(2) Aviation Services arrangements support airlines and airports with services such as passenger assistance, catering logistics, and airplane cabin maintenance. These arrangements are often structured as monthly fixed-price, cost-plus, transaction price, and hourly contracts.
(3) Parking and Transportation arrangements provide parking and transportation services for clients at various locations, including airports and other transportation centers, commercial office buildings, educational institutions, health facilities, hotels, and stadiums and arenas. These arrangements are structured as management reimbursement, leased location, and allowance contracts. Certain of these arrangements are considered service concession agreements and are accounted for under the guidance of Topic 853; accordingly, service concession expense related to these arrangements is recorded as a reduction of the related parking service revenues.
(4) Operations and Maintenance arrangements provide onsite mechanical engineering and technical services and solutions relating to a broad range of facilities and infrastructure systems that are designed to extend the useful life of facility fixed assets, improve equipment operating efficiencies, reduce energy consumption, lower overall operational costs for clients, and enhance the sustainability of client locations. These arrangements are generally structured as monthly fixed-price, cost-plus, and work order contracts.
(5) Building & Energy Solutions arrangements provide custom energy solutions, including microgrid systems installation, electrical, HVAC, lighting, electric vehicle charging station installation, uninterrupted power supply services, and other general maintenance and repair services for clients in the public and private sectors and are generally structured as Energy Savings, Fixed-Price Repair, and Refurbishment contracts. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands pursuant to franchise contracts.
Remaining Performance Obligations
At October 31, 2025, performance obligations that were unsatisfied or partially unsatisfied for which we expect to recognize revenue totaled $234.9 million. We expect to recognize revenue on approximately 79% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter, based on our estimates of project timing.
These amounts exclude variable consideration primarily related to: (i) contracts where we have determined that the contract consists of a series of distinct service periods and revenues are based on future performance that cannot be estimated at contract inception; (ii) parking contracts where we and the customer share the gross revenues or operating profit for the location; and (iii) contracts where transaction prices include performance incentives that are based on future performance and therefore cannot be estimated at contract inception. We apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less.
Contract Balances
The following tables present the balances in our contract assets and contract liabilities:
| As of October 31, | ||||||||||||||
| (in millions) | 2025 | 2024 | ||||||||||||
| Contract assets | ||||||||||||||
Billed trade receivables(1) | $ | 1,223.0 | $ | 1,282.9 | ||||||||||
Unbilled trade receivables(1) | 273.6 | 124.0 | ||||||||||||
Costs incurred in excess of amounts billed | 193.7 | 162.1 | ||||||||||||
Capitalized commissions(2) | 32.3 | 30.8 | ||||||||||||
(1) Included in “Trade accounts receivable, net,” on the Consolidated Balance Sheets.
(2) Included in “Other current assets” and “Other noncurrent assets” on the Consolidated Balance Sheets. During the year ended October 31, 2025, we capitalized $20.1 million of new costs and amortized $18.6 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized.
| (in millions) | Year Ended October 31, 2025 | |||||||
Contract liabilities(1) | ||||||||
| Balance at beginning of year | $ | 118.2 | ||||||
| Additional contract liabilities | 415.0 | |||||||
Recognition of deferred revenue | (384.6) | |||||||
Balance at end of year | $ | 148.6 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 19, 2025 | Showing above |
| 2024 | Dec 19, 2024 | |
| 2023 | Dec 18, 2023 | |
| 2022 | Dec 21, 2022 | |
| 2021 | Dec 22, 2021 | |
| 2020 | Dec 17, 2020 | |
| 2019 | Dec 20, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.