ABM - Earnings call transcript Q3 2024 | ABM Industries Incorporated

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Operator

Greeting, and welcome to the ABM Industries Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Paul Goldberg, Senior Vice President, Investor Relations. Thank you.

begin. may You

Paul Goldberg

me and our Call. everyone, the ABM's Quarter Financial Officer; ABM. Third Vice President Salmirs, Good Chief Officer. Vice and name welcome President is Earnings Executive With at Relations My of Earl I'm are Paul XXXX Scott President our Ellis, morning, and Investor to today Executive Goldberg, Senior Chief and and

of release that that abm.com. this prepared and on results. morning, announcing press our Q&A the earlier our financial found third we'll note remarks, slide Please A After accompanying issued copy release an be Earl's presentation XXXX quarter we host session. Scott can and website our

would before other estimates, you to and remind call statements. contain But I that predictions, get forward-looking we like and started, our presentation today

and words judgment of are they similar Our statements, to holds. identify current represent our expect future use expressions the the estimate, and these of what intended

reasonable, uncertainties actual subject to our inherently these presentation that them are believe accompanies differ to as in results could we that are the materially. These slide as the filings be SEC. While with described statements our factors and cause well risks to our

will of course the financial be information call, certain During presented. non-GAAP this

GAAP financial now turn end the reconciliation of historical the I like to is the that, would non-GAAP numbers the Investor available call at under For to the presentation website measures to of company's on and tab. And Scott. with over

Scott Salmirs

which supported scale last enterprise a expectations. on choppy clients consistent market segments. solid road driven as and is Once joining double-digit and you force to quarter resilience executing and which continued internal delivered for estate model, posted post-resilient a thank again, great morning, us our as to enabling in Solutions of model, quarter commercial our strengthen Paul. ABM's Thanks, results. and Technical and growth slightly map. to third by EPS our in markets, all real ABM ahead business leading discuss the still today on Good and us by another technology did described strong our cash-generating revenue in capital-light especially our our team growth was Aviation in our our margins. We and focusing quarter positions job QX generate industry our of initiatives through flywheel, full business organic Elevate level an we leveraged adjusted $X.XX, enterprise I of

benchmarks should the based as archetype. We've next see of years. efficiency on over begun for tools implementing WPO it. quarter, as and analytics improved client on advanced we through the productivity and new being of delivering to benefits Simply core productivity improvements. already facility based to analytics data as to and couple we're ensure use productivity to It and allows that multiple During continued opportunities our WPO, progress engineering such easily make said, which operators set at call the tool our identify more efficiently these technology as of look we we is tool forward or of operating broadly is workforce to janitorial profiles optimization this facility services an terms outcomes in sites piloted

We to also vertical initiatives systems adding self-help shareholders to in and dividend with plan. our markets our by and acquired strategic the returns rates dividend. Continual growth our services strengthen these go-forward We are via the Services, via high position our initiatives investments offer capital complementary that our core growth capabilities in capital which uninterrupted battery and Quality of build key long-standing our to our in investments long-standing steady power in fast-growing and data shareholders new and Uptime secularly expands maintenance. additional complement center returns able supply to were

a and essential scalability the resiliency fuels sense, underpin strong consistency provide, our we which, the the in services diversification, all flow. cash results, of nature and of Our our

let turn financials. I for it Now through to the over quickly seeing run Earl before we're markets what our in me

resilient, business benefiting higher-performing our geographically, remained done janitorial Class diversifying also of MetLife a as diverse the and A has and the in we Building, segment client and the market segment B&I large nice continue job to U.S. the from market. throughout property here Our a renew marquee service our quite of We've leading business in York. mix, such penetration our the New position,

quarter up real corporate conducted not executives the rise. picture to is clearer with by to year's estate the is recovery, return get in or XX% year. We're they timing dynamic plans. market and need things expand We highlighted Also the a anticipate their last to years. of XXX those we're commercial versus recent of is we're say next of from scope whereby XX% another was believe X XX% to space firming survey clients their a the and talking to our of CBRE, that This downsizing seem prior plan poll. XX% in to monitoring This surveys real the offices optimistic. estate closely definitely ready two potential we rebounding, but and on Although be pressure up situation office also by polled the about in this

in strong business robust important the partially the industrial and to previously Our them to in a markets growth new U.S. win growth and center addressing data helped rebalancing leverage our resources onshoring the have general and secular discussed driven and initiatives trends to client. U.S. markets markets these from continue of and mitigate have manufacturing These manufacturing these continued trends. in towards work further large We've invested a to markets the economy, be distribution semiconductor by healthy in generally

where I will annualizes, we some the service mid-single-digit quickly not once the proactively our I'm we were value proud appropriate providing. organic M&D to that have for let if as receiving other not team growth segment return we the rebalancing confidence business that were of also before. go have

an is amazing markets the very having remain Aviation year, and healthy.

technology margin Aviation the best leader leadership, line. I'm facilities be last value I'm our around in business, strategy product clear has our clear provide we've to by by our thrilled including grown over segmentation. billion management few clean a award-winning we ABM and our as space the and encouraged improvements emerged the Aviation a made segment the industry's by years. more driven of indication client It's have $X We the a but team even

fastest-growing cash that Although solid, a we typically aren't remains expecting utilized can growth the double-digit it quarter continue very it's to no normalizes, as to across going stable not be remain have quarter and strong Aviation after flow foundation earnings and is I deliver will forward. Education sector ABM. of our provides segment, although doubt

in an colleges districts, especially which and our offering with larger benefit grow ABM from APS. education Solutions can there's as We also believe school known universities, opportunity greatly to Performance

which Like clients delivers with end-to-end As School our efficiencies a District, cost of we've facility others, new through source Providence focused aboard. Utica operating on single APS source we and generating reminder, contract, X X University remain done X integrated and operating accountability. model services, invoice APS is and bringing

opportunities systems. seeking well thriving, Technical won year. Lastly, as other other contract, by the energy team regarding is storage numerous And that traditional continue contract large microgrid while our last a driven we microgrids pursuing several Solutions, business as Ravenvolt prospects with progresses battery our on

over expect time. need grow and We the will energy for only resiliency redundancy

AI the market. growing a Similarly, drive position proliferation have in of growth we we and center in data significant mission-critical this and will know infrastructure

business reduction the markets. interest that and Solutions improve still our Bundled year late good and believe rates the in projected hopefully our is will all, we this Energy soft, ROIs feel restart anticipated While beyond we market. In about

the industry. to overcome still So macro to challenges have our well. year and quarter third specific will both there finish We we and a great are had confidence

As range $X.XX. EPS in range of expected full $X.XX to versus are our and such, of year prior guidance for to the raising $X.XX $X.XX our we to adjusted now be

that, final to be shortly walk turn Earl it and over me With through details, the comments. you some let back with to I'll

Earl Ellis

everyone. Good morning,

with the pleased As solid team enterprise the and of they've a last to Scott mentioned, generation. which experienced an X work steady trends this moment results, year. on like namely are to quarter for the strong organic representation we growth take our cash our great level, recognize the third execution are done I'd over we've quarters, quite

of those turn For earnings following to Slide you please our with presentation, along X.

Third X.X%, was Aviation, by which by posted $X.X billion mid-single-digit growth both Organic led and our recent while grew double acquisition. growth. quarter X.X% revenue balance of the and growth Solutions comprised driven Technical organic Education increased revenue of digits,

remained segment resilient, client diverse X%, declining B&I by benefiting Our from our only service base. and

& revenue Lastly, previously declined as Distribution we X% expected, discussed impact Manufacturing to the began have rebalancing materialize. as

to Slide on X. Moving

of last acquisition share a $X.X million adjustments recognized current $XX.X quarter. a to prior the Retention of was or to income year's the This diluted as impact Employee attributable third was primarily quarter as million this Third was year down Credit related that absence year and Ravenvolt year decrease from in per $X.XX well year-over-year. $XX.X consideration year-over-year million contingent to net

partially benefited results, largely of $XX.X mentioned, share especially payout the costs. investments increases relates items EBITDA of with Earnings also segment share higher Aviation recorded and We share earn-out driven unfavorable prior improved elevated margin also corporate improved year XX%, results last to lower count by consideration of year. Technical further offset respectively, driven was year-over-year Solutions, adjusted of a as costs. increased and note, million repurchases million a adjustment earnings period. EBITDA prior Adjusted the the plan. Adjusted planned. to XX% over offset insurance contingent X.X% year significantly adjusted by diluted from were corporate higher lower increased benefited were and These income segment EPS year. as X% performance, $X.XX, consistent lower per Of Ravenvolt's and count. operating per These share and in Adjusted increased and improved XXXX net by operating Scott from a partially last acquisition and share under by likelihood $XXX.X their adjustments

declined beginning B&I billion to $X Slide our results turning revenue Now X%. segment on of X.

and revenue business and both declined to from estate in to million, more continue travel geographic million, while from real health profit to benefit our business. markets from the driven Margin and avoiding remained Class management. by $XXX.X from new A and airline a including market. Operating benefited This X.X%. us soft positioning commercial to focus healthy Aviation significant diversification, sport higher-performing airport in continued operating market the entertainment flat footprint, of mix has our care the $XX.X our XX% grew the properties. and margin aided exposure We price B&I of our resulting from purposeful and our wins sides X% markets impact on end cost realization at

were mix large As up an track XX% increase Scott $XX.X to mentioned, and the higher favorable of operating line. Aviation's in in Aviation for segment margin. was be contributors million, our profit service to well on this due XXX year X.X%, clean volume leverage Operating and measure basis advantaged significant to service was billion ABM increase ABM is on margin a $X points.

calls, Turning which large $XXX.X Manufacturing discussed X% Distribution's & due expected rebalancing declined to offset growth clients. e-commerce X. to by we Slide other on of customer, prior revenue partially the to million a work by with primarily

hard have a We business, half work the continue addition of clear to XXXX. the growth path the and we to of in rebalancing second new believe positive offset we through to

impact and including $XX.X million, customer quarters. the some increased due rebalancing underperforming will However, for rationalization points mix increased basis next Operating contracts. continue few favorable for the largely to a margin XX.X%. improvement XX of operating Profit profit was and margin to client this to X%

to revenue cost-plus benefiting million, on X% of from a the accounts. number Education increased activity increased $XXX.X

attributable University, with quarter labor XX We which XX% the basis efficiency. $XX an Education increase next of also new operating strong X.X%, continue was win the was points. Auburn at will seasonally addition to be in This profit and onboarded to largely up million, year. margin early improved of was fiscal business

strong Technical the growth Solutions to organic by million, X% in Bundled EV revenue driven acquisition grew microgrid activity project of activity. Uptime XX% remains Solutions and was Services. and Energy soft. a including project from XX% Quality $XXX.X total growth Organic

Solutions, on centers However, margin and we progress significantly profit the have higher in to data in projects already lower the by improvements and strong resiliency driven result to microgrid finish expect constructive year energy XX% million, and a of acquisition-related we Solutions volume X.X%. operating Technical points were a further trends Technical macro to XXX basis and booked. amortization. expanded grew $XX.X These

$XX of $XX.X impacted available of letters was had on timing of $XX.X debt and We the we retention pro months is to in-year credit after $XXX $XX to quarter EBITDA $XXX This of the last X. including we in cash or end integration million Free including adjusted ratio of forma standby is total QX, normalized the the liquidity with costs. million, comparables which year. million free million, the being cash and resulting adjusted X Slide X.Xx. repayment At receipt and or up third million credit, costs. of the normalizing non-repeat million. this of billion, Throughout X% indebtedness year's third cash of $XXX.X ended $XXX cash the employee Moving $XX and equivalents with Act the million million retention of over a generated and a of third credit, flow $X.X accounts Elevate payable XXXX, in for year received of in last free total by flow flow million of employee of for in-year quarter integration quarter the cash Elevate have the CARES

on model, flexible be capital to million, slightly year. focus by a of generation a ABM Interest higher $XX.X consistent management. hallmark than was expense business flow and of Cash and working our is product asset-light our complemented prior continues

we quarter allocation, $XXX for Regarding made one million. acquisition third capital

paid any and also did share under We not in $XX.X repurchase million. the of stock our remaining $XXX the We million. authorization dividends program repurchase is quarter,

Now let's full fiscal outlook, our year on XXXX revised Slide as move on shown XX. to

raising are and the results our guidance full EPS confidence our in third we for mentioned, a solid based year our quarter to Scott on adjusted finish strong year. As

the As X.X% up the Adjusted previously, expected to in from XXXX such, of full $X.XX, be year. range EPS midpoint. increase around $X.XX representing at margin $X.XX be expect adjusted $X.XX to the we EBITDA a $X.XX now is to for to full year

XX% $XX is $XX unchanged expected items million million between XX%. rate is expense the and tax normalized to at be discrete forecast before to interest to Our

Lastly, a million and range, little normalized costs. top million excludes $XX to $XXX the is Elevate This flow our the to if of full higher. likely cash year free of be estimated near $XXX forecast end not integration million

turn me closing it Scott let comments. that, to With for back

Scott Salmirs

Earl. Thanks,

model, fiscal we technology, While through flexible horizon. and sustained for advanced in and the with cash-generative be most ABM pleased capabilities new strategies people, and on know more. we're expanding our very additional We're in performance opportunity we with can positioned cross-selling, core even go-to-market business success. Supported innovative resilient, XXXX, a our our by our analytics importantly, investment are

and complemented apart investments mission-critical we with which margin new higher drive being are time set initiatives us These from rates microgrids services, the further growth believe in expand capabilities like competition. over will and

call take our joining with for And that, again Thanks let's questions. today. some

Operator

of William question Tim with Blair. first comes Our Instructions] [Operator from the line Mulrooney

Timothy Mulrooney

Earl. Scott,

Is quarter factors to higher in Or quarter $X.XX into case maybe here? this quarter balanced it So fourth guide, on the the looks simple like you looks of was and quick, the the guide, be EPS initially I just more were third to previous now the just think, you so your being expect like third quarter. warrant for revenue the than expectation, consideration third or real your EPS. than based fourth other there pulled more between a are expecting? be kind But on quarter of it that

Earl Ellis

we QX, in not for we'll but of that extent Yes. we're the is really ramp what are portfolio. one we will the That really especially Technical No, actually actually you're through QX. to M&D. that see next experiencing we and quarters. particular, quarter, QX pleased of going started in up rebalancing as business performance Solutions impact over the look But really customers necessarily that M&D. in major the to across in Ravenvolt about, thanks our talked same the question, flow QX And several with fully the And in see to the Tim. why outperformed, at you're our seeing When

Timothy Mulrooney

a seeing segment lot Okay. X.X%, I was margins we're nice improvement Aviation because here these is of in mean, really That's quarter. segments, question on I my some the helpful. And very think, across second

was think at M&D about I our XX.X%. model X.X% and came in

I think XX.X%. were at we

by I here. degree. ATS know a profitability EPS want But note a segment the So beat of driven the to margins was here large across lot to also these

that third working these a or forward. into maybe we to I'm is, here, you the there are that sustainable profitability lift move dynamic necessarily helped here, question quarter was days these that carry improvements something XXXX? isn't expected like Or that, as like something are think So my -- do seeing about

Scott Salmirs

unusual. I No. think don't anything mean I there was

a I talking as the results quarter after you quarter level you about just as the out, high we've across resilience about really point board you coming this. really at and been we're it like performing our excited could think true. it's what see are, and is Tim, nice, We're when

be you're to us. and pull you of for no talked just M&D mid- bit a of about But out year-over-year. watch-outs going single-digit there's down to going M&D ahead that So back growth. to Earl little kind high trend to

good board. feeling the we're across So

Timothy Mulrooney

Thank model on and on my profitability you, congrats nice expectations the quarter. Scott. Okay. here I'll update in the

Scott Salmirs

Thanks, Tim.

Operator

Bank. Our next of from question line with Deutsche the Faiza Alwy comes

Faiza Alwy

like So what's that the rates I talk the at I driving margin point? about this mentioned board maybe Maybe wage numbers as of more a question. of made I few at down bit follow some wanted you this other helping sort the up labor to about you talk are times. on that? Are of I same -- a observation efficiencies seeing or across dynamics morning. know sort margins come was And looking the

Scott Salmirs

great. That's Sure.

couple So yes, of here. there's dynamics a

extent the been as we're because really publicized. widely labor been rising to feeling And good wages that's were years, right? front, couple they the last on the First haven't in same of

read that. can about You

as quicker. getting that's much in labor is us. availability board through of people us better getting for for well of So playing terms And also on

the [ managers XXX,XXX A project who in kind -- been the it optimization lastly, of And foot manager I'll building, that XXX,XXX market, workforce a them building, labor and and been our now one give north foot they like project managing different productivity at how either can productivity true is helps what you of a it square And efficient great. our manager tailwind. And compare looking And to is another their or does about his he's in another give really great that labor. tool project are. and a really anecdotal. so square market has of that's of kind let's ] and

And them just or the a the as with getting and be correction on making manager simple doing. actually ask it as other course what they're project phone could

starting I'd it's just now, up So say.

the in early think I we're good is at news from standpoint the my stages rollout. early,

space more So there's white a lot go. to

So I think it's dynamics, those Faiza.

Faiza Alwy

very I'm think not business, on revenues think then maybe I if wrong, That's alluding bit I you're helpful. a the Great. from -- being ATS And here. you're to lumpy

a be. came more about about how talk trends So the a in of you've backlog how previously, thinking that that kind might was Was in line sort the color of what you're And here. just bit mentioned there should something I more we bit on -- that business? earlier? quarter from top know the expect

Scott Salmirs

Sure.

of used microgrid and being of of right? kind that our we I ATS we projects it can outdoors. a to Because can so lot much as getting but business. it And predict, think predict, project things also all we're driven think construction with there's now that so much

that by So issuing meeting depending on that the and delay, given to the them projecting weather, community we permit may on at month. on a meeting a gets get issue delayed depending a permit a we're a

a are of and it's of being business, out things booked just that strong, timing. about that's are our backlog question But control. when we really So talk our there

has really analogy. been we use never bank, And strong a it's just cashing when us, the money Ravenvolt's and a the stronger. backlog by of -- we're for in get So the because backlog to it's check comforted question that's

quarter. really the QX something it we to, sometimes a now, of have So we But line feel sight but of that about good just drops kind good but getting have. line it's into sight different least of we at month-to-month, we're used

Operator

line Our next Bibb question from the of with comes Jasper Truist Securities.

Jasper Bibb

about ask the B&I to wanted segment. I

any on expectations detail fourth segment Just revenue for quarter. the

to X view prior end running single-digit of in decline high at low for you the the think I be seem the had was quarters that range. year,

that So there fiscal in you any up is to business 'XX? think going where change end on

Scott Salmirs

down in segment in right? when Yes. starting the it love shows the really opening my trends X% way -- talking B&I, Look, this estate, And performing real It about as we're I just is year-over-year the looks in every talked to about remarks. I like think we're turn resilience, we proud up are commercial being I of. headline

that yet. to not we're it to start positive So going ready growth rebalancing being we're call as to over and

I better in a probably sight year, of be of think line we'll that, the to have next to safe. middle

reset leases space as more think proud segment we much good about But and believe, commercial if last would start someone X us how the due done to going we're down. X the have this in I and to decide now, in much anything would feel revenues are be their estate taking and but or few really told a only have as in right? they're more X%. tenants they're down there's from ramping hard because your years be real going years It of how to be or as massive coming we've

to ride we I this again, just And is exactly optimistic. hopefully, going but So in we're right all few months, next and we're normalized the this stay through now. zone, think

Jasper Bibb

Makes you an mentioned to of pieces in earlier sense. the And in the response ATS moving question. some then

I you a up guess, so million hit to year how Just when do $XXX ramped maybe full, run an And has million guess, on the kind that expect of far? update rate? hoping $XX contract will contract get isolate there. I that

Scott Salmirs

Sure.

it's through the run 'XX a least will contract it's So 'XX. at a through that on beginning cadence. And of

sites. it's XXX over said I we think

-- of thinking and think year. a next QX move for process actually our numbers as this now that how our but So year or little just until about 'XX even we're budgeting bit, ramp about we the baked and it's from start conclude of finish kind certainly an of maybe and can into

Operator

question Josh UBS. next the comes line of from Our with Chan

Joshua Chan

a on congrats Earl, quarter. and Scott good

know remarks. different to some in times us? center data couple would way go can for a helpful. triangulate a several exposure? mentioned I that there way you in in triangulate you segments, my Is of be prepared your that What's your but So center data

Scott Salmirs

is our whereas mission-critical microgrids. handling across runs runs through their across is and ATS or ATS segments. or mechanical more supporting actually we're within either big have It data of M&D really M&D facilities, where that project-driven It sites our and work centers clients electrical through work X Sure. more

through for call mean, now is I sub right it We're, million it nascent I the revenue But both. put us. on So But mean, our runs billion. it, context, business in $XXX so to right, in we're excited. mission-critical $X-plus

saw is where of and UPS You us there generation. acquisition that in uninterrupted installs Uptime which the data the team power It's with Quality power, of to exactly which designs data leaning every power, Services does and be terms center UPS. you needs backup new in center want the AI in

about is But really to well. how going put that's we're So to kind the to the grow enterprise. number of as context revenue good in excited it

Joshua Chan

under maybe I margins M&D. And have then margin be Great. a by I the impression very pressured might quarter. turned on out was rebalancing, specifically guess to strong but that the you

potentially sustain that rebalancing margins levels? of in as Or source And be pressure? ramps current the the what's some guess quarters, the strength? at I So there coming could will

Earl Ellis

be little of compression. a There'll bit

of But the we're we're or grow is believe one again, in our best and with we starting have believe quarter after the like that internally effect the the at quarter -- interestingly, that looking that dramatic all, because of Next it not is full rebalancing. not, of client to as will already we're class. we clients, because still first it biggest them, rebalancing to

us. is a business for well. the tailwind So doing rest so of And the that's then good

with the that. manufacturing in onshoring. And know guys and of trends we're about the You squarely middle

are companies semiconductor We into I mean, that over meeting in literally, deep the Korea market. here. are really with we're moving

us, over be So that such this us And is rebalancing a again, And some the road. bump up next years. sites. the small is powerful for we're we're picking the love to this M&D segment for thinking is few in so going -- the we fact

good stuff. So it's

Operator

Our of CL line from Silver with David Associates. King question comes next the &

David Silver

be contingent consideration about for adjustment the First Ravenvolt. question would

calculation of is wondering mark-to-market So beyond for adjustment year-to-date it to incentive other the I quarter estimate believe that. I beyond current was that full calculations for next you $XX the kind where caught Ravenvolt's In that year whatnot, that the to something In a is this into is? a the not words, words, judgment could calendar just -- or few performance other get put this up is context. you and it's extends a year? year Is million or this but the months if something an about

captured is in what adjustment million this the $XX just So quarter?

Earl Ellis

the David. Yes. thanks for No, question, No.

So we look this is assess X-year the every to where Ravenvolt at quarter of period. over kind forecast

you over And was so this if period. think an about X-year earn-out a it,

have actually 'XX have calendar on we basis, we year a so X years. 'XX. So It's and

we their when your -- so point, a do we at And that mark-to-market. look over projections period, we exactly actually to

extent this just opposed next period is so X-year full to And looking at as this the that year. over

incremental business new start, has definitely picked versus So with the and year good news a slow clients. is that where they're last up trending where they had actually business

happy very good where have So Ravenvolt and this to positioned feel we earn-out. is really actually

David Silver

success. just next year-to-date on But Great. question, business I bit Okay. a question. was kind firstly, new of This be old us business could new little wondering guess, you business update and your if then would I

you fiscal I you billion. $X year, first of months at this were for said X think the

the do the might where at wondering Just were year end quarter? you end you you think or where at of third up the

then away business. And customers I've versus the year some walking time I some from say you. this point, word I years few -- what be, about, you heard first this firing more for the the something, you Scott, covering or the been would But to talked time believe, that

returns about I And to philosophy this due change business your mean when to period opting a your walk some you listening to I used and your extent. started your to comments to away tout that's first conference very pretty regularly. So calls, from whatnot. in I some high think rates retention

or you targeting portfolio? some shift evolution So versus current if about retaining of identifying opting wondering the in was thinking kind new the you're targeting not of about business and versus I service business maybe how your just to sorry, could talk -- new

Scott Salmirs

sure. Sure,

on as record, leave moment noted but that to So And we are update we've really customers, the you at that happen not we to of year. but quarter, new that. firing another that. is well we're this But have record in what really not thresholds doing I'll we meet, tracking we do we really resolved been it's to just our at midpoint the have dramatic about We're and will business the a quite sales, firing front. hit customer. going have did year-end, last profitability as it

does on sometimes a happens it happen micro And the than a on scale because it scale larger all time.

doing David, And value we're in about that away. doing take getting will the thought, -- we're of we're what I the We we that lot if lot adding. think and says that value not here. walk we what we're pride, a a And just we

we'd as and now you to every all that do sure guys just like that not make know see we to business. a ourselves point So out then, commodity

Operator

Our Sullivan next Tate of Group. line with question comes from Maxim the

Tate Sullivan

it's cross-selling you to Or it the clients efforts, it with Can roughly and is Scott, not? mostly quantify please? hear largely or great business. about optimism existing your microgrid progress is projects

Scott Salmirs

seeing and up have popping it's we with great a which we're but this to clients, clients, and mostly We're because more microgrids for bought where and we now and established, It's conversations strong we're It's other that and is got to came it's exciting, a together. and things starting starting bids super more new cross-sell. mix. interestingly, EV combined portfolio business of and

now points really, really But us. backlog. we point, really billion your look customer our sell business microgrid on board future into a it's But and And base, a strong us a around happening excited. new for there's really the to have ability to it's business. stuff the And and it we're $X a good mix. we when putting at lot So again, gets of the the

Tate Sullivan

So rest the subcontracting for it some lead electrical for the understand to or in you opportunity, have work cases? can it some of building

Scott Salmirs

Well, we do that already.

in We the cleaning could toolbox have another division ATS do just center. doing but we We install could that test Services. an actually added center your separate work which the we're can data segment group. do electrical And really underfloor systems. data there, That's say, contracted and for some phenomenal. time a our work only becoming mission-critical Uptime now operator, we Quality has design to We could infrastructure tool us. and It's in turnkey UPS been we a not a all We're in retrofits. and do

Operator

comes the Our Alwy Bank. Deutsche of with final question line from Faiza

Faiza Alwy

And wanted about you follow-up. a just back June. I acquired capital to I in I allocation. talk a company know had

about So return we shareholders? how to And should about here? M&A business? you did curious you're M&A from around expect like thinking versus more that cash What

Earl Ellis

mentioned of our can Uptime. I to that the start M&A strategy, signified I growth that be with was you off, part Yes. Quality continues acquisition latest mean just of and Faiza.

some we we share to we saw actually last well with year, by continue as we between as where of our as M&A allocation a probably our balanced So accretive capital share amount reduced share buyback will price be opportunities X% dislocation. significant did buyback. Obviously, count

advantage So that. now, our of only leverage, we took not are but our with where But we happy current right allocation. on are capital also based really we

Operator

Salmirs Mr. to the I'll gentlemen, turn that Ladies back question-and-answer session. floor concludes final for comments. any our and

Scott Salmirs

to with on a really hope good everybody wanted thank back about QX excited to just and results for listening and soon. you future. call everybody the the the we'll And excited is everybody. had summer our about optimistic and We're about be today. and Thanks, participating fall, I

Operator

concludes Thank you. today's conference call. This

participation. your for time. You at lines may Thank this disconnect you your

ABM Industries (ABM) 6 Sep 242024 Q3 Earnings call transcript