| SEGMENT INFORMATION |
SEGMENT INFORMATION Our current reportable segments consist of B&I, M&D, Aviation, Education, and Technical Solutions, as further described below. | | | | | | | REPORTABLE SEGMENTS AND DESCRIPTIONS | B&I | B&I, our largest reportable segment, encompasses comprehensive facility solutions, including janitorial and maintenance, facilities engineering, and parking and transportation management to a diverse range of clients. Our expertise extends to commercial real estate properties, including corporate offices for high-tech clients, sports and entertainment venues, and both traditional hospitals and non-acute healthcare facilities. We typically provide these services pursuant to monthly fixed-price, square-foot, cost-plus, and parking arrangements (i.e., management reimbursement, leased location, or allowance) that are obtained through a competitive bid process as well as pursuant to work orders. | M&D | M&D provides integrated facility services, engineering, janitorial and maintenance, and other specialized solutions to a variety of manufacturing, distribution, and data center, facilities. We typically provide these services pursuant to monthly fixed-price, square-foot, and cost-plus arrangements, that are obtained through a competitive bid process as well as pursuant to work orders. | Aviation | Aviation provides comprehensive support services to airlines and airports, including parking and transportation management, janitorial and maintenance services, passenger assistance, catering logistics, aircraft cabin maintenance, and transportation solutions. We typically provide services to clients in this segment under master services agreements. These agreements are typically re-bid upon renewal and are generally structured as monthly fixed-price, square-foot, cost-plus, parking, transaction-price, and hourly arrangements. | Education | Education delivers comprehensive facility services to public school districts, private schools, colleges, and universities. Our services include janitorial and custodial services, landscaping and grounds maintenance, facilities engineering, and parking management. These services are typically provided pursuant to monthly fixed-price, square-foot, and cost-plus arrangements that are obtained through either a competitive bid process or re-bid upon renewal as well as pursuant to work orders. | Technical Solutions | Technical Solutions specializes in comprehensive facility infrastructure services, including mechanical and electrical systems, EV charging station design, installation, and maintenance, as well as microgrid systems encompassing uninterrupted power supply (“UPS”) systems and power distribution units. These offerings are strategically leveraged for cross-selling across all our industry groups, both domestically and internationally. Contracts for this segment are generally structured as electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trade. |
The accounting policies for our segments are the same as those disclosed within our significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies.” Our management evaluates the performance of each reportable segment based on its respective operating profit results, which include the allocation of certain centrally incurred costs. Corporate expenses not allocated to segments include certain CEO and other finance and human resource departmental expenses, certain information technology costs, share-based compensation, certain legal costs and settlements, restructuring and related costs, certain actuarial adjustments to self-insurance reserves, and direct acquisition costs. As of April 30, 2026, the Company’s Chief Operating Decision Makers (the “CODMs”), consisting of the Chief Executive Officer and the Chief Operating Officer, evaluate the performance of ABM’s operating segments and allocate resources based on segment operating profit and revenue. These metrics are regularly reviewed as part of ABM’s internal reporting package. Segment operating profits are used to allocate resources, including investment spending, primarily as part of the annual budget process. On a monthly basis, the CODMs review budget-to-actual variances to assess performance, monitor trends, and compare results across segments. Segment performance is also considered in the determination of incentive compensation for segment leadership. Segment asset information is not provided to the CODMs, nor is it used in evaluating segment performance or making resource allocation decisions. Accordingly, segment assets are not disclosed in this note. The following tables present the measure of profit or loss used by the CODMs, along with other significant segment items that are regularly provided and used in managing the business: Financial Information by Reportable Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended April 30, 2026 | | (in millions) | B&I | | M&D | | Aviation | | Education | | Technical Solutions | | Total | | Revenues | $ | 1,015.8 | | | $ | 463.8 | | | $ | 310.8 | | | $ | 232.2 | | | $ | 267.3 | | | $ | 2,290.0 | | | Significant Segment Expenses | Direct labor costs | 559.5 | | | 290.8 | | | 190.9 | | | 152.9 | | | 100.4 | | | 1,294.5 | | | Indirect costs | 31.0 | | | 10.0 | | | 3.2 | | | 6.3 | | | 25.4 | | | 75.9 | | | General and administrative | 19.1 | | | 14.3 | | | 11.3 | | | 2.2 | | | 20.8 | | | 67.6 | | | Selling | 9.1 | | | 5.2 | | | 0.4 | | | 0.4 | | | 12.3 | | | 27.4 | | Other segment items(1) | 320.5 | | | 102.9 | | | 88.6 | | | 54.1 | | | 91.7 | | | 657.8 | | | Segment operating profit | $ | 76.7 | | | $ | 40.6 | | | $ | 16.3 | | | $ | 16.4 | | | $ | 16.8 | | | $ | 166.9 | | | Corporate | | (79.0) | | | Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | | (1.0) | | Adjustment for tax deductions for energy efficient government
buildings, included in Technical Solutions | | — | | | Total operating profit | | $ | 86.9 | | | Income from unconsolidated affiliates | | 1.0 | | | Interest expense | | (28.1) | | | Income before income taxes | | $ | 59.7 | | | Other significant segment items(2) | | Materials and supplies | $ | 27.4 | | | $ | 17.4 | | | $ | 7.0 | | | $ | 12.0 | | | $ | 79.2 | | | | | Salaries and wages (other than direct) | 31.1 | | | 10.9 | | | 3.8 | | | 4.7 | | | 33.4 | | | | | Consulting and professional services | 3.2 | | | 2.7 | | | 7.3 | | | 0.8 | | | 2.3 | | | | | Travel and entertainment (other than direct) | 3.1 | | | 1.1 | | | 0.6 | | | 0.4 | | | 2.0 | | | | | Legal | 1.9 | | | 0.5 | | | 0.8 | | | 0.2 | | | 0.2 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended April 30, 2026 | | (in millions) | B&I | | M&D | | Aviation | | Education | | Technical Solutions | | Total | | Revenues | $ | 2,080.9 | | | $ | 886.1 | | | $ | 608.5 | | | $ | 460.9 | | | $ | 497.1 | | | $ | 4,533.5 | | | Significant Segment Expenses | Direct labor costs | 1,155.9 | | | 566.9 | | | 374.5 | | | 300.2 | | | 181.9 | | | 2,579.4 | | | Indirect costs | 60.2 | | | 15.5 | | | 6.4 | | | 12.3 | | | 51.9 | | | 146.2 | | | General and administrative | 38.8 | | | 26.2 | | | 22.5 | | | 4.5 | | | 41.1 | | | 133.1 | | | Selling | 17.3 | | | 8.4 | | | 0.9 | | | 0.7 | | | 26.1 | | | 53.3 | | Other segment items(1) | 652.5 | | | 192.2 | | | 175.4 | | | 105.3 | | | 170.8 | | | 1,296.1 | | | Segment operating profit | $ | 156.4 | | | $ | 77.0 | | | $ | 28.9 | | | $ | 38.0 | | | $ | 25.2 | | | $ | 325.4 | | | Corporate | | (160.9) | | | Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | | (2.4) | | Adjustment for tax deductions for energy efficient government
buildings, included in Technical Solutions | | (0.6) | | | Total operating profit | | $ | 161.6 | | | Income from unconsolidated affiliates | | 2.4 | | | Interest expense | | (52.1) | | | Income before income taxes | | $ | 111.9 | | | Other significant segment items(2) | | Materials and supplies | $ | 56.7 | | | $ | 33.3 | | | $ | 13.7 | | | $ | 22.8 | | | $ | 145.4 | | | | | Salaries and wages (other than direct) | 59.5 | | | 18.9 | | | 7.8 | | | 9.2 | | | 69.1 | | | | | Consulting and professional services | 6.0 | | | 3.8 | | | 12.7 | | | 1.2 | | | 4.8 | | | | | Travel and entertainment (other than direct) | 5.0 | | | 1.6 | | | 1.1 | | | 0.6 | | | 3.7 | | | | | Legal | 3.0 | | | 0.8 | | | 1.2 | | | 0.3 | | | 0.6 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended April 30, 2025 | | (in millions) | B&I | | M&D | | Aviation | | Education | | Technical Solutions | | Total | | Revenues | $ | 1,015.5 | | | $ | 398.1 | | | $ | 260.1 | | | $ | 227.8 | | | $ | 210.2 | | | $ | 2,111.7 | | | Significant Segment Expenses | Direct labor costs | 553.8 | | | 260.1 | | | 149.3 | | | 150.8 | | | 72.1 | | | 1,185.9 | | | Indirect costs | 34.1 | | | 6.5 | | | 2.6 | | | 5.9 | | | 22.3 | | | 71.4 | | | General and administrative | 23.1 | | | 12.6 | | | 10.8 | | | 2.9 | | | 17.0 | | | 66.4 | | | Selling | 9.0 | | | 3.0 | | | 0.3 | | | 0.4 | | | 13.0 | | | 25.6 | | Other segment items(1) | 312.5 | | | 76.1 | | | 80.6 | | | 54.2 | | | 72.3 | | | 595.6 | | | Segment operating profit | $ | 83.0 | | | $ | 39.9 | | | $ | 16.5 | | | $ | 13.8 | | | $ | 13.4 | | | $ | 166.6 | | | Corporate | | (82.9) | | | Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | | (1.4) | | Adjustment for tax deductions for energy efficient government
buildings, included in Technical Solutions | | (0.1) | | | Total operating profit | | $ | 82.3 | | | Income from unconsolidated affiliates | | 1.4 | | | Interest expense | | (23.9) | | | Income before income taxes | | $ | 59.8 | | | Other significant segment items(2) | | Materials and supplies | $ | 25.4 | | | $ | 12.7 | | | $ | 4.9 | | | $ | 11.2 | | | $ | 59.4 | | | | | Salaries and wages (other than direct) | $ | 35.5 | | | $ | 7.3 | | | $ | 3.7 | | | $ | 4.7 | | | $ | 29.8 | | | | | Consulting and professional services | 2.1 | | | 1.6 | | | 11.6 | | | 0.9 | | | 2.1 | | | | | Travel and entertainment (other than direct) | 2.6 | | | 1.1 | | | 0.4 | | | 0.4 | | | 1.7 | | | | | Legal | 2.5 | | | 0.1 | | | 0.8 | | | 0.3 | | | 0.3 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended April 30, 2025 | | (in millions) | B&I | | M&D | | Aviation | | Education | | Technical Solutions | | Total | | Revenues | $ | 2,038.4 | | | $ | 792.4 | | | $ | 530.2 | | | $ | 453.2 | | | $ | 412.4 | | | $ | 4,226.6 | | | Significant Segment Expenses | | Direct labor costs | 1,124.7 | | | 516.1 | | | 310.4 | | | 302.6 | | | 126.4 | | | 2,380.2 | | | Indirect costs | 65.6 | | | 15.1 | | | 5.9 | | | 11.4 | | | 44.1 | | | 142.1 | | | General and administrative | 41.3 | | | 23.6 | | | 21.0 | | | 5.2 | | | 36.6 | | | 127.7 | | | Selling | 16.3 | | | 6.1 | | | 0.6 | | | 0.7 | | | 26.1 | | | 49.8 | | Other segment items(1) | 628.0 | | | 152.3 | | | 163.5 | | | 105.5 | | | 149.2 | | | 1,198.4 | | | Segment operating profit | $ | 162.4 | | | $ | 79.3 | | | $ | 28.7 | | | $ | 27.8 | | | $ | 30.0 | | | $ | 328.2 | | | Corporate | | (166.1) | | | Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | | (2.1) | | Adjustment for tax deductions for energy efficient government
buildings, included in Technical Solutions | | (0.1) | | | Total operating profit | | $ | 159.9 | | | Income from unconsolidated affiliates | | 2.1 | | | Interest expense | | (46.8) | | | Income before income taxes | | $ | 115.2 | | | Other significant segment items(2) | | Materials and supplies | $ | 53.4 | | | $ | 26.8 | | | $ | 10.3 | | | $ | 22.0 | | | $ | 120.8 | | | | | Salaries and wages (other than direct) | 65.6 | | | 15.3 | | | 7.4 | | | 8.6 | | | 62.4 | | | | | Consulting and professional services | 5.0 | | | 2.7 | | | 23.2 | | | 1.8 | | | 3.9 | | | | | Travel and entertainment (other than direct) | 4.5 | | | 1.5 | | | 1.0 | | | 0.7 | | | 3.5 | | | | | Legal | 2.9 | | | 1.2 | | | 1.4 | | | 0.4 | | | 0.5 | | | |
(1) Other segment items consist of payroll related expenses, materials and supplies, insurance costs, depreciation and amortization, consulting and professional services, and various other expense items. (2) Note these items are included in the segment expenses and operating profit shown above and are listed separately below segment operating profit as they are metrics that are separately provided to the CODMs on a regular basis.
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