ABM Industries (ABM) 9 Sep 222022 Q3 Earnings call transcript

Greetings, and welcome to the ABM Industries Third Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Paul Goldberg, Senior Vice President, Investor Relations for ABM Industries. you. Thank

begin. may You

today and financial website, Executive results. a an name prepared our press morning, other today presentation I'm is Investor Officer. XXXX and that With that Vice everyone, copy and Scott note our announcing of earnings can begin, Executive and Please President estimates quarter release predictions, Chief the will quarter Q&A contain our Earl's issued release and call. we A President, Officer; accompanying we me you before our ABM. at My Paul Ellis, Relations be this Scott welcome I that third call statements. morning, our host and Salmirs, third But we forward-looking and President our remarks, to Earl XXXX Senior are found abm.com. would Vice and Good earlier Goldberg, presentation Financial and session. remind slide like on our After to Chief

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

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

now tab. reconciliation call of the numbers And Investor presentation would this course over ahead, at of company's on the website Scott. non-GAAP call, certain presented. the non-GAAP to historical I Go the that, and Scott. under A to will GAAP During is of like information financial financial to with turn end available measures the the be

second EnhancedClean of to strong our service and continued previous energy adjusted solutions. solid full our And positioning share inflation, the to with and face the we performance fourth upper per given and feel demand orders, including guidance very our also expected year, the on of on tough are adjusting while clients interest cost profitability. that, of work Based rising significant focusing rates; to consistent throughout provide team market. decline year, a the all and our very, in labor outstanding We quarter range for for the strong EBITDA our Technical in about the janitorial discuss the and many for an confident margin. e-mobility of earnings by range & end the increase for well Organic quarter, and Aviation like morning, services joining our growth third Business revenue XXXX. labor faced and and our a above we Manufacturing pre-pandemic solid and our in continuing with X.X% initiatives. in well $X of X.X%, results thank executed which billion EBITDA janitorial to the driven Distribution much the of the healthy was this Thanks, headwinds considering Paul. quarter. demand revenue advancing costs consistent & our throughout ABM Industry, margin Solutions. as Good of performance ELEVATE generated third significant engineering I generated while our end and favorable year narrowing of adjusted quarter, market Overall, continued services ability today demand as team in also levels. us you ABM was we our performance is adjusted mitigated results, And well bundled for when to and for year the portion pleased broad-based, our

been market, in customers. a increase. to chosen special and environment office Beginning to occupancy likely space New commercial demand We've to our on growth office the and business is parking of nice job and from the levels, but City services Phoenix. events have improvement continue in industry into This at in at new Stadium State events, Modest driving with operating and continue Farm existing rates each slowly remain discuss for XXXX. will trend relatively take winning low B&I, York office now occupancy Let's done also groups. we're the sporting excited growth

we AeroSystems earlier ABM this by who the Northern won Spirit client in In addition, Momentum team added in Ireland, great year. recently a joined

in With we higher disinfection to to the again most expect next anticipate time, a to of comprehensive environment. and more service the our in rates continue At high the fair same share year decline will work offering we remain margin post-pandemic industry, retention win business. than that new

driving border travel transportation. is their in at parking improving, summer win that million include and robust, U.K., will a and travel airside driven revenue also in Moving the $XX airport service operations, important expanding generate has more our the five although the significantly O'Hare, season scope a to which also strong reopenings. landside demand measured growth pace. Business Aviation. The by years. an We're been incremental annual at over in at year We the an next recently of announced seeing

resulting However, challenge costs. in in availability higher to a overtime market, labor continues the aviation be

coming in these the Distribution continues segment Manufacturing as be by continue unaffected We occupancy expect Demand will reduced quarters. pressures levels. largely to in this solid & remains

revenue markets. health organic of and our growth stability reflected result, the a relative As these end

life footprint and expect we e-commerce win K-XX grow new continued customers In uniquely both universities and positions at and don't with of logistics with colleges to to did clients. as the Education, our rate the our science in-person manufacturers pandemic, While industry-leading operate business, us during they and same certain geographic to learning.

help In to a work fourth past. both We're back deal of the a We've level seeing continued to Education period. pre-pandemic generally recently, we than as other pressure dynamics that experience orders the environment, are put seeing business been headwinds we segments. and in are to some so good of Solutions, for over District in in also School we in demand the much on-boarded managing. quarter. robust of signaling activity, new revenue where a solutions, George contract on low of e-mobility southern continued inflation proposal These we to labor charging have we drive more large ample prior especially University our clients Washington Labor head the which our will are opportunity we regions So Philadelphia, disinfection-related Technical nonunionized and lower the markets, into and demand availability XXXX. cost we've new the as renew be including U.S., Aviation growth organic and of year labor tripled

billion strong which efficiency We and Act, in XXXX, of expect to the an infrastructure Technical vehicles, for recent Solutions Inflation incremental aided growth electric bill infrastructure other have passage the investment EV and again by Reduction activities. U.S. energy allocates $X the

Reasonable, trends. discuss for shortly, energy business, microgrid is from quarter. well very In strong new all, I'll is fourth in We commence Technical solution positioned to also On which growth. of a poised long-term expect the projects bundled of number benefit that, secular top Solutions to our

Moving to ELEVATE.

progress streamline current intended in out, have. we and In make cloud-based the to to particular, continue which a the quarter. improve new is implemented work meaningfully order third process We fully rolled when system, we

continue refining tool core We our and cloud-based on system. management and our testing progress workforce ERP made further developing

ways with launched new trade a very for more data-enabled client also Vantage, look show been lower as at platform last smart our major parking positive operating We generate operators ABM Early costs. revenue feedback to month. has

solutions, to emissions EV Technical their bolster acquiring a strong fit ended, we acquisition further that ELEVATE energy Solutions switchgear, to on and excited RavenVolt, turning quarter as including deliver resiliency reducing microgrid really advanced the generators of charging, capacity by meeting integrated is after We're a strategy and the sustainability increasingly are with microgrids energy to our RavenVolt reliability. on-site leading provider for and have Lastly, team on customers goals. This board.

comments. over it turn to few summary I Before discuss me Earl let third the quarter financials, make a to

demand environment First, on side, is constructive. the the general

We activity. are occupancy school but levels of to and is learning terms Office trending returning also travel, slowly. upward, pre-pandemic in in industrial

opportunity opportunities us energy cost efficiency, driven mitigation risk further RavenVolt by have Solutions, acquisition We The in another sustainability, by reduction with boosted to win provides growth business. Technical and new government stimulus. and high-growth tremendous

fact, to new XXXX finish sales In we expect record. with overall, another

On service prior labor levels, the the years. With high pressures environment. current travel, are labor we're currently low several demand experiencing are driving at and industries, from labor restaurant, with side, in The to the historically largely rapidly retail inflation. immigration continuing economic greatly shortages are And unemployment we recovering unprecedented. reduced from cost manage challenges

wage white collar talent. collar positions seeing and are and battle real for blue We a in both pressure

these developing same retain established. ABM systems, and expect remain this XXXX. we'll competitive more we persist to effectively programs into ensure the to strong continue costs invest and In environment, the we've in will on to attract, efficiently managing We and operate build talent. to challenges vigilant At we'll time, price position processes escalations, through off pushing and manage

me with over So the Earl financials. to it turn for that, let now

good and Thank morning, you, everyone. Scott,

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

the growth from X.X% Third acquisitions, $X as strong billion, and quarter aviation; well our for revenue pandemic, solid in services by of broad-based recovery to demand and segments. largely janitorial in growth continued especially driven all e-mobility. Organic across engineering as XX.X% was increased

or period ELEVATE-related last on share work Net in the costs, prior per the reserve with per X.X% impacting Adjusted our excluding anticipated lower X% of labor. share taken benefits prior increase to Corporate quarter settlement The earnings in for the $X.XX compared as diluted XX% were million year the $XX.X quarter GAAP Slide partially which was primarily as in year share, essentially year prior EBITDA increase absence offset million year. Moving by comparability, to reflecting diluted on in largely and $XX.X margin $XX.X net segment The flat diluted the compared adjustments. or over included year well investments year, higher reflects higher third services earnings from a versus million revenue items for of income period, to higher-margin EBITDA quarter prior higher per over to or to last orders, expenses, prior operating $X.XX period. the year. insurance X. million. increased expectations was disinfection the same up increased Adjusted year last the X.X% segment due higher to particularly Adjusted third decline period. the $XXX.X $X.XX in to the period significantly primarily was income line litigation income and

and results, Now $X to Slide contribution primarily beginning of billion, on the Able B&I XX.X% to revenue the our Momentum. due from over X. turning segment acquisition increased to

$X.X workforce year XX%, than higher revenue $XX.X in increased and the revenue customers. to quarter reduced Excluding X% and was including the the million traffic X.X% and business labor growth well in economy pandemic. X.X%. revenue marking parking improvement and of Aviation prior lower activity of continued reflecting million emerge EnhancedClean including prior B&I the due profit XXX These declined was operating year declines in $XX to airline prior margin orders X.X%, related as fifth from $XXX.X versus million, expected from events, largely to XX.X% This of business leisure to with as points the expansion revenue. the million, profit margin to Aviation year-over-year and costs. and increased decrease were overtime pressures, continues increased acquisitions, labor growth. result wage pandemic-related ongoing and increases reflected existing was in significantly robust sports, Operating year, disinfection-related benefiting Operating high-margin higher special basis as versus and decreased costs. organic the consecutive work

Education Revenue notably were quarter industry XX.X%, in well Manufacturing benefiting wins. operating in as to both new profit results X. within related costs and reflect lower million, modestly levels the business margins manufacturing group existing grew the Slide $XXX.X of to Turning EnhancedClean $XX most with $XXX.X business X.X% states. labor down clients. as respectively. to reflecting Distribution & higher Operating million increased to e-commerce Southern million, from slightly These shortages, revenue and expanded to our and

fourth million, ramp in clients We lower revenue quarter wage as year's improved third as expect rate. pools grew pre-pandemic full higher well our areas, quarter these populated a e-mobility operating Solutions down tripled see X.X% last due in sales from million largely third run as less have the which up new to in year-over-year overtime was quarter, service $XX.X Education $XXX.X costs, $XX year. of strong X% continued levels. which including offering from to tend our driven from revenue to in to elevated especially by profit available permanent towards expenses, margin shallower last EnhancedClean growth of in growth million, of Technical remained labor. Operating

margin year. commence primarily solution We e-mobility. X.X%, last prior benefit and profit Operating quarter strong basis as in bundled points reflecting Operating more service to certain decreased fourth we million energy versus compared $XX.X growth to $XX.X a continued was projects weighted growth expect service our in XX million year. was e-mobility that mix from line heavily the to

debt expense to interest the higher a increases facility. with revolving pro levels sequentially quarter of total of Fed year credit rate ended Moving ratio in and X. the third of to higher nearly the of over debt million credit, to from on and ongoing in $X.X standby total $XXX run recent X.X resulting debt action rate forma QX our adjusted of of the We including in funding a Slide be year-over-year. million acquisition EBITDA had third cash note billion, end our $XXX of the $XX.X and from times. expense more ended, than of of will million. the At sequentially Interest $X available the approximately acquisition, cash $XX.X primarily QX, Please funded including $XXX million, equivalents liquidity and we the RavenVolt. we reflecting indicative RavenVolt full was quarter, due million after million $X.X for period and QX of QX, quarter prior letters quarter that the up million

repurchased capital million. for $XX.XX $XX.X In to total the XXXX, of quarter average the for cost repurchased million first price in quarters X.X million. We share roughly $XX.X XXX,XXX approximately per at we of third shares shares allocation. fiscal an total, three Turning a of through

let on as guidance, Now Slide on XX. touch me shown briefly

the narrowing we Scott to adjusted XXXX guidance our top are year full earlier, our for As end range. mentioned of EPS

forecast $X.XX $X.XX $X.XX previously. from now EPS to up is Our revised $X.XX, to for adjusted

With year is We guiding which for of EPS be are for EBITDA is prior now GAAP to of the X.X% adjusted at midpoint margin our expected year around also X.X%, X.X%. full forecast Guidance full XXXX $X.XX, it to to narrowing the the for of to $X.XX comparability. some back comments. let in from benefit of reflecting range the changes and impacting range in that, be me items closing to turn Scott

Thanks, Earl.

that, headwinds, I'm Nobody or excited future some Although scope operations I'm services, our in scale questions. our balance our some and years. we'll the our industry the matches fashion of very sheet. distance ABM. further the solid let's XXXX strength in between coming out and we near-term confident of about With competition the faced of us of close the put our in take

from of question. comes proceed question Capital your first Please Sean Markets. Our the Instructions] with [Operator line KeyBanc Eastman with

buyback. Thanks I the Hi, firstly ask questions taking wanted on good my to just guys. and quarter. for

the read So you outsized buyback looks stepped a it capital -- that? like this for What [technical would like like has it investors pretty buybacks. activity making 'XX year looks to into difficulty] up share

the No, Yes. for thanks question, Sean.

we've at bit to year, as offset always say, to, shares a well nature as as anti-dilutive minimum, articulated So will I our little repurchase a would earlier, compensation. of the we look share-based more. that This we just did

portion you If about, usually probably shares. think be about XXX,XXX that would

So we the as saw in opportunity to that. the above we the shares did and really about really X.X of market advantage took that over million and dislocation take

shareholders to balancing mentioned we've to the share the in that, we'll buybacks. really the to allocating of and activities M&A As in our past, at buyback way barring use opportunities looking opportunistically, funds between share back redistribute

for a inflationary the targets in set. it's And targets. just flip labor I availability Got given since were of early higher-margin side, developed back high-growth pressure wanted probably But have Got those to But acuteness challenges formal since there the realize targets those fiscal set, 'XX that's opportunities maybe of the Okay. refresh sort the check seemingly it. I it. on that's developed firmed. then were then the some on

on us about you how that organic December. kind back qualitatively, of and out that margin growth trajectory if you're just you sort refresh even in could So thinking laid

no ELEVATE December. and Look, in what certainly know macroeconomic not we're up nothing linear. has long-term really for we that program. And our environment It's would all finishing changed, that Sean. the is since I Sure, has there's question outlook say where our changed

ELEVATE. expense like we're markets -- in may path feel feel we It's end now we we're heading. where it given lumpy just to a is continuing we're the in labor again, same. still about interest invest be So good But and little right the what seeing the headwinds. really And the

good strategic really to do continued We some acquisitions.

again, game. feeling about So really but we're linear, end good the not

there. turn I'll over it thanks. Okay,

proceed Our Andy Wittmann comes question. next with line the of Baird. with from question your Please

over I little wanted market just in it's the tight for part at the drill having to It Good be question labor usage was us time that that more continue Earl, today. availability, market. that morning. the wondering, a how understand least And Scott to you of is and guess if you're agency labor just of I solution employ trending. or help difficult. to I guys. taking sounds just could like is given Thanks on bit my in

you maybe talk how amount your kind of that's a a P&L If could of get bucket. that, the that's can agency about or you're that overtime so quarter-over-quarter change sense given of just the like we using, Street affecting like in

Sure. you we're all. And not this And first if I directionally. more I'll that subsided were looking tell pressures the more of half, Sure, year we Andy. the seeing at do will now. have probably kind of pressures second at versus labor it even half

up standpoint, labor I double jobs, where per have seeing of were in you and a I of in an just come find came is time that we're to seeing feeling it's has is wage year. say just staff, in tough. what it complement when economy. seeing still ways, there's us so digit attract super, open seeing One, pressures. The XX.X couple XX we're the ago, getting and last although inflation. people, these And right, super it's base -- like We're days do And -- the million open inflation full segment whole statistics industry Andy. a that. million we're Education the service over been two then talent like overtime we're to out think a the that we jobs better, would labor gets jobs. you And from manifests little of which alone, hard don't to -- There's to as these probably, availability. XX% using from year, our just It's

have don't where next And So things better. they're super few going are quarters, don't going think gotten for to to today, is think feel I being the directionally, we like while get worse, I I really hard. trend just

the that. this ask you I follow-up, talked guess context length. demand. for about mean, I wanted order I I guys about appreciate at work obviously, my on to

of the like it the trending talk at Day, mean, it kind how gave pushing at said expectations. COVID of XX% maybe order the revenue you And work you guys seems side you You that tell on Can normally are the or business? articulated it -- guess, well, was Analyst X% been, you company's me, peak about you would things -- I say X%. the the of I had

correct on quarter? I'm can a the trying is change You me did where wrong in of falling Just that you of the over how if how Kind that And off. were prior to much that. sense quarter? get

prepared how see your continue in remarks mentioned fiscal kind to expect asking you that Maybe way another 'XX? that of XXXX? much from You work this headwind to decline revenue do you of into it in is

Yes.

start question. work the that would Let for I expected, actually we reduction we would a we orders. from Thanks as say of me off heights the just in year Andy. that, with that last see knew

That's you to about actually we're if at probably last QX, off look dropped X%. X%. to So year closer

suggested, when continue we be Last recouping was we see what you think at to capturing. So tailoring probably X%. we would quarter, But closer that or I to down. look it

thought be would we I at point in actually currently trend this with what on we time. we're think

Yes. from standpoint, just I we an as we off. would trailing -- be it thought said, mean EnhancedClean it's

it we hard A been getting kind work give block as But But predicted. that. that if on we out, see B&I see fortunate in bit we in because no see baked there's RFPs the question come the to of we we've as percentages As specification. robust off to been back the at too you into we thought. hasn't

there. So we're some tailwind picking up

as to And on question modeled, the mix that we revenues, has much in going we again, far as reduction have like wins the last it as this Yes. office then really we're we just the revenue, our by modest as impact economy of business in as as your far knew were a in that actually being the offset just but recovery buildings new well what it general. is seeing and

Clearly, escalations, I firm. to helps, when the thing I wage because that. done side labor an say, and And see the on make you're XXX% our a the speaking, this Andy, work has want entire there the incredible Nobody really we recover has Yes. which a even get you job. trail can. like off getting escalations, team out the orders But on really, done I with other have in, generally job strong great, done good But guys the inflation. team don't would great sure of grouping

Thanks.

Mulrooney Our next your question. line the proceed with Please Tim from of question Blair. comes William with

closer building last on look Good your your morning, on were at morning, segment doing did at X.X% Scott, team job. pre-pandemic if a that basis, X%. good there comment great you your I just look a Earl. about EBITDA EBITDA Scott, or guess, levels If versus your B&I consolidated I margin this to quarter I margins,

other So asked to the in that is work, how where efficiencies well about, tough, things related you market were much this do still expansion with delay -- How labor of versus that EnhancedClean think work? you Andy I that clearly, expansion much before. but labor like is know of to back above you're higher-margin

It hard this I the like quarter, not to was other. literally versus it's X.X% X.X%. think XX.X

Sorry. X.X%, okay.

just look, It's right going plethora things. I teams a think It's Yes. capturing selling. the It's managing of it's about out expenses. estimations. and

that thing new have in on of other business. talked track haven't sales about is record we're another The we to bringing

many so So I business been a exiting definitely been labor buildings Tim. But has that all it's We've every tell aren't The things, just these were. think not I efficiency you, the because -- think helps combination anyway, I where they would things. of profitable. there's

been And at that X the can't years, for on get or we've the we X we've if path been disciplined. So escalation, least. last

So I think we're trending well. really

efficiency? labor things, of not Combination the several

Yes. Yes.

My ask about I question, you second Scott, RavenVolt. to Okay. want

more about this but job behind the within company little well out, good of can prepared the laying growth You you can help capabilities it mean, did is you So fit acquisition? strategic -- to just bit do guys question RavenVolt? that talk bring does in What remarks like table a why the my at a fuel a RavenVolt rationale I ABM?

-- start let going because the word And simple. micro Yes. to using. really I'm to it me do group just want I

XXX,XXX-square-foot So office power getting picture building that's a the its from grid.

have downstairs. You

You have all the power coming in.

picture oil-fired. generators say, during forth you electrical we're a I can kind change say, day. you the the peak now. And oil hours. by this, either imagine hours. There's of rates building generators, wait, guys energy power going peak if the to bank fire from because up, off save And having down grid could fired or that again, There's the but by you're able gas to And of switch micro of costs. going to Now sitting now don't know money period gas. bank fired We're grid of the side know side now that's that can to or a and to to from switch grid that's you back

And through And for in efficiency. really so is sustainability it's seeing RFPs we some a electrical and of our looking internal the microgrid project services heretofore, just retrofit saying, we for where were And asking have Tim, a energy basic come like were about what big basically contractors It's or And more capability don't to the subcontract. probably it's more they're area we capabilities. and terms hottest now, deal. cost we're efficiency.

ABM Solutions worth the self-performed brings. of in able the the to just just this literally for area the of into that muscle bundled right projects of this So to super now that energy billion now. has revenue, $X.X able is It's we're that excited kind super, a being say the between to cross-sell the Technical rest solution hottest the whole about capability space being

they you're our Tim, at I that and to that's EV would you augment that, power infrastructure that significant several to the a of really do if the understand spot mobility. to And power really that's to augmentation business, addition about going in their needed going infrastructure to think lot vehicles the a sweet emerging looking the of make, actually next e-mobility helping just and for electrification facilitate be how of the clients the RavenVolt, over just add, fact years, can

Alright. Thank you.

Our Riddick Please from question Company. the with & comes line of with Sidoti Marc proceed your next question.

everyone. Good morning,

believe, to picture. to talk So RavenVolt then of bit -- a the when by about I adding I are bigger things, the with, little seeing XXXX, touch we Maybe couple $X you and the -- acquisition you're guess, where on of really about then acquisition piggybacking Day, Investor billion to of on what you more revenue And could remember back the correctly. sort was goal commentary from a I go pipeline. start by end of want I but fiscal maybe if in

maybe what on current are target and maybe So about appetite. sort on your to if you you where is pipeline view maybe of bring up us the and talk date on current of sort that

we're off you front-load always clear, then over when X- which horizon. out of a Well, Momentum look, acquisitions gates and really it's think between super-fast X- I a And X-year Able revenue acquisition, and was great $X to we're billion strong. or RavenVolt, right, it's the or start, those of time now

There's about would we you now. And look of But to tuck-ins I opportunity So right we're that RavenVolt, as million for And kind that. the do think a strong. little pretty tuck-in us now. pipeline in like People at definitely really is revenue. $XXX actually that see But there's our little just ample more at caution pausing excited a in are marketplace. bit. bit right a

don't I slowing it down. see So, necessarily

are the drivers about And bigger initial And timing come if picture actual other on including, thing, Scott, you through of the was sort your we're maybe the in around and I of not of guide wondering kind that of talk Okay. opportunities might how could thinking then, think briefly, when some to numbers but might a front of about bit you you, Obviously, little you're thoughts that longer of about on mentioned your in what and term sort across. sort what that remarks we to on prepared that act. the maybe on any as as are pictures, how Federal maybe if talking visibility should bigger flow to ABM. based

Yes.

and right, retrofit it's RavenVolt group the coming technical we're just think because of E-mobility with in think a and I I which energy. at design and be you, we early, that the really think -- everything we'll little our that charges, store for I your a with we work launched vault do solution, doing is just of do charger we're possession look now, install Ultimately, easy what it's call the if one can our number in we procuring now. saying can we you charges. But your fact kind we the country, we product can solutions that

really So, offering. that out rounding we're

So recently positioned I advantage legislation a are well of has But to we just it. lot that been take think of really released.

So and it of again, magnitude sitting of those we funds are But how we deployed. the going right haven't seen now. the velocity we're be to full think pretty

talk if with taking you're what being a a airline had the seeing -- sort little creeping of some little there? I of little bit given seeing parking what's with what's you you about in has kind orders. the bit If there, the there -- an was bit then correctly what but commentary sort on and commentary how of activity around taking And between place of maybe in, commentary of I little give us And you airport guess, of that travel a with more had. and I that bit And overall, kind addition sort business of of I mix around think an remember of the airport evolved could you place can update more. was brought a up challenges also, and you're wondering the

Yes.

baggage about an flights. at flight to volumes who's even of to the Anyone can't talk pilots, gates people because find pressures. airport labor they the canceled look, because and you Because, people let about can't we now, canceled find travel Go XX% of is that not in, handling. lot to there's they our see it are full. around If are where anything, been So airports was if a frustration really the has higher because pre-pandemic. seen traveled

So has anything around labor frustration. caused

And from people that hasn't so -- traveling. but deterred

switch The got out volume. up. our over the job unprofitable basis a pre-pandemic. XX%, we've points made from great We've disciplined, on the done seeing contracts. team aviation our we been And up where XX%, has airports; were XXX a is we're Because profitability XX%-XX%, airlines. of we've portfolio to move So We're side.

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

you. Yes, Thank Good hi. morning.

First, about to I segment. B&I just the wanted ask

revenue there get the some the curious margins. more driving there. little around on are touched a some new in much a that component wins, if rate but what's us And the there perspective within It there segment? color like what we from as on give pricing? was -- incremental there synergy You sounds But acceleration And how relates maybe of you're Able hearing the some clients. was growth and could bit drivers to it

Yes.

that benefit So year acquisition, there's And at say much ago, to I when tremendous. would look a not a have have And would seen which expected a but lot of And all, return B&I office. I anyone probably first have of as Able. what office, the as return again, seen been is, has we there. a we to the we've segment,

So and won new that's business good And a of just helped. expanding deal clients. with we've

the I that say, office. would brought the environment good in to us. we mostly that return and fact for has for growth been of So And some kind it to I would Able there's again, attribute

-- So that that will out out over will flatten flatten over time. the

always ABM. core of really the remain It's about feeling And think, our 'XX. we're been. through good we will it So segment. And has it's robust, largest that. It

Great. transformation and growth Okay. about about some ELEVATE. talked Day, workforce initiatives, Investor people allocation the to it relates you digital And at you just talked as secondly initiatives. investment initiatives on then -- And

could I'm how areas So has help are think if investment -- much three us the at guess. much you curious how been across in this allocated where process, you point? through like And this this of I

Yes. sure. Yes,

to like you. So versus think be interesting that, it don't bucketed that have we like ERP would actually I

would lot is we're progress. what think We've on I say track. great had of a I

tech bring been workers, us tracking to which an been wonderful so in great, be and because being systems continue you for able initiated to for new that We three put parking. system. risk year, applicant through field the in. smart So, parking, far in this work all way management -- systems, we will system, wonderful have That's cloud-based new we a process. them system a track a We We put can launched ABM new put system. new the Vantage in our order has new

So start next year across on catch this next much on launch now lot But everything in meant maybe and be system terms is the through really exact big I the up our will was right lighter for platform, to spend. have ERP external of track. we books. science And when and little projected is the spend would be probably an us year. But a we And cascading it more industry it good how track. going of stuff It's our never a say on. year we

Okay. you so Thank much.

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

Hi, you. Thank good morning.

you Able bit guess I Services the maybe So would I ask like more. little to about acquisition a

you exactly bundled since metropolitan I as were that. it's potential. bit In synergies kind almost synergy migrate in even also, little in ability I engineer-based But recall, on areas And maybe of to operating words, revenue the So geographies. significant more other cost the been or interested was closed a that model service other a envisioned. customers or to both year there

on maybe at Able? one year could, revenue you if seeing cost the So that you. synergies, from comments this just about and Thank point some you're

Sure. Yes, sure.

everything we target. as look, them expected. where want on has on from We're Synergies to are gone be. basically So target

On the performing as revenue side, expected. it's

all ABM. the about integrated this having think for David, is $X big This entire billion was year, thing I firm into acquisition. the it us,

how And make of two a and going about of spent we synergies integration sure. So the on year we to to I kind or ton think cross-sell. revenue is be time can

So for right. it get important things us, once was because integration attack too we want really just to at to the didn't many

us the hear because and next you're really we're excited few So more quarters going about come, the this to over I think from more about to potential.

Okay. Thank occupancy, kind you future the of for office that. And office then maybe just of space. the is last about maybe question

harder services of workers be few bigger the like remote So just headlines lot to And mind customers, sit wouldn't see you from mean, a demand and for a get trying how as here, about major you offices. major point even comments their a or view, demand your back in Scott, you. you employers back big-name if days into ABM these companies the just of maybe of as rising much a sharing big space opined from times offsetting few Thank of the trends. the how some do might and over a overall and layout to maybe I environment the past few had But try quarters the you priorities evolving per office? concepts the particular in harder big, the post-pandemic get about qualitatively other people worker few ever picture the

tougher. office macroeconomic good is early people this, a question. come you what's office, that's changing. Look, when coming will control It's if Because to thought that environment more. the and back too going getting say No, I back actually it We'll were because of have is people didn't Yes. employers to never the on, tell. the just just see to

that, the on space, that buildings side of ABM, the mean really, it's insulated for think B&I clean modern for systems Class feel the from filtration majority way we better modern to I really too space because specs. way, air, A I we only tell. with is early cleaning

and buildings. gravitate C thesis buildings going to B are buildings that in Our buildings to tenants to is A B

that's don't up downsize, to we're to $X rent. million Class feel get upgrade a on coming context space." "We feet. office. but trends. we're firm, is they're incrementally but you talk and on like And to to our insulated. on with now, think on terms going B said, million to a see only spending some way in I give a building, We're of of $X to would XX,XXX-foot feet spend those people to are as it, XX,XXX back let's about building the need starting XX,XXX an have occupancy going happy they to A And And They tenant picture not to major we rent maybe they're still And think have so who on a buildings this move So it I we're levels. starting may forget, and effect A-class the way to try starting we clients

we it's not increments it's space. but feels It every than reached like thought. So quarter, like probably incrementally smaller more, we've

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

some in you in revenue Is that business setting in fuel not than of historically, Scott, would not exceeded I billion. to number? follow-ups annual different But business you approach going A think details. $X just you. more on provided I thank back Hi, expectations, forward you that mean something good couple of And but the Aviation. then there Aviation little mean, you a I get the you're that number know could I again? anymore, Aviation

a when numbers, No revenue question. making contracts, exited it's going reason they Part not to at in specifically of now. It's just because because that No we're question. we're a we game money, the weren't come and lower organically the loss.

at month of for now. we So the for best five be example that O'Hare baseline, growing and of where we'll And rate just look that I from last our think year as are run got would a that a we win it's incredible. million years. at look I I us, standpoint organically and is $XX mean the

grow we the So I look We'll as at be them, $X and from baseline. plus. should this billion

besides after buildings. on more solar and Or technical on going older of Inflation One more, opportunity comment forward, the Reduction work. at may, our batteries? is passing? many efficiency if I and the projects how an that Can particularly inside energy Act you currently infrastructure solutions improving incorporates

our for remember, the seen start, that, our it's again, But going backlog which, now. and yet, positioned is I it's right, our opportunity is Yes, like Solutions backlog, we're will on waiting Technical the that's backlog more an so a contracts just right to but build. tell haven't signed new, forward, activity been lot group, of highest you, ever we of because infrastructure

again, the the guess, the and we're -- So would we've sustainability, energy it's just bigger of backlog bigger biggest in the ESG I ever question positioned terms -- would well of terms terms in had. -- of efficiency, answer be be platform, whole or in

Our this Baird. morning comes with the from final of proceed Wittmann Andy question. Please question line with your

all there taking $X.XX, as thinking you that annual that in. after is which on did goodwill of incremental the going that the if of going because it? EPS press what and those interest interest could that back Earl, EBITDA we I on can math variability, the accretion on you noted might just we detail given right kind more to be the hit. guess, because debt backlog helpful, attached that's you have us $X.XX take the get the is little could on you'll give some you run I then be for are RavenVolt, tightened on that me And will moving to amortization and RavenVolt. just be these let comment won't about well some I two burn areas super for were you Obviously, get be But year, the accretion way thinking be also helpful next probably into for guys about that. for think $X.XX, revenue it you could up of heading to just off, guess getting the items. could intangible expense all would rates intangible talk business, release. But you the Thanks of probably in I EPS Okay. think just thought as pieces you you but was be? to Just from amortization off. that guidance a that the initial there's bit rate And gave of burn

No, absolutely.

going would So RavenVolt the an cash we to is adjusted EPS. definitely I say from believe acquisition be that accretive.

some $X.XX I think that actually fact $X.XX amortization we will based I'd you're have of probably on say intangibles. actually to the range. the the in

actually place over With the is on. impacted you're course think that have been into spot I basis regards last point we to XXX the rates, the the Fed put interest obviously, So of year. by increase

So current based a fixed when at interest of $XX million at we're little quarter. looking run rate look over our we mix, on our floating per about

helps that in hopefully, you modeling. So the

very much. you Thank

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

undoubtedly briefly, want with Sure. to United team, to and our extend saying everybody for to the the the and thoughts and Look, of inspiration to I condolences team wanted want interest Kingdom our of I And just members, have. to our of today I remain across generations will participating close an condolences. thank And to to clients Commonwealth extend following Queen the on our passing for news partners Elizabeth entire mean, II. we service the sad you devotion just just again, I to just our want just behalf just come. her and

some So for QX, coming chatting and you, you to thank back more. everybody, and thank participating look But forward you. to

Thank today's conference. you. This concludes

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