NEW YORK - ABM Industries Incorporated (NYSE: NYSE:ABM), a prominent facilities and infrastructure services provider, announced today that it has secured a NASPO ValuePoint contract to supply electric vehicle (EV) charging infrastructure across the United States. The agreement enables ABM to provide its EV charging solutions to state and local governments, as well as educational institutions, with improved efficiency and cost-effectiveness.
Mark Hawkinson, President of Technical Solutions at ABM, expressed the company's pride in receiving the contract, noting it as a recognition of ABM's leadership and technology in the EV market. The contract is expected to bolster EV adoption by offering comprehensive services, including plan design, installation, and maintenance of charging ports.
ABM boasts a portfolio of over 30,000 EV ports installed nationwide and offers end-to-end services for various sectors, including logistics, retail, and education. The NASPO ValuePoint cooperative purchasing program, known for its strict vendor selection criteria, aims to ensure that governmental agencies receive top-quality products and services at competitive prices.
The contract with NASPO ValuePoint, the cooperative purchasing division of the National Association of State Procurement Officials (NASPO), is seen as a strategic move for ABM to expand its reach in the public sector. The cooperative aggregates demand from all 50 states and other entities, fostering innovation and competition.
ABM's comprehensive EV infrastructure solutions are designed to meet the growing demand for reliable and accessible EV charging options, aligning with the company's commitment to creating a cleaner and more sustainable environment.
This announcement is based on a press release statement from ABM Industries Incorporated.
In other recent news, ABM Industries Incorporated has seen several significant developments. The company's Executive Vice President and Chief Strategy and Transformation Officer, Josh Feinberg, is transitioning to the role of Senior Advisor, a move preceding his planned departure in October 2024. In addition, ABM Industries has acquired Quality Uptime Services for a cash sum of $119 million, a strategic move expected to double ABM's mission-critical related revenue in the first year post-acquisition.
The company's financial performance in the second quarter of 2024 was strong, with improvements in nearly all business segments. Earnings exceeded expectations, leading to an upward revision of financial guidance. Notably, ABM Industries secured new business worth approximately $1 billion, including a significant multi-year micro-grid project valued at $180 million. In response to these developments, Baird, a financial services firm, increased its price target for ABM Industries shares to $49.00, maintaining a neutral rating.
ABM Industries also raised its full-year adjusted earnings per share guidance to $3.40 to $3.50, reflecting confidence in its strategic initiatives and operational efficiencies. The company continues its share repurchases, having bought back approximately 555,000 shares. These are the recent developments in ABM Industries' financial performance.
InvestingPro Insights
ABM Industries Incorporated (NYSE: ABM) has recently made headlines with their new NASPO ValuePoint contract to supply EV charging infrastructure, showcasing their commitment to expanding sustainable solutions. As the company positions itself to capitalize on this growing market, investors may find the following insights from InvestingPro particularly relevant:
An InvestingPro Tip highlights that ABM's management has been actively buying back shares, reflecting confidence in the company's financial health and future prospects. Additionally, ABM has demonstrated a strong commitment to its shareholders by not only maintaining but also raising its dividend for three consecutive years, which is indicative of a stable financial position and a reliable income stream for investors.
From a financial standpoint, ABM's market capitalization stands at $3.35 billion, with a P/E ratio of 13.73. The company's P/E ratio for the last twelve months as of Q2 2024 is slightly higher at 16.45, which could suggest investors are expecting higher earnings growth in the future. Gross profit margins appear to be a point of weakness, as they stand at 13.61% for the same period, potentially signaling room for improvement in cost management or pricing strategies.
Investors looking for additional insights on ABM can find more InvestingPro Tips that could help in making informed decisions. There are 12 more tips available on InvestingPro, including analyses on earnings revisions, trading multiples, and stock volatility, which could be instrumental in assessing ABM's performance and potential investment opportunities.
For those interested in detailed analytics and forecasts, the full suite of InvestingPro Tips can be accessed at https://www.investing.com/pro/ABM, providing a more comprehensive understanding of ABM's financial landscape and market position.
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