Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at ABM (NYSE: ABM) and its peers.
Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.
The 8 industrial & environmental services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
ABM (NYSE: ABM)
With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.
ABM reported revenues of $2.22 billion, up 6.2% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
“ABM’s third quarter performance was highlighted by mid-single-digit organic revenue growth and strong free cash flow,” said Scott Salmirs, President & Chief Executive Officer.
Unsurprisingly, the stock is down 3.5% since reporting and currently trades at $46.44.
Read our full report on ABM here, it’s free.
Best Q2: CECO Environmental (NASDAQ: CECO)
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
CECO Environmental reported revenues of $185.4 million, up 34.8% year on year, outperforming analysts’ expectations by 3.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year revenue guidance topping analysts’ expectations.
CECO Environmental pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 48.9% since reporting. It currently trades at $51.60.
Is now the time to buy CECO Environmental? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Pitney Bowes (NYSE: PBI)
With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.
Pitney Bowes reported revenues of $461.9 million, down 5.7% year on year, falling short of analysts’ expectations by 2.9%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and EPS in line with analysts’ estimates.
Pitney Bowes delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 1.2% since the results and currently trades at $11.25.
Read our full analysis of Pitney Bowes’s results here.
Vestis (NYSE: VSTS)
Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.
Vestis reported revenues of $673.8 million, down 3.5% year on year. This result met analysts’ expectations. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is down 18.7% since reporting and currently trades at $4.86.
Read our full, actionable report on Vestis here, it’s free.
Driven Brands (NASDAQ: DRVN)
With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.
Driven Brands reported revenues of $551 million, up 6.2% year on year. This number beat analysts’ expectations by 1.9%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates.
The stock is down 8.5% since reporting and currently trades at $15.56.
Read our full, actionable report on Driven Brands here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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