The following Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") is intended to facilitate an understanding of the
results of operations and financial condition of ABM. This MD&A is provided as a
supplement to, and should be read in conjunction with, our Financial Statements
and our Annual Report on Form 10-K for the year ended October 31, 2022, which
has been filed with the SEC. This MD&A contains forward-looking statements about
our business, operations, and industry that involve risks and uncertainties,
such as statements regarding our plans, objectives, expectations, and
intentions. Our future results and financial condition may be materially
different from those we currently anticipate. See "Forward-Looking Statements"
for more information.

Throughout the MD&A, amounts and percentages may not recalculate due to rounding. Unless otherwise indicated, all information in the MD&A and references to years are based on our fiscal years, which end on October 31.

Business Overview

ABM is a leading provider of integrated facility solutions, customized by industry, with a mission to make a difference, every person, every day.

ELEVATE Strategy



In December 2021, we announced our multiyear strategic plan called ELEVATE. The
ELEVATE strategy is designed to strengthen our industry leadership position
through end-market repositioning and build on our core services, which we expect
will drive significant long-term value for our stakeholders.

We will continue to make significant investments, which, as previously stated,
are expected to total $150 - $175 million over the life of the program and we
will continue to implement various measures with the aim to ELEVATE:

•the client experience, by serving as a trusted advisor who can provide innovative multiservice solutions and consistent service delivery;



•the team member experience, by investing in workforce management, training,
developing the next generation of ABM leaders, and building on our inclusive
culture; and

•our use of technology and data to power client and employee experiences with
cutting-edge data and analytics, processes, and tools that will fundamentally
change how we operate our business.

Segment Reporting

Our current reportable segments consist of B&I, M&D, Education, Aviation, and Technical Solutions, as further described below.


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                                         REPORTABLE SEGMENTS AND

DESCRIPTIONS


                                              B&I, our largest reportable

segment, encompasses janitorial, facilities


                                              engineering, and parking

services for commercial real estate properties

[[Image Removed: abm-20230131_g3.jpg]] (including corporate offices for high tech clients), sports and


                                              entertainment venues, and

traditional hospitals and non-acute healthcare


                                              facilities. B&I also provides

vehicle maintenance and other services to


                                              rental car providers.
                                              M&D provides integrated

facility services, engineering, janitorial, and


                                              other specialized services in

different types of manufacturing,


                                              distribution, and data center

facilities. Manufacturing facilities

[[Image Removed: abm-20230131_g4.jpg]] include traditional motor vehicles, electric vehicles, batteries,


                                              pharmaceuticals, steel,

semiconductors, chemicals, and many others.


                                              Distribution facilities

include e-commerce, cold storage, logistics,


                                              general warehousing, and

others.


                                              Education delivers

janitorial, custodial, landscaping and grounds,

[[Image Removed: abm-20230131_g5.jpg]] facilities engineering, and parking services for public school


                                              districts, private schools,

colleges, and universities.


                                              Aviation supports airlines

and airports with services ranging from

[[Image Removed: abm-20230131_g6.jpg]] parking and janitorial to passenger assistance, catering logistics, air


                                              cabin maintenance, and

transportation.


                                              Technical Solutions

specializes in facility infrastructure, mechanical


                                              and electrical services,

including power design, installation and

[[Image Removed: abm-20230131_g7.jpg]] maintenance, as well as microgrid systems installations. These services


                                              can also be leveraged for

cross-selling across all of our industry


                                              groups, both domestically and internationally.




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Key Financial Highlights



•Revenues increased by $55.1 million, or 2.8%, to $1,991.3 million during the
three months ended January 31, 2023, as compared to the prior year period.
Revenue growth was comprised of acquisition growth of 1.9% and organic growth of
0.6%. Acquisition growth was driven by a $37.5 million revenue increase from the
Momentum and RavenVolt acquisitions, completed in 2022. Organic growth was
primarily driven by expansion of business with existing customers as well as new
business within M&D and Education and the recovery in volume of our business in
Aviation. The increase in revenues was partially offset by a decrease in work
orders for disinfection-related demands (primarily in M&D and B&I).

•We had a decrease in operating profit of $34.6 million, to $71.4 million during
the three months ended January 31, 2023, as compared to the prior year period.
The decrease was primarily attributed to:

•increase in direct labor and related expenses due to higher wages and limited labor supply in certain markets (primarily in Aviation and Education);



•the absence of favorable self-insurance adjustments related to prior year
claims as the result of actuarial evaluations completed. Based on the results of
the Actuarial Review or the period of May 1, 2022, through October 31, 2022, it
was determined that there was no adjustment required for our total reserves
related to prior years during the three months ended January 31, 2023; and

•amortization of intangibles related to the RavenVolt Acquisition of $3.1 million.

This decrease was partially offset by an increase in revenues during the three months ended January 31, 2023, as compared to the prior year period.



•Interest expense increased by $13.6 million, to $19.8 million during the three
months ended January 31, 2023, as compared to the prior year period, and was
primarily driven by increased indebtedness from 2022 acquisitions, and higher
interest rates on our debt borrowings.

•Our effective tax rate on income from operations was 26.9% for the three months ended January 31, 2023, as compared to 24.2% for the three months ended January 31, 2022.



•Net cash used in operating activities was $70.9 million during the three months
ended January 31, 2023. Our total operating cash flows were lower, primarily due
to the timing of certain working capital requirements.

•Dividends of $14.4 million were paid to shareholders, and dividends totaling
$0.220 per common share were declared during the three months ended January 31,
2023.

•At January 31, 2023, total outstanding borrowings under our Amended Credit
Facility and Receivables Facility were $1.4 billion. At January 31, 2023, we had
up to $563.3 million of borrowing capacity.

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