ABM Industries

Leverage is moderate: total borrowings ~1.6 billion dollars, cash ~100 million dollars, net debt near 1.5 billion dollars; the company disclosed a 2.9x total leverage ratio and a 5.44% weighted average borrowing rate. Interest rate swaps mature in 2026, and interest expense guidance for FY2026 is 95 to 105 million dollars.

Self‑insurance and multiemployer pension contributions are meaningful ongoing cash needs. Liquidity is supported by an undrawn revolver capacity of about 0.5 billion dollars at January 31, 2026. We view the balance sheet as acceptable for a recurring cash generator, but not conservative enough to merit a higher score.