ABM Industries

Contract types (fixed-price, square-foot, cost-plus, hourly, transaction-based) and frequent rebids cap pricing power. Wage inflation and timing of escalators can pressure margins; Q1 FY2026 gross margin was 11.6% and segment margin softened on project mix.

ABM can push selective increases and improve mix by leaning into technical, mission‑critical, and energy solutions, but broad-based price raises without churn risk are unlikely. We see latent pricing leverage primarily via scope expansion and performance-based add-ons rather than headline rate hikes.