Let’s dig into the relative performance of ABM (NYSE: ABM) and its peers as we unravel the now-completed Q1 industrial & environmental services earnings season.

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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 1.2% above.

Thankfully, share prices of the companies have been resilient as they are up 8.7% on average 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 $2.11 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates but a slight miss of analysts’ full-year EPS guidance estimates.

“ABM’s second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry (“B&I”) segment, driven by improving conditions in our prime commercial office markets,” said Scott Salmirs, President & Chief Executive Officer.

Unsurprisingly, the stock is down 6.4% since reporting and currently trades at $47.93.

Is now the time to buy ABM? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $176.7 million, up 39.9% year on year, outperforming analysts’ expectations by 17%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.

CECO Environmental achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 51.3% since reporting. It currently trades at $29.05.

Is now the time to buy CECO Environmental? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $665.2 million, down 5.7% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Vestis delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29.4% since the results and currently trades at $6.15.

Read our full analysis of Vestis’s results here.

UniFirst (NYSE: UNF)

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

UniFirst reported revenues of $610.8 million, up 1.2% year on year. This print lagged analysts' expectations by 0.6%. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS estimates.

The stock is down 8% since reporting and currently trades at $175.01.

Read our full, actionable report on UniFirst here, it’s free.

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 $493.4 million, down 40.6% year on year. This number missed analysts’ expectations by 0.9%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EPS estimates.

Pitney Bowes had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 28.2% since reporting and currently trades at $11.48.

Read our full, actionable report on Pitney Bowes here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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