The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how ABM (NYSE: ABM) and the rest of the industrial & environmental services stocks fared in Q2.
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 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 $2.32 billion, up 4.2% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ full-year EPS guidance estimates.
"Our third quarter results reflected strong operational and financial performance, including record quarterly revenue, robust EPS growth and substantial cash generation. Our team executed well and delivered on our expectations despite a backdrop of macro uncertainty and adverse timing of certain projects," said Scott Salmirs, President and Chief Executive Officer. "Aviation and Manufacturing & Distribution ("M&D") delivered strong organic revenue growth, with M&D benefiting from healthy technology markets and further supported by our recent WGNstar acquisition. Technical Solutions ("ATS") revenue growth was impacted by some project deferrals, while Business & Industry ("B&I") revenue performance was largely as anticipated. We expect ATS to ramp sequentially in the fourth quarter as we execute on many of the deferred projects."
Interestingly, the stock is up 5.7% since reporting and currently trades at $49.76.
Is now the time to buy ABM? Access our full analysis of the earnings results 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 $285 million, up 53.7% year on year, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year revenue guidance topping analysts’ expectations.
CECO Environmental delivered the fastest revenue growth and highest full-year guidance raise in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2% since reporting. It currently trades at $69.51.
Is now the time to buy CECO Environmental? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $507.4 million, up 6.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 16.4% since the results and currently trades at $12.22.
Read our full analysis of Driven Brands’s results here.
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 $451.5 million, down 2.3% year on year. This result beat analysts’ expectations by 1.8%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
Pitney Bowes had the weakest full-year guidance update among its peers. The stock is down 4.6% since reporting and currently trades at $16.85.
Read our full, actionable report on Pitney Bowes here, it’s free.
Tetra Tech (NASDAQ: TTEK)
With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ: TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.
Tetra Tech reported revenues of $1.11 billion, down 3.9% year on year. This print surpassed analysts’ expectations by 2.9%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
Tetra Tech scored the biggest analyst estimate beat but had the slowest revenue growth of the whole group. The stock is up 5.6% since reporting and currently trades at $35.68.
Read our full, actionable report on Tetra Tech here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
