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BrightView Q2 2025 Earnings Report
BrightView Holdings, Inc. reported its financial results for the second fiscal quarter ended March 31, 2025, showing a decrease in net service revenues and net income compared to the prior year, while Adjusted EBITDA increased.
Key Takeaways
BrightView Holdings, Inc. experienced a decrease in net service revenues and net income for the three months ended March 31, 2025, compared to the same period in the prior year. However, the company saw an increase in Adjusted EBITDA, driven by cost management initiatives and increased snow removal services revenue. The Maintenance Services segment saw a revenue decrease due to strategic reductions in non-core businesses, while Development Services revenue increased due to higher project volumes.
Net service revenues decreased by $10.3 million, or 1.5%, to $662.6 million.
Net income decreased to $6.4 million from $33.7 million in the prior year.
Adjusted EBITDA increased by $8.7 million, or 13.4%, to $73.5 million.
Diluted loss per common share was $(0.03), compared to earnings of $0.17 in the prior year.
BrightView
BrightView
BrightView Revenue by Segment
Revenue by Segment
Maintenance Services Revenue
CapyFin.comDevelopment Services Revenue
CapyFin.com Forward Guidance
The company expects to recognize revenue on 57% of its remaining performance obligations over the next 12 months and an additional 43% over the 12 months thereafter. New fuel swap agreements entered in April 2025 are expected to be reflected in results beginning in the third quarter of fiscal year ending September 30, 2025.
Positive Outlook
- The company anticipates repurchase activities to occur over an extended period of time under the share repurchase program.
- The company expects to recognize a significant portion of remaining performance obligations within the next 12 months.
- New fuel swap agreements are expected to help reduce exposure to volatility in fuel markets.
- The company continues to pursue accretive acquisitions to increase market density and expand service lines.
- The One BrightView initiative is expected to contribute to sustainable improved profitability.
Challenges Ahead
- The company's ability to generate sufficient cash flows or secure future borrowings may be impacted by prevailing economic conditions.
- The company may be required to repay or refinance indebtedness upon certain events, such as a change in control.
- There is no assurance that the company can refinance indebtedness on commercially reasonable terms or at all.
- Future acquisitions, joint ventures, or similar transactions may require additional capital, with no assurance of availability on acceptable terms.
- The Maintenance reporting unit may be at risk for an impairment loss in the future if interest rates and market conditions continue to trend unfavorably or if forecasts are not realized.
Revenue & Expenses
Visualization of income flow from segment revenue to net income