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Jun 30
BrightView Q3 2025 Earnings Report
BrightView reported its unaudited results for the third quarter ended June 30, 2025, with record net income and adjusted EBITDA, while reaffirming its full-year guidance.
Key Takeaways
BrightView delivered a strong third quarter in fiscal year 2025, achieving record net income and Adjusted EBITDA, despite a slight decrease in total revenue. The company's strategic cost management initiatives significantly improved profitability margins across both Maintenance Services and Development Services segments, reflecting meaningful progress in its transformation strategy.
Net service revenues decreased by 4.1% year-over-year to $708.3 million, primarily due to timing delays in development projects and a decline in commercial landscaping services.
Net income increased by 37.4% year-over-year to $32.3 million, with a net income margin expansion of 140 basis points.
Adjusted EBITDA grew by 4.9% year-over-year to $113.2 million, and Adjusted EBITDA margin expanded by 140 basis points to 16.0%.
The company reaffirmed its fiscal year 2025 guidance for total revenue, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow.
BrightView
BrightView
BrightView Revenue by Segment
Revenue by Segment
Maintenance Services Revenue
CapyFin.comDevelopment Services Revenue
CapyFin.comLandscape Maintenance Revenue
CapyFin.comSnow Removal Revenue
CapyFin.com Forward Guidance
BrightView reaffirmed its fiscal year 2025 guidance, anticipating total revenue between $2.68 billion and $2.73 billion, Adjusted EBITDA between $348 million and $362 million, an Adjusted EBITDA Margin of approximately 13.0%, and Adjusted Free Cash Flow between $60 million and $75 million.
Positive Outlook
- Reaffirmed full-year guidance indicates confidence in achieving financial targets.
- Continued focus on the 'One BrightView' strategy is expected to drive sustained profitable growth.
- Cost management initiatives are anticipated to continue contributing to margin expansion.
- Commitment to prioritizing employees and delivering best-in-class service supports long-term value creation.
- The company's transformation efforts are showing meaningful progress in driving profitability.
Challenges Ahead
- The guidance for Adjusted Free Cash Flow is significantly lower than the previous year's actuals, indicating increased capital expenditures.
- Potential for timing delays in development projects could impact future revenue recognition.
- Strategic reductions of non-core businesses and declines in core commercial landscaping and snow removal services may continue to affect overall revenue growth.
- Dependence on future uncertainties, such as items discussed in non-GAAP reconciliations, could impact actual GAAP financial results.
- The company's substantial indebtedness and interest rate increases could pose financial risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income