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Key Points Connecticut-based Manatuck Hill Partners sold 367,000 shares of BrightView Holdings in the third quarter. The position was previously worth about $7.8 million. The move marked an exit, with no reported BrightView holdings at quarter-end. These 10 stocks could mint the next wave of millionaires › Connecticut-based Manatuck Hill Partners fully exited its position in BrightView Holdings (NYSE:BV) during the third quarter, reducing its stake by 467,000 shares in a move valued at about $7.8 ...

Financial Data and Key Metrics Changes - Fiscal 2025 Adjusted EBITDA reached $352 million, an increase of $28 million or 8% compared to fiscal 2024, with a margin of 13.2%, representing a 260 basis point improvement from fiscal 2023 [14][15] - Adjusted EBITDA margin expanded by 150 basis points year-over-year, marking consecutive years of margin expansion [15][20] - SG&A expense as a percentage of revenue improved by 180 basis points since 2023, reflecting operational efficiencies [12][16] Business Line Data and Key Metrics Changes - Customer retention improved to approximately 83%, a 400 basis point increase since the start of the transformation two years ago [8][4] - The company added about 100 new sellers in fiscal 2025, with plans to continue expanding the sales force by approximately 500 net new hires through 2030 [9][10] - The land maintenance revenue is expected to grow by 1%-2% in fiscal 2026, driven by the growing sales force and improved customer retention [21] Market Data and Key Metrics Changes - The development segment is expected to see revenue growth in the range of flat to +2%, supported by a healthy backlog and benefits from cold starts [22] - Snow revenue is anticipated to be between $190 million and $220 million, reflecting a shift to more fixed fee contracts [22] Company Strategy and Development Direction - The company is focused on delivering sustainable and profitable top-line growth by investing in frontline employees and expanding the sales force [6][11] - A disciplined approach to capital allocation is emphasized, with an increased share repurchase authorization from $100 million to $150 million [4][19] - The fleet management strategy has been a key focus, with over $300 million invested to refresh aging equipment, leading to improved operational efficiency and employee morale [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of discretionary spending in ancillary services and the overall growth potential for the business in 2026 [28][29] - The company is confident in its ability to grow, citing improvements in employee and customer retention as critical factors [84][85] - Management acknowledged potential challenges from seasonal fluctuations but remains focused on leveraging improvements in service delivery and operational efficiencies [28][29] Other Important Information - The company has a strong balance sheet with net leverage remaining at 2.3x and no long-term maturities until 2029, providing ample liquidity for investments [19][20] - The midpoint of the margin guidance implies a 310 basis point improvement over the last three years, reinforcing the commitment to expanding margins [23] Q&A Session Summary Question: How did performance in discretionary areas of land maintenance trend in Q4? - Management noted optimism in discretionary spending returning, with positive feedback from frontline workers and customers regarding new fleet investments [27][28] Question: What is the expected productivity ramp for new sales hires? - New sellers typically see limited productivity in the first six months, with improved performance expected after a year, targeting $1.5 million in annual sales for seasoned sellers [30][31] Question: How far along is the company in improving employee retention? - Employee retention has improved significantly, with further potential for enhancement, aiming for a more normalized level for the high-turn workforce [41][43] Question: What impact has the new tax bill had on capital investment? - The company benefited from tax savings to accelerate fleet refresh investments, with expectations to normalize capital expenditures in the coming years [45][46] Question: What is the timeline for the rollout of the field service management system? - The rollout is expected to be completed in the first quarter of the new year, aimed at increasing efficiency and capacity rather than cost savings [68][69] Question: How are project delays in the development business being managed? - Management indicated that while there have been delays, they expect to see growth in the development business as new branches open and backlogs are addressed [71][72]

Financial Data and Key Metrics Changes - Fiscal 2025 adjusted EBITDA reached a record $352 million, an increase of $28 million or 8% compared to fiscal 2024, with an adjusted EBITDA margin of 13.2%, expanding 150 basis points year-over-year [11][12] - The company improved SG&A expense as a percentage of revenue by 180 basis points since 2023, reflecting substantial overhead cost reductions [12] - Net leverage remained at 2.3 times, with a strong balance sheet supporting capital allocation strategies [17] Business Line Data and Key Metrics Changes - Customer retention improved to approximately 83%, a 400 basis point increase since the start of the transformation two years ago [7][4] - The company added about 100 new sellers in fiscal 2025, with plans to increase the sales force by approximately 500 net new hires through 2030 [8][3] - Land maintenance revenue is expected to grow by 1%-2% in fiscal 2026, driven by a growing sales force and improved customer retention [18] Market Data and Key Metrics Changes - The development segment is expected to see revenue growth in the range of flat to positive 2%, supported by a healthy backlog and cold starts, despite some project delays early in the fiscal year [19] - Snow revenue is anticipated to be in the range of $190-$220 million, reflecting a shift to more fixed fee contracts [19] Company Strategy and Development Direction - The company is focused on delivering sustainable and profitable top-line growth, emphasizing investments in frontline employees and expanding the sales force [5][6] - A disciplined approach to capital allocation is being maintained, with an increase in share repurchase authorization from $100 million to $150 million [4][17] - The company aims to leverage its size and scale to unlock additional efficiencies and drive long-term shareholder value [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of discretionary spending in ancillary services and the positive momentum observed in customer engagement [24][26] - The company is confident in its ability to grow the business in 2026, despite potential seasonal noise, due to the foundational improvements made over the past two years [25][59] - Management highlighted the importance of employee retention in driving customer satisfaction and overall business growth [33][57] Other Important Information - The company has invested over $300 million in refreshing its fleet, significantly reducing the average age of core production vehicles to five years and mowers to one year [15][16] - The implementation of a new field service management system is expected to enhance operational efficiency and capacity creation [46][48] Q&A Session Summary Question: How did performance in discretionary areas of land maintenance trend in Q4? - Management noted optimism in the return of discretionary spending and positive customer feedback regarding new fleet investments [24][26] Question: What is the productivity ramp for new sales hires? - New sellers typically see limited productivity in the first six months, with improved performance expected after one year, targeting $1.5 million in annual sales for seasoned sellers [27][29] Question: How far along is the company in improving employee retention? - Employee retention has improved significantly, with potential for further progress, aiming to make frontline workers feel valued and engaged [33] Question: What is the impact of the new tax bill on capital investment? - The company benefited from tax savings to accelerate fleet refresh investments, with plans to normalize capital expenditures in the coming years [34][35] Question: How is the company addressing project delays in the development business? - Management indicated that while there have been delays, they expect to see growth in the development segment as backlogs clear and new branches open [54][55]

Fourth Quarter & Fiscal Year 2025 Earnings Call November 20, 2025 NYSE: BV Introductory Information Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by th ...

Core Insights - BrightView Holdings (BV) reported revenue of $702.8 million for the quarter ended September 2025, reflecting a year-over-year decline of 3.6% and an EPS of $0.27, down from $0.30 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $721.69 million, resulting in a surprise of -2.62%, while the EPS surprise was -15.63% against a consensus estimate of $0.32 [1] Revenue Breakdown - Maintenance Services revenue was $480.4 million, below the three-analyst average estimate of $491.25 million, marking a year-over-year decline of 1.3% [4] - Development Services revenue reached $224.1 million, compared to the average estimate of $232.41 million, representing an 8.2% year-over-year decrease [4] - Snow Removal Services under Maintenance Services reported revenue of $0.1 million, significantly lower than the average estimate of -$0.67 million, indicating a drastic year-over-year change of -120% [4] - Landscape Maintenance Services generated $480.3 million, compared to the estimated $491.91 million, reflecting a 1.4% decline year-over-year [4] - Revenue from Eliminations was -$1.7 million, slightly better than the two-analyst average estimate of -$1.95 million, with a year-over-year change of -10.5% [4] Adjusted EBITDA - Adjusted EBITDA for Development Services was reported at $40.7 million, exceeding the average estimate of $34.62 million from three analysts [4] - Adjusted EBITDA for Maintenance Services was $72.8 million, falling short of the average estimate of $78.21 million based on three analysts [4] Stock Performance - BrightView's shares have returned -10.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.6% change, and the stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - BrightView Holdings reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.32 per share, and down from $0.30 per share a year ago, representing an earnings surprise of -15.63% [1][2] - The company posted revenues of $702.8 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.62%, and down from $728.7 million year-over-year [2] - BrightView shares have declined approximately 25.6% since the beginning of the year, contrasting with the S&P 500's gain of 12.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $619.38 million, and for the current fiscal year, it is $0.86 on revenues of $2.76 billion [7] - The Agriculture - Products industry, to which BrightView belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Fourth quarter net income increased 8.2% year-over-year to $27.7 million, with a net income margin expansion of 40 basis points[5]. - Fourth quarter Adjusted EBITDA reached a record $113.5 million, up 7.9% year-over-year, with an Adjusted EBITDA margin expansion of 170 basis points to 16.1%[5]. - Total revenue for the fourth quarter decreased 3.6% year-over-year to $702.8 million, driven by a 1.3% decrease in Maintenance Services and an 8.2% decrease in Development Services[5][7]. - For the fiscal year ended September 30, 2025, gross profit was $621.7 million, down from $645.6 million in 2024, reflecting a decrease of 3.7%[40]. - Net income for the fiscal year ended September 30, 2025, was $56.0 million, a decrease of 15.5% from $66.4 million in 2024[49]. - Adjusted EBITDA increased to $352.3 million for the fiscal year 2025, up 8.5% from $324.7 million in 2024[49]. - Adjusted Free Cash Flow decreased to $65.2 million in 2025 from $145.3 million in 2024, representing a decline of 55.2%[49]. - Basic earnings per share for the fiscal year ended September 30, 2025, was $0.13, compared to $0.21 in 2024, representing a decline of 38.1%[40]. - Adjusted Earnings per Share for the fiscal year 2025 was $0.76, consistent with $0.76 in 2024[49]. Revenue and Services - Maintenance Services revenue for the fiscal year decreased by 3.7% to $1.891 billion, primarily due to strategic reductions in non-core businesses[12]. - Development Services revenue for the fiscal year decreased by 2.4% to $789.1 million, impacted by the timing of development projects[17]. - Net service revenues for the three months ended September 30, 2025, were $702.8 million, a decrease of 3.9% from $728.7 million in the same period of 2024[40]. Cash Flow and Debt - Full year net cash provided by operating activities increased 41.9% year-over-year to $291.8 million[19]. - As of September 30, 2025, the Company's Total Net Financial Debt was $802.9 million, an increase of $66.0 million from $736.9 million in 2024[23]. - Total Financial Debt as of September 30, 2025, was $877.4 million, slightly up from $877.3 million in 2024[23]. - Total Cash & Equivalents decreased to $74.5 million in 2025 from $140.4 million in 2024[23]. - The Total Net Financial Debt to Adjusted EBITDA ratio was 2.3x for both 2025 and 2024, down from 2.9x in 2023[23]. Capital Expenditures - For the fiscal year ended September 30, 2025, capital expenditures were $254.2 million, a significant increase from $78.4 million in 2024[22]. - Capital expenditures rose significantly to $254.2 million in 2025, compared to $78.4 million in 2024[57]. - Net capital expenditures represented 8.5% of revenue in 2025, compared to 2.2% in 2024[22]. Strategic Initiatives - The company increased its share repurchase authorization to $150 million as part of its capital allocation strategy[2]. - The Company emphasizes sustainable solutions and best practices in its operations, aiming to engage clients and inspire communities[25]. - Business transformation and integration costs amounted to $26.1 million in 2025, down from $44.1 million in 2024[53]. Future Projections - For fiscal year 2026, the company projects total revenue between $2.670 billion and $2.730 billion, representing a growth of approximately 0% to 2%[4]. - Adjusted EBITDA for fiscal year 2026 is projected to be between $363 million and $377 million, with a margin expansion of 40 to 60 basis points[4]. - The Company is scheduled to discuss the fourth quarter and full year fiscal 2025 financial results on November 20, 2025[24].

Financial Performance - BrightView generated net service revenues of $2,672.8 million for the year ended September 30, 2025, with a net income of $56.0 million and an Adjusted EBITDA of $352.3 million, resulting in a net income margin of 2.1% and an Adjusted EBITDA margin of 13.2%[27]. - BrightView's Maintenance Services segment generated net service revenues of $1,891.3 million, including $210.8 million from snow removal services, with a Segment Adjusted EBITDA of $245.5 million and a Segment Adjusted EBITDA Margin of 13.0% for the year ended September 30, 2025[38]. - In the Development Services segment, BrightView achieved net service revenues of $789.1 million and a Segment Adjusted EBITDA of $106.8 million, with a Segment Adjusted EBITDA Margin of 13.5% for the same fiscal year[43]. - As of September 30, 2025, the net carrying value of goodwill and other intangible assets was $2,082.2 million, representing 61% of total assets[124]. - The fair value of the Maintenance reporting unit exceeded the carrying value by 15.4%, indicating potential risk for future impairment[124]. - For the year ended September 30, 2025, the company's interest expense was $53.7 million, compared to $62.4 million for the year ended September 30, 2024[149]. - As of September 30, 2025, the company had total indebtedness of $790.2 million, with availability under the Revolving Credit Facility and the Receivables Financing Agreement of $300.0 million and $143.8 million, respectively[146]. Market Position and Opportunities - The company operates in a $124 billion commercial landscape maintenance and snow removal market, with a projected growth rate of 2.9% CAGR from 2021 through 2028[26][48]. - BrightView holds only a 1.5% market share in the combined landscape maintenance and snow removal market, indicating significant opportunities for future consolidation[52]. - The company serves approximately 7,400 office parks and corporate campuses, 6,100 residential communities, and 500 educational institutions, with its top ten customers accounting for about 17% of fiscal 2025 revenues[26]. Operational Efficiency and Workforce - BrightView's business model is characterized by stable, recurring revenues and low working capital requirements, generating significant Adjusted Free Cash Flow[27]. - The company has a fleet of approximately 15,000 trucks and trailers, believed to be the largest in the commercial landscape maintenance industry[85]. - The company employed approximately 1,500 seasonal workers through the H-2B visa program in 2025, compared to 2,000 in 2024[60]. - The landscape services industry is labor-intensive, and the company experiences high turnover rates, which could impact service delivery and operational efficiency[116]. - The company launched a program in fiscal 2025 providing paid time off for all frontline workers[63]. Strategic Initiatives - The company launched the One BrightView initiative in November 2023 to enhance customer-centric operations and streamline its organizational structure for sustained profitable growth[46]. - The company has invested in technology to enhance operational efficiencies, including a proprietary application for service requests and a mobile quality site assessment application[77][80]. - The company has a decentralized sales approach with over 275 business developers focused on local customer acquisition[83]. Regulatory and Compliance Risks - The company is subject to various federal, state, and local regulations, which can increase operating costs and impact service delivery[72][73]. - The company is subject to audits by U.S. Immigration and Customs Enforcement (ICE) for compliance with work authentication requirements, which could result in fines or penalties if non-compliance is found[120]. - The company may face significant compliance costs and potential fines due to new and emerging data privacy laws[143]. - The company faces potential liabilities and costs related to environmental, health, and safety regulations, which could adversely impact its financial position and reputation[127]. Financial Risks and Challenges - The company’s financial performance may be adversely affected by increased labor costs due to competition for talent and regulatory changes[117]. - The company may incur significant additional indebtedness in the future, which could exacerbate existing financial risks[159]. - The company's ability to generate sufficient cash flow to satisfy debt service obligations is critical, and failure to do so could adversely affect its financial condition[155]. - The company may need to refinance its indebtedness on less favorable terms if it cannot generate sufficient cash flow, which could further restrict its operations[158]. Customer and Market Dynamics - The company competes primarily on high service levels and strong customer relationships, rather than price, which may lead to customer attrition if competitors offer lower-cost services[93]. - A significant portion of the company's contracts are subject to competitive bidding, and inaccurate cost estimates may lead to lower profits or contract losses[110]. - The company’s revenues from snow removal services are highly dependent on snowfall levels, with regions serviced averaging 1,866 inches of snowfall in 2024, down from 1,968 inches in 2022[113]. - Seasonal demand fluctuations significantly impact the company’s revenues, with higher activity levels typically in spring and summer[104]. Corporate Governance and Shareholder Matters - As of September 30, 2025, Affiliated Investors hold approximately 21,533,123 shares of common stock and 500,000 shares of Series A Preferred Stock, representing about 50.8% of the outstanding shares[161]. - The Series A Preferred Stock has a dividend rate of 7.0% per annum, compounding quarterly, which may adversely affect the financial position of the company[172]. - The company did not declare or pay dividends to common stockholders in the fiscal year ended September 30, 2025[215]. - The stock price has been subject to volatility, influenced by market conditions and analysts' expectations[186]. Cybersecurity and Risk Management - The company has established a cyber crisis and data breach response plan to manage cybersecurity risks, including audits and threat assessments[198]. - The Audit Committee oversees cybersecurity risk management and receives updates from the cyber risk management team[202]. - The company has implemented a cybersecurity training program for all employees with access to its networks[205].

Core Insights - BrightView Holdings, Inc. reported a year-over-year increase in fourth quarter net income by 8.2% to $27.7 million, with a net income margin expansion of 40 basis points [1] - The company achieved a record fourth quarter Adjusted EBITDA of $113.5 million, reflecting a 7.9% year-over-year increase [1]