Financial Data and Key Metrics Changes - Total revenue for the second quarter was $663 million, an increase of approximately 3% when adjusting for the unwinding of BES and the sale of U.S. Loans in the prior year [11] - Adjusted EBITDA for the second quarter reached a record $73.5 million, an increase of $8.6 million or 13% compared to the prior year [16] - Adjusted EBITDA margins expanded by 150 basis points to 11.1%, marking another consecutive quarter of year-over-year margin expansion [16] Business Line Data and Key Metrics Changes - Core snow revenue increased by $22 million or 15%, primarily driven by increased snowfall in East Coast markets [12] - Development business revenue increased by 5% due to ongoing conversion of a high-quality backlog [12] - Adjusted EBITDA for the Development segment was $17.1 million, representing a record Q2 for this segment [16] Market Data and Key Metrics Changes - Approximately 60% of revenue is underpinned by recurring contract revenue, providing resilience against macroeconomic uncertainties [14] - Customer retention rates increased by 170 basis points on a trailing twelve-month basis [10] Company Strategy and Development Direction - The company is focused on transforming its business model and has raised its full-year guidance on adjusted EBITDA, margins, and free cash flow [4] - Initiatives include prioritizing employee satisfaction, reducing turnover, and enhancing customer retention [5][9] - The company is strategically deploying capital to support long-term profitable growth and differentiate itself from competitors [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against macroeconomic dynamics, including inflation and labor costs [8] - The company is well-positioned to deliver results within guidance ranges despite uncertainties in the macro environment [15] - Management highlighted the importance of employee engagement and retention as key drivers for customer satisfaction and business growth [49][50] Other Important Information - The company launched a $100 million share repurchase program, reflecting confidence in its valuation and commitment to returning capital to shareholders [20][21] - Net leverage at the end of the second quarter was 2.1 times, down from 2.4 times in the prior year, indicating improved financial flexibility [19] Q&A Session Summary Question: Did the positive impact from snow take away expected revenue from Core Land? - Management confirmed that while snow positively impacted revenue, it limited the ability to put land in, resulting in about a 2% impact on the land business for the quarter [31][35] Question: How aggressive will the company be with the stock buyback versus M&A? - Management indicated they would continue to buy back shares opportunistically while also being open to M&A if the right deal arises, supported by a strong balance sheet [36][39] Question: What is the impact of labor availability and costs in the current political environment? - Management reported improved employee turnover and a strong position regarding labor costs, with increases at or below historical ranges [46][53] Question: What drives the expected improvement in core land performance in the second half? - Management attributed the expected improvement to increased customer retention and engagement, which would lead to more spending on ancillary work [99][100]

Core Insights - BrightView Holdings (BV) reported revenue of $662.6 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.5% but exceeding the Zacks Consensus Estimate by 2.68% [1] - The company achieved an EPS of $0.14, which is an increase from $0.11 a year ago, representing a surprise of 16.67% over the consensus estimate of $0.12 [1] Revenue Breakdown - Maintenance Services revenue was $492.80 million, surpassing the estimated $475.15 million, but showing a year-over-year decline of 3.5% [4] - Development Services revenue reached $171.90 million, slightly above the estimated $171.87 million, with a year-over-year increase of 4.6% [4] - Snow Removal Services under Maintenance generated $172.50 million, exceeding the estimated $144.67 million, but reflecting a minor decline of 0.4% year-over-year [4] - Landscape Maintenance Services revenue was $320.30 million, below the estimated $330.48 million, indicating a year-over-year decrease of 5.1% [4] - Revenue eliminations were reported at -$2.10 million, slightly worse than the average estimate of -$2.03 million, but showing a year-over-year improvement of 5% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Development Services was reported at $17.20 million, significantly higher than the average estimate of $11.08 million [4] - Adjusted EBITDA for Maintenance Services was $56.30 million, also exceeding the estimated $54.96 million [4] Stock Performance - BrightView's shares have returned +17.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - BrightView Holdings (BV) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of 16.67% [1] - The company generated revenues of $662.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.68%, although this represents a decline from $672.9 million in the same quarter last year [2] - BrightView shares have declined approximately 10.2% year-to-date, compared to a 4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33, with expected revenues of $761.53 million, and for the current fiscal year, the consensus EPS estimate is $0.82 on revenues of $2.77 billion [7] - The estimate revisions trend for BrightView is mixed, leading to a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Business - Services industry, to which BrightView belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Everi Holdings (EVRI), is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 120%, although its revenue is projected to decline by 4.3% from the previous year [9]

Financial Performance - BrightView reported a ~3% increase in total revenue excluding non-core business[27] - The company's total revenue was $662.6 million compared to $672.9 million in the same quarter last year[27] - Adjusted EBITDA increased by ~13% to $73.5 million, with a margin expansion of +150bps[30] - Development Services revenue increased by ~4.6% driven by backlog conversion[27] Guidance and Outlook - BrightView raised its FY25 Adjusted EBITDA guidance to $345 million to $365 million[44] - The company also raised its Adjusted EBITDA margin guidance to +80bps to +110bps[44] - Adjusted Free Cash Flow guidance was raised to $50 million to $70 million[44] - Snow Revenue is expected to be ~$205 million[44] Strategic Initiatives - BrightView is focused on strategic capital allocation, including a $100 million share repurchase program[42] - The company is accelerating its fleet strategy with increased capital investment[36, 42] - BrightView is prioritizing investments in its workforce and customer service[33]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the six months ended March 31, 2025, the company reported a net loss of $4.0 million, a significant decrease from the $17.3 million net income in the prior year period, primarily due to a $43.9 million gain on divestiture in 2024 that did not recur. Total assets decreased slightly to $3.32 billion. Net cash from operations increased to $151.7 million, while net cash used in investing activities was $83.4 million, a reversal from the prior year's cash provided, driven by higher capital expenditures and the absence of divestiture proceeds Consolidated Balance Sheet Summary | (In millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total current assets | $715.5 | $780.1 | | Total assets | $3,324.8 | $3,391.8 | | Total current liabilities | $504.8 | $543.3 | | Total liabilities | $1,556.4 | $1,609.4 | | Total stockholders' equity | $1,261.3 | $1,275.3 | Consolidated Statement of Operations Summary | (In millions, except per share data) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net service revenues | $1,261.8 | $1,299.6 | | Gross profit | $274.3 | $285.9 | | Income from operations | $21.7 | $56.0 | | Net (loss) income | $(4.0) | $17.3 | | Basic and diluted (loss) earnings per share | $(0.23) | $(0.01) | Consolidated Statement of Cash Flows Summary | (In millions) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $151.7 | $109.5 | | Net cash (used) provided by investing activities | $(83.4) | $32.3 | | Net cash (used) by financing activities | $(67.4) | $(31.5) | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's business segments, revenue recognition policies, and key financial data. A significant event was the January 2024 divestiture of U.S. Lawns for $51.0 million, resulting in a $43.6 million gain. The company utilizes interest rate and fuel hedging derivatives to manage market risk. As of March 31, 2025, total long-term debt stood at $798.9 million. The company also initiated a share repurchase program in March 2025 and entered into new fuel swap agreements in April 2025 - The company operates in two reportable segments: **Maintenance Services** and **Development Services**[27](index=27&type=chunk) - On January 12, 2024, the company sold its subsidiary, **U.S. Lawns**, for **$51.0 million** in cash, recognizing a gain of **$43.6 million**[54](index=54&type=chunk) - As of March 31, 2025, total long-term debt, net of financing costs, was **$798.9 million**, primarily consisting of the **Series B term loan**[55](index=55&type=chunk) - The company uses **interest rate swaps and collars** to manage interest rate risk on its variable-rate debt and entered into **fuel swap agreements** to hedge against fuel price volatility[71](index=71&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue for Q2 FY2025 decreased 1.5% YoY to $662.6 million, driven by strategic reductions in non-core Maintenance businesses, partially offset by growth in Development Services. Despite lower revenue, Adjusted EBITDA increased 13.4% to $73.5 million, and the margin expanded from 9.6% to 11.1%, reflecting successful cost management under the 'One BrightView' initiative. The company highlights a potential risk related to its Maintenance segment's goodwill, where the fair value exceeded its carrying value by only 9.6% in the last annual test. Liquidity remains sufficient, supported by cash from operations and credit facilities - The **'One BrightView' initiative**, launched in fiscal 2024, aims to streamline operations and focus on profitable core businesses, resulting in improved customer/employee retention and profitability[120](index=120&type=chunk) - A key risk identified is that the fair value of the **Maintenance reporting unit** exceeded its carrying value by only **9.6%** as of the July 1, 2024, impairment test, indicating a risk of future impairment if conditions worsen. The goodwill for this unit was **$1,797.6 million** as of March 31, 2025[130](index=130&type=chunk) Key Financial Metrics Comparison (Three Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net service revenues | $662.6 | $672.9 | | Net income (loss) | $6.4 | $33.7 | | Adjusted EBITDA | $73.5 | $64.8 | | Adjusted Net Income | $21.5 | $16.9 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2025, net service revenues fell 1.5% to $662.6 million. Gross profit decreased by 3.0% to $147.5 million. However, a 5.5% reduction in SG&A to $118.1 million, driven by cost management, helped improve operational efficiency. Net income dropped to $6.4 million from $33.7 million, largely because the prior-year period included a $43.9 million gain from the U.S. Lawns divestiture. For the six-month period, revenues decreased 2.9% to $1,261.8 million, resulting in a net loss of $4.0 million compared to a $17.3 million net income in the prior year - Three-month revenue decreased by **$10.3 million (1.5%) YoY**, driven by a **$17.7 million** decline in Maintenance Services, partially offset by a **$7.5 million** increase in Development Services[136](index=136&type=chunk) - SG&A expense for the three months decreased by **$6.9 million (5.5%) YoY**, primarily due to lower compensation-related costs from cost management initiatives[138](index=138&type=chunk) - The significant drop in Q2 net income compared to the prior year is mainly due to the non-recurring **$43.9 million gain** on the divestiture of **U.S. Lawns** in Q2 2024[139](index=139&type=chunk)[144](index=144&type=chunk) - For the six months ended March 31, 2025, net service revenues decreased by **$37.8 million (2.9%) YoY**, leading to a net loss of **$4.0 million**[148](index=148&type=chunk)[156](index=156&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures such as Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Free Cash Flow to evaluate operating results and liquidity. For Q2 2025, Adjusted EBITDA increased to $73.5 million from $64.8 million in Q2 2024. Adjusted Net Income rose to $21.5 million from $16.9 million. However, Adjusted Free Cash Flow for the six-month period decreased to $67.0 million from $89.4 million, primarily due to higher capital expenditures - The company believes non-GAAP measures like **Adjusted EBITDA** and **Adjusted Net Income** are helpful for investors as they exclude items whose fluctuations may not correspond to core business operations[160](index=160&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Three Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $6.4 | $33.7 | | Adjustments (Taxes, Interest, D&A, etc.) | $59.3 | $(12.8) | | Business transformation and integration costs | $7.8 | $6.1 | | Equity-based compensation | $4.6 | $4.8 | | Gain on divestiture | — | $(43.9) | | **Adjusted EBITDA** | **$73.5** | **$64.8** | [Segment Results](index=37&type=section&id=Segment%20Results) For Q2 2025, the Maintenance Services segment saw a 3.5% revenue decline to $492.8 million due to strategic reductions, but its Adjusted EBITDA margin improved by 60 bps to 11.4% due to cost controls. The Development Services segment showed strong performance, with revenue increasing 4.6% to $171.9 million and its Adjusted EBITDA margin expanding significantly by 410 bps to 10.0%, driven by higher project volumes and favorable project mix Maintenance Services Segment Results (Three Months Ended March 31) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $492.8 | $510.5 | (3.5)% | | Segment Adjusted EBITDA | $56.3 | $55.1 | 2.2% | | Segment Adjusted EBITDA Margin | 11.4% | 10.8% | +60 bps | Development Services Segment Results (Three Months Ended March 31) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $171.9 | $164.4 | 4.6% | | Segment Adjusted EBITDA | $17.2 | $9.7 | 77.3% | | Segment Adjusted EBITDA Margin | 10.0% | 5.9% | +410 bps | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash on hand ($141.3 million), cash from operations, and borrowings under its credit facilities. For the six months ended March 31, 2025, cash from operations increased to $151.7 million from $109.5 million in the prior year. However, net working capital decreased to $210.7 million from $236.8 million at fiscal year-end 2024. The company believes it has sufficient liquidity for the next twelve months to fund operations, debt service, and capital spending - Principal sources of liquidity are **cash**, **cash from operations**, and borrowings under the **Credit Agreement** and **Receivables Financing Agreement**[185](index=185&type=chunk) Cash Flow Summary (Six Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | $151.7 | $109.5 | | Investing activities | $(83.4) | $32.3 | | Financing activities | $(67.4) | $(31.5) | - Net working capital decreased by **$26.1 million** from September 30, 2024, to March 31, 2025, primarily due to decreases in unbilled revenue and accounts receivable, and an increase in deferred revenue[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The report indicates no material changes to the company's market risk disclosures from those presented in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - The company refers to **'Item 7A. Quantitative and Qualitative Disclosure of Market Risk'** in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, for disclosures about market risk[204](index=204&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in the company's internal control over financial reporting during the quarter - The **CEO and CFO** concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[206](index=206&type=chunk) - **No changes** occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[207](index=207&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings and claims in the ordinary course of business. Information regarding these matters is incorporated by reference from Note 11 of the financial statements, which states that no pending litigation is expected to have a material effect on the company's financial condition - Information on legal proceedings is incorporated by reference from **Note 11, 'Commitments and Contingencies'**[210](index=210&type=chunk) - The company is not aware of any legal matter that it believes will have, individually or in the aggregate, a **material effect** on its financial condition, results of operations, or cash flows[90](index=90&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - **No material changes** to risk factors have occurred since the filing of the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On March 13, 2025, the company announced a share repurchase program authorizing the repurchase of up to $100 million of its common stock. During the quarter ended March 31, 2025, the company repurchased 136,352 shares for approximately $1.8 million, leaving approximately $98.2 million available under the program - A share repurchase program of up to **$100 million** was announced on March 13, 2025, with no time limit[212](index=212&type=chunk) Share Repurchase Activity (March 1 - March 31, 2025) | Period | Total shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased | | :--- | :--- | :--- | :--- | | March 1 - 31, 2025 | 136,352 | $13.11 | $98,211,813 | [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) The report includes several exhibits, most notably the CEO and CFO certifications under the Sarbanes-Oxley Act and the Inline XBRL documents for financial reporting - Key exhibits filed include **CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2)** and **Inline XBRL data files**[217](index=217&type=chunk)

Financial Performance - BrightView reported a ~4% decrease in total revenue, primarily driven by non-core business segments[23] - Total revenue was $5992 million in 1Q25, compared to $6267 million in 1Q24[23] - Adjusted EBITDA increased by ~12%, with a margin expansion of +120 bps[30] - Total Adjusted EBITDA reached $521 million in 1Q25, up from $467 million in 1Q24[30] - Net Financial Debt decreased from $8596 million in 1Q24 to $7661 million in 1Q25[32] Segment Performance - Development Services revenue increased by ~35%, driven by backlog conversion[23] - Development Services revenue was $1918 million in 1Q25, compared to $1854 million in 1Q24[23] - Maintenance Services experienced margin expansion of +140 bps[30] - Development Services saw margin expansion of +80 bps[30] Strategic Initiatives and Outlook - The company is reiterating FY25 guidance for total revenue between $2750 billion and $2840 billion, and adjusted EBITDA between $335 million and $355 million[8, 38] - Maintenance Land Revenue is expected to grow by +1% to +3% excluding Non-Core[39] - The company anticipates net capital expenditures of $140 million to $160 million[40]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $599 million, reflecting a modest increase when adjusting for the unwinding of the BES business and the sale of U.S. Lawns in the prior year [19] - Adjusted EBITDA for Q1 was $52.1 million, an increase of $5.4 million or 12% year-over-year, with adjusted EBITDA margins expanding by 120 basis points [22][23] - Net leverage at the end of Q1 was 2.3 times, down from 2.9 times in the prior year, driven by lower debt levels and improved profitability [26] Business Line Data and Key Metrics Changes - In the Maintenance segment, adjusted EBITDA margins expanded by 140 basis points, indicating ongoing structural improvements [23] - The Development segment saw a revenue increase of 3.5% due to the conversion of high-quality backlog, with adjusted EBITDA reaching a record $17.5 million [20][23] Market Data and Key Metrics Changes - Snow revenue in the core maintenance business was relatively flat compared to the prior year, indicating stable performance despite seasonal fluctuations [19] - The company is experiencing improved employee turnover and customer retention, which are expected to contribute positively to future growth [19][22] Company Strategy and Development Direction - The company is focused on its "One BrightView" strategy, which aims to unify operations and improve employee and customer experiences [6][10] - Key objectives include enhancing employee turnover, customer retention, and leveraging size and scale to differentiate from competitors [10][16] - The company is committed to returning its land business to growth in the second half of 2025, supported by various initiatives [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and the positive momentum in employee and customer metrics [18][30] - The company is optimistic about achieving record EBITDA in 2025, with significant opportunities for sustainable growth [30] - Management emphasized the importance of customer retention as a critical driver for organic growth [48][49] Other Important Information - The company is hosting an Investor Day on February 19, where further details on growth strategies and financial outlook will be shared [5][34] - Recent capital expenditures were the highest in a single quarter since going public, reflecting a commitment to reinvest in employees and customers [25] Q&A Session Summary Question: Expectations for maintenance land organic growth this year - Management confirmed expectations for core growth to inflect into positive territory in the second half of the year, driven by improved employee turnover and customer retention [40][43] Question: Customer retention progress - Management indicated that customer retention has shown positive momentum, with significant room for improvement compared to historical levels [49][51] Question: Future margin expansion components - Management highlighted that margin expansion will come from various initiatives, including procurement and labor management improvements [60][66] Question: Labor availability and inflation concerns - Management expressed confidence in their labor force, noting a solid average tenure among frontline employees and ongoing efforts to reduce turnover [82][90] Question: Ancillary revenue trends - Management noted that customer retention directly correlates with ancillary revenue, with expectations for improvement as customer satisfaction increases [92][96] Question: Drivers of maintenance margin expansion - Management attributed maintenance margin expansion to restructuring efforts and significant SG&A savings, with expectations for continued improvement [104][108]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $599 million, showing a modest increase when adjusting for the unwinding of the BES business and the sale of U.S. Lawns in the prior year [12] - Adjusted EBITDA for the first quarter was $52.1 million, an increase of $5.4 million or 12% year-over-year, with adjusted EBITDA margins expanding by 120 basis points [15][16] - Net leverage at the end of the first quarter was 2.3 times, down from 2.9 times in the prior year period, driven by lower debt levels and improved profitability [17] Business Line Data and Key Metrics Changes - In the maintenance segment, revenue was relatively flat compared to the prior year, but improvements in employee turnover and customer retention were noted [13] - The development business saw a revenue increase of 3.5% due to the ongoing conversion of a high-quality backlog [13] - Adjusted EBITDA in the development segment reached $17.5 million, marking a record for the first quarter, with an adjusted EBITDA margin expansion of 80 basis points [16] Market Data and Key Metrics Changes - Employee turnover trends improved significantly, contributing to higher customer retention rates [10] - The company is pivoting to a four-day workweek in certain markets, which has been well received by both employees and customers [9] - The company reported that two-thirds of its markets have returned to stable year-over-year ancillary revenue levels, with only two markets facing headwinds [63] Company Strategy and Development Direction - The company is focused on embracing a unified "One BrightView" culture, prioritizing employees and customers to enhance its position as the employer and service provider of choice [8] - Strategic initiatives are underway to improve employee turnover and customer retention, which are expected to drive sustainable profitable growth [12] - The company plans to leverage its size and scale to differentiate itself from competitors and drive long-term shareholder value [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving previously provided 2025 financial guidance, anticipating another record EBITDA year [7] - The management team emphasized that they are still in the early stages of transformation, with significant opportunities for improvement and growth ahead [10][12] - Management highlighted the importance of customer retention as a key metric for future growth, indicating that improvements in this area will drive organic growth [30] Other Important Information - The company is hosting an Investor Day on February 19, where more details on its long-term growth strategy will be shared [4][20] - The company has completed a repricing of its $738 million term loan, reducing the interest rate by 50 basis points, resulting in annual cash interest savings of approximately $7.5 million [18] Q&A Session Summary Question: Expectations for maintenance land organic growth this year - Management confirmed that they expect core growth to inflect into positive territory in the second half of the year, with ongoing improvements in employee turnover and customer retention [25][26] Question: Customer retention progress - Management indicated that customer retention is trending positively, with significant room for improvement compared to historical levels [31][32] Question: Future margin lift components - Management discussed various levers for future margin expansion, including procurement initiatives and fleet management improvements [38][39] Question: Labor availability and inflation concerns - Management expressed confidence in their labor force, noting a solid average tenure among frontline employees and ongoing efforts to reduce turnover [53][54] Question: Ancillary revenue trends - Management highlighted a direct correlation between customer retention and ancillary revenue, indicating that happy customers are more likely to engage in discretionary spending [61][62] Question: Development backlog trends - Management reported that the development backlog is up about 6% to 7% year-over-year, indicating strong growth potential [102] Question: Margin expansion guidance - Management reiterated their confidence in maintenance margin expansion, with a target range of 12.6% to 13% for the year [72]

BrightView Holdings (BV) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this investment company would post earnings of $0.31 per share when it actually produced earnings of $0.30, delivering a surprise of -3.23%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.BrightView, which ...

Revenue Performance - Total revenue for Q1 fiscal 2025 decreased 4.4% year-over-year to $599.2 million, impacted by a $25.7 million decrease in commercial landscaping and a $7.3 million decrease in snow removal revenue [4]. - Net service revenues decreased to $599.2 million in Q4 2024 from $626.7 million in Q4 2023, representing a decline of approximately 4.5% [33]. - Development services revenue increased 3.5% year-over-year to $191.8 million, driven by higher project volumes [11]. Profitability Metrics - Net loss improved 36.6% year-over-year to $10.4 million, reflecting a 90-basis point increase in net loss margin to 1.7% [4]. - Gross profit for the quarter was $126.8 million, down from $133.8 million year-over-year, indicating a decrease of about 5.2% [33]. - Adjusted EBITDA increased 11.6% to $52.1 million, with an adjusted EBITDA margin expansion of approximately 120 basis points to 8.7% [4]. - Adjusted EBITDA increased to $52.1 million in Q4 2024, compared to $46.7 million in Q4 2023, reflecting a growth of approximately 9.6% [41]. - The net loss attributable to common stockholders improved to $19.4 million in Q4 2024 from $25.3 million in Q4 2023, a reduction of about 23.2% [33]. - Adjusted earnings per share improved to $0.04 in Q4 2024, compared to $0.02 in Q4 2023, reflecting a growth of 100% [41]. Cash Flow and Capital Expenditures - Year-to-date net cash provided by operating activities increased 130.9% to $60.5 million, up from $26.2 million in the prior year [14]. - Adjusted free cash flow decreased 74.6% to $4.4 million, down from $17.3 million in the prior year due to increased capital expenditures [15]. - Capital expenditures for Q1 fiscal 2025 were $58.7 million, significantly up from $10.1 million in the prior year, reflecting a 481.2% increase [15]. - Capital expenditures rose significantly to $58.7 million in Q4 2024, compared to $10.1 million in Q4 2023, marking an increase of approximately 480.2% [35]. - Cash flows provided by operating activities were $60.5 million in Q4 2024, up from $26.2 million in Q4 2023, representing an increase of about 130.5% [41]. Debt and Financial Position - Total financial debt as of December 31, 2024, was $864.4 million, a decrease from $877.3 million as of September 30, 2024 [16]. - Total net financial debt increased to $766.1 million, up $29.2 million from $736.9 million as of September 30, 2024 [16]. - Total net financial debt decreased to $766.1 million as of December 31, 2024, from $859.6 million a year earlier, a reduction of approximately 11% [47]. - The company reported a total financial debt of $864.4 million as of December 31, 2024, down from $924.1 million a year earlier, a decrease of about 6.5% [47]. - Long-term debt, net, slightly decreased from $802.5 million to $796.5 million, a decrease of approximately 0.5% [31]. - Total current liabilities decreased from $543.3 million to $479.3 million, a reduction of about 11.8% [31]. - Total assets decreased from $3,391.8 million as of September 30, 2024, to $3,307.6 million as of December 31, 2024, representing a decline of approximately 2.5% [31]. - Total stockholders' equity decreased from $1,275.3 million to $1,265.5 million, a decline of about 0.8% [31]. Guidance and Definitions - The company reaffirmed fiscal year 2025 guidance with total revenue expected between $2.750 billion and $2.840 billion and adjusted EBITDA between $335 million and $355 million [3]. - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for certain non-cash and non-recurring items [23]. - Adjusted Free Cash Flow is defined as cash flows from operating activities less capital expenditures, net of proceeds from the sale of property and equipment [26]. - Total Net Financial Debt to Adjusted EBITDA ratio is calculated as Total Net Financial Debt divided by the trailing twelve-month Adjusted EBITDA [27]. - The company utilizes non-GAAP financial measures to provide a clearer understanding of its operating performance and financial position [22].