Financial Data and Key Metrics Changes - Total revenues increased by 9% year over year, reaching $1.4 billion, primarily driven by tuck under acquisitions [5][16] - EBITDA for the quarter rose by 19% to $157 million, reflecting a consolidated margin of 11.1%, up 90 basis points from the previous year [6][16] - Earnings per share increased by 26% compared to the prior year, reaching $1.71 [6][16] Business Line Data and Key Metrics Changes - FirstService Residential revenues grew by 6%, with organic growth at 3% [6][17] - FirstService Brands revenues increased by 11%, with low single-digit organic growth [7][18] - Restoration brands, Paul Davis and First On-site, saw revenues rise by about 6%, with 2% organic growth [7] - Roofing segment revenues were up 25% due to acquisitions, but organic revenues declined by about 10% [10][18] - Century Fire reported a strong quarter with revenues up over 15%, including double-digit organic growth [12][18] Market Data and Key Metrics Changes - The number of claims and jobs in the restoration segment increased, reflecting improved activity levels [8] - Storm-related revenues remained modest, similar to the previous year [9] - The home service brands experienced flat revenues year over year, attributed to weak consumer sentiment [13] Company Strategy and Development Direction - The company aims to achieve high single-digit revenue growth and margin expansion, targeting double-digit EBITDA growth for the year [21][22] - Focus on tuck under acquisitions to enhance growth in existing markets [12][46] - The company is optimistic about pent-up demand and potential interest rate reductions impacting future activity levels [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to mid single-digit organic growth in the residential business despite community budgetary pressures [25][26] - The company anticipates a stronger Q3 with revenues up over 10% in the roofing segment, while organic revenues are expected to be flat [10][22] - Management noted that the restoration business is becoming less reliant on large storm activity, improving revenue stability [35][36] Other Important Information - Operating cash flow for the quarter was $163 million, up 25% year over year [19][20] - The company paid down nearly $70 million of debt during the quarter, reducing leverage to 1.8 times net debt to EBITDA [20] Q&A Session Summary Question: Confidence in residential business organic growth - Management noted that community budgetary pressures are normalizing and do not expect significant impacts on organic growth going forward [25][26] Question: Margin improvement in FirstService Brands - Management confirmed that accelerating top-line growth would lead to higher margins due to operating leverage [27][28] Question: Improvement in roofing business - Management indicated that macroeconomic factors and tariff uncertainties are causing hesitance, but they expect improvement in Q3 [30][31] Question: Restoration business reliance on storm activity - Management clarified that while national accounts are growing, storm activity will still play a significant role in revenue generation [35][36] Question: Fire protection business performance - Management attributed strong performance to growth in repair service and inspection, driven by strategic investments [42][44] Question: M&A opportunities - Management remains open to larger acquisitions if strategic fits arise, despite current macroeconomic conditions [46][47] Question: Home improvement market positioning - Management noted that their positioning caters to a broad spectrum of consumers, with a focus on affluent customers contributing to growth [50][51]

Financial Data and Key Metrics Changes - Total revenues increased by 9% year over year, reaching $1,400,000,000, primarily driven by tuck under acquisitions [5][16] - EBITDA for the quarter rose by 19% to $157,000,000, reflecting a consolidated margin of 11.1%, up 90 basis points from the previous year [6][16] - Earnings per share (EPS) increased by 26% compared to the prior year, reaching $1.71 [6][16] - Year-to-date revenues totaled $2,700,000,000, a 9% increase over the previous year, with adjusted EBITDA of $260,000,000, representing 21% growth [16][21] Business Line Data and Key Metrics Changes - **FirstService Residential**: Revenues increased by 6% to $593,000,000, with organic growth at 3% [6][17] - **FirstService Brands**: Revenues rose by 11% to $823,000,000, with EBITDA up 23% to $95,000,000 and a margin of 11.6%, up 110 basis points [7][19] - **Restoration Brands**: Revenues increased by approximately 6%, with organic growth at 2% [7] - **Roofing Segment**: Revenues increased by 25% due to acquisitions, but organic revenues declined by about 10% [10][11] - **Century Fire**: Revenues grew over 15%, with strong organic growth hitting double digits [12] Market Data and Key Metrics Changes - The number of claims and jobs in the restoration segment increased, reflecting efforts to sign new national accounts [8] - Storm-related revenues remained modest, similar to the previous year [8] - The roofing segment experienced a slowdown in large commercial reroof and new construction projects, but demand drivers remain strong [11][56] Company Strategy and Development Direction - The company aims to achieve high single-digit revenue growth and margin expansion driving towards double-digit EBITDA growth for the year [22] - Focus on tuck under acquisitions to enhance growth in various segments, particularly in fire protection and restoration [12][21] - The company is optimistic about pent-up demand and potential interest rate reductions impacting future activity levels [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to mid single-digit organic growth in the residential business despite community budgetary pressures [26][27] - The company anticipates a stronger Q3 with revenues up over 10% in the roofing segment and flat organic revenues [10][12] - Management noted that the restoration business will continue to benefit from national accounts and improved positioning, which will help during catastrophic events [38] Other Important Information - Operating cash flow for the quarter was $163,000,000, exceeding EBITDA, with a year-to-date cash flow increase of 67% [20][21] - The company paid down nearly $70,000,000 of debt during the quarter, reducing leverage to 1.8 times net debt to EBITDA [21] Q&A Session Summary Question: Confidence in return to mid single-digit organic growth in residential business - Management noted that community budgetary pressures are normalizing and do not expect significant impact on organic growth going forward [26][27] Question: Margin improvement in FirstService Brands with accelerating organic growth - Management confirmed that traditional operating leverage would benefit from accelerating top-line growth, particularly in home improvement and restoration [28][29] Question: Improvement needed for roofing backlog - Management indicated that tariff uncertainty and interest rate expectations are causing hesitation, but they have started to see a pickup in bookings [31][32] Question: Restoration business reliance on large storm activity - Management clarified that while national accounts improve revenue in moderate weather, large storm events will still be significant for the business [37][38] Question: Dynamics behind fire protection business outperforming - Management attributed the growth to increased focus on repair service and inspection, balancing the business between installation and service [44][45] Question: M&A opportunities given current leverage - Management stated that they remain open to larger acquisitions if strategic fit exists, despite focusing on tuck under acquisitions [47][48] Question: Market positioning in home improvement - Management noted that their largest brand, California Closets, caters to a broad spectrum of consumers, with growth influenced by affluent customers [51][52] Question: Volatility in roofing results - Management acknowledged current macro influences on roofing but expressed confidence in their market position and demand drivers [55][56]