Core Insights - BrightView Holdings (BV) reported revenue of $708.3 million for the quarter ended June 2025, reflecting a year-over-year decline of 4.1% and an EPS of $0.30, down from $0.32 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $723.5 million, resulting in a surprise of -2.1%, while the EPS also missed the consensus estimate of $0.33 by -9.09% [1] Revenue Breakdown - Maintenance Services revenue was $508.8 million, below the average estimate of $522.31 million, marking a year-over-year decline of 3% [4] - Development Services revenue reached $201.3 million, compared to the average estimate of $214.69 million, representing a year-over-year decrease of 6.4% [4] - Snow Removal Services under Maintenance Services generated $5.9 million, exceeding the average estimate of $4.93 million, but showing a significant year-over-year decline of 30.6% [4] - Landscape Maintenance Services revenue was $502.9 million, below the estimated $517.38 million, reflecting a year-over-year decrease of 2.6% [4] - Revenue Eliminations were reported at -$1.8 million, slightly worse than the average estimate of -$1.45 million, but showing a year-over-year change of +100% [4] Adjusted EBITDA - Adjusted EBITDA for Development Services was $31.5 million, surpassing the average estimate of $28.24 million [4] - Adjusted EBITDA for Maintenance Services was $81.7 million, falling short of the average estimate of $85.26 million [4] Stock Performance - BrightView's shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

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 [13][14] - 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 [18] - Adjusted EBITDA margins expanded by 150 basis points to 11.1%, marking consecutive quarters of year-over-year margin expansion [18][19] - Net leverage at the end of the second quarter was 2.1 times, down from 2.4 times in the prior year, driven by lower debt levels and improved profitability [21] Business Line Data and Key Metrics Changes - Core snow revenue increased by $22 million or 15%, primarily due to increased snowfall in East Coast markets [15] - Development business revenue increased by 5% due to ongoing conversion of a high-quality backlog [16] - Adjusted EBITDA for the Development segment was $17.1 million, representing a record Q2 for this segment [18] Market Data and Key Metrics Changes - Approximately 60% of revenue is derived from recurring contract revenue, providing a resilient and predictable revenue base [16] - Customer retention rates improved by 170 basis points on a trailing twelve-month basis, indicating positive momentum [12][62] 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 [5][25] - Initiatives include prioritizing employee satisfaction, enhancing service quality, and leveraging size and scale as the leading player in the commercial landscape industry [8][9] - The company is committed to a fleet refresh strategy and has ordered over 1,000 core production vehicles [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against macroeconomic uncertainties, citing a diversified customer base and a strong backlog [9][10] - The company anticipates continued healthy cash flow generation and has raised its adjusted EBITDA guidance to $355 million, up from $345 million [25] - Management acknowledged potential impacts from tariffs and trade but emphasized minimal current effects on the business [84] Other Important Information - The company launched a $100 million share repurchase program, reflecting confidence in its valuation and commitment to returning capital to shareholders [22][23] - The company is actively managing its M&A pipeline and is well-positioned to execute against its strategy when opportunities arise [24] Q&A Session Summary Question: Impact of snow on revenue and core land - Management confirmed that increased snow revenue positively impacted results but noted it limited core land revenue by approximately $6 million [34][37] Question: Stock buyback strategy versus M&A - Management indicated a willingness to be aggressive in stock repurchases if the stock remains undervalued while also being open to M&A opportunities [38][40] Question: Labor availability and costs - Management reported improved employee turnover and a stable labor cost environment, with annual increases normalizing to 2% to 3% [51][57] Question: Customer retention differences among branches - Management highlighted that customer retention improvements are driven by strong branch leadership and engagement with customers [61][62] Question: Guidance increase and drivers - Management clarified that the increase in EBITDA guidance was primarily due to overall margin expansion rather than snow revenue [72][76] Question: Inflationary pressures and mitigation efforts - Management noted that labor cost increases are currently at or below historical ranges and that commodity prices have shown some deflation [96][97] Question: Confidence in achieving growth targets - Management expressed confidence in achieving mid-single-digit organic growth despite macro uncertainties, emphasizing a focus on long-term strategies [101][104]

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]