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]

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]

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]