BrightView — Fourth Quarter and Fiscal 2026 Earnings Summary

Financial Performance:

• Fourth quarter net service revenue decreased 3.6% year-over-year to $677.3 million; full year net service revenue increased 1.5% year-over-year to $2.7 billion.
• Fourth quarter Maintenance Services revenue increased 3.2% year-over-year to $495.7 million; full year Maintenance Services revenue increased 6% year-over-year to $2.0 billion.
• Fourth quarter Development Services revenue decreased 17.8% year-over-year to $184.2 million; full year Development Services revenue decreased 9.4% year-over-year to $714.9 million.
• Full year Net Income was $1.0 million, a 98.2% decrease from $56.0 million in 2025; fourth quarter Net Income was $8.3 million, a 70.0% decrease from $27.7 million in 2025.
• Full year Adjusted EBITDA was $328.9 million, a 6.6% decrease from $352.3 million in 2025; fourth quarter Adjusted EBITDA was $100.3 million, an 11.6% decrease from $113.5 million in 2025.
• Full year Adjusted EBITDA Margin was 12.1%, a 110 basis point decrease from 13.2% in 2025; fourth quarter Adjusted EBITDA Margin was 14.8%, a 130 basis point decrease from 16.1% in 2025.
• Full year Net Cash Provided by Operating Activities decreased 36.7% to $184.7 million from $291.8 million in 2025.
• Full year Adjusted Free Cash Flow was an outflow of $2.2 million, a 103.4% decrease from an inflow of $65.2 million in 2025.
• Full year Capital Expenditures were $225.0 million, a 11.5% decrease from $254.2 million in 2025.
• As of September 30, 2026, Total Net Financial Debt was $1,013.9 million, an increase of $211.0 million from $802.9 million in 2025; the Total Net Financial Debt to Adjusted EBITDA ratio was 3.1x, up from 2.3x in 2025.
• Deferred revenue decreased to $64.6 million as of September 30, 2026, from $87.6 million as of September 30, 2025.

Guidance and Future Outlook:

• Fiscal 2027 Land Maintenance Revenue is guided to be approximately $1.763 - $1.780 billion, representing ~+3% to +4% growth.
• Fiscal 2027 Snow Removal Revenue is guided to be approximately $210 - $230 million, approximating the 5-year average.
• Fiscal 2027 Development Services Revenue is guided to be approximately $572 - $715 million, representing a decline of ~20% to flat.
• Fiscal 2027 Total Revenue is guided to be approximately $2.535 - $2.720 billion.
• Fiscal 2027 Adjusted EBITDA is guided to be $335 - $355 million, implying an Adjusted EBITDA margin of ~13.2% or +~110 basis points of margin expansion.
• Fiscal 2027 Adjusted Free Cash Flow is guided to be $110 - $130 million.
• Management expects 3% to 4% growth in the recurring Land Maintenance business for fiscal 2027.
• Management anticipates a return to Adjusted EBITDA margin expansion in fiscal 2027.

Business Segments and Product Lines:

• Maintenance Services Segment: Full year revenue increased 6.0% to $2.0 billion, driven by a 39.0% increase in Snow Removal revenue ($82.2 million) and a 1.9% increase in commercial landscaping services ($31.1 million).
• Maintenance Services Segment: Full year Adjusted EBITDA decreased 1.5% to $241.7 million; margin decreased 90 basis points to 12.1%, driven by a non-routine self-insurance adjustment and sales force investments.
• Development Services Segment: Full year revenue decreased 9.4% to $714.9 million due to decreased project volumes impacted by timing and mix.
• Development Services Segment: Full year Adjusted EBITDA decreased 18.4% to $87.2 million; margin decreased 130 basis points to 12.2%, driven by revenue decline, increased labor and material costs, a non-routine self-insurance adjustment, and sales force investments.
• Land Maintenance revenue increased 1.9% for the full year 2026, with the underlying growth rate accelerating to 3.3% in the fourth quarter.
• Capital expenditures for the Maintenance Services segment decreased 5.4% to $193.9 million for the full year 2026.
• Capital expenditures for the Development Services segment decreased 36.8% to $31.1 million for the full year 2026.

Market and Competitive Landscape:

• The macroeconomic environment is driving softness in the Development business.
• BrightView is the leading commercial landscaping services company in the United States.
• Improved customer retention and continued investment in the salesforce supported momentum in the recurring Land Maintenance segment.

Risks and Challenges:

• Development Services revenue is impacted by the timing and mix of projects and decreased project volumes.
• Maintenance Services margins were pressured by higher fuel prices and continued investments in the sales force.
• Both segments were impacted by non-routine self-insurance adjustments.
• Development Services margins were further pressured by increased labor and material costs as a percentage of revenue.

Management Commentary and Tone:

• Dale Asplund, President and CEO, stated the company closed fiscal 2026 with its third consecutive quarter of Land Maintenance revenue growth.
• Management expressed being "highly encouraged" by the continued improvement in foundational KPIs despite the macroeconomic environment.
• Management remains focused on delivering long-term profitable growth and shareholder value.
• Management noted progress made since the beginning of their transformation, citing the expectation for margin expansion and accelerated growth in the recurring land business for fiscal 2027.

Other Key Points:

• The Company repurchased 1.2 million shares in the fourth quarter of fiscal 2026, bringing full year repurchases to 4.1 million shares.
• Total Financial Debt increased to $1,017.5 million as of September 30, 2026, from $877.4 million in 2025.
• Cash and cash equivalents decreased to $3.6 million as of September 30, 2026, from $74.5 million in 2025.
• Proceeds from the sale of property and equipment were $38.1 million for the fiscal year 2026, compared to $27.6 million in 2025.
• Net Capital Expenditures represented 6.9% of revenue in fiscal 2026, down from 8.5% in 2025.
• The Company has 500,000 shares of Series A convertible preferred stock issued and outstanding with an aggregate liquidation preference of $512.0 million.
• Business transformation and integration costs were $27.1 million for the full year 2026, including $24.5 million in IT infrastructure, transformation, and other costs.