Executive Summary

BrightView’s Q1 FY2025 delivered margin expansion and improved loss metrics despite a revenue decline tied to strategic exits; adjusted EBITDA rose 11.6% to $52.1M and margin expanded 120 bps, while GAAP net loss improved 36.6% to $10.4M .
Management reaffirmed FY2025 guidance: revenue $2.75–$2.84B, adjusted EBITDA $335–$355M, adjusted free cash flow $40–$60M; they expect a second consecutive record EBITDA year and land maintenance growth in 2H FY2025 .
Balance sheet and capital allocation catalysts: term loan repriced (−50 bps; ~$7.5M annual cash interest savings), $100M share repurchase authorization, and continued cash dividends on Series A preferred (Q2 dividend $8.8M announced) .
Street consensus (S&P Global) for quarterly and annual estimates was unavailable due to data access limits; no apples-to-apples beat/miss comparison can be provided at this time (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well
- Company-wide adjusted EBITDA growth and margin expansion: Q1 adjusted EBITDA +11.6% to $52.1M; margin +120 bps to 8.7% .
- Segment performance: Maintenance adjusted EBITDA +10.2% (margin +140 bps), Development adjusted EBITDA +14.4% (margin +80 bps) .
- Strategic balance sheet actions and capital allocation: term loan repricing lowers interest by 50 bps (aggregate 100 bps since May 2024) with ~$7.5M annual savings; buyback authorization of $100M underscores confidence .
- Quote: “We delivered double-digit EBITDA growth…expanded EBITDA margins by 120 basis points…on track to deliver…second consecutive record EBITDA year” — CEO Dale Asplund .
What Went Wrong
- Top-line headwinds: total revenue −4.4% YoY to $599.2M, driven by strategic reduction of non-core businesses and lower snow revenue .
- Adjusted free cash flow fell to $4.4M (from $17.3M) due to elevated capital expenditures (fleet refresh) despite strong operating cash flow (+$34.3M YoY) .
- Snow removal revenue −18.4% YoY; management continues to shift contracts toward fixed pricing to reduce volatility .
- Analyst concerns: cadence of maintenance margin expansion will moderate as Q1 benefits from SG&A restructuring lap by late Q2; reinvestment in sales and labor will partially offset margin gains .

Financial Results

Consolidated results across recent quarters

Metric	Q3 FY2024	Q4 FY2024	Q1 FY2025
Revenue ($USD Millions)	$738.8	$728.7	$599.2
Net Income (Loss) ($USD Millions)	$23.5	$25.6	$(10.4)
Net Income (Loss) Margin %	3.2%	3.5%	(1.7%)
Adjusted EBITDA ($USD Millions)	$107.9	$105.2	$52.1
Adjusted EBITDA Margin %	14.6%	14.4%	8.7%
Basic EPS (GAAP) ($)	$0.10	$0.11	$(0.20)
Adjusted EPS ($)	$0.32	$0.30	$0.04
Cash from Operations ($USD Millions)	$42.7	$53.5	$60.5
Capital Expenditure ($USD Millions)	$23.2	$32.4	$58.7
Adjusted Free Cash Flow ($USD Millions)	$31.0	$25.1	$4.4

Q1 FY2025 vs prior-year quarter (Q1 FY2024)

Metric	Q1 FY2024	Q1 FY2025
Revenue ($USD Millions)	$626.7	$599.2
Net (Loss) ($USD Millions)	$(16.4)	$(10.4)
Net (Loss) Margin %	(2.6%)	(1.7%)
Adjusted EBITDA ($USD Millions)	$46.7	$52.1
Adjusted EBITDA Margin %	7.5%	8.7%
Adjusted EPS ($)	$0.02	$0.04

Segment breakdown

Segment Metric	Q1 FY2024	Q1 FY2025
Maintenance: Landscape ($USD Millions)	$402.6	$376.9
Maintenance: Snow ($USD Millions)	$39.7	$32.4
Maintenance: Total Revenue ($USD Millions)	$442.3	$409.3
Maintenance: Adjusted EBITDA ($USD Millions)	$31.4	$34.6
Maintenance: Adjusted EBITDA Margin %	7.1%	8.5%
Maintenance: Capex ($USD Millions)	$8.6	$41.7
Development: Revenue ($USD Millions)	$185.4	$191.8
Development: Adjusted EBITDA ($USD Millions)	$15.3	$17.5
Development: Adjusted EBITDA Margin %	8.3%	9.1%
Development: Capex ($USD Millions)	$1.5	$17.0

Key balance sheet/leverage & cash flow KPIs

KPI	Q3 FY2024	Q4 FY2024	Q1 FY2025
Total Net Financial Debt ($USD Millions)	$769.4	$736.9	$766.1
Net Debt / Adjusted EBITDA (x)	2.4x	2.3x	2.3x
Cash & Equivalents ($USD Millions)	$115.9	$140.4	$98.3

Notes: Adjusted EBITDA, Adjusted EPS, and Adjusted FCF are non-GAAP measures; see reconciliations and definitions in the Q1 FY2025 8‑K and press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY2025	$2.750–$2.840B	$2.750–$2.840B	Maintained
Adjusted EBITDA	FY2025	$335–$355M	$335–$355M	Maintained
Adjusted Free Cash Flow	FY2025	$40–$60M	$40–$60M	Maintained
Snow Revenue (mgmt view)	FY2025	$160–$200M (call framework)	$160–$200M (unchanged, call)	Maintained
Capital structure	FY2025	—	Term loan repriced to SOFR + 2.00% (−50 bps); ~$7.5M annual cash interest savings	Lower interest expense
Capital returns	Ongoing	—	$100M share repurchase program authorized	New program
Preferred dividend	Q2 FY2025	—	$8.8M cash dividend declared (April 1, 2025 payment)	Ongoing cash dividend policy

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2024)	Current Period (Q1 FY2025)	Trend
One BrightView transformation	Record EBITDA; +110 bps margin in FY2024; employee/customer prioritization	7th consecutive quarter of margin expansion; on track for record EBITDA in FY2025	Strengthening
Employee turnover	Sequential improvement cited; investment in fleet and safety	Further improvement via 4×10 schedules, benefits; average frontline tenure >5 years	Improving
Customer retention	+200 bps in FY2024; foundational for growth	5 quarters of improvement; target >85%, aiming toward ~90% in best branches	Improving
Maintenance margins	+110 bps in Q4; +60–100 bps FY2025 guide	+140 bps in Q1; cadence to moderate as SG&A lapped; reinvest in sales	Up, moderating
Snow strategy	Shift toward fixed-rate to reduce volatility	Guide reiterated; BES unwind detailed; majority snow in Q2	De-risking
Development backlog	~Sold into 2026; strong margins	Backlog ~$900M; segment record Q1 EBITDA; 3–6% FY2025 rev growth	Strong
Fleet strategy/Capex	FY2024 gross capex highest ever; timing effects on FCF	Q1 capex $58.7M; replacing 7,500 core mowers by spring (≤15 months age)	Accelerating refresh
Capital structure	Net leverage 2.3x; liquidity ~$600M	Net leverage 2.3x; term loan repriced (100 bps aggregate since May 2024)	Improving
M&A	Paused; future accretive deals under new playbook	Ready to pursue specialty and market-entry deals; guide excludes M&A	Optionality rising
Regulatory/macro	ESG and inflation in Q4 context	Labor market positioning (E-Verify, tenure), tax/regulatory benefits cited	Neutral to positive positioning

Management Commentary

“We delivered double-digit EBITDA growth … expanded EBITDA margins by 120 basis points … on track to deliver … second consecutive record EBITDA year” — CEO Dale Asplund .
“Adjusted EBITDA … was $52.1 million … margins expanded by 120 basis points … seventh consecutive quarter of year-over-year margin expansion” — CFO Brett Urban .
“We recently completed another repricing of our $738 million term loan … reduces the interest rate by another 50 basis points … cash interest savings of approximately $7.5 million annually” — CFO Brett Urban .
“We are reiterating our fiscal ’25 revenue, EBITDA and adjusted free cash flow guidance… translates to another record-breaking year” — CFO Brett Urban .

Q&A Highlights

Land maintenance growth trajectory: Management reiterated expectation for core land growth turning positive in 2H FY2025; sequential improvement continues (from ~−4% → −3% → −1%) as retention improves and sales ramps .
Maintenance margin drivers: Q1’s +140 bps expansion benefited from ~$10M SG&A savings; cadence will moderate as savings are lapped, while growth and operating leverage support FY gains .
Ancillary revenue: Direct correlation with customer retention; majority of markets back to stable YoY ancillary; hurricane clean-up impact modest due to timing of storms .
Snow revenue and contract mix: FY2025 snow guide unchanged at $160–$200M; BES unwinds clarified; strategy to increase fixed contracts to reduce volatility .
Salesforce and fleet investments: Lean SG&A and ample liquidity (~$550–$600M) enable reinvestment in sales and equipment; plan to replace all 7,500 core mowers by spring, keeping fleet ≤15 months old .

Estimates Context

Street consensus (S&P Global) for EPS/revenue/EBITDA was not retrievable due to S&P Global daily request limits at the time of analysis; therefore, we cannot present beat/miss vs consensus today (S&P Global data unavailable).

Key Takeaways for Investors

Margin momentum remains intact: company-wide adjusted EBITDA margin expanded +120 bps; Maintenance +140 bps; Development +80 bps — supported by SG&A efficiencies and operational initiatives .
2H FY2025 inflection story: Management targets a return to positive core land growth in the back half, underpinned by improved employee turnover and customer retention .
Capital structure tailwinds: Term loan repricing lowers interest, boosting cash flow; net leverage steady at 2.3x, enabling disciplined reinvestment and capital returns .
Fleet refresh as an execution lever: Elevated capex is intentional; full refresh of 7,500 core mowers should reduce downtime and repair costs, supporting service quality and retention .
Development remains a growth anchor: Backlog near ~$900M with record segment EBITDA in Q1; cross-selling to maintenance is improving (mid-teens conversion) with further runway .
Snow volatility mitigation: Shift toward fixed contracts and realistic guidance framework reduces earnings variability; majority of snow revenue realized in Q2 .
Near-term catalysts: Feb 19 Investor Day, buyback execution, and continued proof points on retention/ancillary momentum and maintenance margin expansion .

Non-GAAP reminder: Adjusted EBITDA, Adjusted EPS, and Adjusted Free Cash Flow are non-GAAP metrics; see reconciliations and definitions in the Q1 FY2025 8‑K/press release **[1734713_0000950170-25-014524_bv-ex99_1.htm:13]** **[1734713_0000950170-25-014524_bv-ex99_1.htm:14]** **[1734713_2666b99a542f4d0cbea5ce8af8a9aee0_14]** **[1734713_2666b99a542f4d0cbea5ce8af8a9aee0_15]**.

BrightView Holdings, Inc. (BV)·Q1 2025 Earnings Summary