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BrightView Holdings, Inc. (BV)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY2025 delivered record Adjusted EBITDA of $73.5M and 11.1% margin (+150 bps YoY), while revenue decreased 1.5% YoY to $662.6M as strategic reductions of non-core businesses offset growth in Development Services .
  • Raised full-year guidance: Adjusted EBITDA to $345–$365M (from $335–$355M) and Adjusted Free Cash Flow to $50–$70M (from $40–$60M); revenue maintained at $2.75–$2.84B .
  • Consensus context: Q2 revenue and EPS exceeded S&P Global consensus; EBITDA also above Street, reinforcing execution momentum and margin trajectory (see Estimates Context for details)*.
  • Catalysts: guidance raise, margin expansion across segments, record segment profitability in Development, and a new $100M share repurchase program initiated mid-March .

What Went Well and What Went Wrong

  • What Went Well

    • Record company Adjusted EBITDA ($73.5M) and margin expansion to 11.1%, driven by cost actions, One BrightView efficiencies, and strong Development project mix .
    • Full-year guidance raised on Adjusted EBITDA and Adjusted Free Cash Flow; “We are raising our full year guidance on adjusted EBITDA, margins and free cash flow” — CEO Dale Asplund .
    • Customer metrics improving: TTM customer retention up 170 bps; front-line turnover down, aided by fleet refresh and new paid time off program .

  • What Went Wrong

    • Net service revenues -1.5% YoY to $662.6M; Maintenance Services revenue -3.5% YoY on strategic non-core reductions and softer core landscape maintenance .
    • GAAP net income fell $27.3M YoY to $6.4M due to prior-year divestiture gain; GAAP EPS for common shareholders was -$0.03, reflecting preferred dividends and allocation .
    • Ancillary land work saw timing hesitance amid macro/tariff noise and winter conditions; management noted land was impacted by snow (~$6M) limiting installs in East Coast markets .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$728.7 $599.2 $662.6
Net Income ($USD Millions)$25.6 $(10.4) $6.4
GAAP Basic EPS ($USD)$0.11 $(0.20) $(0.03)
Adjusted EPS ($USD)$0.30 $0.04 $0.14
Adjusted EBITDA ($USD Millions)$105.2 $52.1 $73.5
Adjusted EBITDA Margin (%)14.4% 8.7% 11.1%

Segment breakdown

Segment Metric ($USD Millions unless noted)Q4 2024Q1 2025Q2 2025
Maintenance Services Revenue$486.5 $409.3 $492.8
Maintenance Adjusted EBITDA$81.8 $34.6 $56.3
Maintenance Adjusted EBITDA Margin (%)16.8% 8.5% 11.4%
Development Services Revenue$244.1 $191.8 $171.9
Development Adjusted EBITDA$41.2 $17.5 $17.2
Development Adjusted EBITDA Margin (%)16.9% 9.1% 10.0%

KPIs

KPIQ4 2024Q1 2025Q2 2025
Cash from Operations ($USD Millions)$53.5 $60.5 $91.3
Adjusted Free Cash Flow ($USD Millions)$25.1 $4.4 $62.7
Net Financial Debt / Adjusted EBITDA (x)2.3x (as of 9/30/24) 2.3x (as of 12/31/24) 2.1x (as of 3/31/25)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Billions)FY 2025$2.750–$2.840 $2.750–$2.840 Maintained
Adjusted EBITDA ($USD Millions)FY 2025$335–$355 $345–$365 Raised
Adjusted Free Cash Flow ($USD Millions)FY 2025$40–$60 $50–$70 Raised

Additional Q2 press releases: $100M share repurchase program authorized and initiated mid-March ; paid $8.8M quarterly cash dividend on Series A Preferred Stock (fifth consecutive) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Customer retention & laborRetention +200 bps; strong focus on front-line benefits/fleet Continued improvements; SG&A lean; ramp sales after retention base Retention +170 bps TTM; launch paid time off; turnover down Improving
Snow strategy (fixed vs variable)Reset snow guide to realistic 2-yr avg; shift to more fixed contracts Early-season cold; building fixed mix; guide unchanged East Coast snowfall drove Core snow +$22M; pursuing more fixed in 2026 cycle Stabilizing with strategy shift
Development margins/backlogRecord margins; backlog strong; margin improvement YoY Record Q1 segment EBITDA; backlog selling into 2026 Record Q2 segment EBITDA; margin +410 bps; some favorable closeouts Strong/expanding
Fleet/CapEx & cash conversionLargest capital spend; normalized FCF conversion ~30% Highest single-quarter CapEx; term loan repriced -50 bps Record net capital spend H1; net leverage 2.1x; ongoing buybacks Investing; leverage improving
Tariffs/macro & ancillary demandSensitivity analysis; resilient model Ancillary recovering; two regions lag; macro watch More quotes out than ever; some hesitation; minimal tariff impact so far Cautious near term
Capital allocation (buybacks/M&A)M&A playbook revised; no 2025 M&A in guide Balance sheet flexibility; SG&A leverage to invest Aggressive opportunistic buybacks; M&A optionality alongside fleet and buybacks Balanced, opportunistic

Management Commentary

  • “We’re off to a very strong start fiscal 2025…a record for both Q2 and year-to-date adjusted EBITDA…we are raising our full year guidance on adjusted EBITDA, margins and free cash flow.” — CEO Dale Asplund .
  • “Adjusted EBITDA margins of 11.1% were also a Q2 record…another consecutive quarter of year-over-year margin expansion.” — CFO Brett Urban .
  • “Customer retention rates continue to trend in the right direction, increasing 170 basis points on a trailing 12-month basis.” — CEO Dale Asplund .
  • “We believe our shares are significantly undervalued…we will continue to be aggressive in opportunistic buying of our own stock.” — CEO Dale Asplund .

Q&A Highlights

  • Snow impact and land installs: Core snow increased $22M (Boston–Carolinas–Florida), land installs constrained (~$6M impact); overall land trend still improving .
  • Buybacks vs M&A: Executed ~$1.7M in late March at ~$13.11; plan to be opportunistic given perceived undervaluation while retaining capacity for M&A and record net capital spend .
  • Labor inflation and turnover: Wage increases now at/below low-end 3–5% range; H-2B needs halved vs 2024; turnover continues to decline with added benefits (boots, 4x10 shifts, PTO) .
  • Development margins: Favorable job closeouts aided Q2 by ~$1–2M; One BrightView and mix drove sustainable margin expansion; backlog ~selling into FY2026 .
  • Tariffs/macro: Minimal impact to date; fuel hedges in place; ordered fleet ahead of tariff headlines; ancillary demand seeing more quotes but some signing hesitancy .

Estimates Context

  • Q2 FY2025 vs S&P Global Consensus: Revenue $662.6M vs $643.3M*; Primary EPS $0.225* vs $0.110*; EBITDA $73.5M vs $65.9M* — broad-based beats reinforcing margin trajectory .
  • Prior quarters: Q1 FY2025 revenue $599.2M vs $613.2M*; Primary EPS $0.04 vs $0.0399* . Q4 FY2024 revenue $728.7M vs $723.4M*; Primary EPS $0.30 vs $0.3055* .
    Values retrieved from S&P Global.*
MetricQ4 2024 Consensus*Q4 2024 ActualQ1 2025 Consensus*Q1 2025 ActualQ2 2025 Consensus*Q2 2025 Actual
Revenue ($USD Millions)723.412*728.7 613.164*599.2 643.291*662.6
Primary EPS ($USD)0.3055*0.30 0.0399*0.04 0.1102*0.2251*
EBITDA ($USD Millions)105.221*105.2 49.38*52.1 65.935*73.5

Key Takeaways for Investors

  • Margin momentum intact: multiple consecutive quarters of company-wide margin expansion; Maintenance and Development both improving; guidance raises on EBITDA and FCF underscore confidence .
  • Land growth inflection still targeted for H2: retention up, salesforce ramp, development-to-maintenance conversions rising; near-term ancillary timing noise warrants monitoring .
  • Capital deployment optionality: record H1 net CapEx, leverage down to 2.1x, new $100M buyback executed opportunistically; supports share count and per-share economics .
  • Snow variability being de-risked: push toward more fixed contracts in borderline markets should reduce earnings volatility over time .
  • Narrative drivers: continued One BrightView execution (centralization, procurement, fleet refresh, tech), labor stability, and backlog conversion in Development remain core to the thesis .
  • Watch items: macro/tariff headlines affecting ancillary signings; Maintenance land revenue impacted by unusual snowfall in Q2; ongoing preference dividends reduce GAAP EPS to common .

Appendix: Source Documents Read

  • Q2 FY2025 Form 8-K (Item 2.02) and Exhibit 99.1 press release .
  • Q2 FY2025 earnings call transcript (May 8, 2025) –.
  • Additional Q2 press releases: $100M share repurchase (Mar 13) ; preferred dividend (Mar 12) ; earnings date release (Apr 22) .
  • Prior quarters for trend: Q1 FY2025 press release and call – –; Q4 FY2024 press release and call – –.