BrightView Holdings Q3 2025 Earnings Call: Record EBITDA Amid Revenue Challenges

BrightView Holdings Inc achieved its highest ever adjusted EBITDA and margin, with a trailing 12-month EBITDA of $344 million, marking a 15% improvement over seven quarters. However, total revenue for the third quarter decreased by 4% due to macro-related dynamics. The company has made significant investments in refreshing its fleet and centralizing its procurement function, resulting in cost efficiencies. Despite improvements, BrightView continues to face challenges in achieving consistent top-line growth.

BrightView Holdings Inc. (NYSE: BV), the leading U.S. commercial landscaping company, reported its third-quarter fiscal 2025 results, which fell short of analyst expectations. The company's revenue declined 4.1% year-over-year (YoY) to $708.3 million, missing the consensus estimate of $725.71 million. Despite this revenue decline, BrightView reported a 37.4% increase in net income to $32.3 million and a 4.9% rise in adjusted EBITDA to $113.2 million. The adjusted EBITDA margin expanded by 140 basis points to 16.0%, reflecting the company’s ongoing cost management initiatives [1].

The revenue decrease was primarily driven by a $13.7 million reduction in development services due to timing delays in projects, combined with a $13.3 million decline in the commercial landscaping business. Snow removal services also decreased by 30.6% to $5.9 million. Despite these challenges, BrightView maintained its full-year 2025 guidance, projecting total revenue between $2.68 billion and $2.73 billion, and adjusted EBITDA between $348 million and $362 million [2].

BrightView's President and Chief Executive Officer, Dale Asplund, stated, "We continue to execute on our One BrightView strategy, which is underpinned by prioritizing our employees and delivering best-in-class service to our customers. Our record year-to-date Adjusted EBITDA and Adjusted EBITDA margin reflect the meaningful progress of our transformation as we continue to focus on driving sustained, long-term profitable growth and shareholder value."

For the nine months ended June 30, 2025, BrightView reported net cash provided by operating activities of $207.4 million, an increase of $55.3 million YoY, while adjusted free cash flow decreased to $25.8 million from $120.2 million in the prior year period, primarily due to higher capital expenditures [1].

Analysts are generally optimistic about BrightView's prospects, with an average analyst rating of "buy" and a median 12-month price target of $20.00, about 19.4% above its August 5 closing price of $16.12 [2]. The stock recently traded at 17 times the next 12-month earnings compared to a P/E of 15 three months ago.

Despite the mixed results, BrightView's focus on cost management and margin improvement has been well-received by investors. The company's strategic reduction of non-core businesses and investments in refreshing its fleet and centralizing its procurement function have led to significant cost efficiencies. However, achieving consistent top-line growth remains a challenge for the company [3].

References:
[1] https://www.investing.com/news/earnings/brightview-falls-short-of-q3-analyst-expectations-maintains-2025-guidance-93CH-4174547
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX1E3E9F:0-brightview-q3-revenue-misses-estimates/
[3] https://finimize.com/content/brightviews-margins-bloom-even-as-revenue-wilts