BrightView Reports First Quarter Fiscal 2025 Results, Expanded Margins, Reaffirms 2025 Guidance

BrightView Holdings, Inc. (NYSE: BV), the leading commercial landscaping services company in the United States, reported unaudited results for the first quarter ended December 31, 2024, highlighting expanded margins and reaffirming its fiscal 2025 guidance. The company's strong performance was driven by strategic initiatives and a focus on core business optimization.



Key Financial Highlights:

* Total revenue decreased 4.4% year-over-year to $599.2 million, primarily due to the strategic reduction of non-core businesses, partially offset by an increase in revenue from core businesses.
* Net loss improved 36.6% year-over-year to $10.4 million, reflecting an approximately 90-basis point increase in Net Loss margin.
* Adjusted EBITDA increased 11.6% to $52.1 million, with Adjusted EBITDA margin expansion of approximately 120 basis points.
* Year-to-date net cash provided by operating activities of $60.5 million, an increase of $34.3 million.
* Year-to-date adjusted free cash inflow of $4.4 million, a decrease of $12.9 million compared to $17.3 million in the prior year.



Segment Performance:

* Maintenance Services Segment revenue decreased by $33.0 million, or 7.5%, from the prior year, primarily driven by a $25.7 million decrease in commercial landscaping services and a $7.3 million decrease in snow removal revenue. These decreases were partially offset by an increase of $6.4 million in Development services revenues year-over-year.
* Adjusted EBITDA for the Maintenance Services Segment increased by $3.5 million, or 10.2%, from the prior year, driven by a 140-basis point expansion in Adjusted EBITDA margin to 8.5%.

BrightView's Strategic Initiatives:

* The company's strategic initiatives, including the strategic reduction of non-core businesses, have contributed to its long-term growth and profitability by enhancing operational efficiency and improving financial performance.
* The significant 481.2% increase in capital expenditures to $58.7 million signals substantial reinvestment in core operations, likely targeting automation and efficiency improvements.
* The recent term loan refinancing has provided BrightView with additional financial flexibility, allowing it to reinvest in the business, explore acquisitions, and maintain a continued focus on cash flow and its balance sheet.



Fiscal 2025 Guidance:

* BrightView reaffirmed its fiscal 2025 guidance, projecting total revenue between $2.750-$2.840 billion and Adjusted EBITDA of $335-$355 million.
* The company's focus on core business optimization and margin expansion, rather than pure revenue growth, aligns with current market preferences for profitable growth over scale.

BrightView's first quarter fiscal 2025 results demonstrate the company's commitment to strategic initiatives and core business optimization, leading to expanded margins and reaffirmed guidance. Despite the seasonal first-quarter challenges, management's confidence in the company's strategic direction is evident in its reaffirmed guidance. By focusing on profitability and reinvesting in core operations, BrightView is positioning itself for sustainable, profitable growth in the future.