FirstService's Q4 2024: Navigating Contradictions in Revenue Growth, M&A Strategy, and Roofing Margins

These are the key contradictions discussed in FirstService Corporation's latest 2024Q4 earnings call, specifically including: Revenue Growth Expectations, M&A Strategy, Roofing Corp's Margin Profile, and the Outlook for Restoration and Fix-and-Flip:



Revenue and EBITDA Growth:
- FirstService Corporation reported a 20% growth in revenues for the year, with a 24% increase in adjusted EBITDA.
- The growth was driven by the acquisition of Roofing Corp of America and strong organic growth across most segments.

Restoration Segment Performance:
- The Restoration segment saw a 40% increase in revenues for Q4, with a full-year organic growth of approximately 5%.
- The growth was attributed to higher revenue from named storms and the strong performance of Paul Davis and FirstOnSite brands.

Roofing Corp of America Acquisition:
- Roofing Corp of America contributed significantly to Q4 results, with a 50% or more revenue increase expected in Q1 2025.
- The acquisition has helped expand the company's footprint and enhance its service offerings.

Dividend Increase:
- The company announced a 10% increase in its annual dividend to $1.10 per share, reflecting its consistent financial performance.
- This increase is supported by the company's strong balance sheet and confident outlook on future growth.