FirstService (FSV) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenues rose 1% year-over-year to $1.38 billion, with EBITDA flat and EPS up 2% to $1.37; full-year revenues increased 5% to $5.5 billion, EBITDA up 10% to $563 million, and EPS up 15% to $5.75, driven by acquisitions and margin improvements.

• Management expressed confidence in organic growth returning to historical levels as market conditions normalize.

• Performance exceeded expectations despite challenging macroeconomic conditions, with disciplined cost management.

Financial highlights

• Q4 consolidated revenues were $1.38 billion (+1% YoY), adjusted EBITDA $138 million (9.9% margin), and adjusted EPS $1.37 (+2% YoY).

• Full-year revenues reached $5.5 billion (+5%), adjusted EBITDA $563 million (+10%, 10.2% margin), and adjusted EPS $5.75 (+15%).

• Full-year GAAP operating earnings were $338.1 million, nearly flat compared to $337.5 million in 2024.

• Operating cash flow in Q4 was $155 million (+33% YoY); annual operating cash flow exceeded $445 million (+56% YoY).

• Total debt at year-end was $1.08 billion, down from $1.30 billion a year earlier.

Outlook and guidance

• Q1 2026 revenue growth expected in the mid-single digit range, with EBITDA roughly flat year-over-year.

• Full-year 2026 guidance anticipates high single-digit revenue and EBITDA growth, with consolidated EBITDA margin expected to remain flat at ~10.2%.

• Management anticipates organic growth to return to long-term targets as market conditions normalize.

• Segment organic growth expected in mid-single digits for Residential, modest growth in Roofing, and continued strong performance at Century Fire.