GICS Sector : Industrials
BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States.It operates through two segments, Maintenance Services and Development Services.The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance.
BrightView's fiscal 2025 earnings report revealed a strong financial performance, with record adjusted EBITDA of $352 million and a margin of 13.2%, a 260 basis point improvement from fiscal 2023. Revenue growth was not explicitly stated, but the company's guidance for fiscal 2026 suggests a continued upward trajectory, with revenue expected to range from $2.67 billion to $2.73 billion. The actual EPS came out at $0.27, slightly below estimates of $0.32.
Publication Date: Nov -21
The company's leadership attributed the strong performance to its focus on frontline employees, investing in consistent service levels, and expanding its sales force by hiring about 100 new sellers. These efforts are expected to drive growth, with the sales force investments expected to pay dividends, and new business opportunities emerging in 2026. As Dale Asplund, President and CEO, likely highlighted during the earnings call, the company's prioritization of employee retention has led to improved employee retention statistics by over 3,000 basis points since 2022.
For fiscal 2026, BrightView expects adjusted EBITDA in the range of $363 million to $377 million, and adjusted free cash flow in the range of $100 million to $115 million. The company's guidance assumes land maintenance revenue growth of 1% to 2%, driven by benefits from the growing sales force, improved customer retention, and higher development to maintenance conversions. Analysts estimate next year's revenue growth at 0.3%, which is relatively conservative compared to the company's guidance.
With a P/E Ratio of 23.81 and an EV/EBITDA of 4.31, the market appears to be pricing in a certain level of growth. BrightView's leadership has set a target of mid-single digit annual growth between now and 2030, driven by customer retention, adding sales resources, and driving ancillary services. The company's focus on becoming the employer of choice and delivering world-class service is expected to drive long-term shareholder value.
The company is investing in new technology and training for sales reps, including a field service management system that will help optimize crew routing and scheduling. The system is expected to be a capacity creation tool, allowing the company to do more work with its existing team as it grows the business. Additionally, the company is working to shift its snow business to more fixed customer contracts, making the business more predictable.
Geode Capital Management LLC Boosts Stock Position in BrightView Holdings, Inc. $BV
Nov -29
BrightView Holdings, Inc. (BV) Q4 2025 Earnings Call Transcript
Nov -20
Here's What Key Metrics Tell Us About BrightView (BV) Q4 Earnings
Nov -20
BrightView Holdings (BV) Q4 Earnings and Revenues Lag Estimates
Nov -19
Stay Ahead of the Game With BrightView (BV) Q4 Earnings: Wall Street's Insights on Key Metrics
Nov -14
BrightView Holdings, Inc. Announces Fourth Quarter and Fiscal Year 2025 Earnings Release Date, Conference Call and Webcast
Oct -30
BrightView Unites 19,000 Team Members with Pink Hats for Breast Cancer Awareness Month
Oct -01
BrightView Holdings, Inc. (BV) Q3 2025 Earnings Call Transcript
Aug -08
Growing demand for outdoor spaces, increasing focus on aesthetics and safety, and rising commercial and residential construction activities drive the growth of BrightView's maintenance services.
Growing demand for outdoor spaces, increasing focus on sustainability, and rising construction activities in commercial and residential properties drive the growth of BrightView Holdings' Development Services.
The elimination of intercompany transactions and balances from BrightView Holdings, Inc. is expected to drive growth, driven by increasing demand for consolidated financial reporting, improved transparency, and enhanced financial analysis capabilities.
Design and installation of landscapes for commercial and residential properties
Ongoing maintenance services for commercial and residential landscapes
Tree pruning, removal, and planting services for commercial and residential properties
Design, installation, and maintenance of irrigation systems for commercial and residential properties
Winter weather services for commercial and residential properties
Installation and maintenance of seasonal decorations and lighting for commercial and residential properties
BrightView Holdings, Inc. faces moderate threat from substitutes, as customers have limited alternatives for landscaping and snow removal services. However, the company's focus on commercial clients and its diversified service offerings mitigate this threat.
BrightView Holdings, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's long-term contracts and high switching costs further limit customer bargaining power.
BrightView Holdings, Inc. has a diverse supplier base, and the company's scale and purchasing power reduce its dependence on individual suppliers. This limits the bargaining power of suppliers.
The landscaping and snow removal services industry has moderate barriers to entry, including regulatory requirements and capital expenditures. BrightView Holdings, Inc.'s established brand and scale of operations also create a barrier to entry for new competitors.
The landscaping and snow removal services industry is moderately competitive, with several large players competing for market share. However, BrightView Holdings, Inc.'s diversified service offerings and strong brand reputation help the company maintain its market position.
| Value | |
|---|---|
| Debt Weight | 44.09% |
| Debt Cost | 4.00% |
| Equity Weight | 55.91% |
| Equity Cost | 10.06% |
| WACC | 7.39% |
| Leverage | 78.86% |
Value: 7.6
Growth: 0.7
Quality: 3.7
Yield: 9.0
Momentum: 8.5
Volatility: 4.0
1-Year Total Return ->
Value: 9.0
Growth: 4.9
Quality: 6.1
Yield: 0.0
Momentum: 6.5
Volatility: 5.3
1-Year Total Return ->
Value: 8.3
Growth: 1.8
Quality: 2.4
Yield: 5.0
Momentum: 6.5
Volatility: 2.7
1-Year Total Return ->
Value: 8.6
Growth: 5.4
Quality: 5.6
Yield: 0.0
Momentum: 0.5
Volatility: 6.0
1-Year Total Return ->
Value: 6.1
Growth: 5.6
Quality: 5.1
Yield: 0.0
Momentum: 3.0
Volatility: 6.0
1-Year Total Return ->
Value: 9.4
Growth: 1.3
Quality: 3.7
Yield: 0.0
Momentum: 0.0
Volatility: 3.3
1-Year Total Return ->