FirstService Reports Third Quarter 2025 Results

Executive Summary

• FirstService Corporation reported Q3 2025 consolidated revenue of $1.45 billion, up 4% YoY, with Adjusted EBITDA of $164.8 million (+3%) and Adjusted EPS of $1.76 (+8%).
• Nine‑month results showed revenue of $4.11 billion (+7% YoY), Adjusted EBITDA of $425.2 million (+13%) and Adjusted EPS of $4.39 (+20%).
• Residential segment delivered strong growth (revenues $605.4 M, +8% YoY) while Brands revenue was flat ($842.1 M) with organic decline in restoration/roofing offset by Century Fire Protection gains.

Key Details

• Consolidated Q3 2025 Financials
• Revenue: $1,447.6 million (vs. $1,396.0 M YoY)
• Adjusted EBITDA: $164.8 million (vs. $160.0 M YoY)
• Adjusted EPS: $1.76 (vs. $1.63 YoY)
• GAAP Operating Earnings: $115.6 million (down from $125.9 M YoY)

• GAAP Diluted EPS: $1.24 (down from $1.34 YoY)

• Nine‑Month Ended September 30 2025

• Revenue: $4,114.1 million (vs. $3,851.5 M YoY)
• Adjusted EBITDA: $425.2 million (vs. $375.8 M YoY)
• Adjusted EPS: $4.39 (vs. $3.66 YoY)

• GAAP Operating Earnings: $252.2 million (vs. $247.9 M YoY)

• Segment Performance

• Residential: Revenue $605.4 M (+8% YoY); Adjusted EBITDA $66.4 M (+13%); Operating Earnings $53.3 M vs. $49.1 M prior year.

• Brands: Revenue $842.1 M (+1% YoY); Adjusted EBITDA $102.1 M (down from $105.8 M); Operating Earnings $73.7 M vs. $87.1 M prior year; organic revenue decline of 4% due to weaker restoration/roofing activity, partially offset by Century Fire Protection growth.

• Corporate Costs

• Adjusted EBITDA corporate costs: $3.7 M (down from $4.4 M YoY).

• GAAP corporate costs: $11.4 M (up from $10.2 M YoY).

• Balance Sheet Highlights (Sept 30 2025 vs. Dec 31 2024)

• Total assets: $4.39 billion (↑ $190 M)
• Cash & cash equivalents: $219.9 M (↓ $7.7 M)

• Total debt: $1.21 billion (down from $1.30 billion).

• Cash Flow Summary

• Net cash provided by operating activities: $126.4 million (Q3) vs. $77.0 M YoY.
• Net cash used in investing activities: $(79.5) million (primarily acquisitions and capex).

• Net cash used in financing activities: $(27.0) million (debt repayments, dividend payments of $12.5 M).

• Management Commentary

• CEO Scott Patterson highlighted “resilient growth” despite weather‑related and macroeconomic headwinds, noting expectations of continued market challenges into Q4 but confidence in delivering a solid year of growth and profitability.

• Conference Call

• Scheduled for Thursday, October 23 2025 at 11:00 a.m. ET; webcast link provided.

Notable Quotes

“We are pleased with the resilient growth in our consolidated third quarter results, despite weather‑related and broader commercial macroeconomic headwinds which tempered the organic top‑line within our Brands division.” – Scott Patterson, CEO

Materiality Assessment: Material – Positive (quarterly earnings release with significant revenue and profitability improvements).