FirstService Reports Fourth Quarter and Full Year Results

Executive Summary

• FirstService Corporation reported fourth quarter and full-year 2025 financial results, showing consolidated revenue growth of 1% and 5% respectively compared to the prior year.
• Full-year Adjusted EBITDA increased 10% to $562.8 million, and Adjusted EPS rose 15% to $5.75, driven by organic growth and recent tuck-under acquisitions.
• The company highlighted strong performance in its FirstService Residential segment, while FirstService Brands experienced a decline in organic revenue due to reduced weather events and tempered roofing activity.

Key Details

• Consolidated Q4 2025 Results:
  • Revenues: $1,383.4 million (up 1% YoY).
  • Adjusted EBITDA: $137.6 million (in-line with Q4 2024).
  • Adjusted EPS: $1.37 (up 2% YoY).
  • GAAP Operating Earnings: $85.9 million (down from $89.6 million in Q4 2024).
  • Diluted GAAP EPS: $0.85 (up from $0.71 in Q4 2024).
• Consolidated Full Year 2025 Results:
  • Revenues: $5,497.5 million (up 5% YoY).
  • Adjusted EBITDA: $562.8 million (up 10% YoY).
  • Adjusted EPS: $5.75 (up 15% YoY).
  • GAAP Operating Earnings: $338.1 million (vs. $337.5 million in 2024).
  • Diluted GAAP EPS: $3.17 (vs. $2.97 in 2024).
• Segment Performance - Q4 2025:
  • FirstService Residential: Revenues of $563.1 million (up 8% YoY, including 5% organic growth). Adjusted EBITDA was $51.5 million (up 12% YoY). Operating Earnings were $36.3 million.
  • FirstService Brands: Revenues of $820.3 million (down 3% YoY; organic revenue down 7% due to reduced weather events/claims and tempered roofing activity). Adjusted EBITDA was $88.5 million (down from $100.7 million). Operating Earnings were $59.2 million (down from $69.9 million).
  • Corporate Costs: $2.4 million in Q4 2025 (down from $8.9 million in Q4 2024), primarily due to non-cash foreign exchange adjustments.
• Segment Performance - Full Year 2025:
  • FirstService Residential: Revenues of $2.29 billion (up 7% YoY, including 4% organic growth). Adjusted EBITDA was $225.0 million (up 13% YoY). Operating Earnings were $170.4 million.
  • FirstService Brands: Revenues of $3.21 billion (up 4% YoY; organic revenue down 3% due to restoration/roofing declines, partially offset by Century Fire Protection growth). Adjusted EBITDA was $353.6 million (up 4% YoY). Operating Earnings were $214.0 million (down from $230.1 million, impacted by prior year contingent earn-out adjustments).
  • Corporate Costs: $15.8 million for the full year (down from $25.1 million in 2024).
• Balance Sheet & Cash Flow Highlights:
  • Total Debt: $1,082.7 million at Dec 31, 2025 (down from $1,298.7 million at Dec 31, 2024).
  • Net Debt (Total debt, net of cash): $928.3 million at Dec 31, 2025.
  • Cash from Operating Activities (Full Year 2025): $445.9 million.
  • Cash Used in Investing Activities (Full Year 2025): $245.2 million (including $107.2 million for acquisitions).
  • Dividends Paid to Common Shareholders (Full Year 2025): $48.9 million.

Notable Quotes

• “Our fourth quarter results were largely in-line with expectations provided on our prior quarterly call and we are pleased to have capped off a year of solid growth and strong earnings performance,” said Scott Patterson, Chief Executive Officer of FirstService. “I am proud of how our operating leaders and teams executed with discipline and resilience in challenging environments throughout 2025. Looking forward, as market conditions normalize, we are confident that our organic growth will return to levels approaching our long-term track record and future targets,” he concluded.