FirstService Reports Fourth Quarter and Full Year Results

Delivers Strong Consolidated Annual Earnings Operating highlights:   Three months ended   Year ended     December 31   December 31     2025   2024   2025   2024                             Revenues (millions) $ 1,383.4   $ 1,365.3   $ 5,497.5   $ 5,216.9   Adjusted EBITDA (millions) (note 1)   137.6     137.9     562.8     513.7   Adjusted EPS (note 2)   1.37     1.34     5.75     5.00                             GAAP Operating Earnings   85.9     89.6     338.1     337.5   GAAP EPS   0.85     0.71     3.17     2.97                             TORONTO, Feb. 04, 2026 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today announced fourth quarter and full year results for the year ended December 31, 2025. All amounts are in US dollars. Consolidated revenues for the fourth quarter were $1.38 billion, a 1% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) was $137.6 million, in-line with the fourth quarter of 2024, and Adjusted EPS (note 2) was $1.37, a 2% increase over the prior year quarter. Operating Earnings for the quarter were $85.9 million, relative to $89.6 million in the prior year period. Diluted EPS was $0.85 per share in the quarter, compared to $0.71 for the same quarter a year ago. For the year ended December 31, 2025, consolidated revenues were $5.50 billion, a 5% increase relative to the prior year, driven by the contribution of recent tuck-under acquisitions. Adjusted EBITDA was $562.8 million, up 10%, and Adjusted EPS was $5.75, a 15% increase versus the prior year. Operating Earnings were $338.1 million, versus $337.5 million in the prior year. Diluted earnings per share was $3.17, compared to $2.97 in the prior year. “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. About FirstService Corporation FirstService Corporation is a North American leader in the property services sector serving its customers through two industry leading platforms: FirstService Residential - North America’s largest manager of residential communities; and FirstService Brands - one of North America’s largest providers of essential property services delivered through individually branded company-owned operations and franchise systems. FirstService generates approximately US$5.5 billion in annual revenues and has more than 30,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The Common Shares of FirstService trade on the NASDAQ under the symbol “FSV” and on the Toronto Stock Exchange under the symbol “FSV”, and are included in the S&P/TSX 60 Index. More information is available at www.firstservice.com. Segmented Fourth Quarter Results FirstService Residential generated revenues of $563.1 million for the fourth quarter, up 8% relative to the prior year quarter, including 5% organic growth (see definition on page 6). The top-line performance was driven by contract wins and was balanced across most markets. Adjusted EBITDA was $51.5 million, an increase of 12% compared to $46.0 million reported in the prior year period. Operating Earnings were $36.3 million, versus $34.4 million for the fourth quarter of last year. Operating margins for the division were relatively comparable on a year-over-year basis. FirstService Brands recorded revenues of $820.3 million, down 3% versus the prior year period. On an organic basis, revenues decreased 7% primarily due to reduced weather events and large-loss claims versus the prior year quarter at our restoration brands, as well as tempered activity levels in our roofing operations. Adjusted EBITDA for the quarter was $88.5 million, compared to $100.7 million in the prior year quarter. Operating Earnings were $59.2 million, versus $69.9 million in the prior year quarter. The decrease in division operating margins resulted from the negative operating leverage associated with the top-line organic declines in our restoration and roofing platforms. Corporate costs, as presented in Adjusted EBITDA, were $2.4 million in the fourth quarter, relative to $8.9 million in the prior year period. Corporate costs for the quarter were $9.6 million, relative to $14.7 million in the prior year period. The lower corporate costs were primarily due to non-cash foreign exchange adjustments. Segmented Full Year Results FirstService Residential reported revenues of $2.29 billion, up 7% relative to 2024, including 4% organic growth. Adjusted EBITDA was $225.0 million, up 13% versus the prior year. Operating Earnings were $170.4 million, compared to $159.2 million in the prior year. The Adjusted EBITDA margin increase was driven by cost efficiencies in our property management operations, with the Operating Earnings margin remaining in-line due to increased depreciation and amortization compared to the prior year. FirstService Brands revenues were $3.21 billion, a 4% increase versus the prior year. Revenues declined 3% on an organic basis, driven by decreased activity levels at our restoration and roofing operations, and partially offset by strong organic growth at Century Fire Protection. Adjusted EBITDA for the year was $353.6 million, up 4% relative to the prior year. Operating Earnings were $214.0 million, versus $230.1 million a year ago. The division Adjusted EBITDA margin was in-line with the prior year period, while the year-over-year Operating Earnings margin comparison was down due to the positive impact from acquisition-related contingent earn-out adjustments in the prior year period. Corporate costs, as presented in Adjusted EBITDA, were $15.8 million for the full year, relative to $25.1 million in the prior year. Corporate costs were $46.3 million, relative to $51.8 million in 2024. The lower corporate costs were primarily due to non-cash foreign exchange adjustments. Conference Call & Presentation FirstService will be holding a conference call on Wednesday, February 4, 2026 at 11:00 a.m. Eastern Time to discuss the results for the fourth quarter and full year. This call is being webcast live at the Company’s website at www.firstservice.com. Participants may register for the call here https://register-conf.media-server.com/register/BI8ca41330dc1e42ddb03f81b1f7b5bca1 to receive the dial-in number and their unique PIN. To join the webcast in listen only mode, use this link: https://edge.media-server.com/mmc/p/87nnofzc. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). Forward-looking Statements This press release includes or may include forward-looking statements. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for FirstService’s services and the cost of providing services; (ii) the ability of FirstService to implement its business strategy, including FirstService’s ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in FirstService’s annual information form for the year ended December 31, 2024 under the heading “Risk factors” (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings (which factors are adopted herein). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise. Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca. Notes 1. Reconciliation of net earnings to adjusted EBITDA: Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) stock-based compensation expense. The Company uses Adjusted EBITDA to evaluate its own operating performance and its ability to service debt, as well as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. Adjusted EBITDA is presented as a supplemental measure because the Company believes such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of its service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company’s method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below.   Three months ended   Twelve months ended (in thousands of US$) December 31   December 31   2025     2024     2025     2024                           Net earnings $ 50,349     $ 50,179     $ 190,747     $ 187,774   Income tax   18,388       19,153       75,765       70,124   Other expense (income), net   84       (863 )     (2,136 )     (3,239 ) Interest expense, net   17,093       21,146       73,702       82,853   Operating earnings   85,914       89,615       338,078       337,512   Depreciation and amortization   48,766       47,828       185,209       165,269   Acquisition-related items   (3,674 )     (5,272 )     12,121       (14,402 ) Stock-based compensation expense   6,615       5,685       27,387       25,311   Adjusted EBITDA $ 137,621     $ 137,856     $ 562,795     $ 513,690   A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.                             (in thousands of US$)                                                           Three months ended December 31, 2025   FirstService     FirstService             Residential     Brands     Corporate(1)                       Operating earnings (loss) $ 36,269   $ 59,243     $ (9,598 )   Depreciation and amortization   12,191     36,553       22     Acquisition-related items   3,052     (7,297 )     571     Stock-based compensation expense   -     -       6,615     Adjusted EBITDA $ 51,512   $ 88,499     $ (2,390 )                                           Three months ended December 31, 2024   FirstService     FirstService             Residential     Brands     Corporate(1)                       Operating earnings (loss) $ 34,382   $ 69,909     $ (14,676 )   Depreciation and amortization   10,439     37,366       23     Acquisition-related items   1,191     (6,578 )     115     Stock-based compensation expense   -     -       5,685     Adjusted EBITDA $ 46,012   $ 100,697     $ (8,853 )                                                               Year ended December 31, 2025   FirstService     FirstService             Residential     Brands     Corporate(1)                       Operating earnings (loss) $ 170,421   $ 213,971     $ (46,314 )   Depreciation and amortization   46,780     138,339       90     Acquisition-related items   7,800     1,258       3,063     Stock-based compensation expense   -     -       27,387     Adjusted EBITDA $ 225,001   $ 353,568     $ (15,774 )                                           Year ended December 31, 2024   FirstService     FirstService             Residential     Brands     Corporate(1)                       Operating earnings (loss) $ 159,206   $ 230,080     $ (51,774 )   Depreciation and amortization   37,506     127,672       91     Acquisition-related items   2,576     (18,263 )     1,285     Stock-based compensation expense   -     -       25,311     Adjusted EBITDA $ 199,288   $ 339,489     $ (25,087 )                                           Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues.                       Organic growth is defined as revenue growth adjusted to exclude the revenue attributable to acquired businesses for a period of twelve months following their acquisition.     (1) Corporate is not an operating segment, but rather represent corporate overhead expenses not directly attributable to reportable segments and are therefore unallocated within segment operating earnings (loss) and Segment Adjusted EBITDA.       2. Reconciliation of net earnings and net earnings (loss) per common share to adjusted net earnings and adjusted net earnings per share: Adjusted EPS is defined as diluted net earnings per share, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization of intangible assets recognized in connection with acquisitions; and (iv) stock-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per common share, as determined in accordance with GAAP. The Company’s method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of diluted net earnings per common share to Adjusted EPS appears below.   Three months ended   Twelve months ended (in thousands of US$) December 31   December 31   2025     2024     2025     2024                           Net earnings $ 50,349     $ 50,179     $ 190,747     $ 187,774   Non-controlling interest share of earnings   (4,444 )     (3,639 )     (15,874 )     (15,624 ) Acquisition-related items   (3,674 )     (5,272 )     12,121       (14,402 ) Amortization of intangible assets   20,187       22,331       77,238       72,396   Stock-based compensation expense   6,615       5,685       27,387       25,311   Income tax on adjustments   (6,282 )     (8,125 )     (26,938 )     (28,335 ) Non-controlling interest on adjustments   (185 )     (206 )     (1,371 )     (693 ) Adjusted net earnings $ 62,566     $ 60,953     $ 263,310     $ 226,427                             Three months ended   Twelve months ended (in US$) December 31   December 31   2025     2024     2025     2024                           Diluted net earnings per share $ 0.85     $ 0.71     $ 3.17     $ 2.97   Non-controlling interest redemption increment   0.15       0.31       0.65       0.83   Acquisition-related items   (0.07 )     (0.11 )     0.22       (0.31 ) Amortization of intangible assets, net of tax   0.31       0.34       1.16       1.11   Stock-based compensation expense, net of tax   0.13       0.09       0.55       0.40   Adjusted earnings per share $ 1.37     $ 1.34     $ 5.75     $ 5.00   FIRSTSERVICE CORPORATION Operating Results (in thousands of US$, except per share amounts)       Three months     Twelve months       ended December 31     ended December 31 (unaudited)   2025       2024       2025       2024                             Revenues $ 1,383,376     $ 1,365,349     $ 5,497,500     $ 5,216,894                             Cost of revenues   914,092       911,361       3,651,314       3,498,974   Selling, general and administrative expenses   338,278       321,817       1,310,778       1,229,541   Depreciation   28,579       25,497       107,971       92,873   Amortization of intangible assets   20,187       22,331       77,238       72,396   Acquisition-related items (1)   (3,674 )     (5,272 )     12,121       (14,402 ) Operating earnings   85,914       89,615       338,078       337,512   Interest expense, net   17,093       21,146       73,702       82,853   Other expense (income), net (2)   84       (863 )     (2,136 )     (3,239 ) Earnings before income tax   68,737       69,332       266,512       257,898   Income tax   18,388       19,153       75,765       70,124   Net earnings   50,349       50,179       190,747       187,774   Non-controlling interest share of earnings   4,444       3,639       15,874       15,624   Non-controlling interest redemption increment   6,927       14,064       29,826       37,775   Net earnings attributable to Company $ 38,978     $ 32,476     $ 145,047     $ 134,375                             Net earnings per common share                                                   Basic $ 0.85     $ 0.72     $ 3.19     $ 2.98     Diluted   0.85       0.71       3.17       2.97                             Adjusted earnings per share (3) $ 1.37     $ 1.34     $ 5.75     $ 5.00                             Weighted average common shares (thousands)                         Basic   45,717       45,194       45,527       45,019     Diluted   45,830       45,583       45,754       45,280                                     (1)   Acquisition-related items include transaction costs, and contingent acquisition consideration fair value adjustments. (2)   Other expense (income), net consists primarily of gains and losses on disposals of fixed assets. Amounts are recognized in the period in which they arise. (3)   See definition and reconciliation above. Condensed Consolidated Balance Sheets           (in thousands of US$)                           (unaudited) December 31, 2025   December 31, 2024               Assets           Cash and cash equivalents $ 154,425   $ 227,598 Restricted cash   25,665     16,088 Accounts receivable   922,106     947,517 Other current assets   401,584     368,150   Current assets   1,503,780     1,559,353 Other non-current assets   34,453     30,121 Fixed assets   289,718     253,994 Operating lease right-of-use assets   269,573     240,518 Goodwill and intangible assets   2,186,189     2,110,866   Total assets $ 4,283,713   $ 4,194,852                             Liabilities and shareholders' equity           Accounts payable and accrued liabilities $ 547,065   $ 541,509 Other current liabilities   262,323     214,575 Operating lease liabilities - current   59,113     53,115 Long-term debt - current   13,649     41,567   Current liabilities   882,150     850,766 Long-term debt - non-current   1,069,027     1,257,143 Operating lease liabilities - non-current   242,593     214,423 Other liabilities   124,762     150,542 Deferred income tax   102,991     84,895 Redeemable non-controlling interests   486,191     449,337 Shareholders' equity   1,375,999     1,187,746   Total liabilities and equity $ 4,283,713   $ 4,194,852                             Supplemental balance sheet information           Total debt $ 1,082,676   $ 1,298,710 Total debt, net of cash   928,251     1,071,112 Condensed Consolidated Statements of Cash Flows               (in thousands of US$)         Three months ended     Twelve months ended         December 31     December 31 (unaudited)     2025       2024       2025       2024                               Cash provided by (used in)                                                     Operating activities                         Net earnings   $ 50,349     $ 50,179     $ 190,747     $ 187,774   Items not affecting cash:                           Depreciation and amortization     48,766       47,828       185,209       165,269     Deferred income tax     4,885       (7,172 )     2,465       (13,986 )   Other     (4,545 )     (1,424 )     25,325       5,805           99,455       89,411       403,746       344,862                               Changes in non-cash working capital                           Accounts receivable     39,766       (22,323 )     59,594       (42,306 )   Payables and accruals     (5,676 )     15,249       (32,151 )     22,602     Other     (5,916 )     4,382       26,886       (20,129 )                             Contingent acquisition consideration paid     (12,134 )     -       (12,134 )     (19,355 ) Net cash provided by operating activities     115,495       86,719       445,941       285,674                               Investing activities                         Acquisition of businesses, net of cash acquired     (10,777 )     (53,581 )     (107,162 )     (212,246 ) Purchases of fixed assets     (31,104 )     (31,916 )     (127,705 )     (112,798 ) Other investing activities     (287 )     (1,373 )     (10,329 )     1,342   Net cash used in investing activities     (42,168 )     (86,870 )     (245,196 )     (323,702 )                             Financing activities                         Increase (decrease) in long-term debt, net     (122,961 )     3,613       (214,729 )     103,577   Purchases of non-controlling interests, net     102       1,051       (33,841 )     (24,354 ) Dividends paid to common shareholders     (12,571 )     (11,277 )     (48,886 )     (43,828 ) Distributions paid to non-controlling interests     (3,703 )     (1,555 )     (17,133 )     (9,292 ) Other financing activities     1,484       15,728       51,259       48,305   Net cash provided by (used in) financing activities     (137,649 )     7,560       (263,330 )     74,408                               Effect of exchange rate changes on cash     (1,099 )     229       (1,011 )     429                               Increase (decrease) in cash, cash equivalents and restricted cash     (65,421 )     7,638       (63,596 )     36,809                               Cash, cash equivalents and restricted cash, start of period     245,511       236,048       243,686       206,877                               Cash, cash equivalents and restricted cash, end of period   $ 180,090     $ 243,686     $ 180,090     $ 243,686                               Segmented Results (in thousands of US$)                                                     FirstService   FirstService         (unaudited) Residential   Brands   Corporate(2)   Consolidated                           Three months ended December 31                                                 2025                         Revenues $ 563,061   $ 820,315   $ -     $ 1,383,376   Adjusted EBITDA (1)   51,512     88,499     (2,390 )     137,621   Operating earnings   36,269     59,243     (9,598 )     85,914                           2024                         Revenues $ 521,256   $ 844,093   $ -     $ 1,365,349   Adjusted EBITDA   46,012     100,697     (8,853 )     137,856   Operating earnings   34,382     69,909     (14,676 )     89,615                                                     FirstService   FirstService             Residential   Brands   Corporate   Consolidated                           Year ended December 31                                                 2025                         Revenues $ 2,286,597   $ 3,210,903   $ -     $ 5,497,500   Adjusted EBITDA   225,001     353,568     (15,774 )     562,795   Operating earnings   170,421     213,971     (46,314 )     338,078                           2024                         Revenues $ 2,134,469   $ 3,082,425   $ -     $ 5,216,894   Adjusted EBITDA   199,288     339,489     (25,087 )     513,690   Operating earnings   159,206     230,080     (51,774 )     337,512                                                       (1) See definition and reconciliation on pages 5 and 6.               (2) See definition on page 6.             COMPANY CONTACTS: D. Scott Patterson Chief Executive Officer          Jeremy Rakusin Chief Financial Officer (416) 960-9566