FirstService Reports Second Quarter 2025 Results

Executive Summary

• FirstService Corporation reported strong financial results for the second quarter and first half of 2025, with consolidated revenues increasing 9% year-over-year to $1.42 billion for the quarter and $2.67 billion for the six-month period.
• Adjusted EBITDA grew significantly, rising 19% to $157.1 million in Q2 and 21% to $260.4 million for the first half of the year, driven by organic growth and operational efficiencies.
• The company delivered robust profitability metrics, with Adjusted EPS reaching $1.71 for the quarter (up 26% YoY) and $2.63 for the six-month period (up 30% YoY), while GAAP diluted EPS also saw double-digit growth.

Key Details

• Consolidated Financials (Q2 2025):
  • Revenues: $1,415.7 million (up 9% from $1,297.5 million in Q2 2024).
  • Adjusted EBITDA: $157.1 million (up 19% from $132.5 million).
  • Adjusted EPS: $1.71 (up 26% from $1.36).
  • GAAP Operating Earnings: $97.3 million (up from $83.9 million).
  • GAAP Diluted EPS: $1.01 (up from $0.78).
• Consolidated Financials (Six Months Ended June 30, 2025):
  • Revenues: $2,666.6 million (up 9% from $2,455.5 million).
  • Adjusted EBITDA: $260.4 million (up 21% from $215.9 million).
  • Adjusted EPS: $2.63 (up 30% from $2.03).
  • GAAP Operating Earnings: $136.5 million (up from $122.0 million).
  • GAAP Diluted EPS: $1.07 (up from $0.92).
• Segment Performance (Q2 2025):
  • FirstService Residential: Revenues of $593.0 million (up 6%, including 3% organic growth); Adjusted EBITDA of $65.5 million (up 11%); Operating Earnings of $51.6 million.
  • FirstService Brands: Revenues of $822.7 million (up 11%, with 1% organic growth); Adjusted EBITDA of $95.2 million (up 23%); Operating Earnings of $56.5 million.
  • Corporate: Adjusted EBITDA loss of $3.6 million (vs $4.2 million loss in prior year).
• Cash Flow and Balance Sheet:
  • Net cash provided by operating activities for Q2 was $162.8 million (up from $130.7 million).
  • Net cash used in investing activities was $78.3 million, primarily due to acquisitions of businesses ($43.3 million) and purchases of fixed assets ($33.4 million).
  • Net cash used in financing activities was $99.3 million, including $12.5 million in dividends paid to common shareholders and $14.9 million in purchases of non-controlling interests.
  • Total debt stood at $1,242.3 million as of June 30, 2025, down from $1,298.7 million at year-end 2024.
  • Cash and cash equivalents were $201.8 million.
• Dividends:
  • Dividends paid to common shareholders for the quarter were $12.5 million.

Notable Quotes

• “We are pleased to report strong financial results which largely mirrored the year-over-year growth profile we saw in the first quarter,” said Scott Patterson, Chief Executive Officer of FirstService. “Despite continued macroeconomic uncertainty, the resilient top-line performance and strong profitability across our operations during the first half of the year put us well on track to deliver on our goals for 2025,” he concluded.