FirstService (FSV) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 4, 2026 astatine 11:09 AM CST 29 min read

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Wednesday, February 4, 2026 astatine 11 a.m. ET

• Chief Executive Officer — D. Scott Patterson

• Chief Financial Officer — Jeremy Rakusin

• Operator

D. Scott Patterson: Good morning, everyone, and invited to our 4th fourth and year-end league call. Thank you for joining america today. Jeremy Rakusin is connected the enactment with me, and we'll travel my overview comments with a much elaborate reappraisal of our fiscal results for the 4th and the afloat year. We're pleased with however we closed retired the twelvemonth successful an situation that continues to situation america crossed respective of our businesses. Our 4th fourth results successful aggregate were humble than our anticipation that we communicated astatine the extremity of Q3, with revenues up 1%, EBITDA level with the twelvemonth ago, and net per stock up 2% to $1.37.

For the year, we reported coagulated results that we're arrogant of successful the look of pugnacious macro headwinds. Revenues finished 5% up implicit the anterior year, Consolidated EBITDA was up 10%, treble the gross growth, reflecting a 40 ground constituent betterment successful margins. And net per stock reflected further leverage, with year-over-year maturation astatine 15%. Looking present astatine the abstracted divisions for the quarter. Revenues astatine FirstService Residential were up 8% successful aggregate with integrated maturation astatine 5% matching our expectations and the results for Q3. The maturation was broad-based crossed North America mostly reflects nett declaration wins versus losses. Looking forward, we expect integrated maturation to proceed successful the mid-single-digit range.

There could beryllium humble question from 4th to quarter, with seasonality and fluctuation successful ancillary services, but connected mean for 2026, we're expecting mid-single-digit integrated maturation akin to our full-year effect for 2024 and 2025. We volition look integrated maturation unit aboriginal successful the twelvemonth relating to declines successful definite amenity absorption services that we supply to immoderate of our managed communities but chiefly to multifamily rental and different commercialized customers. These services see excavation operation and renovation, which is being impacted by the aforesaid economical headwinds we're seeing successful roofing and location services. It besides includes contracts to supply custodian and beforehand table concierge labor. Several interaction contracts chiefly with multifamily flat owners were not renewed astatine year-end.

Some voluntary and a fewer involuntary each chiefly owed to pricing. These cancellations volition interaction our revenue, but person small interaction connected profitability. We expect to beryllium astatine the bottommost extremity of our mid-single-digit scope astatine 3% oregon 4% for Q1. This is unrelated to our halfway assemblage absorption concern which we judge volition transportation the part to mid-single-digit integrated maturation for the year. Moving connected to FirstService Brands. Revenues for the 4th were down 3% successful aggregate, and 7% organically, with integrated maturation astatine Century Fire much than offset by integrated declines with our restoration brands and our roofing platform.