BrightView Holdings, Inc. Q4 FY2025 earnings call

• Prioritized frontline employees by investing in service levels and fleet, leading to improved customer retention (83%, a 400 basis point improvement since 2023).
• Expanded sales force by hiring about 100 new sellers in 2025, with a commitment to add approximately 50% more to the sales force by 2030.
• Invested over $300 million in fleet refresh, reducing the average age of core production vehicles and mowers, which improved employee morale and customer satisfaction.
• Strengthened balance sheet with no long-term debt maturities until 2029 and increased share repurchase authorization from $100 million to $150 million.
• Streamlined operating structure reduced SG&A expense as a percentage of revenue by 180 basis points since 2023, using savings to reinvest in employees, client satisfaction, and the sales organization.

In fiscal 2025, BrightView delivered record adjusted EBITDA of $352 million with a margin of 13.2%, representing a 260 basis point improvement from fiscal 2023. For fiscal 2026, revenue is expected to be in the range of $2.67 billion to $2.73 billion. Maintenance Land is projected to increase by 1% to 2% as the sales force ramps up, customer retention improves, ancillary offerings expand, and development to maintenance conversions increase. Development revenue is expected to be flat to positive 2% due to a healthy backlog and cold starts, partially offset by project delays early in the fiscal year. Snow revenue is anticipated to be in the range of $190 million to $220 million, reflecting a midpoint at the 5-year average and a shift to more fixed fee contracts. Adjusted EBITDA is expected to be in the range of $363 million to $377 million with margins expanding 40 to 60 basis points, and adjusted free cash flow in the range of $100 million to $115 million.

• Revenue for fiscal 2026 is expected to be in the range of $2.67 billion to $2.73 billion.
• Adjusted EBITDA is projected to be between $363 million and $377 million, with margins increasing 40 to 60 basis points.
• Adjusted free cash flow is anticipated to be in the range of $100 million to $115 million.
• Maintenance Land is forecasted to grow 1% to 2% due to sales force growth, improved customer retention, ancillary expansion, and development to maintenance conversions.
• Development revenue is expected to be flat to positive 2% with a healthy backlog and cold starts, offsetting some project delays.
• Snow revenue is expected to be $190 million to $220 million, reflecting a shift to more fixed fee contracts.

• Macro-related headwinds impacted land maintenance in Q3 2025.
• Labor market challenges and immigration policy impacts, though BrightView feels well-positioned to leverage this for share gains.
• Project delays in the development business, though expected to improve in 2026.

Q: Coming out of the third quarter, how did land maintenance performance trend in the fourth quarter and setup for the first quarter of 2026?

A: Dale Asplund and Brett Urban noted sequential improvement in Q4, optimism for ancillary spend return, and some macro headwinds, but confidence in growth in the back half of 2026.

Q: How does the new tax bill influence the rate of fleet investment?

A: Brett Urban stated the company benefited from the tax bill, accelerated fleet refresh, and plans to continue investing in trailers and other equipment in the coming years.

Q: What is the progress on employee retention and its impact on customer retention?

A: Dale Asplund mentioned significant progress in employee retention (over 3,000 basis points improvement since 2022) and that employee retention is critical to driving customer retention, with more progress expected.