FirstService (FSV) investor relations material

Executive summary

• Q2 revenues reached $1.45 billion, up 2% year-over-year, with half from organic growth, despite macroeconomic headwinds.

• Adjusted EBITDA for Q2 was $161.7 million, up 3% year-over-year, with a consolidated margin of 11.2%.

• Adjusted EPS for Q2 was $1.75, a 2% increase year-over-year, matching top-line growth.

• Year-to-date revenues reached $2.77 billion, up 4%, and adjusted EBITDA was $267 million, up 3%.

• Profitability aligned with expectations despite macroeconomic headwinds that tempered organic growth.

Financial highlights

• Q2 revenues: $1.45 billion (+2% YoY); adjusted EBITDA: $161.7 million (+3% YoY); adjusted EPS: $1.75 (+2% YoY).

• First half revenues: $2.77 billion (+4% YoY); adjusted EBITDA: $267 million (+3% YoY); margin: 9.7% (down 10 bps YoY).

• Q2 net earnings were $60.9 million, up from $55.4 million year-over-year.

• Operating cash flow for Q2: $112 million; after working capital: $130 million; YTD: ~$220 million.

• CapEx YTD: $60 million; annual CapEx expected at $130 million, below initial $140 million target.

Outlook and guidance

• Top-line growth in the second half of the year is expected to be similar or modestly better than year-to-date performance, reflecting ongoing macroeconomic challenges.

• Residential division expected to deliver mid-single-digit top-line growth and modest margin improvement for the rest of the year.

• Brands division projected to achieve mid-single-digit revenue growth in H2, skewed to Q4, influenced by restoration backlog conversion and potential weather events.

• Restoration brands forecast ~5% YoY growth in H2, with stronger momentum into 2027.

• Roofing operations expected to remain down slightly in Q3, with organic growth off mid-single digits.