BrightView (BV) Q3 2026 earnings summary

Executive summary

• Net service revenues for Q3 rose 1.3% year-over-year to $717.6 million, with land maintenance revenue up 2.3% and the fifth consecutive quarter of contract book growth.

• Adjusted EBITDA for Q3 was $96.1 million, down 15.1% year-over-year, impacted by $16 million in self-insurance adjustments and $4 million in elevated fuel costs.

• Net income for the quarter was $6.1 million, down from $32.3 million in the prior year, with diluted EPS at $(0.03).

• Customer retention improved by 250 bps year-over-year, reaching approximately 84.6%, and frontline turnover declined by 7 percentage points.

• Transformation and employee-focused strategies are driving improved retention and contract growth.

Financial highlights

• Total Q3 revenue was $717.6 million, up 1.3% year-over-year, with land maintenance revenue up 2.3% to $514.5 million and development services revenue flat at $201.9 million.

• Adjusted EBITDA margin for Q3 was 13.4%, down from 16.0% year-over-year.

• Gross profit for the quarter was $151.9 million, with gross margin at 21.2%, down from 24.1% year-over-year.

• Adjusted net income for Q3 was $25.4 million, with adjusted EPS of $0.17.

• Adjusted Free Cash Flow for the nine months was an outflow of $37.2 million, compared to an inflow of $25.8 million in the prior year.

Outlook and guidance

• Fiscal 2026 revenue guidance is $2.75–$2.78 billion, representing 2–3% growth, with land revenue expected to grow 2–3%.

• Adjusted EBITDA guidance for FY2026 is $290–$345 million, reflecting fuel and self-insurance impacts; adjusted free cash flow projected at $70–$80 million.

• Q4 land growth expected between 3%–6%, depending on ancillary revenue.

• Management expects sufficient liquidity for the next twelve months, supported by cash flow from operations and available credit facilities.

• Long-term targets include 3%–6% land growth and over 40% free cash flow conversion by 2030.