FirstService (FSV) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenues rose 1% year-over-year to $1.38 billion, with EBITDA flat and EPS up 2% to $1.37.

• Full-year 2025 revenues increased 5% to $5.5 billion, adjusted EBITDA up 10% to $563 million, and adjusted EPS up 15% to $5.75.

• Performance exceeded expectations despite macroeconomic headwinds, with margin improvements and disciplined capital allocation.

• Management expressed confidence in organic growth returning to historical levels as market conditions normalize.

Financial highlights

• Q4 consolidated revenues were $1.38 billion, adjusted EBITDA $138 million (9.9% margin), and adjusted EPS $1.37.

• Full-year revenues reached $5.5 billion, adjusted EBITDA $563 million (10.2% margin), and operating cash flow $445.9 million, up from $285.7 million in 2024.

• Annual capital expenditures totaled $128 million; acquisition spending was $107 million.

• Dividend increased 11% to $1.22 per share annually.

• Total debt at year-end was $1.08 billion, down from $1.30 billion a year earlier.

Outlook and guidance

• Q1 2026 revenue growth expected in the mid-single digit range; full-year revenue growth to accelerate to high single digits.

• EBITDA for Q1 expected to be flat year-over-year; full-year EBITDA growth anticipated in the high single digits.

• Margins expected to remain flat across both divisions for 2026.

• Management anticipates organic growth to return to long-term targets as market conditions normalize.

• Forward-looking statements caution that actual results may differ due to economic and regulatory risks.