BLUE BELL, PA — BrightView Holdings Inc. (NYSE: BV) posted an 81% decline in fiscal third-quarter net income despite higher revenue, as a self-insurance adjustment, elevated fuel costs and continued sales-force investment pressured profitability at the commercial landscaping company.
Net income fell to $6.1 million for the three months ended June 30 from $32.3 million a year earlier. Net income margin contracted to 0.9% from 4.6%, while net service revenue increased 1.3% to $717.6 million from $708.3 million.
The Blue Bell, Pennsylvania-based company reported a $2.8 million loss available to common shareholders, compared with $14.9 million of income a year earlier. Basic loss per share was 3 cents, versus earnings of 16 cents per share in the prior-year quarter.
Adjusted net income declined 44% to $25.4 million, while adjusted earnings per share fell to 17 cents from 30 cents. Adjusted EBITDA dropped 15% to $96.1 million, with the corresponding margin narrowing to 13.4% from 16%.
BrightView attributed pressure on fiscal 2026 adjusted EBITDA in part to a $16 million non-routine self-insurance adjustment and a $4 million fuel headwind.
The company’s core landscape maintenance business provided the quarter’s principal source of growth. Landscape maintenance revenue rose 2.3% to $514.5 million, marking a second consecutive quarter of growth, as contract revenue increased along with ancillary services.
Maintenance Services revenue overall increased 1.8% to $517.9 million, but adjusted EBITDA in the segment dropped 22.9% to $63 million. Its adjusted EBITDA margin fell to 12.2% from 16.1%, reflecting the insurance adjustment, higher fuel prices and sales-force investments.
Development Services revenue was essentially unchanged at $201.9 million, up 0.3% from a year earlier. Adjusted EBITDA in that business increased 5.1% to $33.1 million, while its margin expanded to 16.4% from 15.6%, driven primarily by the timing and mix of projects.
“We delivered our second consecutive quarter of Land Maintenance revenue growth,” Chief Executive Officer Dale Asplund stated. He characterized the insurance adjustment and higher fuel prices as “non-routine headwinds” that the company does not expect to alter its longer-term trajectory.
For the first nine months of fiscal 2026, BrightView generated $2.04 billion in revenue, up 3.3% from $1.97 billion a year earlier. Snow-removal revenue increased $82.7 million and commercial landscaping revenue rose $15.3 million, partially offset by a $34.3 million decline in Development Services revenue.
Those revenue gains did not translate into higher bottom-line earnings. BrightView recorded a nine-month net loss of $7.4 million, compared with net income of $28.3 million a year earlier, while adjusted EBITDA declined 4.3% to $228.6 million.
Cash generation also weakened. Net cash provided by operating activities fell 38% to $128.3 million during the first nine months, while adjusted free cash flow swung to a $37.2 million outflow from a $25.8 million inflow in the comparable 2025 period. The company attributed the operating cash decline to changes in unbilled and deferred revenue and accounts receivable.
Capital expenditures declined to $178.8 million from $195.8 million. After $13.3 million of proceeds from property and equipment sales, net capital expenditures totaled $165.5 million.
BrightView’s leverage increased during the fiscal year. Total net financial debt stood at $976.1 million on June 30, up $173.2 million from $802.9 million at the end of September, while its net financial debt-to-adjusted EBITDA ratio increased to 2.9 times from 2.3 times. Cash and equivalents declined to $14.4 million from $74.5 million over the same period.
The company also extended financing maturities, including its senior secured term loans from April 2029 to June 2033 and its receivables financing facility from June 2027 to June 2029.
BrightView updated its fiscal 2026 outlook to total revenue of $2.75 billion to $2.78 billion, with land maintenance revenue expected to increase about 2% to 3%. Snow-removal revenue is projected at roughly $290 million, while Development Services revenue is expected to decline about 3% to 5%.
The company forecasts adjusted EBITDA of $340 million to $345 million and adjusted free cash flow of $70 million to $80 million for the fiscal year. Those measures are non-GAAP, and BrightView stated it is not providing quantitative reconciliations to their corresponding GAAP measures because some components cannot be reliably predicted.
BrightView provides commercial landscaping and snow and ice removal services across the U.S., serving properties including corporate offices, residential associations, health-care and educational facilities, retail centers, municipalities, golf courses and sports venues.
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