BrightView beats revenue on strong snow removal, reaffirms 2026 guidance
Commercial landscaper posts $614.7M revenue, misses EPS as core segment declines
BrightView Holdings beat analyst expectations with quarterly revenue of $614.7 million, exceeding the consensus estimate of $588.6 million by 4.4%, as an unusually heavy winter season drove a 111% year-over-year surge in snow removal services. However, the commercial landscaping specialist fell short on earnings per share, reporting a loss of $0.01 compared with expectations for a profit of $0.0131.
The performance reflects the weather-dependent nature of BrightView's business model, where snow removal revenue can swing dramatically based on seasonal conditions. The strong winter results partially offset a 2.4% decline in the company's core landscape maintenance operations, which remain its primary revenue driver. Despite the mixed quarterly results, management reaffirmed its fiscal year 2026 guidance, projecting revenue of $2.670 billion to $2.730 billion and adjusted EBITDA of $363 million to $377 million.
Free cash flow turned negative to $15.4 million, a reversal from positive $4.4 million in the prior-year period, even as the company repurchased 1.1 million shares during the quarter. The cash flow pressure highlights the working capital demands of BrightView's operations, particularly during seasonal transitions when the company must maintain equipment and labor resources across diverse geographic markets.
BrightView, which trades on the NYSE under ticker BV, currently commands a market capitalization of approximately $1.27 billion with shares trading at $13.65. The company's valuation metrics present a stark contrast: trailing price-to-earnings of 102.77 versus a forward multiple of 10.11, suggesting analysts anticipate substantial earnings improvement in the coming quarters. The average analyst target price stands at $16.17, with 6 analysts rating the stock a buy and 1 maintaining a strong buy recommendation.
The company operates through two primary segments: Maintenance Services and Development Services. Under CEO Dale Asplund's leadership, BrightView has been executing its "One BrightView" transformation strategy, focusing on cost management initiatives including reduced vehicle and equipment costs and optimized personnel expenses. The strategy aims to drive sustained, long-term profitable growth while delivering best-in-class service to a diverse client base spanning corporate, government, and residential sectors.
The mixed earnings report illustrates the operational challenges facing BrightView as it navigates seasonal variability while attempting to execute strategic improvements. The reaffirmed full-year guidance suggests management remains confident in the company's ability to achieve its financial targets despite the core landscape segment's current weakness. Investors will be watching whether the company can translate the One BrightView cost initiatives into more consistent margin expansion and cash flow generation in the coming quarters.
BrightView's performance also reflects broader trends in the commercial services sector, where companies with significant seasonal components face increased pressure to demonstrate operational resilience and strategic execution. The maintained 2026 guidance indicates BrightView expects normalized seasonal patterns and continued improvement from its restructuring efforts to drive results through the remainder of the fiscal year.