Delivers Strong Consolidated Annual Earnings
Operating highlights:
Three months ended Year ended
December 31 December 31
---------------------- ------------------
2025 2024 2025 2024
------------ -------- -------- --------
Revenues (millions) $ 1,383.4 $1,365.3 $5,497.5 $5,216.9
Adjusted EBITDA
(millions) (note
1) 137.6 137.9 562.8 513.7
Adjusted EPS (note
2) 1.37 1.34 5.75 5.00
GAAP Operating
Earnings 85.9 89.6 338.1 337.5
GAAP EPS 0.85 0.71 3.17 2.97
TORONTO, Feb. 04, 2026 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today announced fourth quarter and full year results for the year ended December 31, 2025. All amounts are in US dollars.
Consolidated revenues for the fourth quarter were $1.38 billion, a 1% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) was $137.6 million, in-line with the fourth quarter of 2024, and Adjusted EPS (note 2) was $1.37, a 2% increase over the prior year quarter. Operating Earnings for the quarter were $85.9 million, relative to $89.6 million in the prior year period. Diluted EPS was $0.85 per share in the quarter, compared to $0.71 for the same quarter a year ago.
For the year ended December 31, 2025, consolidated revenues were $5.50 billion, a 5% increase relative to the prior year, driven by the contribution of recent tuck-under acquisitions. Adjusted EBITDA was $562.8 million, up 10%, and Adjusted EPS was $5.75, a 15% increase versus the prior year. Operating Earnings were $338.1 million, versus $337.5 million in the prior year. Diluted earnings per share was $3.17, compared to $2.97 in the prior year.
"Our fourth quarter results were largely in-line with expectations provided on our prior quarterly call and we are pleased to have capped off a year of solid growth and strong earnings performance," said Scott Patterson, Chief Executive Officer of FirstService. "I am proud of how our operating leaders and teams executed with discipline and resilience in challenging environments throughout 2025. Looking forward, as market conditions normalize, we are confident that our organic growth will return to levels approaching our long-term track record and future targets," he concluded.
About FirstService Corporation
FirstService Corporation is a North American leader in the property services sector serving its customers through two industry leading platforms: FirstService Residential - North America's largest manager of residential communities; and FirstService Brands - one of North America's largest providers of essential property services delivered through individually branded company-owned operations and franchise systems.
FirstService generates approximately US$5.5 billion in annual revenues and has more than 30,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The Common Shares of FirstService trade on the NASDAQ under the symbol "FSV" and on the Toronto Stock Exchange under the symbol "FSV", and are included in the S&P/TSX 60 Index. More information is available at www. rstservice.com.
Segmented Fourth Quarter Results
FirstService Residential generated revenues of $563.1 million for the fourth quarter, up 8% relative to the prior year quarter, including 5% organic growth (see definition on page 6). The top-line performance was driven by contract wins and was balanced across most markets. Adjusted EBITDA was $51.5 million, an increase of 12% compared to $46.0 million reported in the prior year period. Operating Earnings were $36.3 million, versus $34.4 million for the fourth quarter of last year. Operating margins for the division were relatively comparable on a year-over-year basis.
FirstService Brands recorded revenues of $820.3 million, down 3% versus the prior year period. On an organic basis, revenues decreased 7% primarily due to reduced weather events and large-loss claims versus the prior year quarter at our restoration brands, as well as tempered activity levels in our roofing operations. Adjusted EBITDA for the quarter was $88.5 million, compared to $100.7 million in the prior year quarter. Operating Earnings were $59.2 million, versus $69.9 million in the prior year quarter. The decrease in division operating margins resulted from the negative operating leverage associated with the top-line organic declines in our restoration and roofing platforms.
Corporate costs, as presented in Adjusted EBITDA, were $2.4 million in the fourth quarter, relative to $8.9 million in the prior year period. Corporate costs for the quarter were $9.6 million, relative to $14.7 million in the prior year period. The lower corporate costs were primarily due to non-cash foreign exchange adjustments.
Segmented Full Year Results
FirstService Residential reported revenues of $2.29 billion, up 7% relative to 2024, including 4% organic growth. Adjusted EBITDA was $225.0 million, up 13% versus the prior year. Operating Earnings were $170.4 million, compared to $159.2 million in the prior year. The Adjusted EBITDA margin increase was driven by cost efficiencies in our property management operations, with the Operating Earnings margin remaining in-line due to increased depreciation and amortization compared to the prior year.
FirstService Brands revenues were $3.21 billion, a 4% increase versus the prior year. Revenues declined 3% on an organic basis, driven by decreased activity levels at our restoration and roofing operations, and partially offset by strong organic growth at Century Fire Protection. Adjusted EBITDA for the year was $353.6 million, up 4% relative to the prior year. Operating Earnings were $214.0 million, versus $230.1 million a year ago. The division Adjusted EBITDA margin was in-line with the prior year period, while the year-over-year Operating Earnings margin comparison was down due to the positive impact from acquisition-related contingent earn-out adjustments in the prior year period.
Corporate costs, as presented in Adjusted EBITDA, were $15.8 million for the full year, relative to $25.1 million in the prior year. Corporate costs were $46.3 million, relative to $51.8 million in 2024. The lower corporate costs were primarily due to non-cash foreign exchange adjustments.
Conference Call & Presentation
FirstService will be holding a conference call on Wednesday, February 4, 2026 at 11:00 a.m. Eastern Time to discuss the results for the fourth quarter and full year. This call is being webcast live at the Company's website at www.firstservice.com. Participants may register for the call here https://register-conf.media-server.com/register/BI8ca41330dc1e42ddb03f81b1f7b5bca1 to receive the dial-in number and their unique PIN. To join the webcast in listen only mode, use this link: https://edge.media-server.com/mmc/p/87nnofzc. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).
Forward-looking Statements
This press release includes or may include forward-looking statements. Much of this information can be identified by words such as "expect to," "expected," "will," "estimated" or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for FirstService's services and the cost of providing services; (ii) the ability of FirstService to implement its business strategy, including FirstService's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in FirstService's annual information form for the year ended December 31, 2024 under the heading "Risk factors" (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings (which factors are adopted herein). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.
Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca.
Notes
1. Reconciliation of net earnings to adjusted EBITDA:
Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) stock-based compensation expense. The Company uses Adjusted EBITDA to evaluate its own operating performance and its ability to service debt, as well as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company's overall enterprise valuation and to evaluate acquisition targets. Adjusted EBITDA is presented as a supplemental measure because the Company believes such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of its service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below.
Three months ended Twelve months ended
(in thousands of
US$) December 31 December 31
-------------------- ----------------------
2025 2024 2025 2024
-------- -------- -------- --------
Net earnings $ 50,349 $ 50,179 $190,747 $187,774
Income tax 18,388 19,153 75,765 70,124
Other expense
(income), net 84 (863) (2,136) (3,239)
Interest expense,
net 17,093 21,146 73,702 82,853
------- ------- ------- -------
Operating earnings 85,914 89,615 338,078 337,512
Depreciation and
amortization 48,766 47,828 185,209 165,269
Acquisition-related
items (3,674) (5,272) 12,121 (14,402)
Stock-based
compensation
expense 6,615 5,685 27,387 25,311
------- ------- ------- -------
Adjusted EBITDA $137,621 $137,856 $562,795 $513,690
------- ------- ------- -------
A reconciliation of segment operating earnings to
segment Adjusted EBITDA appears below.
(in thousands of
US$)
Three months ended
December 31, 2025 FirstService FirstService
Residential Brands Corporate(1)
Operating earnings
(loss) $ 36,269 $ 59,243 $ (9,598)
Depreciation and
amortization 12,191 36,553 22
Acquisition-related
items 3,052 (7,297) 571
Stock-based
compensation
expense - - 6,615
Adjusted EBITDA $ 51,512 $ 88,499 $ (2,390)
------------ ---------- -----------
Three months ended
December 31, 2024 FirstService FirstService
Residential Brands Corporate(1)
Operating earnings
(loss) $ 34,382 $ 69,909 $ (14,676)
Depreciation and
amortization 10,439 37,366 23
Acquisition-related
items 1,191 (6,578) 115
Stock-based
compensation
expense - - 5,685
Adjusted EBITDA $ 46,012 $ 100,697 $ (8,853)
------------ ---------- -----------
Year ended December
31, 2025 FirstService FirstService
Residential Brands Corporate(1)
Operating earnings
(loss) $ 170,421 $ 213,971 $ (46,314)
Depreciation and
amortization 46,780 138,339 90
Acquisition-related
items 7,800 1,258 3,063
Stock-based
compensation
expense - - 27,387
Adjusted EBITDA $ 225,001 $ 353,568 $ (15,774)
------------ ---------- -----------
Year ended December
31, 2024 FirstService FirstService
Residential Brands Corporate(1)
Operating earnings
(loss) $ 159,206 $ 230,080 $ (51,774)
Depreciation and
amortization 37,506 127,672 91
Acquisition-related
items 2,576 (18,263) 1,285
Stock-based
compensation
expense - - 25,311
Adjusted EBITDA $ 199,288 $ 339,489 $ (25,087)
------------ ---------- -----------
Segment Adjusted EBITDA margin is defined as segment
Adjusted EBITDA divided by segment revenues.
Organic growth is defined as revenue growth adjusted
to exclude the revenue attributable to acquired businesses
for a period of twelve months following their acquisition.
(1) Corporate is not an operating segment, but rather
represent corporate overhead expenses not directly
attributable to reportable segments and are therefore
unallocated within segment operating earnings (loss)
and Segment Adjusted EBITDA.
2. Reconciliation of net earnings and net earnings (loss) per common share to adjusted net earnings and adjusted net earnings per share:
Adjusted EPS is defined as diluted net earnings per share, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization of intangible assets recognized in connection with acquisitions; and (iv) stock-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per common share, as determined in accordance with GAAP. The Company's method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of diluted net earnings per common share to Adjusted EPS appears below.
Three months ended Twelve months ended
(in thousands of
US$) December 31 December 31
------------------ ----------------------
2025 2024 2025 2024
------- ------- -------- --------
Net earnings $50,349 $50,179 $190,747 $187,774
Non-controlling
interest share of
earnings (4,444) (3,639) (15,874) (15,624)
Acquisition-related
items (3,674) (5,272) 12,121 (14,402)
Amortization of
intangible assets 20,187 22,331 77,238 72,396
Stock-based
compensation
expense 6,615 5,685 27,387 25,311
Income tax on
adjustments (6,282) (8,125) (26,938) (28,335)
Non-controlling
interest on
adjustments (185) (206) (1,371) (693)
------ ------ ------- -------
Adjusted net
earnings $62,566 $60,953 $263,310 $226,427
------ ------ ------- -------
Three months ended Twelve months ended
(in US$) December 31 December 31
------------------ ----------------------
2025 2024 2025 2024
------- ------- -------- --------
Diluted net earnings
per share $ 0.85 $ 0.71 $ 3.17 $ 2.97
Non-controlling
interest redemption
increment 0.15 0.31 0.65 0.83
Acquisition-related
items (0.07) (0.11) 0.22 (0.31)
Amortization of
intangible assets,
net of tax 0.31 0.34 1.16 1.11
Stock-based
compensation
expense, net of
tax 0.13 0.09 0.55 0.40
------ ------ ------- -------
Adjusted earnings
per share $ 1.37 $ 1.34 $ 5.75 $ 5.00
------ ------ ------- -------
FIRSTSERVICE CORPORATION
Operating Results
---------------------------------------------------------------------------
(in thousands of US$, except per share amounts)
Three months Twelve months
ended December 31 ended December 31
----------------------- -------------------------
(unaudited) 2025 2024 2025 2024
--------- --------- --------- ---------
Revenues $1,383,376 $1,365,349 $5,497,500 $5,216,894
Cost of revenues 914,092 911,361 3,651,314 3,498,974
Selling, general and
administrative
expenses 338,278 321,817 1,310,778 1,229,541
Depreciation 28,579 25,497 107,971 92,873
Amortization of
intangible assets 20,187 22,331 77,238 72,396
Acquisition-related
items (1) (3,674) (5,272) 12,121 (14,402)
--------- --------- --------- ---------
Operating earnings 85,914 89,615 338,078 337,512
Interest expense, net 17,093 21,146 73,702 82,853
Other expense
(income), net (2) 84 (863) (2,136) (3,239)
--------- --------- --------- ---------
Earnings before
income tax 68,737 69,332 266,512 257,898
Income tax 18,388 19,153 75,765 70,124
--------- --------- --------- ---------
Net earnings 50,349 50,179 190,747 187,774
Non-controlling
interest share of
earnings 4,444 3,639 15,874 15,624
Non-controlling
interest redemption
increment 6,927 14,064 29,826 37,775
--------- --------- --------- ---------
Net earnings
attributable to
Company $ 38,978 $ 32,476 $ 145,047 $ 134,375
--------- --------- --------- ---------
Net earnings per
common share
Basic $ 0.85 $ 0.72 $ 3.19 $ 2.98
Diluted 0.85 0.71 3.17 2.97
Adjusted earnings per
share (3) $ 1.37 $ 1.34 $ 5.75 $ 5.00
--------- --------- --------- ---------
Weighted average
common shares
(thousands)
Basic 45,717 45,194 45,527 45,019
Diluted 45,830 45,583 45,754 45,280
(1) Acquisition-related items include transaction costs, and contingent acquisition consideration fair value adjustments.
(2) Other expense (income), net consists primarily of gains and losses on disposals of fixed assets. Amounts are recognized in the period in which they arise.
(3) See definition and reconciliation above.
Condensed Consolidated Balance
Sheets
--------------------------------
(in thousands of US$)
(unaudited) December 31, 2025 December 31, 2024
------------------- -------------------
Assets
Cash and cash equivalents $ 154,425 $ 227,598
Restricted cash 25,665 16,088
Accounts receivable 922,106 947,517
Other current assets 401,584 368,150
Current assets 1,503,780 1,559,353
Other non-current assets 34,453 30,121
Fixed assets 289,718 253,994
Operating lease right-of-use
assets 269,573 240,518
Goodwill and intangible assets 2,186,189 2,110,866
--------------- ---------------
Total assets $ 4,283,713 $ 4,194,852
=============== ===============
Liabilities and shareholders'
equity
Accounts payable and accrued
liabilities $ 547,065 $ 541,509
Other current liabilities 262,323 214,575
Operating lease liabilities -
current 59,113 53,115
Long-term debt - current 13,649 41,567
--------------- ---------------
Current liabilities 882,150 850,766
Long-term debt - non-current 1,069,027 1,257,143
Operating lease liabilities -
non-current 242,593 214,423
Other liabilities 124,762 150,542
Deferred income tax 102,991 84,895
Redeemable non-controlling
interests 486,191 449,337
Shareholders' equity 1,375,999 1,187,746
--------------- ---------------
Total liabilities and equity $ 4,283,713 $ 4,194,852
=============== ===============
Supplemental balance sheet
information
Total debt $ 1,082,676 $ 1,298,710
Total debt, net of cash 928,251 1,071,112
Condensed Consolidated
Statements of Cash Flows
-------------------------------
(in thousands of US$)
Three months ended Twelve months ended
December 31 December 31
-------------------- -----------------------
(unaudited) 2025 2024 2025 2024
-------- ------- -------- --------
Cash provided by
(used in)
Operating
activities
Net earnings $ 50,349 $ 50,179 $ 190,747 $ 187,774
Items not
affecting cash:
Depreciation and
amortization 48,766 47,828 185,209 165,269
Deferred income
tax 4,885 (7,172) 2,465 (13,986)
Other (4,545) (1,424) 25,325 5,805
-------- ------- -------- --------
99,455 89,411 403,746 344,862
Changes in
non-cash working
capital
Accounts
receivable 39,766 (22,323) 59,594 (42,306)
Payables and
accruals (5,676) 15,249 (32,151) 22,602
Other (5,916) 4,382 26,886 (20,129)
Contingent
acquisition
consideration
paid (12,134) - (12,134) (19,355)
-------- ------- -------- --------
Net cash provided
by operating
activities 115,495 86,719 445,941 285,674
-------- ------- -------- --------
Investing
activities
Acquisition of
businesses, net
of cash
acquired (10,777) (53,581) (107,162) (212,246)
Purchases of
fixed assets (31,104) (31,916) (127,705) (112,798)
Other investing
activities (287) (1,373) (10,329) 1,342
Net cash used in
investing
activities (42,168) (86,870) (245,196) (323,702)
-------- ------- -------- --------
Financing
activities
Increase
(decrease) in
long-term debt,
net (122,961) 3,613 (214,729) 103,577
Purchases of
non-controlling
interests, net 102 1,051 (33,841) (24,354)
Dividends paid to
common
shareholders (12,571) (11,277) (48,886) (43,828)
Distributions
paid to
non-controlling
interests (3,703) (1,555) (17,133) (9,292)
Other financing
activities 1,484 15,728 51,259 48,305
-------- ------- -------- --------
Net cash provided
by (used in)
financing
activities (137,649) 7,560 (263,330) 74,408
-------- ------- -------- --------
Effect of
exchange rate
changes on cash (1,099) 229 (1,011) 429
-------- ------- -------- --------
Increase
(decrease) in
cash, cash
equivalents and
restricted cash (65,421) 7,638 (63,596) 36,809
Cash, cash
equivalents and
restricted cash,
start of period 245,511 236,048 243,686 206,877
-------- ------- -------- --------
Cash, cash
equivalents and
restricted cash,
end of period $ 180,090 $243,686 $ 180,090 $ 243,686
-------- ------- -------- --------
Segmented Results
-----------------------------------------------------------------------------
(in thousands of US$)
FirstService FirstService
(unaudited) Residential Brands Corporate(2) Consolidated
-------------- -------------- -------------- --------------
Three months
ended
December 31
2025
Revenues $ 563,061 $ 820,315 $ - $ 1,383,376
Adjusted
EBITDA (1) 51,512 88,499 (2,390) 137,621
Operating
earnings 36,269 59,243 (9,598) 85,914
2024
Revenues $ 521,256 $ 844,093 $ - $ 1,365,349
Adjusted
EBITDA 46,012 100,697 (8,853) 137,856
Operating
earnings 34,382 69,909 (14,676) 89,615
FirstService FirstService
Residential Brands Corporate Consolidated
-------------- -------------- -------------- --------------
Year ended
December 31
2025
Revenues $ 2,286,597 $ 3,210,903 $ - $ 5,497,500
Adjusted
EBITDA 225,001 353,568 (15,774) 562,795
Operating
earnings 170,421 213,971 (46,314) 338,078
2024
Revenues $ 2,134,469 $ 3,082,425 $ - $ 5,216,894
Adjusted
EBITDA 199,288 339,489 (25,087) 513,690
Operating
earnings 159,206 230,080 (51,774) 337,512
(1) See definition and reconciliation on
pages 5 and 6.
(2) See definition on page 6.
COMPANY CONTACTS:
D. Scott Patterson
Chief Executive Officer
Jeremy Rakusin
Chief Financial Officer
(416) 960-9566
(END) Dow Jones Newswires
February 04, 2026 07:30 ET (12:30 GMT)