Slides
Page 1
Third Quarter Fiscal 2025 | Earnings Call August 7, 2025NYSE: BV
Page 2
3Q FY2025 Earnings Presentation | 2 Introductory Information Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts included in this presentation, including statements concerning our plans, objectives, goals, beliefs, business outlook, business trends, expectations regarding our industry, strategy, future events, future operations, future liquidity and financial position, future revenues, projected costs, prospects, plans and objectives of management and other information, may be forward-looking statements. Words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts or guarantees of future performance and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward- looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to: competitive industry pressures; our ability to preserve long-term customer relationships; a determination by customers to reduce their outsourcing or use of preferred vendors; inconsistent practices and the operating results of individual branches; our ability to implement our business strategies and achieve our growth objectives; impacts of future acquisitions or other strategic transactions; the possibility that costs or difficulties related to the integration of acquired businesses’ operations will be greater than expected and the possibility that integration efforts will disrupt our business and strain management time and resources; the potential impacts on revenues and our financial condition caused by any disposition of assets or discontinuation of lines of business; the seasonal nature of our landscape maintenance services; our dependence on weather conditions and the impact of severe weather and climate change on our business; disruptions in our supply chain and changes in our ability to source adequate supplies and materials in a timely manner; any failure to accurately estimate the overall risk, requirements, or costs when we bid on or negotiate contracts that are ultimately awarded to us and, for such contracts, the ability to collect amounts owed under such contracts; the conditions and periodic fluctuations of the new commercial construction sector, as well as spending on repair and upgrade activities; changes in general economic conditions can result in delays in construction activities which can adversely affect our development services segment; the level, timing and location of snowfall; our ability to retain or hire our executive management and other key personnel; our ability to attract, retain and maintain positive relations with workers; any failure to properly verify employment eligibility of our employees; the liability exposure from our use of subcontractors to perform work under certain customer contracts; our recognition of future impairment charges; laws and governmental regulations, including those relating to employees, wage and hour, immigration, human health, safety, transportation and the associated financial impact of such regulations; environmental, health and safety laws and regulations, including laws pertaining to the use of pesticides, herbicides and fertilizers, or liabilities thereunder, as well as the related risk of potential litigation; the distraction and impact caused by litigation, of adverse litigation judgments and settlements resulting from legal proceedings; tax increases and changes in tax rules; any increase in on-job accidents involving employees; any failure, inadequacy, interruption, security failure or breach of our information technology systems; compliance with data privacy regulations; any adverse consequences of our substantial indebtedness; our ability to adequately protect our intellectual property; increases in interest rates governing our variable rate indebtedness increasing the cost of servicing our substantial indebtedness; risks related to counterparty credit worthiness or non-performance of the derivative financial instruments we utilize; restrictions within our debt agreements that limit our flexibility in operating; our ability to generate sufficient cash flow to satisfy our significant debt service obligations; the incurrence of substantially more debt, including off-balance sheet financing, contractual obligations and general and commercial liabilities; any failure to extend credit under our facility or reduce the borrowing base under our Revolving Credit Facility; any future sales, or the perception of future sales, by us or our affiliates, which could cause the market price for our common stock to decline; the ability of KKR and One Rock to exert significant influence over us; anti-takeover provisions in our organizational documents that could delay or prevent a change in control; the authorization of our Board of Directors to issue and designate shares of our preferred stock in additional series without stockholder approval; the fact that the holders of our Series A Preferred Stock may have different interests from and vote their shares in a manner deemed adverse to, holders of our common stock; the dividend, liquidation, and redemption rights of the holders of our Series A Preferred Stock; our certificate of incorporation restricting all stockholder litigation matters to the Court of Chancery of the State of Delaware and the federal district courts of the United States of America; general business, economic, and financial market conditions; increases in raw material costs, fuel prices, wages and other operating costs, and changes in our ability to source adequate supplies and materials in a timely manner; occurrence of natural disasters, terrorist attacks, global health emergencies and other external events; heightened inflation, geopolitical conflicts, recession, financial market disruptions, trade policies and tariffs, and other economic conditions; environmental, social and governance matters and/or our reporting of such matters; significant changes in our stock price and its ability for resale; securities analysts’ reports about our business or their downgrade of our stock or sector; maintaining effective internal controls; and costs and requirements imposed as a result of maintaining compliance with the requirements of being a public company. Additional factors that could cause our results to differ materially from those described in the forward- looking statements can be found under “Item 1A. Risk Factors” in our Form 10-K for the fiscal year ended September 30, 2024, and such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement made in this presentation speaks only as of the date on which it was made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures, such as " Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", “’Adjusted Free Cash Flow", Total Financial Debt", "Total Net Financial Debt" and "Total Net Financial Debt to Adjusted EBITDA ratio", designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to financial measures provided in accordance with GAAP. Please refer to the appendix of this presentation for a reconciliation of the historical non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. For the same reasons we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
Page 3
3Q FY2025 Earnings Presentation | 3 Executive Summary Dale Asplund | President & Chief Executive Officer
Page 4
3Q FY2025 Earnings Presentation | 4 INVESTMENT OF CHOICE Key Highlights & Strategic Priorities One BrightView strategy continues to drive transformation Business Update Strategic Priorities: 2025 & Beyond Momentum continues in Adjusted EBITDA growth and margin expansion; margin +140bps Foundational KPIs improving sequentially BECOMING THE EMPLOYER OF CHOICE CUSTOMER CENTRIC FOCUS UNLOCKING SIZE AND SCALE STRATEGIC CAPITAL ALLOCATION Remain focused on driving long term profitable growth
Page 5
3Q FY2025 Earnings Presentation | 5 BECOMING THE EMPLOYER OF CHOICE Continuing to prioritize our employees Becoming the employer of choice positions us to reinvest back into our frontline Trucks/ Mowers Boots Service Hours Affordable Benefits Flexible Schedules PTO Advanced Pay HRIS
Page 6
3Q FY2025 Earnings Presentation | 6 Unwavering focus on best-in-class service CUSTOMER CENTRIC FOCUS Continued focus on exceptional customer service to drive top line growth Higher concentration of branches with 90+% retention
Page 7
3Q FY2025 Earnings Presentation | 7 Future cold starts drive additional opportunities ~$50M+ opportunity in annual recurring Maintenance revenue Unified approach driving collaboration across the business Cross selling opportunities progressing Unlocking recurring revenue opportunities by operating as One BrightView
Page 8
3Q FY2025 Earnings Presentation | 8 Development as a Catalyst for Growth State with Development & Maintenance Development operates in 20 of 36 BV states 10 planned over next 24 months; multiple underway Recurring Maintenance opportunity on conversions State with Maintenance Only Ample opportunities in markets where Maintenance already operates ‘Cold start’ expansion opportunities in largest MSAs where BV operates Timing/schedule delays impacted Revenue in Q3…backlog still improved Cold starts to bolster future backlog trajectory Development Backlog State with Development Only
Page 9
3Q FY2025 Earnings Presentation | 9 CUSTOMER RETENTION New Sales Growth Profitable Growth Development Conversions Ancillary Offerings National Accounts Development Growth Focused on achieving consistent Top Line Profitable Growth and Shareholder Value Driving Profitable Growth
Page 10
3Q FY2025 Earnings Presentation | 10 Financial Review & Outlook Brett Urban | Chief Financial Officer
Page 11
3Q FY2025 Earnings Presentation | 11 Continuing To Transform Our Business $300 $305 $302 $288 $299 $325 $344 12.8% 2018 12.7% 2019 11.8% 2021 10.4% 2022 10.6% 2023 11.7% 2024 12.7% Q3 ’25 TTM $45M or 210bps Improvement since 2023EBITDA % EBITDA $ Continued Execution on our Commitments to Deliver another Record EBITDA Year in 2025 Key Highlights 1) Streamlined structure = reduced overhead…reinvested back into the business 2) Continued focus on centralization, scale advantages and efficiencies 3) Remain focused on driving long term profitable growth NOTE: FY20 excluded from above due to atypical results related to COVID pandemic $MMs
Page 12
3Q FY2025 Earnings Presentation | 12 $MMs 3Q25 3Q24 Commentary Total Revenue $708.3 $738.8 • ~4% decrease Total Maintenance Services $508.8 $524.7 • Driven by reduced commercial landscaping services; primarily discretionary spend Development Services $201.3 $215.0 • Driven by project delays 3Q25 Revenue 13 14 3Q24 Land 3 Snow Development 3Q25 739 708 Totals may not sum due to intercompany eliminations Macro-related dynamics impacted Q3 Revenue $MMs
Page 13
3Q FY2025 Earnings Presentation | 13 $MMs 3Q25 3Q24 Commentary Total Adjusted EBITDA $113.2 $107.9 ~ 5% increase and margin expansion +140bps Maintenance Services $81.7 $80.4 Margin expansion +80bps Development Services $31.5 $27.5 Margin expansion +280bps $MMs 3Q24 ~6 Revenue Flowthrough ~4 Fleet Management ~4 Procurement / Scale ~5 G&A Efficiencies Seller Investments 3Q25 108 113~2 +~$5M & +140bps Operational efficiencies drive continued margin expansion across all segments 16.0% Minor differences may exist due to rounding 3Q25 Adjusted EBITDA 14.6%
Page 14
3Q FY2025 Earnings Presentation | 14 $250m+ capex investments over past two years Refreshed fleet = lower repairs, maintenance & rentals Improved customer retention & brand reputation Fleet Management Centralized procurement driving savings Enhancing preferred vendor network Favorable terms and fixed pricing Procurement / Scale Centralization & automation reduce redundancies G&A to rebalance from ~80% to ~65% of SG&A Savings reinvested into salesforce Central Support Model & Tech Enablement Realizing Benefits of One BrightView Strategy
Page 15
3Q FY2025 Earnings Presentation | 15 1 Adj. Free Cash Flow and Leverage 1. Adjusted for the impact of $51M in accrued property and equipment in 2024 (“capex timing”) Note: FCF = Adjusted Free Cash Flow, MP = Midpoint $80 $94 $119 2023 2024 FY25 FCF MP 29% 34% 27% FCF Conversion % FCF 1 3Q23 3Q24 3Q25 4.8x 2.4x 2.3x 2. Net Debt includes total long-term debt, net of original issue discount, and capital lease obligations net of cash and equivalents ~+500 bps while investing ~$200M in fleet Adjusted Free Cash Flow & Conversion Leverage2
Page 16
3Q FY2025 Earnings Presentation | 16 Full Year 2025 Guidance Metric Guidance Assumptions Total Revenue $2.68B to $2.73B Adjusted EBITDA $348M to $362M Adj. EBITDA Margin ~ 130bps Adj. Free Cash Flow1 $60M to $75M Reaffirming full year guidance… Underpins historical Adjusted EBITDA, Margin and Free Cash Flow generation* 1. Adjusted Free Cash Flow guidance assumes Net CapEx: $200M to $220M, modest NWC impact, cash interest: $55M to $60M, cash tax expenses: $5M to $10M 2. Non-Core land impact ($28M) in 1H25 from BES/USL 3. Snow includes unwind of BES business ($33M) * Adjusted Free Cash Flow normalizes for the impact of $51M in accrued property and equipment in 2024 (“capex timing”) and excludes FY20 due to atypical results related to COVID pandemic FY25 Guidance Maintenance Land Rev2 ~ (2%) to ~ flat excl. Non-Core Snow Revenue3 ~$210M Dev’t Revenue Growth ~ (2%) to ~ flat Maintenance ~ 130bps Development ~ 150bps Revenue Margin Expansion
Page 17
3Q FY2025 Earnings Presentation | 17 Reaffirming our commitment to Long-Term Growth targets outlined at Investor Day One BrightView Driving Long-Term Profitable Growth ~16%+ Adjusted EBITDA Margins ~40%+ Free Cash Flow Conversion** ~$4B*+ Total Revenue ~$650M+ Adjusted EBITDA Clear path to achieve long-term targets drive shareholder value 2030 Aspirational Targets *~$450M+ in M&A ** Free Cash Flow Conversion = Adjusted Free Cash Flow / EBITDA $ CUSTOMER CENTRIC FOCUS INVESTMENT OF CHOICE UNLOCKING SIZE AND SCALE STRATEGIC CAPITAL ALLOCATION BECOMING THE EMPLOYER OF CHOICE
Page 18
3Q FY2025 Earnings Presentation | 18 QUESTIONS & ANSWERS 3Q FY2025 Earnings Presentation | 18 3Q FY2025 Earnings Call
Page 19
3Q FY2025 Earnings Presentation | 19 Appendix
Page 20
3Q FY2025 Earnings Presentation | 20 Non-GAAP to GAAP Reconciliation *Amounts may not total due to rounding
Page 21
3Q FY2025 Earnings Presentation | 21 *Amounts may not total due to rounding Non-GAAP to GAAP Reconciliation (con’t.)
Page 22
3Q FY2025 Earnings Presentation | 22 Non-GAAP to GAAP Reconciliation (con’t.)
Page 23
3Q FY2025 Earnings Presentation | 23 Share Repurchase Reconciliation: Q3
Page 24
3Q FY2025 Earnings Presentation | 24 Revenue Guidance Reconciliation Land Snow Dev't Total Q4'24 487 0 244 729 Non-Core 0 0 0 0 Q4'24 487 0 244 729 Low-End -1% N/A -6% N/A High-End 6% N/A 0% N/A Low-End 480 0 230 710 High-End 515 0 245 760 Low-End 710 High-End 760 Q4 Guidance Reconciliation RangesImplied MathGuide Land Snow Dev't Total FY'24 1,743 221 809 2,767 Non-Core (28) (33) 0 (61) FY'24 Core 1,715 188 809 2,706 Low-End -2% N/A -2% N/A High-End 0% N/A 0% N/A Low-End 1,680 210 795 2,685 High-End 1,715 210 810 2,735 Low-End 2,680 High-End 2,730 Guidance Reconciliation RangesImplied MathGuide
Page 25
3Q FY2025 Earnings Presentation | 25 Adjusted Free Cash Flow Guidance Reconciliation $68 $119 $51 FY25 FCF - MP As Guided Payment of 2024 accrued equipment FY25 FCF MP1 Guidance Range: $60M to $75M Range (ex. 2024 Capex timing1): $111M to $126M 1. Adjusted for the impact of $51M in accrued property and equipment in 2024 (“capex timing”) Note: FCF = Adjusted Free Cash Flow, MP = Midpoint 1
Page 26
3Q FY2025 Earnings Presentation | 26 INVESTOR RELATIONS CONTACT: Chris Stoczko VP of Finance & Investor Relations IR@BrightView.com MEDIA CONTACT: David Freireich VP of Communications & Public Affairs David.Freireich@BrightView.com investor.brightview.com