GICS Sector : Industrials
BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States.It operates through two segments, Maintenance Services and Development Services.The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance.
BrightView reported a 3% increase in total revenue and improvements in EBITDA for the first quarter of 2026. The company's revenue growth was driven by its focus on accelerating investments in its sales force, with 80 incremental sellers added in the quarter. The earnings per share (EPS) came in at -$0.01, missing estimates of $0.013. Despite the EPS miss, the company's EBITDA margin expansion is a positive sign, indicating that the operational improvements are starting to bear fruit.
Publication Date: 08:38
The company's efforts to improve employee retention and reduce turnover have been successful, with a 30% improvement in turnover over the past two years. The branch network has also seen a 10% shift in both quartiles, indicating improved retention. According to Dale Asplund, "We're excited about the progress we're making with adding sellers to the business, and we've made great improvements in taking care of our existing customer base."
The company's Maintenance Land business was down 2% in the first quarter, but management expects growth to come from the back half of the year. The snow was unusually high in the quarter, and the Land business shrunk $8.9 million. However, if you break it down, $6 million of that shrink is attributed to the markets that saw outsized snow, and the business would have been flat without the storms. Analysts estimate next year's revenue growth at 1.9%.
BrightView's current valuation metrics indicate a relatively stable position, with a P/E Ratio of 24.92, P/B Ratio of 0.72, and EV/EBITDA of 4.16. The company's ROE is 2.88%, and ROIC is 3.03%. With a strong balance sheet and a commitment to investing in its people and fleet, BrightView is well-positioned for long-term growth. Management has also increased its share repurchase authorization from $100 million to $150 million, indicating confidence in the company's valuation.
The company's snow margin is expected to reach a range of 20-25% on incremental snow revenue by the end of the second quarter. Asplund stated that the company has shifted to more fixed-tier pricing in northern markets, which limits initial margin but increases profit as customers move up the pricing tiers. This strategic move is expected to drive margin expansion and contribute to the company's long-term growth.
BrightView (NYSE:BV) versus Bowman Consulting Group (NASDAQ:BWMN) Head to Head Comparison
Mar -02
Reviewing Bowman Consulting Group (NASDAQ:BWMN) and BrightView (NYSE:BV)
Feb -27
BrightView Expands Golf Course Management Partnership with The Villages®
Feb -18
New York State Common Retirement Fund Decreases Stake in BrightView Holdings, Inc. $BV
Feb -08
Why Brightview Holdings Stock Wilted on Wednesday
Feb -05
BrightView Holdings, Inc. (BV) Q1 2026 Earnings Call Transcript
Feb -04
BrightView (BV) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
Feb -04
BrightView Holdings (BV) Reports Q1 Loss, Tops Revenue Estimates
Feb -04
Growing demand for outdoor spaces, increasing focus on aesthetics and safety, and rising commercial and residential construction activities drive the growth of BrightView's maintenance services.
Growing demand for outdoor spaces, increasing focus on sustainability, and rising construction activities in commercial and residential properties drive the growth of BrightView Holdings' Development Services.
The elimination of intercompany transactions and balances from BrightView Holdings, Inc. is expected to drive growth, driven by increasing demand for consolidated financial reporting, improved transparency, and enhanced financial analysis capabilities.
Design and installation of landscapes for commercial and residential properties
Ongoing maintenance services for commercial and residential landscapes
Tree pruning, removal, and planting services for commercial and residential properties
Design, installation, and maintenance of irrigation systems for commercial and residential properties
Winter weather services for commercial and residential properties
Installation and maintenance of seasonal decorations and lighting for commercial and residential properties
BrightView Holdings, Inc. faces moderate threat from substitutes, as customers have limited alternatives for landscaping and snow removal services. However, the company's focus on commercial clients and its diversified service offerings mitigate this threat.
BrightView Holdings, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's long-term contracts and high switching costs further limit customer bargaining power.
BrightView Holdings, Inc. has a diverse supplier base, and the company's scale and purchasing power reduce its dependence on individual suppliers. This limits the bargaining power of suppliers.
The landscaping and snow removal services industry has moderate barriers to entry, including regulatory requirements and capital expenditures. BrightView Holdings, Inc.'s established brand and scale of operations also create a barrier to entry for new competitors.
The landscaping and snow removal services industry is moderately competitive, with several large players competing for market share. However, BrightView Holdings, Inc.'s diversified service offerings and strong brand reputation help the company maintain its market position.
| Value | |
|---|---|
| Debt Weight | 44.09% |
| Debt Cost | 4.00% |
| Equity Weight | 55.91% |
| Equity Cost | 10.06% |
| WACC | 7.39% |
| Leverage | 78.86% |
Value: 7.8
Growth: 0.7
Quality: 2.7
Yield: 9.0
Momentum: 8.0
Volatility: 4.0
1-Year Total Return ->
Value: 6.2
Growth: 6.4
Quality: 5.2
Yield: 0.0
Momentum: 2.5
Volatility: 6.7
1-Year Total Return ->
Value: 8.9
Growth: 4.9
Quality: 5.8
Yield: 0.0
Momentum: 5.5
Volatility: 2.0
1-Year Total Return ->
Value: 6.5
Growth: 5.3
Quality: 5.5
Yield: 0.0
Momentum: 2.0
Volatility: 5.3
1-Year Total Return ->
Value: 7.6
Growth: 1.8
Quality: 3.5
Yield: 6.0
Momentum: 2.0
Volatility: 3.3
1-Year Total Return ->
Value: 9.6
Growth: 1.3
Quality: 4.6
Yield: 0.0
Momentum: 0.0
Volatility: 3.7
1-Year Total Return ->