Description

FirstService Corporation’s $1.45 Billion Quarter: Can Brands Regain Momentum?

FirstService Corporation reported second-quarter revenues of $1.45 billion, reflecting a 2% increase year-over-year, with adjusted EBITDA rising 3% to $161.7 million and adjusted earnings per share climbing 2% to $1.75. The company operates through two primary divisions: FirstService Residential and FirstService Brands. FirstService Residential delivered revenues of $617 million, up 4% year-over-year and 5% organically. The division’s EBITDA rose 6% to $69 million, with an 11.2% margin, marking a 20 basis points improvement from the previous year. Growth was bolstered by a focused business strategy, including the divestiture of residential pool maintenance operations to concentrate on commercial services. The property management segment showed stable performance with expectations of sustained mid-single-digit organic growth and modest margin improvement in the second half of the year.