Firstservice Stock Earnings Reports

FirstService reported Q1 2026 results roughly in line with expectations: consolidated revenue of $1.32 billion (up 5% YoY), adjusted EBITDA of $106 million (up 2%), and adjusted EPS of $0.95 (up 3%). Organic growth contributed meaningfully across the portfolio, with FirstService Residential up 4% (EBITDA margin expansion driven by labor/productivity initiatives) and FirstService Brands up 6% (but margin compression, primarily in Roofing and Home Services, due to competitive pressure and tactical marketing investments). Restoration saw mid-single-digit growth overall but with organic flatness and modestly lower backlogs after mild prior-weather comparables. Roofing revenue growth was aided by tuck-in acquisitions while organic roofing activity remained flat amid a weak new-construction market and heightened competition. Home Services experienced double-digit lead declines late in the quarter (exacerbated by geopolitical-driven weaker consumer sentiment), prompting elevated promotional/marketing spend to defend share and capacity, which pressured margins. Company-generated operating cash flow was strong ($88 million in Q1), leverage improved to ~1.5x net-debt/EBITDA, and liquidity (cash + undrawn facility) topped $1 billion—the highest in company history—positioning management to pursue selective tuck-under M&A while prioritizing organic growth and brand investments. Management expects Q2 trends similar to Q1 (mid-single-digit top-line growth consolidated, consolidated EBITDA flat-to-slightly-up YoY) with sequential improvement in several businesses in H2 if macro/geopolitical uncertainty eases.