On Thursday, FirstService Corporation (NASDAQ:FSV) announced second-quarter results that notably outpaced analyst projections, reporting adjusted earnings per share of $1.71—$0.26 above estimates—and revenue of $1.42 billion, exceeding the consensus forecast of $1.39 billion.
The property services firm demonstrated significant profitability gains, with adjusted EBITDA rising 19% to $157.1 million and revenue climbing 9% year-over-year. This impressive margin expansion was driven by operational efficiencies across both of its core segments.
“We are pleased to report strong financial results which largely mirrored the year-over-year growth profile we saw in the first quarter,” said Scott Patterson, Chief Executive Officer of FirstService. “Despite continued macroeconomic uncertainty, the resilient top-line performance and strong profitability across our operations during the first half of the year put us well on track to deliver on our goals for 2025.”
FirstService Residential, which manages residential communities, saw revenues increase 6% to $593 million, including 3% organic growth. Adjusted EBITDA for this division improved by 11% to $65.5 million, with margin gains reflecting greater efficiency in its property management services.
Meanwhile, FirstService Brands posted even stronger results, with revenues rising 11% to $822.7 million, supported by 1% organic growth and recent acquisitions. Adjusted EBITDA surged 23% to $95.2 million, boosted by operational improvements in restoration and home services.
For the first six months of the year, the company’s results remained robust, with year-to-date revenue up 9% to $2.67 billion, adjusted EBITDA increasing 21% to $260.4 million, and adjusted EPS growing 30% to $2.63 compared to the prior year.
GAAP diluted earnings per share for the quarter came in at $1.01, up from $0.78 a year ago, while operating earnings rose to $97.3 million from $83.9 million.
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