FirstService Reports Third Quarter 2026 Results

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Postmedia has not reviewed the content. by GlobeNewswire FirstService Reports Third Quarter 2026 ResultsAuthor of the article:Balanced Top-Line Growth Across Both DivisionsTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account Three months ended Nine months ended September 30 September 30 2026 2025 2026 2025 Revenues (millions)$1,531.7 $1,447.6 $4,298.0 $4,114.1Adjusted EBITDA (millions) (note 1) 169.7 164.8 437.1 425.2Adjusted EPS (note 2) 1.89 1.76 4.57 4.39 GAAP Operating Earnings 107.4 115.6 253.7 252.2GAAP Diluted EPS 0.99 1.24 2.41 2.32 TORONTO, Oct. 22, 2026 (GLOBE NEWSWIRE) — FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported results for its third quarter ended September 30, 2026. All amounts are in US dollars.This advertisement has not loaded yet, but your article continues below.Consolidated revenues for the third quarter were $1.53 billion, a 6% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 3% to $169.7 million, and Adjusted EPS (note 2) was $1.89, reflecting 7% growth over the prior year quarter. During the third quarter, FirstService reported GAAP Operating Earnings of $107.4 million, versus $115.6 million in the prior year period. GAAP diluted earnings per share was $0.99 in the quarter, versus $1.24 for the same quarter a year ago.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againFor the nine months ended September 30, 2026, consolidated revenues were $4.30 billion, a 4% increase relative to the comparable prior year period, Adjusted EBITDA was $437.1 million, up 3%, and Adjusted EPS was $4.57, an increase of 4% over the prior year period. FirstService’s GAAP Operating Earnings were $253.7 million in the current year period, versus $252.2 million in the prior year. GAAP diluted earnings per share for the nine months year-to-date was $2.41, compared to $2.32 in the prior year period.“We were pleased with our results for the quarter, highlighted by our sequential improvement in organic top-line growth,” said Scott Patterson, Chief Executive Officer of FirstService. “The continued strong execution of our operating teams in the face of macroeconomic challenges reinforces our confidence in achieving our previously communicated full-year performance targets,” he concluded.This advertisement has not loaded yet, but your article continues below.About FirstService CorporationFirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential – North America’s largest manager of residential communities; and FirstService Brands – one of North America’s largest providers of essential property services delivered through individually branded company-owned operations and franchise systems.FirstService generates more than US$5.6 billion in annual revenues and has approximately 30,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ under the symbol “FSV” and on the Toronto Stock Exchange under the symbol “FSV”, and are included in the S&P/TSX 60 index. More information is available at www.firstservice.com.Segmented Quarterly ResultsFirstService Residential revenues were $633.3 million for the third quarter, up 5% compared to the prior year quarter, and all from organic growth (note 1). Top-line performance was driven by new contract wins and expanded sited labor services. Adjusted EBITDA for the quarter was $71.3 million, an increase of 7% compared to the prior year period. Operating Earnings were $58.0 million, versus $53.3 million for the third quarter of last year. Margins for the division were modestly up versus the prior year due to labor cost management and incremental efficiency gains.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.FirstService Brands revenues during the third quarter were $898.4 million, up 7% relative to the prior year period. On an organic basis, division revenues grew 3% driven by our Restoration brands and Century Fire Protection, and partially offset by reduced activity levels at Roofing Corp. of America. Adjusted EBITDA for the third quarter was $101.8 million, compared to $102.1 million in the prior year period. Operating Earnings were $60.0 million, versus $73.7 million in the prior year quarter. The decline in the division margin primarily reflects reduced profitability in our roofing operations, resulting from lower year-over-year revenues and a more competitive market environment. Operating Earnings margin was also affected by contingent consideration fair value adjustments that benefitted the prior year period.Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.5 million in the third quarter, relative to $3.7 million in the prior year period. GAAP corporate costs for the quarter were $10.7 million, relative to $11.4 million in the prior year period.This advertisement has not loaded yet, but your article continues below.Conference CallFirstService will be holding a conference call on Thursday, October 22, 2026 at 11:00 a.m. Eastern Time to discuss results for the third quarter of 2026.This call is being webcast live at the Company’s website at www.firstservice.com. Participants may register for the call here https://register-conf.media-server.com/register/BI9d7175d9b02f4276bcb50335f8def6ce to receive the dial-in number and their unique PIN. To join the webcast in listen only mode, use this link: https://edge.media-server.com/mmc/p/txwrhwjy . It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).Forward-looking StatementsThis press release includes or may include forward-looking statements. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for FirstService’s services and the cost of providing services; (ii) the ability of FirstService to implement its business strategy, including FirstService’s ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in FirstService’s annual information form for the year ended December 31, 2025 under the heading “Risk factors” (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings (which factors are adopted herein). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.This advertisement has not loaded yet, but your article continues below.Summary financial information is provided in this press release. Our interim consolidated financial statements and related management’s discussion and analysis will be made available on SEDAR+ at www.sedarplus.ca.Notes1. Reconciliation of net earnings to adjusted EBITDA:Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other (income) expense; (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) share-based compensation expense. The Company uses Consolidated adjusted EBITDA and segment adjusted EBITDA to evaluate its own operating performance, its ability to service debt, and as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. Consolidated adjusted EBITDA and segment adjusted EBITDA are presented as a supplemental measure because the Company believes such a measure is useful to investors as a reasonable indicator of operating performance, due to the low capital intensity of the Company’s service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company’s method of calculating adjusted EBITDA and segment adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below. Three months ended Nine months ended(in thousands of US$)September 30 September 30 2026 2025 2026 2025 Net earnings$64,550 $70,887 $149,103 $140,398 Income tax 23,834 27,700 55,191 57,377 Other expense (income), net 146 (1,138) (236) (2,220)Interest expense, net 18,839 18,179 49,647 56,609 Operating earnings 107,369 115,628 253,705 252,164 Depreciation and amortization 51,003 46,635 149,552 136,443 Acquisition-related items 4,209 (4,100) 9,657 15,795 Share-based compensation expense 7,090 6,617 24,155 20,772 Adjusted EBITDA$169,671 $164,780 $437,069 $425,174 A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.(in thousands of US$) Three months ended, September 30, 2026 FirstService FirstService Residential Brands Corporate(1) Operating earnings (loss)$58,036 $59,991 $(10,658)Depreciation and amortization 13,213 37,767 23 Acquisition-related items 78 4,037 94 Share-based compensation expense – – 7,090 Adjusted EBITDA$71,327 $101,795 $(3,451) Three months ended, September 30, 2025 FirstService FirstService Residential Brands Corporate(1) Operating earnings (loss)$53,279 $73,720 $(11,371)Depreciation and amortization 12,164 34,449 22 Acquisition-related items 920 (6,082) 1,062 Share-based compensation expense – – 6,617 Adjusted EBITDA$66,363 $102,087 $(3,670) Nine months ended, September 30, 2026 FirstService FirstService Residential Brands Corporate(1) Operating earnings (loss)$143,099 $146,566 $(35,960)Depreciation and amortization 39,567 109,917 68 Acquisition-related items 3,932 5,268 457 Share-based compensation expense – – 24,155 Adjusted EBITDA$186,598 $261,751 $(11,280) Nine months ended, September 30, 2025 FirstService FirstService Residential Brands Corporate(1) Operating earnings (loss)$134,152 $154,728 $(36,716)Depreciation and amortization 34,589 101,786 68 Acquisition-related items 4,748 8,555 2,492 Share-based compensation expense – – 20,772 Adjusted EBITDA$173,489 $265,069 $(13,384) This advertisement has not loaded yet, but your article continues below.(1) Corporate costs represent corporate selling, general and administrative costs, depreciation and amortization and acquisition related items not directly attributable to reportable segments, and are therefore unallocated within segment operating earnings (loss) and Adjusted EBITDA.Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues.Organic growth is defined as revenue growth adjusted to exclude the revenue attributable to acquired or disposed businesses for a period of twelve months following their acquisition or preceding their disposal.2. Reconciliation of net earnings and diluted net earnings per share to adjusted net earnings and adjusted net earnings per share: Adjusted EPS is defined as diluted net earnings per share, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization expense related to intangible assets recognized in connection with acquisitions; and (iv) share-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share, as determined in accordance with GAAP. The Company’s method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.This advertisement has not loaded yet, but your article continues below. Three months ended Nine months ended(in thousands of US$)September 30 September 30 2026 2025 2026 2025 Net earnings$64,550 $70,887 $149,103 $140,398 Non-controlling interest share of earnings (6,587) (6,709) (15,941) (11,430)Acquisition-related items 4,209 (4,100) 9,657 15,795 Amortization of intangible assets 21,268 18,828 62,888 57,051 Share-based compensation expense 7,090 6,617 24,155 20,772 Income tax on adjustments (8,009) (4,514) (23,783) (20,656)Non-controlling interest on adjustments (446) (197) (1,176) (1,186)Adjusted net earnings$82,075 $80,812 $204,903 $200,744 Three months ended Nine months ended(in US$)September 30 September 30 2026 2025 2026 2025 Diluted net earnings per share$0.99 $1.24 $2.41 $2.32 Non-controlling interest redemption increment 0.35 0.15 0.56 0.50 Acquisition-related items 0.06 (0.05) 0.14 0.29 Amortization of intangible assets, net of tax 0.35 0.29 1.00 0.86 Share-based compensation expense, net of tax 0.14 0.13 0.46 0.42 Adjusted earnings per share$1.89 $1.76 $4.57 $4.39 FIRSTSERVICE CORPORATIONCondensed Consolidated Statements of Earnings(in thousands of US dollars, except per share amounts) Three months Nine months ended September 30 ended September 30(unaudited) 2026 2025 2026 2025 Revenues$1,531,698 $1,447,565 $4,298,027 $4,114,124 Cost of revenues 1,034,439 960,420 2,889,457 2,737,222 Selling, general and administrative expenses 334,678 328,982 995,656 972,500 Depreciation 29,735 27,807 86,664 79,392 Amortization of intangible assets 21,268 18,828 62,888 57,051 Acquisition-related items (1) 4,209 (4,100) 9,657 15,795 Operating earnings 107,369 115,628 253,705 252,164 Interest expense, net 18,839 18,179 49,647 56,609 Other expense (income), net 146 (1,138) (236) (2,220)Earnings before income tax 88,384 98,587 204,294 197,775 Income tax 23,834 27,700 55,191 57,377 Net earnings 64,550 70,887 149,103 140,398 Non-controlling interest share of earnings 6,587 6,709 15,941 11,430 Non-controlling interest redemption increment 15,051 7,010 24,972 22,899 Net earnings attributable to Company$42,912 $57,168 $108,190 $106,069 Net earnings per common share Basic$0.99 $1.25 $2.41 $2.33 Diluted 0.99 1.24 2.41 2.32 Adjusted earnings per share (2)$1.89 $1.76 $4.57 $4.39 Weighted average common shares (thousands) Basic 43,329 45,568 44,836 45,462 Diluted 43,330 45,924 44,838 45,732 This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Notes to Condensed Consolidated Statements of Earnings(1) Acquisition-related items include contingent acquisition consideration fair value adjustments, and transaction costs.(2) See definition and reconciliation above.Condensed Consolidated Balance Sheets (in thousands of US dollars) (unaudited)September 30, 2026 December 31, 2025 Assets Cash and cash equivalents$160,759 $154,425Restricted cash 25,054 25,665Accounts receivable 947,276 922,106Prepaid and other current assets 460,318 401,584Current assets 1,593,407 1,503,780Other non-current assets 29,843 29,474Deferred income tax 5,185 4,979Fixed assets 292,601 289,718Operating lease right-of-use assets 275,421 269,573Goodwill and intangible assets 2,253,592 2,186,189Total assets$4,450,049 $4,283,713 Liabilities and shareholders’ equity Accounts payable and accrued liabilities$623,537 $547,065Unearned revenues 227,149 209,226Other current liabilities 16,026 53,097Operating lease liabilities – current 60,842 59,113Long-term debt – current 13,339 13,649Current liabilities 940,893 882,150Long-term debt – non-current 1,541,075 1,069,027Operating lease liabilities – non-current 246,679 242,593Other liabilities 122,938 124,762Deferred income tax 119,301 102,991Redeemable non-controlling interests 542,329 486,191Shareholders’ equity 936,834 1,375,999Total liabilities and equity$4,450,049 $4,283,713 Supplemental balance sheet information Total debt$1,554,414 $1,082,676Total debt, net of cash 1,393,655 928,251 This advertisement has not loaded yet, but your article continues below.Consolidated Statements of Cash Flows (in thousands of US dollars) Three months ended Nine months ended September 30 September 30(unaudited) 2026 2025 2026 2025 Cash provided by (used in) Operating activities Net earnings$64,550 $70,887 $149,103 $140,398 Items not affecting cash: Depreciation and amortization 51,003 46,635 149,552 136,443 Deferred income tax (10) (830) (149) (2,420)Other 8,812 518 16,865 29,870 124,355 117,210 315,371 304,291 Changes in non-cash working capital Accounts receivable (39,670) 34,649 (15,354) 19,828 Payables and accruals 51,439 (13,312) 57,756 (26,475)Other (51,963) (12,185) (55,625) 32,802 Net cash provided by operating activities 84,161 126,362 302,148 330,446 Investing activities Acquisition of businesses, net of cash acquired (24,768) (44,469) (73,191) (96,385)Purchases of fixed assets (28,452) (33,663) (88,096) (96,601)Other investing activities (879) (1,372) 2,600 (10,042)Net cash used in investing activities (54,099) (79,504) (158,687) (203,028) Financing activities Increase (decrease) in long-term debt, net 303,866 (36,941) 472,070 (91,768)Purchases of non-controlling interests, net (1,002) (4,597) (11,218) (33,943)Dividends paid to common shareholders (13,467) (12,501) (40,065) (36,315)Distributions paid to non-controlling interests (3,933) (1,828) (17,504) (13,430)Repurchases of common shares (311,589) – (560,006) – Other financing activities (19,810) 28,869 17,732 49,775 Net cash used in financing activities (45,935) (26,998) (138,991) (125,681) Effect of exchange rate changes on cash 548 781 1,253 88 Increase (decrease) in cash, cash equivalents and restricted cash (15,325) 20,641 5,723 1,825 Cash, cash equivalents and restricted cash, beginning of period 201,138 224,870 180,090 243,686 Cash, cash equivalents and restricted cash, end of period$185,813 $245,511 $185,813 $245,511 This advertisement has not loaded yet, but your article continues below.Segmented Results(in thousands of US dollars) FirstService FirstService (unaudited)Residential Brands Corporate(1) Consolidated Three months ended September 30 2026 Revenues$633,279 $898,419 $– $1,531,698Adjusted EBITDA 71,327 101,795 (3,451) 169,671 Operating earnings 58,036 59,991 (10,658) 107,369 2025 Revenues$605,426 $842,139 $– $1,447,565Adjusted EBITDA 66,363 102,087 (3,670) 164,780 Operating earnings 53,279 73,720 (11,371) 115,628 FirstService FirstService Residential Brands Corporate(1) Consolidated Nine months ended September 30 2026 Revenues$1,795,810 $2,502,217 $– $4,298,027Adjusted EBITDA 186,598 261,751 (11,280) 437,069 Operating earnings 143,099 146,566 (35,960) 253,705 2025 Revenues$1,723,536 $2,390,588 $– $4,114,124Adjusted EBITDA 173,489 265,069 (13,384) 425,174 Operating earnings 134,152 154,728 (36,716) 252,164 (1) Corporate costs represent corporate selling, general and administrative costs, depreciation and amortization and acquisition-related items not directly attributable to reportable segments, and are therefore unallocated within segment operating earnings (loss) and Adjusted EBITDA.D. Scott PattersonChief Executive OfficerJeremy RakusinChief Financial OfficerThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.