Landscaping service company BrightView (NYSE:BV) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 4.1% year on year to $708.3 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $2.71 billion at the midpoint. Its non-GAAP profit of $0.30 per share was 10.7% below analysts’ consensus estimates.
Is now the time to buy BV? Find out in our full research report (it’s free).
BrightView (BV) Q2 CY2025 Highlights:
- Revenue: $708.3 million vs analyst estimates of $721.8 million (4.1% year-on-year decline, 1.9% miss)
- Adjusted EPS: $0.30 vs analyst expectations of $0.34 (10.7% miss)
- Adjusted EBITDA: $113.2 million vs analyst estimates of $112.9 million (16% margin, in line)
- The company dropped its revenue guidance for the full year to $2.71 billion at the midpoint from $2.80 billion, a 3.2% decrease
- EBITDA guidance for the full year is $355 million at the midpoint, above analyst estimates of $351.4 million
- Operating Margin: 8.1%, up from 6.6% in the same quarter last year
- Market Capitalization: $1.44 billion
StockStory’s Take
BrightView’s second quarter results were marked by a year-over-year revenue decline and missed Wall Street expectations, leading to a negative market reaction. Management attributed the shortfall to delayed discretionary spending and project timing, particularly in development services, while highlighting ongoing improvements in employee retention and customer satisfaction. CEO Dale Asplund acknowledged, “the headwinds we felt as we worked our way through Q3 and the worst of it is behind us,” emphasizing that improved retention metrics signal foundational progress even as revenue growth remains sluggish.
Looking ahead, BrightView’s guidance reflects cautious optimism, with management focused on driving profitable top-line growth through investments in fleet upgrades, salesforce expansion, and technology enhancements. CFO Brett Urban emphasized that reinvested cost savings and accelerated fleet strategy are expected to support both operational efficiency and margin improvement. Management believes that ongoing discipline in cost controls, combined with targeted growth initiatives, will position the company to navigate macroeconomic pressures and return to sustainable revenue expansion.
Key Insights from Management’s Remarks
Management pointed to operational streamlining, targeted capital allocation, and evolving customer and employee dynamics as central to both recent margin gains and the outlook for growth.
-
Employee retention gains: BrightView reported a sharp reduction in frontline employee turnover, now down 40% over 21 months, which management links to improved customer retention and reduced hiring costs. This improvement has enabled the company to offer better service and reinvest in frontline benefits, contributing to higher branch profitability.
-
Salesforce expansion underway: The company has increased its salesforce by around 6% since early in the year, aiming to drive new account wins and ancillary service growth. Management noted that productivity from new hires typically ramps over several quarters, so the full impact will be gradual.
-
Operational efficiencies and centralization: Efforts to centralize procurement and streamline general and administrative expenses have yielded notable savings, including a 50% reduction in spending on safety gloves through vendor consolidation. These measures are helping offset revenue pressure and improve margins.
-
Development project delays: Project delays in the development segment were attributed to timing, not cancellations, with nearly half the backlog increase tied to just three large customers. Management expects most delayed projects to be recognized as revenue over coming quarters.
-
Fleet modernization impacts: Over $250 million has been invested in refreshing the company’s fleet, which has lowered repair and maintenance costs, improved employee satisfaction, and provided margin benefits. Management views accelerated fleet investment as a key lever for both service quality and cost control.
Drivers of Future Performance
BrightView’s outlook is shaped by ongoing macro uncertainty, customer budget constraints, and internal initiatives designed to boost productivity and margin resilience.
-
Customer spending trends: Management acknowledges that some clients, particularly in regions impacted by unusual weather or rising insurance costs, are deferring discretionary landscaping services. However, they believe these are short-term decisions, and expect spending to recover as conditions stabilize.
-
Margin expansion strategies: Continued investments in fleet renewal, centralized procurement, and technology platforms are expected to drive ongoing margin improvement. Management expects these operational gains to support higher adjusted EBITDA and offset fluctuations in top-line growth.
-
Salesforce and market expansion: The company plans further hiring in its sales organization and is targeting new development branches in existing maintenance markets. Management believes that increasing cross-sell rates and expanding service offerings will fuel future recurring revenue growth as new hires reach full productivity.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) whether customer discretionary spending rebounds as macro headwinds ease, (2) the pace of productivity gains from recent salesforce additions and branch expansions, and (3) continued margin improvement from procurement centralization and fleet investments. Execution on technology upgrades and the conversion of development backlog into maintenance contracts will also be key markers of progress.
BrightView currently trades at $15.19, down from $16.29 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Stocks That Trumped Tariffs
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.