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NEW YORK - BrightView Holdings, Inc. (NYSE:BV), the largest commercial landscaping company in the United States, with a market capitalization of $1.6 billion and a notable 31% stock return over the past year, has revised its fiscal year 2025 financial guidance, lowering revenue projections while maintaining its profit targets. According to InvestingPro analysis, the company appears fairly valued based on its current Fair Value assessment.
The company now expects total revenue between $2.68 billion and $2.73 billion, down from its previous forecast of $2.75 billion to $2.84 billion. Despite the revenue reduction, BrightView maintained its adjusted EBITDA guidance at $348 million to $362 million and raised its adjusted free cash flow projection to $60 million to $75 million from the previous $50 million to $70 million. InvestingPro data shows the company generated $318.2 million in EBITDA over the last twelve months, with two key ProTips indicating expected net income growth and projected profitability this year. Subscribers can access 3 additional ProTips and comprehensive financial analysis.
The company cited macroeconomic factors for the revenue adjustment, specifically pointing to timing delays in development projects and reduced discretionary spending by clients. However, BrightView still anticipates achieving record adjusted EBITDA and margin performance.
"While we are seeing macro-economic factors impact our revenue performance, we continue to execute on our One BrightView strategy and expect continued operational efficiencies in fiscal 2025 and beyond," said Dale Asplund, BrightView President and Chief Executive Officer, in a press release statement.
The updated guidance includes revised assumptions for key business segments. Maintenance land revenue is now expected to range from approximately -2% to flat growth excluding non-core business, down from the previous forecast of 1% to 3% growth. Development revenue growth has been adjusted from 3% to 6% to approximately -2% to flat.
Despite these revenue challenges, BrightView projects stronger margin expansion than previously anticipated. Maintenance margin expansion is now expected to be approximately 130 basis points or more, up from the prior guidance of 70 to 110 basis points. Development margin expansion is projected at approximately 100 basis points or more.
The company plans to release its third quarter fiscal 2025 financial results on August 6, 2025. For investors seeking deeper insights, InvestingPro offers a detailed Research Report on BrightView, part of its coverage of over 1,400 US stocks, providing comprehensive analysis of the company’s financial health, which currently scores as "FAIR" with a 2.43 overall rating.
In other recent news, BrightView Holdings reported a successful second quarter for fiscal year 2025, surpassing both earnings and revenue expectations. The company achieved earnings per share of $0.14, exceeding the anticipated $0.11, and reported revenues of $662.6 million, which surpassed the forecasted $645.92 million. Additionally, BrightView Holdings has completed an upsized secondary offering of 11.6 million shares of common stock by an affiliate of KKR & Co. Inc., with all proceeds going to the selling stockholder. BrightView did not receive any proceeds from this offering. The company’s strong performance has led to an increase in their full-year EBITDA guidance to $355 million, signaling confidence in future performance. Furthermore, BrightView has been actively engaging in a $100 million stock repurchase program, demonstrating a strategic use of capital. Analyst firms such as Craig-Hallum Capital Group and CJS Securities have shown positive sentiment toward the company’s earnings results. These developments reflect BrightView’s ongoing efforts to strengthen its financial standing and operational efficiency.
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