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Investing.com -- BrightView Holdings (NYSE:BV) stock dropped 8.6% after the leading U.S. commercial landscaping services company lowered its fiscal year 2025 revenue guidance due to macroeconomic pressures.
The company now expects total revenue of $2.68 billion to $2.73 billion, down from its previous forecast of $2.75 billion to $2.84 billion issued on May 7. BrightView cited timing delays in development projects and reduced discretionary spending as factors impacting its performance.
Despite the revenue reduction, BrightView maintained its adjusted EBITDA guidance at $348 million to $362 million, compared to the previous range of $345 million to $365 million. The company also raised its adjusted free cash flow outlook to $60 million to $75 million, up from $50 million to $70 million previously.
"While we are seeing macro-economic factors impact our revenue performance, including timing delays of development projects and reduced discretionary spend, we continue to execute on our One BrightView strategy and expect continued operational efficiencies in fiscal 2025 and beyond, as reflected in our updated guidance," said Dale Asplund, BrightView President and Chief Executive Officer.
BrightView now anticipates maintenance land revenue to be approximately -2% to flat excluding non-core business, a downward revision from its previous projection of 1% to 3% growth. Development revenue growth was also cut from 3% to 6% to approximately -2% to flat.
The company still expects to deliver record adjusted EBITDA and margins for fiscal 2025, with maintenance margin expansion of approximately 130 basis points or more, improved from the previous guidance of 70 to 110 basis points.
BrightView plans to release its third quarter fiscal 2025 financial results on August 6, 2025.
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