BrightView's Q1 Revenue Grows 3% but Profits Lag Behind Forecasts
BrightView has reported its first-quarter results for fiscal 2026, showing a mix of revenue growth and profit challenges. The company's sales rose by nearly 3% year-over-year, but earnings fell short of expectations, prompting a drop in its stock price. Management has reaffirmed its full-year guidance despite the setback.
The landscaping and maintenance firm recorded first-quarter revenue of $614.7 million, beating analyst forecasts of $591 million. CEO Dale Asplund credited the performance to steady progress in key operational metrics. However, the company's GAAP net loss widened by 46%, reaching $15.2 million, or $0.01 per share—below the anticipated profit of $0.02 per share.
BrightView's earnings report highlighted a disconnect between strong sales and weak profitability. The stock declined after investors reacted to the missed earnings per share (EPS) target, despite the revenue growth. Analysts had expected the company to turn a profit, but the deeper loss raised concerns.
The company is pushing ahead with its One BrightView strategy, aimed at simplifying operations and upgrading its vehicle fleet. Leadership also maintained its full-year revenue outlook of $2.67 billion to $2.73 billion, representing up to 2% growth. Non-GAAP EBITDA guidance for fiscal 2026 remains between $363 million and $377 million.
Yet, not all observers are convinced. One analyst questioned whether the transformation plan would deliver the promised results, casting doubt on the revenue growth projections for the year.
BrightView's first-quarter results show a company growing its sales but struggling with profitability. The stock dip reflects investor concerns over the gap between revenue gains and earnings performance. The coming quarters will test whether the One BrightView strategy can turn financial results around.
