NYSE$BV

BrightView Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

BrightView's Q2 2024 financial performance showcased revenue growth, substantial net income increase, and significant gains from the divestiture of U.S. Lawns, alongside reaffirming EBITDA guidance and raising free cash flow expectations.

BrightView reported a 3.5% increase in total revenue to $672.9 million, a 253% increase in net income to $33.7 million, and a 38.5% increase in Adjusted EBITDA to $64.8 million. The company reaffirmed its EBITDA guidance for fiscal year 2024 and raised its free cash flow guidance.

  • Total revenue increased by 3.5% year-over-year to $672.9 million.
  • Net income saw a significant increase of 253% year-over-year, reaching $33.7 million.
  • Adjusted EBITDA increased by 38.5% year-over-year to $64.8 million.
  • The company recorded a $43.9 million gain from the divestiture of its non-core U.S. Lawns Business.

Headline financials

Total Revenue

$673M

Previous: $650M+3.5%
EPS

$0.17

Previous: -$0.07+342.9%
Adjusted EBITDA

$64.80

No prior period
Adjusted EBITDA Margin

9.6%

No prior period
Maintenance Adjusted EBITDA

$55.10

No prior period
Maintenance Adjusted EBITDA Margin

10.8%

No prior period
Development Adjusted EBITDA

$9.70

No prior period
Development Adjusted EBITDA Margin

5.9%

No prior period
Adjusted Net Income

$16.90

No prior period
Capital Expenditures

-$22.7M

Previous: -$15.5M-46.5%
Free Cash Flow

$11M

Previous: -$37.5M+129.3%
Net Income

$33.7M

Previous: -$22M+253.2%
Operating Income

$62.2M

Previous: -$2.6M+2492.3%
Gross Profit

$152M

Previous: $147M+3.3%
Cash & Equivalents

$177M

Previous: $11M+1511.8%
Total Assets

$3.36B

Previous: $3.28B+2.5%
Stock-Based Comp

$4.9M

Previous: $6.3M-22.2%

Revenue & EPS history

BrightView · Revenue · Quarterly

$673M

Q2 2024+3.5%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

BrightView · $746M total across 2 segments · Q4 2023

  • Maintenance Services
    $521M-1.5%
  • Development Services
    $225M+13.5%

Forward guidance

BrightView updated its fiscal year 2024 guidance, narrowing the total revenue expectation to $2.740 - $2.800 billion, adjusting Adjusted EBITDA to $315 - $335 million, increasing Adjusted EBITDA Margin to +90bps to +130bps, and maintaining Free Cash Flow at $55 - $75 million.

Tailwinds

  • Reaffirming breakthrough EBITDA guidance for fiscal 2024.
  • Raising Free Cash Flow guidance.
  • Investing in employees.
  • Prioritizing the customer.
  • Enhancing operating structure, including unwinding of non-core businesses.

Headwinds

  • General business, economic, and financial market conditions.
  • Increases in raw material costs, fuel prices, wages and other operating costs, and changes in our ability to source adequate supplies and materials in a timely manner.
  • Competitive industry pressures.
  • The failure to retain current customers, renew existing customer contracts and obtain new customer contracts.
  • The failure to enter into profitable contracts, or maintaining customer contracts that are unprofitable.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.8%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-1.2%

Avg return

30 days after

35%

11 / 31 earnings

Positive

+25.0%

Q2 2023

Best reaction

-17.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.4%+10.2%+4.3%
Q1 2026-7.0%-1.5%-6.8%
Q4 2025-0.8%+5.5%+7.4%
Q2 2025+8.5%+14.9%+14.1%
Q1 2025-6.6%-9.3%-23.1%
Q4 2024-14.0%-14.9%-8.3%
Q3 2024+10.5%+0.8%+14.4%
Q2 2024+11.5%+10.1%+22.8%
Q1 2024-2.3%-4.2%-2.7%
Q4 2023-6.9%-5.3%+8.8%
Q3 2023+0.9%+0.8%+4.9%
Q2 2023+25.0%+22.9%+37.3%
Q1 2023-15.3%-21.7%-25.8%
Q4 2022-16.7%-18.4%-26.8%
Q3 2022-17.9%-19.9%-26.4%
Q2 2022+3.1%-1.5%+7.1%
Q1 2022-6.6%-2.0%+0.7%
Q4 2021-9.8%-10.1%-13.2%
Q3 2021-1.7%-8.4%-2.5%
Q2 2021+3.1%-2.3%-3.5%
Q1 2021-1.1%-0.9%+8.7%
Q4 2020-6.1%-0.5%+0.9%
Q3 2020+2.0%+6.2%+1.5%
Q2 2020+1.1%+2.2%+27.5%
Q1 2020-4.8%-1.3%-14.7%
Q4 2019-12.4%-15.2%-13.2%
Q3 2019-4.7%-4.0%-1.9%
Q2 2019+1.3%-2.2%+10.5%
Q1 2019-13.5%-10.0%-4.8%
Q4 2018+12.0%+4.7%-17.1%
Q3 2018-15.2%-26.3%-16.7%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015

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