BrightView Holdings (BV) F3Q First Take Revenue, margin and EPS shortfall with the full year outlook reduced

Equity Research 4 August 2026 | 2:12PM PDT

BrightView Holdings (BV): F3Q First Take: Revenue, margin and EPS shortfall with the full year outlook reduced

We expect investors to have a negative reaction to BrightView’s F3Q 2026 earnings George K. Tong, CFA | release, with revenue, EBITDA margins, and EPS underperforming consensus Goldman Sachs & Co. LLC expectations and the full-year guide reduced for revenue, EBITDA and FCF. Overall Alex Lakritz revenue increased 1.3% y/y in F3Q, decelerating sharply from 6.1% growth in F2Q. | Goldman Sachs & Co. LLC Landscape maintenance revenue grew 2.3% y/y driven by contract revenue growth and development revenue increased 0.3%. EBITDA margins contracted 260 bps y/y Sami Nasir, CFA | Goldman Sachs & Co. LLC to 13.4% in F3Q due to a self-insurance adjustment and higher fuel prices. For F2026, BV expects landscape maintenance revenue growth of 2-3%, snow revenue of $290mn and development revenue to be down 3-5%, with EBITDA margins down 80 bps to 12.4% at the midpoint. On the earnings call tomorrow morning, we expect investors to be focused on reasons behind the cut in the full-year guide for development revenue, underlying trends in contract and ancillary revenue in the landscape maintenance business, the nature and reasoning behind the self-insurance adjustment, and the ability for BV to pass on higher fuel costs to customers.

Exhibit 1: F3Q Actuals vs GS and FactSet Estimates $ in millions, except per share data

F3Q Actuals GS Estimates FactSet Consensus Revenue $717.6 $734.2 $726.1 y/y growth 1.3% 3.7% 2.5%

Adj. EBITDA $96.1 $123.0 $117.7 Adj. EBITDA margins 13.4% 16.7% 16.2%

Source: FactSet, Company data, Goldman Sachs Global Investment Research

Actuals vs GS and FactSet estimates. Revenue of $717.6mn increased 1.3% y/y, below our estimate of 3.7% and FactSet consensus of 2.5%. Landscape maintenance revenue increased 2.3% y/y driven by increased contract revenue and to a lesser extent ancillary services but decelerated from 4.0% growth in the prior quarter. Development revenue increased 0.3% y/y, positively inflecting from a 13.0% decline in F2Q. There was no revenue contribution from M&A in the quarter. EBITDA margins contracted 260 bps y/y to 13.4% due to a non-routine self-insurance adjustment, higher fuel prices and continued sales force investments, and came below our 16.7% estimate and consensus of 16.2%. EPS of $0.17 missed our forecast of $0.33 and consensus of $0.29.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs BrightView Holdings (BV)

Guidance vs Street. BrightView lowered its full-year F2026 guidance for revenue from $2,745-2,795mn to $2,750-2,780mn, EBITDA from $363-377mn to $340-345mn, with implied margins of 12.4% (13.4% prior) at the midpoint and FCF from $100-115mn to $70-80mn. Management expects F2026 landscape maintenance revenue to be up 2-3% (unchanged), snow revenue of $290mn (unchanged) and development revenue to be down 3-5% (down 0-5% prior). F2026 guidance assumes overall EBITDA margin contraction of 70-90 bps. The company’s guidance points to negative consensus estimate revisions for revenue and EBITDA margins. Prior to BV’s F3Q print, our F2026 estimates were $2,785mn for revenue, $374mn for EBITDA with 13.4% margins and $0.71 for EPS, while FactSet consensus forecasts were $2,774mn for revenue, $370mn for EBITDA with 13.3% margins and $0.66 for EPS.

Valuation. Our 12-month price target of $10.80 is based on 6.0x our NTM + 1YR EBITDA estimate of $388mn, NTM net debt of $748mn and NTM shares outstanding of 146mn. Our target multiple comes below the Business Services peers median multiple of 9.3x in the context of BV’s slower revenue growth, lower EBITDA margins and higher…