BrightView (BV) Q4 2026: Development Services Slump Drives a Double Miss

BrightView's fiscal fourth quarter came in well below what Wall Street had penciled in. Revenue of $677.3 million fell 3.6% year over year and missed the $723.6 million consensus estimate by 6.4%, while adjusted EPS of $0.18 trailed the $0.26 forecast by nearly 30%.

The source of the shortfall was the company's project-based Development Services segment, where revenue dropped $39.9 million, or 17.8%, on lower project volumes tied to timing and mix. That pullback dragged segment Adjusted EBITDA down $14.0 million to $26.7 million, as labor and material costs took a larger share of revenue.

Maintenance Services provided a partial cushion, with revenue rising $15.3 million, or 3.2%, and Land Maintenance growth accelerating to 3.3% in the quarter, the third consecutive quarter of gains. CEO Dale Asplund credited improved customer retention and continued salesforce investment for that momentum, noting the underlying growth rate had picked up each quarter through fiscal 2026.

The balance sheet warrants attention. Leverage climbed to 3.1x net debt to Adjusted EBITDA, up from 2.3x a year earlier, and cash and equivalents fell to $3.6 million from $74.5 million. Operating cash flow for the full fiscal year came in at $184.7 million, down from $291.8 million the prior year, and Adjusted Free Cash Flow for fiscal 2026 was an outflow of $2.2 million.

Management still set a constructive tone for fiscal 2027, guiding total revenue to $2.54 to $2.72 billion, Adjusted EBITDA to $335 to $355 million (representing roughly 110 basis points of margin expansion), and Adjusted Free Cash Flow to $110 to $130 million. The company also expects Land Maintenance to grow 3% to 4% next year, while Development Services guidance spans a wide range of down 20% to flat, reflecting continued uncertainty in that segment.