FSV

This article first appeared on GuruFocus. - Total Revenue: $1.53 billion, up 6% year over year; organic growth of 4%. - Adjusted EBITDA: $170 million, up 3% year over year. - Consolidated EBITDA Margin: 11.1%, down from 11.4% in the prior year quarter. - Adjusted EPS: $1.89, up 7% year over year. - Year-to-Date Revenue: $4.3 billion, up 4% from $4.1 billion prior year. - Year-to-Date Adjusted EBITDA: $437 million, with margin of 10.2% versus 10.3% prior year. - Year-to-Date Adjusted EPS: $4.57, up 4% from $4.39 prior year. - FirstService Residential Revenue: $633 million, up 5% year over year. - FirstService Residential EBITDA: $71 million, up 7%; margin of 11.3% with basis-point expansion. - FirstService Brands Revenue: $898 million, up 7% year over year. - FirstService Brands EBITDA: $102 million, flat year over year; margin of 11.3%, down 80 basis points from 12.1%. - Restoration Brands Revenue: Paul Davis and First OnSite combined up 10% year over year. - Roofing Revenue: Down 4% reported and high single-digit organically. - Home Service Brands Revenue: Up mid-single-digit, with modest positive organic growth. - Century Fire Revenue: Up over 10%, including high single-digit organic growth. - Operating Cash Flow (pre-working capital): Nearly $125 million, up 6% year over year. - Cash Flow (after working capital): $84 million. - Year-to-Date Operating Cash Flow: Over $300 million, at 70% of EBITDA conversion. - Capital Expenditures: $28 million in Q3; $88 million year-to-date; full-year guidance ~$125 million. - Share Repurchases: 2.2 million shares for just over $300 million in Q3; 4.1 million shares (9% of outstanding) year-to-date since Q2. - Net Debt: $1.4 billion; leverage of 2.4x net debt to trailing EBITDA, up from 1.8x at end of Q2. - Liquidity: Approximately $500 million in total cash and credit facility capacity. - Warning! GuruFocus has detected 5 Warning Sign with FSV. - Is FSV fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - FirstService Corp (NASDAQ:FSV) delivered solid Q3 results with total revenues up 6% and organic growth of 4%, demonstrating business model diversification amid economic headwinds. - FirstService Residential achieved its eighth consecutive quarter of margin improvement while maintaining mid-single-digit organic growth, with further margin expansion expected in Q4. - Restoration brands (Paul Davis and First OnSite) revenues grew 10% year-over-year, driven by strong activity in Canada and Hawaii, with a solid backlog heading into Q4. - Century Fire posted another strong quarter with revenues up over 10% including high single-digit organic growth, and the acquisition of A&A Fire Protection expands geographic footprint. - FirstService Corp (NASDAQ:FSV) repurchased 2.2 million shares for over $300 million in Q3, contributing to 7% EPS growth, and has remaining capacity to buy back an additional 2.6 million shares. - Consolidated EBITDA margin declined to 11.1% from 11.4% last year, reflecting margin compression in the Brands division. - Roofing segment revenues declined 4% reported and high single-digit organically, with continued competitive pricing pressure and weak demand, particularly in Florida. - Home service brands face worsening housing market and consumer sentiment at historic lows, with Q4 revenues expected flat in aggregate and down low single-digit organically. - FirstService Brands EBITDA margin compressed 80 basis points to 11.3%, driven by lower margins in roofing and home improvement, partially offset by restoration. - Leverage increased to 2.4 times net debt to EBITDA from 1.8 times in the prior quarter, largely due to share buyback activity, limiting further aggressive repurchases. Q: Can you break out how much of the roofing margin pressure is competitive pricing versus lower volumes, and can margins recover before volumes return? A: CFO Jeremy Rakusin said both factors are contributing meaningfully and are hard to parse apart. The company is pricing competitively to keep projects in the hopper and protect the top line, and expects competitive pressuresconcentrated in Florida but present in other branchesto persist for a decent period. CEO Scott Patterson added that the near-term environment will remain "very, very competitive." Q: How much visibility do you have into the roofing business over the next few months? A: CEO Scott Patterson acknowledged visibility is limited because the business runs on different systems ahead of an ERP implementation now underway, which will markedly improve data and visibility by 2027. For now, forecasting relies on backlog and bid activity, and converting backlog to revenue has been difficult to predict over the last several quarters. Q: How should we think about named-storm revenue in Q4 from Hurricane Isaias? A: CEO Scott Patterson said the impact will be immaterial. The storm tempered quickly at landfall and water damage was far less than feared. The restoration brands secured some mitigation and board-up work, and RCA won some roofing repair contracts, but none of it forms a meaningful part of the backlog. Q: What does the restoration backlog look like now versus the end of Q2? A: CEO Scott Patterson said backlog is about the same level as Q2. Q3 saw more water mitigation work than was visible at the Q2 callquick-turn work that never hits backlogwith healthy activity in Hawaii and parts of Canada driving results. CFO Jeremy Rakusin added that some larger projects could lift backlog in Q4, but that is not a certainty. Q: Will FirstService Brands margins remain under pressure in Q4? A: CFO Jeremy Rakusin said Brands margins will be modestly lower even as EBITDA grows, largely due to continued roofing margin declines, partially offset by other businesses holding roughly in line. He noted the full-year guidance of mid-single-digit EBITDA growth with margins in line with prior year should allow analysts to fill in the Q4 piece. Q: How active will share buybacks be going forward under the NCIB? A: CFO Jeremy Rakusin said the company will remain active but not at the pace seen since the start of Q2, when leverage was much lower. Buybacks will move in lockstep with free cash flow generation, contingent on an attractive share price and acquisition pipeline opportunities. Leverage stands at 2.4 times, within the mid-2s comfort zone, and he doesn't want it much higher except temporarily. Q: Are roofing competitive pressures getting better or worse, and what does that mean for margins into early next year? A: CFO Jeremy Rakusin expects margins to remain under pressure, certainly through Q4. The company will go through budgeting for all brands and provide a better 2027 outlook in February. Any green shoots will be slow to materialize. Q: What is the strategy in roofingpreserve margins or pursue organic growth, and are you willing to take low-margin business? A: CEO Scott Patterson said the company is balancing both, declining to bid in some situations while adjusting pricing to stay competitive for important long-term and strategic relationships. Decisions are made at the local level and vary by branch and market, with Southwest Florida and Las Vegas cited as unique situations. Q: How widespread is the roofing weakness beyond Florida and Las Vegas? A: CEO Scott Patterson said the company is overweight Florida as a share of revenue, which weighs on results. Excluding Florida, Q4 would show single-digit organic growth. A few branches remain weak, but the majority are positioned to grow next quarter and next year, helped partly by weaker comps. Q: Is the sequential backlog improvement in roofing driven by reroofing or new construction? A: CEO Scott Patterson said the improvement is heavily weighted to reroof, though some recent new construction wins are contributing. CFO Jeremy Rakusin characterized the pickup as modest but broad, with new construction only part of the green shoots. Q: How does the roofing competitive environment shape your M&A approach? A: CFO Jeremy Rakusin said the strategy is unchanged: focus on reroof, commercial work, and partnerships with founders and long-time owners. RCA was 70% reroof and 30% new construction at acquisition, and the company wants to tilt further toward reroof and grow the service component, as it has at Century Fire. It also prioritizes white-space geographies rather than doubling down in existing partner markets. Q: Is rising interest rates easing competition for M&A targets? A: CFO Jeremy Rakusin said any easing would be modestmultiples remain very high, though there are fewer bidders on average. FirstService differentiates by building relationships for tuck-under deals like family-owned A&A Fire Protection rather than competing for widely marketed assets. He expects private equity-owned companies in roofing and restoration to fail amid extended weakness, and roofing multiples are coming down somewhat, though not in fire protection or residential property management. Q: What is driving the expected Q4 margin expansion at FirstService Residential? A: CFO Jeremy Rakusin said core margin improvement has been running around 30 basis points year-to-date and should continue in Q4. On top of that, the exited noncore residential aquatics business, which typically loses money in the Q4 seasonal trough, will no longer weigh on results. He expects at least double the 30 basis points of year-to-date improvement. Q: What is the outlook for home service brands margins in Q4? A: CFO Jeremy Rakusin said home service brands margins should be roughly in line with Q4 last year. Recent quarters were down on flat revenues, lower volumes, and marketing spend to support the top line, and the company continues tweaking promotional activity based on lead flow and front-of-funnel indicators. Q: What is the net top-line impact of announced M&A for 2027? A: CFO Jeremy Rakus For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FirstService stock went into yesterday's Q3 2026 report at CA$206.06 after a solid run over the past month. Traders focused on a modest squeeze in profitability, with consolidated EBITDA margin at 11.1% compared with 11.4% a year ago, and the reaction around the tape reflected that concern. Stepping back from the screen presents a different perspective. Revenue reached about US$1.53b for the quarter while management kept full-year EBITDA growth targets intact. For a property services group carrying a premium P/E and meaningful debt, the key question now is how long this margin pressure will persist. Like the FirstService business but uneasy about the recent margin squeeze and leverage risk? Check out the list of solid balance sheet and fundamentals stocks (7 results) for peers that combine pricing power with sturdier finances. - Revenue (Q3 2026 vs. Q3 2025): US$1,531.7m vs. US$1,447.6m (up 5.8%) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$42.9m vs. US$57.2m (down 24.9%) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.99 vs. US$1.25 (down 21.1%) - Consolidated EBITDA Margin (Q3 2026 vs. Q3 2025): 11.1% vs. 11.4% (compressed by 0.3 percentage points) Leverage jumped after FirstService spent over $300M repurchasing shares. Ask Charlie what drove FirstService's big bet on buybacks. Optimists argue that FirstService can lean on higher value restoration work and aggressive repurchases to offset softer roofing and home services. "Conversion of the recently signed large loss restoration projects across factories, warehouses, government buildings, big box retail and multifamily properties over the next 12 to 18 months is expected to lift FirstService restoration revenues and support operating leverage as higher value work flows through the existing cost base." Q3 backs part of that script. Restoration revenue rose about 10% with a healthier pipeline and stable backlog, while adjusted EPS still edged up 7% despite margin compression, helped by more than 4.1m shares retired since Q2 and ongoing tuck in deals at Century Fire. Skeptics worry that weak roofing plus uneven restoration conversion could blunt that restoration and buyback story for FirstService. "FirstService Roofing is facing a stubbornly weak and highly competitive market, with new construction down outside data centers and reroof activity described as flat nationally, with especially acute pressure in regions like Las Vegas and Southwest Florida." Q3 results give this concern real weight. Roofing organic revenue declined at a high single digit rate with gross margin pressure, and management explicitly expects stress to continue into 2027. Brands EBITDA was flat despite 7% revenue growth, which shows stronger restoration and Century Fire are only partly offsetting the roofing drag so far. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. FirstService reports steady revenue yet still highlights how operating pressure can sit beneath the surface. The real opportunity could be in stocks that appear undervalued before broader sentiment adjusts. - Company 1 - 47% below our estimate - uses premium-site expansion and an AI tuned ecommerce platform to attract higher spending shoppers into a unified omnichannel funnel. - Company 2 - 34% below our estimate - wins recurring design and engineering mandates as public utilities upgrade water systems and strengthen infrastructure against more frequent climate stress. - Company 3 - 50% below our estimate - shifts mining plans toward higher grade zones and new underground projects to extend reserve life and support future metal output. Three companies from the same screener. Open all 3 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FSV.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Interested in FirstService Corporation? Here are five stocks we like better. - FirstService delivered solid third-quarter growth despite economic headwinds: Revenue rose 6% to $1.53 billion, adjusted EPS increased 7% to $1.89, and adjusted EBITDA grew 3% to $170 million. - Restoration, fire protection and residential management offset roofing weakness. Restoration revenue grew 10%, Century Fire exceeded 10% growth, and Residential expanded its EBITDA margin, while roofing revenue declined amid competitive pricing and weak Florida demand. - Management expects mid-single-digit revenue growth in the fourth quarter and maintained its full-year EBITDA outlook. The company repurchased $300 million of shares in Q3, but expects future buybacks to be more closely aligned with free cash flow while keeping leverage near the mid-2-times range. FirstService (NASDAQ:FSV) reported third-quarter revenue growth of 6% and adjusted earnings per share growth of 7%, as strength in its restoration and fire-protection operations helped offset continued weakness in roofing and softer demand across home services. Chief Executive Officer Scott Patterson said the company's results met expectations despite what he described as a difficult economic environment. Revenue reached $1.53 billion for the quarter, while adjusted EBITDA increased 3% to $170 million. Consolidated EBITDA margin was 11.1%, compared with 11.4% a year earlier, and adjusted EPS was $1.89. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over "We continue to face headwinds across a number of our businesses and are very pleased to show this level of growth in a tough economic environment," Patterson said. He added that the company believes the performance "bodes well" for the fourth quarter and into 2027. FirstService Residential generated third-quarter revenue of $633 million, up 5% from the prior-year period. EBITDA increased 7% to $71 million, and the segment's EBITDA margin expanded 30 basis points to 11.3%. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? Chief Financial Officer Jeremy Rakusin said the margin improvement reflected operating teams' efforts to optimize labor costs and identify additional efficiencies. The company expects further margin expansion in the fourth quarter, supported by those efforts and by the earlier exit from non-core aquatics operations that typically lost money during the seasonal fourth-quarter trough. Patterson said the residential-property-management business continues to balance growth and profitability in a price-competitive market. The company is focused on larger and more complex management opportunities, including high-rise and master-planned communities. While new development has slowed, a greater share of new wins is coming from existing communities, he said. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price FirstService Brands recorded revenue of $898 million, up 7% year over year, while EBITDA was unchanged at $102 million. Segment EBITDA margin declined 80 basis points to 11.3%, largely due to lower revenue and gross-margin compression in roofing operations. The company's restoration brands, Paul Davis and First Onsite, posted 10% revenue growth, exceeding management's expectations. Patterson said activity was broad-based during the quarter, with Canada and Hawaii contributing to growth. First Onsite has a significant presence in Hawaii, which experienced a series of storms in recent months. However, continental U.S. insurance-claim activity remained down year to date through the end of the third quarter. Patterson said FirstService has nevertheless won several large-loss projects on the mainland that are expected to convert into revenue over coming months. Hurricane Isaias, which struck the Florida Panhandle on Oct. 10 as a Category 2 storm, is not expected to materially affect fourth-quarter results. The storm generated less damage and fewer insurance claims than initially expected, according to management. FirstService secured some restoration mitigation and board-up work as well as roofing repair contracts, but Patterson said the contribution would be immaterial. Restoration backlog at quarter-end was roughly consistent with the second quarter, although the company saw a higher level of quick-turn water-mitigation work that does not typically enter backlog. Management expects restoration revenue growth of mid- to high-single digits in the fourth quarter. Century Fire delivered another strong quarter, with revenue increasing more than 10%, including high-single-digit organic growth. The company also acquired A&A Fire Protection, a Greenville, South Carolina-based provider of fire-sprinkler design, installation, inspection and repair services. A&A serves commercial customers across South Carolina as well as portions of North Carolina and North Georgia, and President Jake Gilstrap will continue to lead its day-to-day operations. Century Fire's backlog increased sequentially, and FirstService expects the business to finish the year with revenue growth of more than 10%. Revenue in FirstService's roofing operations declined 4% on a reported basis and by a high-single-digit percentage organically during the third quarter. Management cited challenging market conditions, especially in certain larger markets, along with competitive pricing pressure. Rakusin said both reduced volumes and gross-margin pressure contributed meaningfully to the segment's lower profitability. He said competitive conditions are expected to persist through at least the fourth quarter, with pressure concentrated in Florida but also present in other locations. Patterson said roofing backlog improved sequentially and reached its highest level in about a year, describing the trends as early "green shoots." The company expects reported roofing revenue growth in the mid-single digits during the fourth quarter, while organic revenue is expected to be flat to slightly down. Florida remains a significant constraint. Patterson said that excluding Florida, the roofing business would generate single-digit organic growth in the fourth quarter. He also said the company is seeing some new-construction wins, although backlog remains weighted toward reroofing work. Management attributed some of Florida's weakness to reroofing demand that was pulled forward by Hurricane Ian. The storm created a surge of work that benefited the company at the time but was followed by a significant decline in activity. FirstService generated nearly $125 million in cash flow from operations before working capital during the quarter, up 6% year over year. Cash flow after working-capital requirements was $84 million, reflecting higher work-in-process inventories and accounts receivable tied to increased restoration activity and pipeline levels. Capital expenditures totaled $28 million in the quarter and $88 million year to date. The company now expects full-year capital spending of approximately $125 million, lower than its original 2026 budget of $140 million and in line with the prior year. With tuck-under acquisition spending totaling $25 million in the quarter, FirstService directed more capital toward share repurchases. The company bought back 2.2 million shares for slightly more than $300 million during the third quarter. Since the beginning of the second quarter, it has repurchased 4.1 million shares, or 9% of shares outstanding. - Net debt ended the quarter at $1.4 billion. - Leverage was 2.4 times net debt to trailing-12-month EBITDA, up from 1.8 times at the end of the second quarter, primarily due to buybacks. - FirstService had about $500 million of total cash and credit-facility capacity. - The company retained authorization to repurchase another 2.6 million shares through late August 2027. Rakusin said future repurchases would continue but likely at a less aggressive pace, more closely aligned with free-cash-flow generation, share valuation and acquisition opportunities. Management said it is comfortable with leverage in the mid-2-times range but does not want it to rise materially beyond that level except temporarily. For the fourth quarter, FirstService expects mid-single-digit consolidated revenue growth, similar to the third quarter. The company anticipates consolidated margins slightly above the prior-year level, driven by FirstService Residential. For the full year, it maintained its outlook for mid-single-digit EBITDA growth and consolidated margins relatively in line with the prior year. FirstService Corporation is a Canadian provider of property management and property services serving customers primarily in the United States and Canada. The company operates through two main businesses: FirstService Residential and FirstService Brands. FirstService Residential provides property management services for condominium and homeowners' associations, cooperatives, and other residential communities. Its services include community administration, financial management, maintenance coordination, customer support, and related operational services. FirstService Brands operates and supports a network of property-service businesses, including companies involved in property restoration, painting, flooring, window treatments, and other residential and commercial services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "FirstService Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

FirstService (FSV) came out with quarterly earnings of $1.89 per share, missing the Zacks Consensus Estimate of $1.9 per share. This compares to earnings of $1.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.53%. A quarter ago, it was expected that this property services provider would post earnings of $1.71 per share when it actually produced earnings of $1.75, delivering a surprise of +2.34%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. FirstService, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $1.53 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.00%. This compares to year-ago revenues of $1.45 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FirstService shares have lost about 12.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While FirstService has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FirstService was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.58 on $1.46 billion in revenues for the coming quarter and $6.16 on $5.73 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Jones Lang LaSalle (JLL), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 28. This financial and professional services company is expected to post quarterly earnings of $6.01 per share in its upcoming report, which represents a year-over-year change of +33.6%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. Jones Lang LaSalle's revenues are expected to be $7.13 billion, up 9.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FirstService Corporation (FSV) : Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - Chief Executive Officer - Scott Patterson - Chief Financial Officer - Jeremy Rakusin Operator: Good day, and thank you for standing by. Welcome to the FirstService Corporation third quarter investor conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one again. Please be advised that today's conference is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form, as filed with the Canadian Securities Administrators and in the company's annual report on Form 40-F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is October 22nd, 2026. I would now like to turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir. Scott Patterson: Thank you, Michelle. Good morning, everyone. Thank you for joining our Q3 conference call. As usual, I am on today with Jeremy Rakusin, our CFO. I will kick us off with some high-level comments, and Jeremy will follow with more detail. We posted solid results this morning that in aggregate met our expectations and highlight the diversification of our business model. Total revenues for the quarter grew by 6% over the prior year, with organic growth at 4%. We continue to face headwinds across a number of our businesses and are very pleased to show this level of growth in a tough economic environment. We believe it bodes well for our fourth quarter and into 2027. EBITDA for the quarter was up 3%, reflecting a consolidated margin of 11.1% compared to 11.4% last year, and earnings per share were up 7%. Moving to our divisional results. FirstService Residential revenues grew by 5% over the prior year, reflecting the net of contract wins less losses. Condo HOA management is a price-competitive business, always has been. Our teams at FirstService Residential continue to do a great job balancing organic growth with margin. Q3 represents the eighth consecutive margin with some level of margin improvement while averaging mid-single digit organic growth. Jeremy will speak more on margins in his comments. Looking to the fourth quarter, we expect a similar result at FirstService Residential. Moving to FirstService Brands, revenues for the quarter were up 7%, with strength at our Restoration Brands and Century Fire, supported by solid mid-single digit growth at our Home Services brands, partially offset by revenue declines within our roofing platform. Revenues for our two Restoration Brands, Paul Davis and First Onsite, were up 10% from the prior year, better than expectation. We mentioned during our Q2 call that we had made progress late in Q2, signing work and building our pipeline back to a healthy level. During Q3, we continued to see solid activity levels that were generally broad-based across North America. We are geographically diversified across our two brands. Both Paul Davis and First Onsite have strong market positions in Canada, two of the top three companies by our estimate. Also, First Onsite has a very strong position and is the market leader in Hawaii, which has been hit by a series of storms over the last several months. Activity across Canada and Hawaii helped drive our growth in Q3. Conversely, claim activity in the continental U.S. across the industry has been down year-to-date at the end of Q3. Notwithstanding, we have been successful in signing a number of large loss projects on the mainland that will be converted to revenue over the next many months. In terms of named storms, Hurricane Isaias hit the Florida Panhandle on October 10 as a Cat 2 storm. It was primarily a wind event with some flooding and in general caused less damage than originally feared. Industry insurance claims have been much lower than expected. Our Restoration Brands have secured some work from the event, primarily mitigation and board up, but not a material amount. Similarly, we have secured roofing repair contracts through our operations at RCA, but again, it will not be material to our Q4 results. We have a solid backlog at our Restoration Brands heading into Q4 and expect to show mid to high single-digit growth for the quarter. Moving to our roofing segment, revenues for the quarter were down 4% on a reported basis and high single digit organically. As expected, the roofing market continued to be a challenge during the quarter, particularly in a few of our larger markets. I will say that we did start to see some green shoots across a number of our branches and finished the quarter with a backlog that was up sequentially and at the highest level we have seen over the last year. Looking forward to the fourth quarter, we expect to show mid-single-digit reported growth and organic growth that is flat to slightly down from the prior year. As I mentioned, we will see some roof repair work in the Florida Panhandle from Hurricane Isaias, but otherwise, the Florida market remains very difficult and is holding us back from showing more improvement in Q4. Now on to our Home Services brands, which as a group, generated revenues that were up mid-single digit from the prior year, primarily due to the tuck-under acquisition of the Indianapolis California Closets operation in Q1 of this year. Organic growth was positive but modest. Our teams continue to battle headwinds and produce results in this segment. During the quarter, we again improved conversion and close ratios and drove a higher average job size to overcome a year-over-year reduction in leads and activity. Both the housing market and consumer sentiment worsened during the quarter and are at historic lows. Home improvement indices and forecasts are pointing to lower levels of activity in the coming months, and we expect to see that in our near-term results. Looking to Q4, we expect revenues to be flat in aggregate and down low single digit organically. I will close with Century Fire, where we had another strong quarter in line with expectation. Revenues were up over 10% versus the prior year, including high single-digit organic growth. Late in the quarter, we closed on the acquisition of A&A Fire Protection based in Greenville, South Carolina. A&A is a leading provider of fire sprinkler design, installation, inspection, and repair services to commercial customers across South Carolina and into North Carolina and North Georgia. Jake Gilstrap, President of A&A, will continue to lead day-to-day operations. A&A represents another in a long line of exciting partnership transactions at Century Fire that have expanded our geographic footprint and enhanced our service capability. Looking forward for Century, our quarter end backlog ticked up sequentially again, and we expect to finish the year with a similarly strong 10%+ revenue growth. Let me now hand off to Jeremy. Jeremy Rakusin: Thank you, Scott. Good morning, everyone. As you just heard, we are pleased with our consolidated third quarter results, particularly given the organic top-line performance, which exceeded our expectations. For the quarter, we recorded revenues of $1.53 billion, up 6%, and adjusted EBITDA of $170 million, a 3% increase relative to the prior year period. Our consolidated EBITDA margin for the quarter was 11.1%, down modestly from last year's 11.4% level. Adjusted EPS during Q3 was $1.89, resulting in growth of 7% quarter-over-quarter. For the nine months year-to-date, our consolidated financial performance includes revenues of $4.3 billion, up 4% over the $4.1 billion in the prior year. Adjusted EBITDA at $437 million, a 3% increase year-over-year, with our overall EBITDA margin at 10.2%, relatively in line with the 10.3% margin for the prior year period. Lastly, our adjusted EPS year-to-date is $4.57, reflecting 4% growth over the $4.39 reported for the same period last year. Our adjustments to operating earnings and GAAP EPS in providing adjusted EBITDA and adjusted EPS respectively are disclosed in this morning's earnings release and are consistent with our approach in prior periods. Turning now to our segment performance, I will start at FirstService Residential. In the third quarter, we generated revenues of $633 million, resulting in 5% growth over the prior year period. EBITDA was $71 million, a 7% increase over the third quarter of last year. Our current quarter EBITDA margin came in at 11.3% with the 30 basis points of margin expansion versus the prior year quarter, matching our year-to-date margin improvement as our operating teams further optimize labor costs and find incremental efficiencies. In the fourth quarter, we will see a continuation of these efforts, and together with the seasonal benefit from exiting non-core aquatics operations earlier this year, we expect our FirstService Residential division to show more significant margin expansion than the year-to-date performance. Looking next at our FirstService Brands division, we generated revenues of $898 million during the current third quarter, up 7% over Q3 2025. EBITDA for the division was $102 million, matching the prior year level. Our margin of 11.3% compressed 80 basis points compared to the 12.1% margin in last year's third quarter. The lower margin was primarily reflected in our roofing operations, which was impacted by both the declining revenues that Scott noted, as well as gross margin compression due to competitive market pressures at certain key branches. In addition, the division profitability included a modest decline in home improvement margins, partially offset by an uptick in margins at Restoration Brands on the back of their strong revenue growth in the quarter. I will now provide a summary of our cash flow and capital deployment. During the third quarter, we generated almost $125 million in cash flow from operations prior to working capital, up 6% year-over-year, in line with earnings growth. Our cash flow after accounting for working capital requirements was $84 million, with the decline quarter-over-quarter due to higher work-in-process inventories and accounts receivable, in conjunction with increased activity and pipeline levels in our Restoration Brands. Year-to-date, we have generated more than $300 million in operating cash flow at a healthy 70% of EBITDA conversion rate. Capital expenditures during the quarter totaled $28 million, and spending year-to-date sits at $88 million, below our 2025 levels. We expect full-year CapEx to now come in at approximately $125 million, in line with last year, and lower than our original 2026 budgeted CapEx of $140 million. With modest tuck-under opportunities tempering our acquisition spending at $25 million for the quarter, we focused our capital deployment efforts on buybacks of FirstService shares. In Q3, we repurchased 2.2 million shares at a cost of a little more than $300 million under our normal course issuer bid. Year-to-date, since the beginning of the second quarter, we have now repurchased 4.1 million or 9% of our outstanding shares. This has contributed to stronger EPS growth in our Q3 results, and we believe that this investment will yield attractive returns over the long term. We currently have remaining capacity to buy back an additional 2.6 million shares under our existing normal course issuer bid, which expires in late August 2027. We will continue to judiciously balance our share repurchases after taking into account other factors, including our acquisition pipeline opportunities, the market valuation of our FirstService shares, and balance sheet, all with the intention of driving long-term value for our shareholders. On the topic of our balance sheet, we ended Q3 with net debt of $1.4 billion, resulting in leverage of 2.4x net debt to trailing 12 months EBITDA, and up sequentially from 1.8x at the end of the previous second quarter, largely due to our share buyback activity. This capital structure remains conservative and well within our comfort level, given the strong free cash flow model of our enterprise. We also have approximately $500 million of total cash and credit facility capacity, providing us with ample financial flexibility and liquidity. Wrapping up with our balance of year outlook, the aggregation of the brand-by-brand top-line indicators Scott has provided will drive to similar mid-single-digit consolidated revenue growth for our upcoming fourth quarter as we delivered in the third quarter. This will also culminate in mid-single-digit growth in consolidated annual revenues for the full year, and at the upper end of the range we expected at mid-year. On the EBITDA line for Q4, we expect consolidated margins to be slightly higher than prior year, driven by FirstService Residential, as noted in my earlier comments. For the full year, we are maintaining our target provided at the end of Q2 of mid-single-digit consolidated annual EBITDA growth and margins relatively in line compared to prior year. During our February year-end earnings call, we will provide more details on our outlook for 2027. That now concludes our prepared comments. Michelle, you may now open up the call to questions. Thank you. Operator: Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile our Q&A roster. Our first question is going to come from the line of Erin Kyle with CIBC. Your line is open. Please go ahead. Erin Kyle: Hi. Good morning. Thanks for taking the questions, and congratulations on the strong quarter. It is good to see Brands organic growth return in the quarter. I just want to ask a question on the margin. I appreciate you touched on it there, Jeremy, on the roofing. Are you able to break out how much of that pressure in the roofing business is truly competitive pricing pressure versus lower volumes? As it relates to that, just with competition pressure continuing to increase or at least remain consistent, do you expect the margin profile in that business can recover before the roofing volumes return? Jeremy Rakusin: Yeah, it is hard to parse out how much of it is due to top-line declines versus margin compression. Both are contributing factors, and we are obviously taken the approach in this competitive environment to make sure we are being competitive to get enough projects in the hopper and protect the top line as best as possible. We expect these competitive pressures to be there for a decent period of time. It is mainly concentrated in Florida, but it is in some other locations across our branches as well. But equally meaningful contributions due to the decline in revenues as well as the gross margin impact. Scott, I do not know if you want to provide any further outlook on the top line competitive pricing dynamics. Scott Patterson: No, I think certainly in terms of line of sight, we expect it to continue to be very competitive over the near term. Erin Kyle: Maybe just to follow up on that, how much visibility would you say that you have into this business? Because I appreciate there are several branches spread across several states. What would you say in terms of your visibility into the next 12 months? Scott Patterson: Listen, we're just starting on our ERP implementation. So right now we're working off 12 different systems. So our visibility relative to our other businesses is limited. The visibility we have is related to our backlog and then coming up with our bid activity and then trying to assess timing around converting that backlog into revenue. Honestly, we've had difficulty forecasting that the last several quarters. So, we're implementing this system. It will improve our information, data and visibility markedly. We'll be through that in 2027. Erin Kyle: That's helpful. Thank you. Maybe just one more from me on the Restoration Brands business. Just as we think to Q4 and the impact from Hurricane Isaias. Sounds like from some of your prepared remarks, the impact of FirstService might have been a bit lower than we had anticipated. Any color you can give us there in terms of how we should think about modeling named storm revenue for Q4 would be helpful. Scott Patterson: Yeah. It will be immaterial to our results. We have a lot going on in restoration, but it's not really tied to the recent hurricane. I mean, we've learned over the years that every storm is different. It depends on Hurricane Isaias sort of tempered quickly as soon as it hit landfall, and the water damage wasn't near what was feared. So there were strong winds. We do have some roofing repair work, some restoration work, but it's not material and doesn't form a big part of our backlog at all. Erin Kyle: That's helpful. Thanks, Scott. I'll pass the line. Operator: Thank you. One moment for our next question. Our next question will come from the line of Stephen MacLeod with BMO Capital Markets. Your line is open. Please go ahead. Stephen MacLeod: Thank you. Good morning, guys. Just wanted to follow up on the residential business. Maybe just specifically on restoration. I guess notwithstanding the fact that Hurricane Isaias is not that material to the backlog, can you just talk a little bit about what your backlog sort of looks like right now, and whether you saw it grow from what you had referred to or what you had talked about at the end of Q2? Scott Patterson: It's about the same level as Q2, Stephen. During Q3, what we did see is more water mitigation work than was visible at the time of our Q2 call. Mitigation really never hits our backlog. It's quick turn work. Some of the activity I described in Hawaii and across certain regions in Canada comprised a healthy level of mitigation, and that was a big driver for us in Q3. Stephen MacLeod: Okay. That's helpful. Thanks, Scott. Maybe just on the Q4 margin outlook. You gave a lot of color, specifically on the residential business. You gave a lot of color around the top line expectations for Q4. I'm just curious, would you expect that the margins will continue to remain under pressure in the residential business into Q4? Jeremy Rakusin: When you say the residential business, they're going to be- Stephen MacLeod: Oh, sorry. I meant to say Brands. Jeremy Rakusin: Yeah. Stephen MacLeod: Meant to say Brands. Jeremy Rakusin: Brands margins will be modestly lower. We are going to grow EBITDA in our mind. But the margin will be down again, largely due to the same dynamics as in Q3, with roofing margins down and every other business sort of roughly in line to partially offsetting that. Stephen MacLeod: Right. Okay. That is great. Then just Oh, sorry. Go ahead. Jeremy Rakusin: No, I was going to say, and the full year indications I gave for consolidated margins being in line with us growing mid-single digits should get you to be able to sort of fill in the missing pieces for Q4. Stephen MacLeod: Yeah. Okay. That is great. Thanks, Jeremy. Then maybe just finally, on the NCIB, you have obviously been very active. You still have the 10% NCIB out there with 2.6 million shares of capacity. Barring any other change in the acquisition pipeline, would you expect to continue to be sort of very active on that NCIB? Jeremy Rakusin: We would be active, but not as active as we have been starting at the beginning of Q2. We started with a much lower leverage level. I think right now it is going to be in lockstep with generating free cash flow, which our businesses always collectively do. We will be using free cash flow to buy back shares, assuming that the stock price is at levels that we feel are attractive to be doing that, and as also qualified, as you said, by our acquisition pipeline opportunities. Stephen MacLeod: Yeah. Okay. That is great. Thanks, guys. Appreciate it. Operator: Thank you, and one moment for our next question. Our next question will come from the line of Stephen Sheldon with William Blair. Your line is open. Please go ahead. Stephen Sheldon: Hey, thanks. I wanted to ask a follow-up question on roofing margins. It is great to hear that the backlog there is improving, but curious, I guess, are the competitive pressures getting any better or worse than you have seen in the prior few quarters? Has there been any changes, I guess, in bidding activity and what that could mean for margins as we think about fourth quarter into early next year? Jeremy Rakusin: We think that the margins will continue to be under pressure. As I said, definitely into Q4, we will go through budget with the business as we do with all of our brands for the balance of the year and have a better outlook for 2027. But I think any green shoots that Scott articulated in his comments will be slow to materialize. I think we will have more to say on the margin profile for our brands collectively with indicators for each in our February call. Stephen Sheldon: Got it. Then just to follow up on residential, sounds like you are expecting similar growth there in the fourth quarter as the third. Wanted to specifically ask about, I guess, the new business pipeline, how that is shaking out to win new contracts and support new communities. Then I guess, kind of and what that means, I guess, for your visibility into growth for next year. Scott Patterson: Stephen, when you say new communities, are you talking about new development? Stephen Sheldon: New customers. Whether it's new development- Scott Patterson: New customers. Stephen Sheldon: Or competitive wins against, yeah. Scott Patterson: Yeah. We have a strong sales pipeline in that business, working on it all the time. I did say in my prepared comments, we're trying to balance price and margin, organic growth and margin, because these situations are always very price competitive. So our focus is on larger, more complex management opportunities, high rise and master planned. Historically, we have benefited from new development, and that is slower in this environment. So there's a higher proportion of our new wins coming from existing communities. So I would say it's solid and similar to the level it's been at the last several quarters, which is, I guess, reflected in a stable organic growth rate that you're seeing. Stephen Sheldon: Good to hear. Thank you. Operator: Thank you, and one moment for our next question. Our next question comes from the line of Himanshu Gupta with Scotiabank. Your line is open. Please go ahead. Himanshu Gupta: Thank you, and good morning, everyone. Just on roofing, first question, what is the preference or strategy here? Are you looking to preserve margins or go after organic revenue growth? Are you open to take low margin business in the roofing side? Scott Patterson: Yeah. Himanshu, it's not dissimilar to my comments on residential. We're trying to find that balance. We are certainly choosing not to bid in certain situations. But in others, with long-term relationships, with strategic relationships, we are adjusting our pricing methodology to be competitive for important customers and relationships. We're picking our spots, and those decisions are being made at the local level. The situation's very different from branch to branch and market to market. We've talked about Southwest Florida, we've talked about Vegas. Those are somewhat unique situations, but the strategy is a little bit different market to market depending on the competitive situation. Himanshu Gupta: Okay. Thank you. Just talking about market to market here, how many branches in roofing do you think are showing negative growth on organic growth basis? Just trying to see how widespread the pocket of weakness is beyond Florida and Las Vegas. Scott Patterson: Yeah. We are overweight in Florida just as a percentage of our revenue, if you will, and opportunity. That does weigh on us. Let me put it to you this way, ex Florida Q4, we would show single-digit organic growth. We have a few branches that are still showing weakness, but the majority of them are looking to grow in the next quarter and certainly next year. Part of that is we are coming up against weaker comps also. But the majority of them are growing. Himanshu Gupta: That is very helpful. One follow-up now. You mentioned roofing backlog has improved on a quarter-over-quarter basis. Is the improvement led by reroofing business, or are you starting to see some backlog from new construction as well? Scott Patterson: We are seeing a little from new construction. It is heavily weighted to reroof, but we are seeing some wins recently, new construction wins. Himanshu Gupta: Okay. Is that the reason you mentioned the mention of green shoots because starting to see some new construction as well? Scott Patterson: It is part of it. It is really just the pickup, it is modest, but it is an increase in activity. New construction is part of that, but we are also seeing it in other areas also. Himanshu Gupta: Okay. Thank you. Maybe last question now on restoration. On restoration, I think I just want to clarify, you mentioned backlog in Q3 is similar to Q2, but pipeline is stronger. Is that fair to say that? Eventually, we will see that translating from pipeline to backlog. Scott Patterson: Let me approach it a few ways. We are still working on a number of jobs that involve mitigation, quick turn mitigation that never really hits our backlog. While the backlog is at a similar level, we are very active on a number of different projects. Then to your pipeline comment, we do have some activity that could lead to some larger projects that will hit the backlog and see a tick up by the end of Q4. That is certainly not a certainty at this point. There is a lot that depends on that. Himanshu Gupta: Got it. Yeah. I think that's helpful. Maybe just one last question, capital allocation. Is it a target leverage here in the context of you being very active on buyback? Would you do more buyback and increase the leverage here? Scott Patterson: No, it's syncing up with my earlier comments on a prior question. Mid two's of leverage, we're at 2.4, so we're in the zone of still at our comfort level, but don't want to go much higher than that, except for very temporary periods. So that's why I think our buyback activity will be, again, more judicious and in lockstep with free cash flow generation. Himanshu Gupta: Thank you so much. I'll turn it back. Operator: Thank you. One moment for our next question, which will come from the line of Tim James with TD Securities. Your line is open. Please go ahead. Tim James: Thanks very much. Good morning. Just want to think about the roofing business and how it relates to your M&A strategy. Has maybe your learnings or observations around the competitive environment, the dynamics between reroofing and new construction, your geographic footprint, how does that come into play as you think about your M&A approach with roofing going forward? Scott Patterson: Yeah, certainly, many of those factors come into play, Tim. Our focus on roofing acquisitions really hasn't changed from the beginning. We're focused on reroof, we're focused on commercial, and we're focusing on partnering with founders and longtime owners. Continuing to grow the business with them in partnership. That hasn't changed. When we partnered with the RCA team, we bought a number of branches. We were 70% reroof, 30% new construction. We would like to tilt that more towards reroof as we move forward with acquisitions, and also significantly increase the service component, which we've been successful at doing in Century Fire and we're very focused on at RCA. Tim James: Thank you. If I could just follow up on that. In terms of your, you mentioned overweight to Florida, and I think some of the types of customers, maybe less data centers, government, et cetera. Does your exposure or lack of exposure in some regions make you that much more incentivized to expand your footprint or diversify your footprint, diversify your customer base? Or does it really just come back down to the economics and finding a business that fits regardless of where it is across the country? Scott Patterson: No. That's a good point, and I should have added that certainly we're focused on expanding our geographic footprint, and we have a particular focus on white space areas for us where we want to be. We won't buy the businesses we own in local markets. Those are our partners. We're not going to double down in those markets. Yes, we have priority white space that we're focused on. Tim James: Okay. Thank you very much. Those are all the questions I had. Operator: Thank you. One moment for our next question. Our next question will come from the line of Frederic Bastien with Raymond James. Your line is open. Please go ahead. Frederic Bastien: Hi, good morning, guys. Competition for M&A targets has been quite intense for some time. Are you seeing any signs that the recent rise in interest rates is making financial buyers a bit more cautious and potentially easing competition for you guys, creating maybe a more favorable acquisition environment? Scott Patterson: It would be modest, Frederic. Multiples remain very high. I think there are fewer bidders, on average, for situations we're seeing. But our focus is really on developing relationships with tuck-under, like the A&A Fire deal that we announced this week. That's a family-owned business. They're familiar with Century Fire, familiar with Century's reputation, familiar with other companies that have achieved great success post-partnership with Century. So we're trying to really differentiate ourselves in situations like that, rather than competing on opportunities that are being widely marketed, if you will. So honestly, I don't see the competition reducing right now. Frederic Bastien: Okay. What do you think needs to change for this environment to become more favorable? Scott Patterson: Well, I think that we will see, in roofing, in restoration, we will see private equity-owned companies that fail. It's a tough environment in both restoration. I think we're sort of breaking the mold a little bit because claims have been down for a few years. There haven't been gulf storms. We had one recently. So a lot of companies really depend on that activity. In roofing, it's just a very weak demand environment, and we're seeing distressed situations. We're getting lots of calls from folks inquiring about joining our platform. I think it's going to have to be an extended period of weakness here to see some of these things. But I think the multiples in roofing are probably coming down a bit. We're not seeing it in fire or FirstService Residential, residential property management. But I think in roofing, we are seeing multiples come down a bit. Frederic Bastien: Thanks, Scott. That's helpful. Operator: Thank you. One moment for our next question. Our next question will come from the line of Daryl Young with Stifel. Your line is open. Please go ahead. Daryl Young: Good morning, everyone. I just wanted to ask on the restoration business, if the new large contracts that you have in the pipeline, would these be traditional jobs that you would have worked on in the past, or are these new construction with a different, I guess, revenue and earnings profile to them. Are you taking on more execution risk in fixed price contracts to grow that pipeline? Scott Patterson: No, we're not taking on or looking at any fixed price contracts or any sort of different type of contract that we would not be deploying our expertise, typical expertise. So there's no additional execution risk. It's a balance that we have, in the last few quarters, started to look at opportunities that are with the same customer base and in the same verticals, but involve more capital improvements and new construction. We've been asked to submit bids really based on our experience and reputation. So we do have a few wins, and we're waiting to hear on other opportunities. But it would be very similar to what we'd do in a large loss restoration job. Daryl Young: Got it. Okay, thanks. Scott Patterson: I don't know if I answered your question. Yeah. Daryl Young: No, that's helpful. That's helpful context. Then just one last one in terms of roofing in Florida. Is there a dynamic where we had a whole lot of storms five and six years ago and then no storms the last couple of years? Do customers defer and wait for the next storm to make an insurance claim as opposed to paying to reroof now? Or is that a dynamic that's at play that you see at all? Scott Patterson: No, I think what really happened was the reroof work got pulled forward with Hurricane Ian. That sort of pulled forward a few years of reroof work, and really more so than we even understood. While our business has benefited at the time and have, even at this time last year, had some Hurricane Ian in the backlog, the fall off has been pretty significant since then. So they're not waiting. It's just got the storm basically created all the reroof work at a point in time. Daryl Young: Got it. Okay. That's helpful. That's all for me. Thanks very much. Operator: Thank you. As a reminder, to ask a question, please press star one on your telephone. Our next question comes from the line of Faiza Alwy with Deutsche Bank. Your line is open. Please go ahead. Faiza Alwy: Yes. Hi, thank you. I wanted to ask about margins in the residential business. I think, Jeremy, you mentioned that you expect to see more significant margin expansion in the fourth quarter than the year-to-date performance, and I think you mentioned exiting the non-core aquatics operation. Could you just double-click on that and give us a bit more color on the impact there? Jeremy Rakusin: Yeah. We've been run rating for the year at around 30 basis points of margin improvement, so that's kind of core and expect that to continue for Q4. Overlaying on top of that would be, again, not having this residential aquatics business that typically loses money in the seasonal trough period of Q4, not in our numbers. I'm not going to put a precise number on where we'll get to on margin improvement, but I'm going to say at least double the 30 basis points that we've seen year to date. Faiza Alwy: Okay, great. That is very helpful. Just on the Home Services Brands business, I think you talked about positive organic growth, and sounds like you're expecting a modest decline for Q4, which makes sense given the environment. I was just curious on margins there, because I think you said there were some margin headwinds, but I'm not sure if that was just sort of M&A dilution because you make an acquisition there, and how should we think about margins in that business in Q4 if that's decelerating? Jeremy Rakusin: Within the Brands division overall or one of the particular business lines there? Faiza Alwy: I was just curious on Home Service Brands, if it's just the top line or if it's more of an M&A impact that's going to make margins worse or better. Jeremy Rakusin: No. Home Service Brands, our expectation is they've been down the last couple of quarters, a combination of flat revenues, lower volumes, and marketing spend to support the top line. We'll be roughly in line in Q4, again, depending on how we address the. We're always tweaking the dial there around our marketing and promotional activity to support the top lines, and we're looking at that in the context of our lead flow and other front of the funnel indicators. Home Services margin should be roughly in line with Q4 last year in the upcoming quarter. Faiza Alwy: Okay, perfect. Just last one. I know you've made a bunch of small tuck-under acquisitions, so I'm wondering if you could give us a sense of, as we look ahead to 2027, what's the net impact of M&A that's already been announced on the top line so far for next year? Jeremy Rakusin: There's not a lot. We've only spent $25 million of spend in the current quarter. It's going to be on a quarterly basis, we're talking about mid-single digits of revenue. Some of the other acquisitions that we did were a lot earlier in the year, so we'll be lapping most of that next year. So most of our growth into 2027, again, we'll give more color in February, is going to be organic unless we close other acquisitions in the balance of the fourth quarter. Faiza Alwy: Great. Thank you so much. Operator: Thank you. I am showing no further questions at this time. This will conclude today's question and answer session. Ladies and gentlemen, this will also conclude today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day. Before you buy stock in FirstService, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FirstService wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy. FirstService (FSV) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved 6% total revenue growth despite significant economic headwinds, credited to the inherent stability of the diversified business model. - FirstService Residential maintained mid-single-digit organic growth by balancing price-competitive contract wins with labor cost optimization and efficiency gains. - Restoration Brands outperformed expectations with 10% growth, driven by strong market positions in Canada and Hawaii despite lower continental U.S. claim activity. - Roofing revenues declined 4% as the Florida market remains challenged by the pull-forward of reroofing work following Hurricane Ian. - Home Services brands utilized higher conversion rates and increased job sizes to offset a year-over-year reduction in consumer leads and activity. - Century Fire continued its expansion through the acquisition of A&A Fire Protection, strengthening its footprint in the Carolinas and Georgia. - Management expects Q4 consolidated revenue growth to mirror Q3 at mid-single digits, supported by a healthy Restoration backlog. - FirstService Residential is projected to see significant margin expansion in Q4 due to the seasonal benefit of exiting non-core aquatics operations. - Roofing organic growth is expected to remain flat to slightly down in Q4 as competitive pricing pressures in Florida persist. - Home Services revenue is forecasted to be flat in aggregate for Q4, reflecting historically low consumer sentiment and housing market indices. - Capital allocation will shift toward a more judicious balance between share repurchases and acquisition opportunities, aligned with free cash flow generation. - Hurricane Isaias is expected to be immaterial to Q4 results, as the event caused less damage than initially feared and generated only minor mitigation work. - The company repurchased 9% of its outstanding shares since Q2, contributing to 7% EPS growth despite modest EBITDA expansion. - A major ERP implementation is underway in the roofing segment to address current limitations in data visibility across 12 disparate systems. - Leverage increased to 2.4x net debt to EBITDA, primarily driven by the $300 million share buyback program in the third quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that margin compression is driven equally by top-line volume declines and the need to remain price-competitive for strategic customers. - Competitive pressures are expected to remain for a decent period, particularly in Florida, though 'green shoots' in activity are appearing in other branches. - The current backlog is stable compared to Q2, but Q3 results were bolstered by quick-turn water mitigation work that does not typically enter the formal backlog. - Management is pursuing larger projects involving capital improvements and new construction within existing customer verticals to diversify the pipeline. - Buyback activity will likely moderate from recent levels to stay in lockstep with free cash flow generation. - The company intends to maintain leverage in the 'mid-two's' range, viewing the current 2.4x level as the upper end of its comfort zone. - Multiples remain high in Fire and Residential Management, but management is seeing some downward pressure on multiples in the roofing sector. - The company is increasingly seeing distressed opportunities and inquiries from private equity-owned firms struggling in the current weak demand environment.

Balanced Top-Line Growth Across Both Divisions Operating highlights: | Three months ended | | Nine months ended | September 30 | | September 30 | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | Revenues (millions) | $ | 1,531.7 | | $ | 1,447.6 | | $ | 4,298.0 | | $ | 4,114.1 Adjusted EBITDA (millions) (note 1) | | 169.7 | | | 164.8 | | | 437.1 | | | 425.2 Adjusted EPS (note 2) | | 1.89 | | | 1.76 | | | 4.57 | | | 4.39 | | | | | | | | | | | GAAP Operating Earnings | | 107.4 | | | 115.6 | | | 253.7 | | | 252.2 GAAP Diluted EPS | | 0.99 | | | 1.24 | | | 2.41 | | | 2.32 | | | | | | | | | | | TORONTO, Oct. 22, 2026 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported results for its third quarter ended September 30, 2026. All amounts are in US dollars. Consolidated revenues for the third quarter were $1.53 billion, a 6% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 3% to $169.7 million, and Adjusted EPS (note 2) was $1.89, reflecting 7% growth over the prior year quarter. During the third quarter, FirstService reported GAAP Operating Earnings of $107.4 million, versus $115.6 million in the prior year period. GAAP diluted earnings per share was $0.99 in the quarter, versus $1.24 for the same quarter a year ago. For the nine months ended September 30, 2026, consolidated revenues were $4.30 billion, a 4% increase relative to the comparable prior year period, Adjusted EBITDA was $437.1 million, up 3%, and Adjusted EPS was $4.57, an increase of 4% over the prior year period. FirstService's GAAP Operating Earnings were $253.7 million in the current year period, versus $252.2 million in the prior year. GAAP diluted earnings per share for the nine months year-to-date was $2.41, compared to $2.32 in the prior year period. "We were pleased with our results for the quarter, highlighted by our sequential improvement in organic top-line growth," said Scott Patterson, Chief Executive Officer of FirstService. "The continued strong execution of our operating teams in the face of macroeconomic challenges reinforces our confidence in achieving our previously communicated full-year performance targets," he concluded. About FirstService Corporation FirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential - North America's largest manager of residential communities; and FirstService Brands - one of North America's largest providers of essential property services delivered through individually branded company-owned operations and franchise systems. FirstService generates more than US$5.6 billion in annual revenues and has approximately 30,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ under the symbol "FSV" and on the Toronto Stock Exchange under the symbol "FSV", and are included in the S&P/TSX 60 index. More information is available at www.firstservice.com. Segmented Quarterly Results FirstService Residential revenues were $633.3 million for the third quarter, up 5% compared to the prior year quarter, and all from organic growth (note 1). Top-line performance was driven by new contract wins and expanded sited labor services. Adjusted EBITDA for the quarter was $71.3 million, an increase of 7% compared to the prior year period. Operating Earnings were $58.0 million, versus $53.3 million for the third quarter of last year. Margins for the division were modestly up versus the prior year due to labor cost management and incremental efficiency gains. FirstService Brands revenues during the third quarter were $898.4 million, up 7% relative to the prior year period. On an organic basis, division revenues grew 3% driven by our Restoration brands and Century Fire Protection, and partially offset by reduced activity levels at Roofing Corp. of America. Adjusted EBITDA for the third quarter was $101.8 million, compared to $102.1 million in the prior year period. Operating Earnings were $60.0 million, versus $73.7 million in the prior year quarter. The decline in the division margin primarily reflects reduced profitability in our roofing operations, resulting from lower year-over-year revenues and a more competitive market environment. Operating Earnings margin was also affected by contingent consideration fair value adjustments that benefitted the prior year period. Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.5 million in the third quarter, relative to $3.7 million in the prior year period. GAAP corporate costs for the quarter were $10.7 million, relative to $11.4 million in the prior year period. Conference Call FirstService will be holding a conference call on Thursday, October 22, 2026 at 11:00 a.m. Eastern Time to discuss results for the third quarter of 2026. This call is being webcast live at the Company's website at www.firstservice.com. Participants may register for the call here https://register-conf.media-server.com/register/BI9d7175d9b02f4276bcb50335f8def6ce to receive the dial-in number and their unique PIN. To join the webcast in listen only mode, use this link: https://edge.media-server.com/mmc/p/txwrhwjy . It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). Forward-looking Statements This press release includes or may include forward-looking statements. Much of this information can be identified by words such as "expect to," "expected," "will," "estimated" or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for FirstService's services and the cost of providing services; (ii) the ability of FirstService to implement its business strategy, including FirstService's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in FirstService's annual information form for the year ended December 31, 2025 under the heading "Risk factors" (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings (which factors are adopted herein). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise. Summary financial information is provided in this press release. Our interim consolidated financial statements and related management's discussion and analysis will be made available on SEDAR+ at www.sedarplus.ca. Notes 1. Reconciliation of net earnings to adjusted EBITDA: Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other (income) expense; (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) share-based compensation expense. The Company uses Consolidated adjusted EBITDA and segment adjusted EBITDA to evaluate its own operating performance, its ability to service debt, and as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company's overall enterprise valuation and to evaluate acquisition targets. Consolidated adjusted EBITDA and segment adjusted EBITDA are presented as a supplemental measure because the Company believes such a measure is useful to investors as a reasonable indicator of operating performance, due to the low capital intensity of the Company's service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company's method of calculating adjusted EBITDA and segment adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below. | Three months ended | | Nine months ended (in thousands of US$) | September 30 | | September 30 | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | Net earnings | $ | 64,550 | | | $ | 70,887 | | | $ | 149,103 | | | $ | 140,398 | Income tax | | 23,834 | | | | 27,700 | | | | 55,191 | | | | 57,377 | Other expense (income), net | | 146 | | | | (1,138 | ) | | | (236 | ) | | | (2,220 | ) Interest expense, net | | 18,839 | | | | 18,179 | | | | 49,647 | | | | 56,609 | Operating earnings | | 107,369 | | | | 115,628 | | | | 253,705 | | | | 252,164 | Depreciation and amortization | | 51,003 | | | | 46,635 | | | | 149,552 | | | | 136,443 | Acquisition-related items | | 4,209 | | | | (4,100 | ) | | | 9,657 | | | | 15,795 | Share-based compensation expense | | 7,090 | | | | 6,617 | | | | 24,155 | | | | 20,772 | Adjusted EBITDA | $ | 169,671 | | | $ | 164,780 | | | $ | 437,069 | | | $ | 425,174 | | | | | | | | | | | | | | | | A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below. (in thousands of US$) | | | | | | | | | | | | | Three months ended, September 30, 2026 | | FirstService | | FirstService | | | | | Residential | | Brands | | Corporate(1) | | | | | | | | | Operating earnings (loss) | $ | 58,036 | | | $ | 59,991 | | | $ | (10,658 | ) Depreciation and amortization | | 13,213 | | | | 37,767 | | | | 23 | Acquisition-related items | | 78 | | | | 4,037 | | | | 94 | Share-based compensation expense | | - | | | | - | | | | 7,090 | Adjusted EBITDA | $ | 71,327 | | | $ | 101,795 | | | $ | (3,451 | ) | | | | | | | | | | | | | | | | | | Three months ended, September 30, 2025 | | FirstService | | | FirstService | | | | | Residential | | | Brands | | Corporate(1) | | | | | | | | | Operating earnings (loss) | $ | 53,279 | | | $ | 73,720 | | | $ | (11,371 | ) Depreciation and amortization | | 12,164 | | | | 34,449 | | | | 22 | Acquisition-related items | | 920 | | | | (6,082 | ) | | | 1,062 | Share-based compensation expense | | - | | | | - | | | | 6,617 | Adjusted EBITDA | $ | 66,363 | | | $ | 102,087 | | | $ | (3,670 | ) | | | | | | | | | | | | | | | | | | Nine months ended, September 30, 2026 | | FirstService | | | FirstService | | | | | Residential | | | Brands | | Corporate(1) | | | | | | | | | Operating earnings (loss) | $ | 143,099 | | | $ | 146,566 | | | $ | (35,960 | ) Depreciation and amortization | | 39,567 | | | | 109,917 | | | | 68 | Acquisition-related items | | 3,932 | | | | 5,268 | | | | 457 | Share-based compensation expense | | - | | | | - | | | | 24,155 | Adjusted EBITDA | $ | 186,598 | | | $ | 261,751 | | | $ | (11,280 | ) | | | | | | | | | | | | | | | | | | Nine months ended, September 30, 2025 | | FirstService | | | FirstService | | | | | Residential | | | Brands | | Corporate(1) | | | | | | | | | Operating earnings (loss) | $ | 134,152 | | | $ | 154,728 | | | $ | (36,716 | ) Depreciation and amortization | | 34,589 | | | | 101,786 | | | | 68 | Acquisition-related items | | 4,748 | | | | 8,555 | | | | 2,492 | Share-based compensation expense | | - | | | | - | | | | 20,772 | Adjusted EBITDA | $ | 173,489 | | | $ | 265,069 | | | $ | (13,384 | ) | | | | | | | | | (1) Corporate costs represent corporate selling, general and administrative costs, depreciation and amortization and acquisition related items not directly attributable to reportable segments, and are therefore unallocated within segment operating earnings (loss) and Adjusted EBITDA. Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues. Organic growth is defined as revenue growth adjusted to exclude the revenue attributable to acquired or disposed businesses for a period of twelve months following their acquisition or preceding their disposal. 2. Reconciliation of net earnings and diluted net earnings per share to adjusted net earnings and adjusted net earnings per share: Adjusted EPS is defined as diluted net earnings per share, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization expense related to intangible assets recognized in connection with acquisitions; and (iv) share-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share, as determined in accordance with GAAP. The Company's method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below. | Three months ended | | Nine months ended (in thousands of US$) | September 30 | | September 30 | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | | | | | | | | Net earnings | $ | 64,550 | | | $ | 70,887 | | | $ | 149,103 | | | $ | 140,398 | Non-controlling interest share of earnings | | (6,587 | ) | | | (6,709 | ) | | | (15,941 | ) | | | (11,430 | ) Acquisition-related items | | 4,209 | | | | (4,100 | ) | | | 9,657 | | | | 15,795 | Amortization of intangible assets | | 21,268 | | | | 18,828 | | | | 62,888 | | | | 57,051 | Share-based compensation expense | | 7,090 | | | | 6,617 | | | | 24,155 | | | | 20,772 | Income tax on adjustments | | (8,009 | ) | | | (4,514 | ) | | | (23,783 | ) | | | (20,656 | ) Non-controlling interest on adjustments | | (446 | ) | | | (197 | ) | | | (1,176 | ) | | | (1,186 | ) Adjusted net earnings | $ | 82,075 | | | $ | 80,812 | | | $ | 204,903 | | | $ | 200,744 | | | | | | | | | | | | | Three months ended | | Nine months ended (in US$) | September 30 | | September 30 | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | | | | | | | | Diluted net earnings per share | $ | 0.99 | | | $ | 1.24 | | | $ | 2.41 | | | $ | 2.32 | Non-controlling interest redemption increment | | 0.35 | | | | 0.15 | | | | 0.56 | | | | 0.50 | Acquisition-related items | | 0.06 | | | | (0.05 | ) | | | 0.14 | | | | 0.29 | Amortization of intangible assets, net of tax | | 0.35 | | | | 0.29 | | | | 1.00 | | | | 0.86 | Share-based compensation expense, net of tax | | 0.14 | | | | 0.13 | | | | 0.46 | | | | 0.42 | Adjusted earnings per share | $ | 1.89 | | | $ | 1.76 | | | $ | 4.57 | | | $ | 4.39 | | | | | | | | | | | | | | | | FIRSTSERVICE CORPORATION Condensed Consolidated Statements of Earnings (in thousands of US dollars, except per share amounts) | | Three months | | | Nine months | | ended September 30 | | | ended September 30 (unaudited) | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | | | | | Revenues | $ | 1,531,698 | | | $ | 1,447,565 | | | $ | 4,298,027 | | | $ | 4,114,124 | | | | | | | | | | | | | Cost of revenues | | 1,034,439 | | | | 960,420 | | | | 2,889,457 | | | | 2,737,222 | Selling, general and administrative expenses | | 334,678 | | | | 328,982 | | | | 995,656 | | | | 972,500 | Depreciation | | 29,735 | | | | 27,807 | | | | 86,664 | | | | 79,392 | Amortization of intangible assets | | 21,268 | | | | 18,828 | | | | 62,888 | | | | 57,051 | Acquisition-related items (1) | | 4,209 | | | | (4,100 | ) | | | 9,657 | | | | 15,795 | Operating earnings | | 107,369 | | | | 115,628 | | | | 253,705 | | | | 252,164 | Interest expense, net | | 18,839 | | | | 18,179 | | | | 49,647 | | | | 56,609 | Other expense (income), net | | 146 | | | | (1,138 | ) | | | (236 | ) | | | (2,220 | ) Earnings before income tax | | 88,384 | | | | 98,587 | | | | 204,294 | | | | 197,775 | Income tax | | 23,834 | | | | 27,700 | | | | 55,191 | | | | 57,377 | Net earnings | | 64,550 | | | | 70,887 | | | | 149,103 | | | | 140,398 | Non-controlling interest share of earnings | | 6,587 | | | | 6,709 | | | | 15,941 | | | | 11,430 | Non-controlling interest redemption increment | | 15,051 | | | | 7,010 | | | | 24,972 | | | | 22,899 | Net earnings attributable to Company | $ | 42,912 | | | $ | 57,168 | | | $ | 108,190 | | | $ | 106,069 | | | | | | | | | | | | | Net earnings per common share | | | | | | | | | | | | Basic | $ | 0.99 | | | $ | 1.25 | | | $ | 2.41 | | | $ | 2.33 | Diluted | | 0.99 | | | | 1.24 | | | | 2.41 | | | | 2.32 | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted earnings per share (2) | $ | 1.89 | | | $ | 1.76 | | | $ | 4.57 | | | $ | 4.39 | | | | | | | | | | | | | Weighted average common shares (thousands) | | | | | | | | | | | | Basic | | 43,329 | | | | 45,568 | | | | 44,836 | | | | 45,462 | Diluted | | 43,330 | | | | 45,924 | | | | 44,838 | | | | 45,732 | | | | | | | | | | | | | | | | Notes to Condensed Consolidated Statements of Earnings (1) Acquisition-related items include contingent acquisition consideration fair value adjustments, and transaction costs. (2) See definition and reconciliation above. Condensed Consolidated Balance Sheets | | | | | (in thousands of US dollars) | | | | | | | | | | (unaudited) | September 30, 2026 | | December 31, 2025 | | | | | Assets | | | | | Cash and cash equivalents | $ | 160,759 | | $ | 154,425 Restricted cash | | 25,054 | | | 25,665 Accounts receivable | | 947,276 | | | 922,106 Prepaid and other current assets | | 460,318 | | | 401,584 Current assets | | 1,593,407 | | | 1,503,780 Other non-current assets | | 29,843 | | | 29,474 Deferred income tax | | 5,185 | | | 4,979 Fixed assets | | 292,601 | | | 289,718 Operating lease right-of-use assets | | 275,421 | | | 269,573 Goodwill and intangible assets | | 2,253,592 | | | 2,186,189 Total assets | $ | 4,450,049 | | $ | 4,283,713 | | | | | | | | | | Liabilities and shareholders' equity | | | | | Accounts payable and accrued liabilities | $ | 623,537 | | $ | 547,065 Unearned revenues | | 227,149 | | | 209,226 Other current liabilities | | 16,026 | | | 53,097 Operating lease liabilities - current | | 60,842 | | | 59,113 Long-term debt - current | | 13,339 | | | 13,649 Current liabilities | | 940,893 | | | 882,150 Long-term debt - non-current | | 1,541,075 | | | 1,069,027 Operating lease liabilities - non-current | | 246,679 | | | 242,593 Other liabilities | | 122,938 | | | 124,762 Deferred income tax | | 119,301 | | | 102,991 Redeemable non-controlling interests | | 542,329 | | | 486,191 Shareholders' equity | | 936,834 | | | 1,375,999 Total liabilities and equity | $ | 4,450,049 | | $ | 4,283,713 | | | | | | | | | | Supplemental balance sheet information | | | | | Total debt | $ | 1,554,414 | | $ | 1,082,676 Total debt, net of cash | | 1,393,655 | | | 928,251 | | | | | Consolidated Statements of Cash Flows | | | | | | | (in thousands of US dollars) | | Three months ended | | | Nine months ended | | September 30 | | | September 30 (unaudited) | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | | | | Cash provided by (used in) | | | | | | | | | | | | | | | | | | | | | | Operating activities | | | | | | | | | | | Net earnings | $ | 64,550 | | | $ | 70,887 | | | $ | 149,103 | | | $ | 140,398 | Items not affecting cash: | | | | | | | | | | | Depreciation and amortization | | 51,003 | | | | 46,635 | | | | 149,552 | | | | 136,443 | Deferred income tax | | (10 | ) | | | (830 | ) | | | (149 | ) | | | (2,420 | ) Other | | 8,812 | | | | 518 | | | | 16,865 | | | | 29,870 | | | 124,355 | | | | 117,210 | | | | 315,371 | | | | 304,291 | | | | | | | | | | | | Changes in non-cash working capital | | | | | | | | | | | Accounts receivable | | (39,670 | ) | | | 34,649 | | | | (15,354 | ) | | | 19,828 | Payables and accruals | | 51,439 | | | | (13,312 | ) | | | 57,756 | | | | (26,475 | ) Other | | (51,963 | ) | | | (12,185 | ) | | | (55,625 | ) | | | 32,802 | Net cash provided by operating activities | | 84,161 | | | | 126,362 | | | | 302,148 | | | | 330,446 | | | | | | | | | | | | Investing activities | | | | | | | | | | | Acquisition of businesses, net of cash acquired | | (24,768 | ) | | | (44,469 | ) | | | (73,191 | ) | | | (96,385 | ) Purchases of fixed assets | | (28,452 | ) | | | (33,663 | ) | | | (88,096 | ) | | | (96,601 | ) Other investing activities | | (879 | ) | | | (1,372 | ) | | | 2,600 | | | | (10,042 | ) Net cash used in investing activities | | (54,099 | ) | | | (79,504 | ) | | | (158,687 | ) | | | (203,028 | ) | | | | | | | | | | | Financing activities | | | | | | | | | | | Increase (decrease) in long-term debt, net | | 303,866 | | | | (36,941 | ) | | | 472,070 | | | | (91,768 | ) Purchases of non-controlling interests, net | | (1,002 | ) | | | (4,597 | ) | | | (11,218 | ) | | | (33,943 | ) Dividends paid to common shareholders | | (13,467 | ) | | | (12,501 | ) | | | (40,065 | ) | | | (36,315 | ) Distributions paid to non-controlling interests | | (3,933 | ) | | | (1,828 | ) | | | (17,504 | ) | | | (13,430 | ) Repurchases of common shares | | (311,589 | ) | | | - | | | | (560,006 | ) | | | - | Other financing activities | | (19,810 | ) | | | 28,869 | | | | 17,732 | | | | 49,775 | Net cash used in financing activities | | (45,935 | ) | | | (26,998 | ) | | | (138,991 | ) | | | (125,681 | ) | | | | | | | | | | | Effect of exchange rate changes on cash | | 548 | | | | 781 | | | | 1,253 | | | | 88 | | | | | | | | | | | | Increase (decrease) in cash, cash equivalents and restricted cash | | (15,325 | ) | | | 20,641 | | | | 5,723 | | | | 1,825 | | | | | | | | | | | | Cash, cash equivalents and restricted cash, beginning of period | | 201,138 | | | | 224,870 | | | | 180,090 | | | | 243,686 | | | | | | | | | | | | Cash, cash equivalents and restricted cash, end of period | $ | 185,813 | | | $ | 245,511 | | | $ | 185,813 | | | $ | 245,511 | | | | | | | | | | | | Segmented Results (in thousands of US dollars) | | | | | | | | | | | | | | | | | | | | | FirstService | | FirstService | | | | (unaudited) | Residential | | Brands | | Corporate(1) | | Consolidated | | | | | | | | | | | Three months ended September 30 | | | | | | | | | | | | | | | | | | | | | | 2026 | | | | | | | | | | | Revenues | $ | 633,279 | | $ | 898,419 | | $ | - | | | $ | 1,531,698 Adjusted EBITDA | | 71,327 | | | 101,795 | | | (3,451 | ) | | | 169,671 | | | | | | | | | | | Operating earnings | | 58,036 | | | 59,991 | | | (10,658 | ) | | | 107,369 | | | | | | | | | | | 2025 | | | | | | | | | | | Revenues | $ | 605,426 | | $ | 842,139 | | $ | - | | | $ | 1,447,565 Adjusted EBITDA | | 66,363 | | | 102,087 | | | (3,670 | ) | | | 164,780 | | | | | | | | | | | Operating earnings | | 53,279 | | | 73,720 | | | (11,371 | ) | | | 115,628 | | | | | | | | | | | | | | | | | | | | | FirstService | | FirstService | | | | | Residential | | Brands | | Corporate(1) | | Consolidated | | | | | | | | | | | Nine months ended September 30 | | | | | | | | | | | | | | | | | | | | | | 2026 | | | | | | | | | | | Revenues | $ | 1,795,810 | | $ | 2,502,217 | | $ | - | | | $ | 4,298,027 Adjusted EBITDA | | 186,598 | | | 261,751 | | | (11,280 | ) | | | 437,069 | | | | | | | | | | | Operating earnings | | 143,099 | | | 146,566 | | | (35,960 | ) | | | 253,705 | | | | | | | | | | | 2025 | | | | | | | | | | | Revenues | $ | 1,723,536 | | $ | 2,390,588 | | $ | - | | | $ | 4,114,124 Adjusted EBITDA | | 173,489 | | | 265,069 | | | (13,384 | ) | | | 425,174 | | | | | | | | | | | Operating earnings | | 134,152 | | | 154,728 | | | (36,716 | ) | | | 252,164 | | | | | | | | | | | (1) Corporate costs represent corporate selling, general and administrative costs, depreciation and amortization and acquisition-related items not directly attributable to reportable segments, and are therefore unallocated within segment operating earnings (loss) and Adjusted EBITDA. COMPANY CONTACTS: D. Scott Patterson Chief Executive Officer Jeremy Rakusin Chief Financial Officer (416) 960-9566