FirstService Reports Q2 2026 Results: Full Earnings Call Transcript

FirstService (TSX: FSV ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This content is powered APIs. For comprehensive financial data and transcripts, visit The full earnings call is available at Summary FirstService Corporation reported a 2% increase in total revenues for Q2, with EBITDA up 3% and earnings per share rising 2% over the prior year.

FirstService Residential saw a 4% revenue increase, with 5% organic growth, driven by solid performance in its core property management business. FirstService Brands' revenue increased 1%, with Century Fire showing strong growth, while the roofing segment experienced a 6% decline due to market weakness and project delays. The company completed acquisitions, such as Scheffer's Roofing, Titan Fire Protection, and GSC Fire and Security, to strengthen market presence. Future guidance includes mid-single-digit revenue growth, with a focus on restoration backlog and potential weather-related boosts.

Operational highlights include a shift in focus to commercial pool maintenance and a cross-selling initiative through the Resilience First program. Management expressed confidence in long-term growth, emphasizing strategic acquisitions and share buybacks under its normal course issuer bid. 8 times, ensuring financial flexibility for further acquisitions and share repurchases. Full Transcript Lisa, Operator Good day and welcome to the second quarter Investors Conference Call.

Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements and 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. S.

Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is July 23, 2026. As a reminder, if you would like to ask a question, please press star 11 on your telephone.

You will then hear an automated message advising that your hand is raised. If you would like to remove yourself from the queue, please press star 11 again. I would now like to turn the call over to Chief Executive Officer Mr. Scott Patterson.

Please go ahead, sir. Scott Patterson, Chief Executive Officer Thank you, Lisa. Good morning, everyone. Thank you for joining our Q2 conference call.

I'm on today with our CFO, Jeremy Rakusin. I'll kick us off with some high-level comments. Jeremy will follow with more detail. Let me start by saying that we're generally pleased with our Q2 results in an economic environment that continues to be quite challenging.

We're also pleased with the progress we made during the quarter on a few fronts that we believe puts us in position to achieve a stronger second half of the year and gain momentum into 2027. Total revenues for the second quarter were up 2% over the prior year. 2%, up 10 basis points over the prior year and better than expectation, primarily within our Brands division. Jeremy will walk through the detail in his prepared comments.

Finally, our earnings per share were up 2% over the prior year, in line with top-line growth. Looking at our divisional results, FirstService Residential revenues were in line with expectation and up 5% organically. The reported revenues were slightly less at 4%, reflecting the sale of our residential pool maintenance operations. Early in the quarter, we separated and sold residential accounts that have accumulated over the years to focus solely on commercial pool maintenance and management.

Our core property management business continues to perform solidly on expectation and we expect similar results for the balance of the year. Moving on to FirstService Brands, revenues for the quarter were up 1% with strength at Century Fire tempered by approximately flat results at our restoration and home service brands and largely offset by revenue declines within our roofing operation. I'll walk through each of the segments. Revenues for our two restoration brands, Paul Davis and First On Site, were down slightly from the prior year.

As we pointed out at the last two quarter ends, we entered the year with a weakened pipeline due to the mild weather experienced in Q4 of last year, which has impacted us in the first half of this year. Towards the end of Q2 and into July, we made significant progress in signing work and bolstering our pipeline back to historically healthy levels. In particular, we won a number of large-loss projects across North America that will convert to revenue over the next 12 to 18 months. In addition, we're seeing opportunities for specialty construction projects that have arisen through our restoration work with certain customers and in certain verticals.

Looking forward, we expect to show approximately 5% year-over-year growth in the back half of the year for our restoration brands. It's a modest outlook relative to the uptick in activity as it's difficult to forecast how quickly the recent backlog additions will convert to revenue. Our experience suggests that scoping, permitting, and insurance navigation could create delays in generating revenue. Storm and hurricane activity in the coming months could add to the backlog and improve this growth outlook.

Moving to our roofing segment, revenues for the quarter were down approximately 6% on a reported basis and 10