BrightView Q3 Earnings Plunge 81% on Self-Insurance Hit; Cash Dwindles to $14.4M

summarizeSummary

BrightView's Q3 net income fell 81% to $6.1M, hit by a $16M self-insurance charge. Cash dropped to $14.4M, and adjusted free cash flow was negative $37.2M for the nine months.

check_boxKey Events · Earnings and Guidance · BV

• Q3 Net Income Plunges 81%

  Net income fell to $6.1 million from $32.3 million a year ago, driven by a $16 million non-routine self-insurance adjustment and higher depreciation.

• Adjusted EBITDA Down 15%

  Adjusted EBITDA declined to $96.1 million from $113.2 million, with the Maintenance Services segment margin contracting 390 basis points to 12.2%.

• Cash Reserves Dwindle to $14.4M

  Cash and cash equivalents fell from $74.5 million at fiscal year-end to $14.4 million, while adjusted free cash flow was negative $37.2 million for the nine months.

• Share Repurchases Drain Liquidity

  The company spent $42.8 million on common stock repurchases during the nine months, reducing shares outstanding but contributing to the cash decline.

auto_awesomeAnalysis · BV · Industrial Applications And Services

A $16 million non-routine self-insurance adjustment drove BrightView's third-quarter net income down 81% year-over-year to $6.1 million, while adjusted EBITDA fell 15% to $96.1 million. The impact rippled through margins: gross margin contracted 290 basis points to 21.2%, and the core Maintenance Services segment saw its adjusted EBITDA margin drop 390 basis points to 12.2%. Liquidity has tightened sharply, with cash reserves shrinking to just $14.4 million from $74.5 million at fiscal year-end, and adjusted free cash flow running negative $37.2 million for the nine months. Share repurchases totaling $42.8 million during the period supported the stock but accelerated the cash drain. Although recent debt amendments extended maturities, the steep earnings decline and thin liquidity position raise questions about financial flexibility heading into the seasonally slower winter months.