FirstService Q3 Profit Slides Amid Weather, Residential Growth

FirstService reported third-quarter 2025 revenue of $1.45 billion, up 4% year-over-year and in line with analyst expectations, driven primarily by an 8% increase in its Residential segment due to new contracts and improved efficiency. However, the Brands segment saw only a 1% revenue rise and a 4% decline on an organic basis, impacted by softer restoration and roofing activity largely attributed to less storm activity and challenging economic conditions. Net earnings fell to $70.9 million, or $1.24 per share, from $77.8 million a year earlier, although adjusted earnings per share beat estimates at $1.76. Leadership cited weather-related and macroeconomic headwinds as ongoing challenges, particularly in the Brands division, and expects these difficulties to persist into the fourth quarter. Despite these pressures, FirstService remains optimistic about delivering solid growth and profitability for the full year, while analysts maintain a cautiously positive outlook, noting the company's resilience amid sector-wide turbulence. Market reaction was mixed, reflecting investor caution amid economic uncertainty and slower organic growth in certain business lines.