FirstService (NASDAQ:FSV) Releases Earnings Results, Beats Expectations By $0.05 EPS

FirstService (NASDAQ:FSV) (TSE:FSV) released its quarterly earnings data on Wednesday. The financial services provider reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.05, Briefing.com reports. FirstService had a return on equity of 17.98% and a net margin of 2.53%.The business had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the previous year, the business posted $1.34 EPS. FirstService’s revenue for the quarter was up 1.3% on a year-over-year basis.

Here are the key takeaways from FirstService’s conference call:

• Strong full-year performance — consolidated revenues rose 5%, with adjusted EBITDA up 10% and adjusted EPS up 15%, driving a 40 bp margin improvement to 10.2%.
• FirstService Residential regained momentum — Q4 revenues +8% (organic +5%), full‑year organic growth back to mid‑single digits and margins near the top of the 9–10% band; management expects mid‑single digit organic growth for 2026.
• Brands segment weakness — Q4 revenues fell 3% and EBITDA declined 12% as restoration and roofing faced organic declines, roofing demand remains muted and competitive pressure is compressing margins.
• Strong cash flow and balance sheet progress — operating cash flow rose materially (FY CFO >$445M), net debt/EBITDA fell to 1.6x, liquidity is about $970M, and the board approved an 11% dividend increase to $1.22/share.
• Disciplined M&A posture — deal flow remains slow and multiples high, so management will prioritize selective tuck‑ins and occasional franchise pull‑ins while remaining patient on larger acquisitions.

FirstService Stock Down 4.0%

FSV stock traded down $6.57 during mid-day trading on Thursday, reaching $158.53. The company had a trading volume of 111,043 shares, compared to its average volume of 207,274. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of 52.60, a PEG ratio of 2.68 and a beta of 1.06. FirstService has a 52 week low of $147.23 and a 52 week high of $209.66. The stock has a 50 day simple moving average of $156.36 and a two-hundred day simple moving average of $174.51. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.77 and a quick ratio of 1.77.

FirstService Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 7th. Investors of record on Tuesday, March 31st will be given a dividend of $0.305 per share. This represents a $1.22 annualized dividend and a yield of 0.8%. This is a boost from FirstService’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Tuesday, March 31st. FirstService’s payout ratio is currently 38.61%.

Hedge Funds Weigh In On FirstService

A number of institutional investors have recently added to or reduced their stakes in FSV. JPL Wealth Management LLC bought a new stake in FirstService during the third quarter worth $26,000. Geneos Wealth Management Inc. increased its stake in shares of FirstService by 63.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 203 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 79 shares during the last quarter. Strs Ohio bought a new stake in shares of FirstService in the 1st quarter valued at about $38,000. EverSource Wealth Advisors LLC lifted its stake in FirstService by 400.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 365 shares of the financial services provider’s stock valued at $64,000 after purchasing an additional 292 shares during the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new position in FirstService during the second quarter worth about $105,000. 69.35% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of FirstService in a research report on Monday, December 22nd. Stifel Nicolaus lowered their target price on FirstService from $230.00 to $215.00 and set a “buy” rating for the company in a report on Monday, October 27th. BMO Capital Markets restated an “outperform” rating and issued a $202.00 price target on shares of FirstService in a report on Thursday. CIBC reduced their price objective on FirstService from $225.00 to $216.00 and set an “outperform” rating for the company in a research report on Friday, October 24th. Finally, Wall Street Zen lowered FirstService from a “buy” rating to a “hold” rating in a research report on Saturday, October 25th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $211.67.

FirstService Company Profile

FirstService Corporation, founded in 1989 and headquartered in Toronto, Ontario, is a leading provider of property services in North America. The company operates through two principal segments—FirstService Residential and FirstService Brands—offering a broad range of services to residential, commercial and homeowner association clients.

FirstService Residential delivers community management, financial oversight and consulting services to thousands of residential communities across the United States and Canada.