FirstService Q4 2025 FirstService Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 FirstService Corp Earnings Call
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 40f as followed with the US Securities and Exchange Commission. As a reminder, today's call is being recorded today is February 4th 2026. I would now like to turn the call over to Chief Executive Officer. Mr. Scott Patterson. Please. Go ahead sir.
Operator: 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 4 February 2026. I would now like to turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.
Operator: 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 4 February 2026. I would now like to turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.
Thank you, Tanya. Good morning, everyone, and Welcome to our fourth quarter and year end conference call.
Thank you for joining us today.
Operator: Welcome to the Q4 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 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 US Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is 4 February 2026. I would now like to turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.
Jeremy recusing is on the line with me and we'll follow my overview comments with a more detailed review of our financial results.
For the quarter and the full year.
We're pleased with how we closed out the year and an environment that continues to challenge us across several of our businesses.
Our fourth quarter results, in aggregate were modestly better than our expectation that we communicated at the end of Q3.
With revenues up 1% ebit, uh, flat with the year ago.
And earnings per share up 2% to a dollar 37.
D. Scott Patterson: Thank you, Tanya. Good morning, everyone, and welcome to our fourth quarter and year-end conference call. Thank you for joining us today. Jeremy Rakusin is on the line with me, and will follow my overview comments with a more detailed review of our financial results for the quarter and the full year. We're pleased with how we closed out the year in an environment that continues to challenge us across several of our businesses. Our fourth quarter results in aggregate were modestly better than our expectation that we communicated at the end of Q3, with revenues up 1%, EBITDA flat with the year ago, and earnings per share up 2% to $1.37. For the year, we reported solid results that we're proud of in the face of tough macro headwinds. Revenues finished 5% up over the prior year.
Scott Patterson: Thank you, Tanya. Good morning, everyone, and welcome to our fourth quarter and year-end conference call. Thank you for joining us today. Jeremy Rakusin is on the line with me, and will follow my overview comments with a more detailed review of our financial results for the quarter and the full year. We're pleased with how we closed out the year in an environment that continues to challenge us across several of our businesses. Our fourth quarter results in aggregate were modestly better than our expectation that we communicated at the end of Q3, with revenues up 1%, EBITDA flat with the year ago, and earnings per share up 2% to $1.37. For the year, we reported solid results that we're proud of in the face of tough macro headwinds. Revenues finished 5% up over the prior year.
for the year we reported solid results that were proud of in the face of tough macro, headwinds,
Revenues finished 5% up over the prior year. Consolidated Eva was up, 10% double the revenue growth.
Reflecting a 40 basis. Point Improvement in margins.
D. Scott Patterson: Thank you, Tanya. Good morning, everyone, and welcome to our Fourth Quarter and Year-End Conference Call. Thank you for joining us today. Jeremy Rakusan is on the line with me and will follow my overview comments with a more detailed review of our financial results for the quarter and the full year. We're pleased with how we closed out the year in an environment that continues to challenge us across several of our businesses. Our fourth quarter results in aggregate were modestly better than our expectation that we communicated at the end of Q3, with revenues up 1%, EBITDA flat with the year ago, and earnings per share up 2% to $1.37. For the year, we reported solid results that we're proud of in the face of tough macro headwinds. Revenues finished 5% up over the prior year.
And earnings per share. Reflected further, leverage with year-over-year. Growth at 15%
Looking now at the separate divisions for the quarter.
revenues at first service residential were up 8% in aggregate with the organic growth at 5% matching, our expectations and the results for Q3
The growth was broad-based across North America and generally reflects net contract wins versus losses.
Looking forward. We expect organic growth to continue in the mid single digit range.
D. Scott Patterson: Consolidated EBITDA was up 10%, double the revenue growth, reflecting a 40 basis point improvement in margins, and earnings per share reflected further leverage with year-over-year growth at 15%. Looking now at the separate divisions for the quarter, revenues at FirstService Residential were up 8% in aggregate, with organic growth at 5%, matching our expectations and the results for Q3. The growth was broad-based across North America and generally reflects net contract wins versus losses. Looking forward, we expect organic growth to continue in the mid-single digit range. There could be modest movement from quarter to quarter with seasonality and fluctuation in ancillary services, but on average, for 2026, we're expecting mid-single digit organic growth, similar to our full year result for 2024 and 2025.
Scott Patterson: Consolidated EBITDA was up 10%, double the revenue growth, reflecting a 40 basis point improvement in margins, and earnings per share reflected further leverage with year-over-year growth at 15%. Looking now at the separate divisions for the quarter, revenues at FirstService Residential were up 8% in aggregate, with organic growth at 5%, matching our expectations and the results for Q3. The growth was broad-based across North America and generally reflects net contract wins versus losses. Looking forward, we expect organic growth to continue in the mid-single digit range. There could be modest movement from quarter to quarter with seasonality and fluctuation in ancillary services, but on average, for 2026, we're expecting mid-single digit organic growth, similar to our full year result for 2024 and 2025.
There could be modest movement from quarter to quarter.
With revenues up 1% ebit, uh, flat with the year ago.
With seasonality and fluctuation in ancillary services.
And earnings per share up 2% to $1.37.
But on average for 2026, we're expecting mid single digit organic growth.
For the year, we reported solid results that we're proud of in the face of tough macro headwinds.
Similar to our full year result for 2024 and 2025.
D. Scott Patterson: Consolidated EBITDA was up 10%, double the revenue growth, reflecting a 40 basis point improvement in margins. Earnings per share reflected further leverage with year-over-year growth at 15%. Looking now at the separate divisions for the quarter, revenues at FirstService Residential were up 8% in aggregate, with organic growth at 5%, matching our expectations and the results for Q3. The growth was broad-based across North America and generally reflects net contract wins versus losses. Looking forward, we expect organic growth to continue in the mid-single digit range. There could be modest movement from quarter to quarter with seasonality and fluctuation in ancillary services, but on average for 2026, we're expecting mid-single digit organic growth, similar to our full year result for 2024 and 2025.
Revenues finished 5% up over the prior year consolidated. And I was up 10%, double the revenue growth.
We will face organic growth pressure, early in the year relating to declines in certain amenity Management Services that we provide to some of our managed communities.
Reflecting a 40 basis. Point Improvement in margins.
A primarily to multifamily rental, and other commercial customers.
And earnings per share reflected further leverage, with year-over-year growth at 15%.
Looking now at the separate divisions for the quarter.
These Services include pool construction and renovation, which is being impacted, by the same economic, headwinds were seen in Roofing and Home Services.
It also includes contracts to provide custodian and front, desk, concierge labor.
Revenues at FirstService Residential were up 8% in aggregate, with the organic growth at 5%, matching our expectations and the results for Q3.
Several contact contracts primarily with multi-family apartment owners.
The growth was broad-based across North America and generally reflects net contract wins versus losses.
We're not renewed at year end.
D. Scott Patterson: We will face organic growth pressure early in the year relating to declines in certain amenity management services that we provide to some of our managed communities, but primarily to multifamily rental and other commercial customers. These services include pool construction and renovation, which is being impacted by the same economic headwinds we're seeing in roofing and home services. It also includes contracts to provide custodian and front desk concierge labor. Several contracts, primarily with multifamily apartment owners, were not renewed at year-end, some voluntary, and a few involuntary, all primarily due to pricing. These cancellations will impact our revenue but will have little impact to profitability. We expect to be at the bottom end of our mid-single digit range at 3% or 4% for Q1.
Scott Patterson: We will face organic growth pressure early in the year relating to declines in certain amenity management services that we provide to some of our managed communities, but primarily to multifamily rental and other commercial customers. These services include pool construction and renovation, which is being impacted by the same economic headwinds we're seeing in roofing and home services. It also includes contracts to provide custodian and front desk concierge labor. Several contracts, primarily with multifamily apartment owners, were not renewed at year-end, some voluntary, and a few involuntary, all primarily due to pricing. These cancellations will impact our revenue but will have little impact to profitability. We expect to be at the bottom end of our mid-single digit range at 3% or 4% for Q1.
Some voluntary and a few involuntary all primarily due to pricing.
Looking forward, we expect organic growth to continue in the mid-single-digit range.
There could be modest movement from quarter to quarter.
These cancellations will impact our Revenue but we'll have little impact the profitability.
With seasonality and fluctuation in ancillary services.
But on average, for 2026, we're expecting mid-single-digit organic growth.
We expect to be at the bottom end of our mid single digit range at 3 or 4% for q1.
Similar to our full year results for 2024 and 2025.
D. Scott Patterson: We will face organic growth pressure early in the year relating to declines in certain amenity management services that we provide to some of our managed communities, but primarily to multifamily rental and other commercial customers. These services include pool construction and renovation, which is being impacted by the same economic headwinds we're seeing in roofing and home services. It also includes contracts to provide custodian and front desk concierge labor. Several contracts, primarily with multifamily apartment owners, were not renewed at year-end. Some voluntary, and a few involuntary, all primarily due to pricing. These cancellations will impact our revenue but will have little impact to profitability. We expect to be at the bottom end of our mid-single digit range at 3% or 4% for Q1.
This is unrelated to our core Community Management business which we believe will carry the division to Mid single digit organic growth for the year.
We will face organic growth pressure, early in the year relating to declines in certain amenity Management Services that we provide to some of our managed communities.
Moving on to first service Brands revenues for the quarter were down 3% in Aggregate and 7% organically.
But primarily to multifamily rental and other commercial customers.
With Organic growth at Century fire more than offset by organic decline, with our restoration Brands and our Roofing platform.
These Services include pool construction and renovation, which is being impacted by the same economic headwinds, we're seeing in Roofing and Home Services.
It also includes contracts to provide custodian and front, desk, concierge labor.
Several contact contracts primarily with multi-family apartment owners.
D. Scott Patterson: This is unrelated to our core community management business, which we believe will carry the division to mid-single digit organic growth for the year. Moving on to FirstService Brands. Revenues for the quarter were down 3% in aggregate and 7% organically, with organic growth at Century Fire more than offset by organic declines with our restoration brands and our roofing platform. Looking more closely at restoration, Paul Davis and First Onsite together recorded revenues that were flat sequentially compared to Q3 and down 13% versus the prior year. Somewhat better than expectation, due to a pickup in claim activity during the quarter with our Canadian operations. We benefited in the prior year quarter from Hurricane Helene and Milton and generated about $60 million in revenue from the storms. Excluding these specific events, our restoration brands were up modestly year over year.
Scott Patterson: This is unrelated to our core community management business, which we believe will carry the division to mid-single digit organic growth for the year. Moving on to FirstService Brands. Revenues for the quarter were down 3% in aggregate and 7% organically, with organic growth at Century Fire more than offset by organic declines with our restoration brands and our roofing platform. Looking more closely at restoration, Paul Davis and First Onsite together recorded revenues that were flat sequentially compared to Q3 and down 13% versus the prior year. Somewhat better than expectation, due to a pickup in claim activity during the quarter with our Canadian operations. We benefited in the prior year quarter from Hurricane Helene and Milton and generated about $60 million in revenue from the storms. Excluding these specific events, our restoration brands were up modestly year over year.
We're not renewed at year-end.
Looking more closely at restoration, Paul Davis and first on site together, recorded revenues that were flat sequentially compared to Q3 and down 13% versus the prior year, somewhat better than expectation due to our pickup and claim activity during the quarter with our Canadian operations.
Some voluntary and a few involuntary, all primarily due to pricing.
We benefited in the prior year quarter from Hurricane to lean and Milton and generated about 60 million in revenue from the storms.
These cancellations will impact our Revenue but we'll have little impact the profitability.
Restoration Brands were up modestly year-over-year.
D. Scott Patterson: This is unrelated to our core community management business, which we believe will carry the division to mid-single digit organic growth for the year. Moving on to FirstService Brands, revenues for the quarter were down 3% in aggregate and 7% organically, with organic growth at Century Fire more than offset by organic declines with our restoration brands, and our roofing platform. Looking more closely at restoration, Paul Davis and First Onsite together recorded revenues that were flat sequentially compared to Q3, and down 13% versus the prior year. Somewhat better than expectations, due to a pickup in claim activity during the quarter with our Canadian operations. We benefited in the prior year quarter from Hurricane Helene and Milton and generated about $60 million in revenue from the storms. Excluding these specific events, our restoration brands were up modestly year-over-year.
We expect to be at the bottom end of our mid single-digit range at 3 or 4.
as I described on last quarter's call revenues from named storms have on average exceeded 10%
This is unrelated to our core Community Management business, which we believe will carry the division to mid single-digit organic growth for the year.
of our Total Restoration Revenue since 2019.
For 2025, revenues from named storms amounted to less than 2%.
Moving on to first service Brands revenues for the quarter were down 3% in Aggregate and 7% organically.
Of Total Restoration revenues.
We finished the year down 4% in restoration.
Organic growth at Century Fire was more than offset by organic declines within our Restoration Brands and our Roofing platform.
Relative to an industry that we believe was down over 20%.
Our platform Investments and focus on day-to-day Service delivery.
Continues to drive gains and wallet, share with t national accounts and overall market share.
D. Scott Patterson: As I described on last quarter's call, revenues from named storms have, on average, exceeded 10% of our total restoration revenues since 2019. For 2025, revenues from named storms amounted to less than 2% of total restoration revenues. We finished the year down 4% in restoration, relative to an industry that we believe was down over 20%. Our platform investments and focus on day-to-day service delivery continues to drive gains in wallet share with key national accounts and overall market share. Looking forward, we expect to show growth for the full year 2026, assuming we return to historic average weather patterns. Our restoration brands have grown on average by 8% organically since 2019, and we expect that to continue on average going forward....
Scott Patterson: As I described on last quarter's call, revenues from named storms have, on average, exceeded 10% of our total restoration revenues since 2019. For 2025, revenues from named storms amounted to less than 2% of total restoration revenues. We finished the year down 4% in restoration, relative to an industry that we believe was down over 20%. Our platform investments and focus on day-to-day service delivery continues to drive gains in wallet share with key national accounts and overall market share. Looking forward, we expect to show growth for the full year 2026, assuming we return to historic average weather patterns. Our restoration brands have grown on average by 8% organically since 2019, and we expect that to continue on average going forward....
Expectation, due to our pickup and claim activity during the quarter with our Canadian operations.
Looking forward. We expect to show growth for the full year 2026. Assuming we return to Historic, average weather patterns.
We benefited in the prior year quarter from hurricanes to lean and Milton and generated about 60 million in revenue from the storms.
Restoration brands have grown on average by 8% organically since 2019.
Excluding these specific events.
And we expect that to continue on average. Go going forward.
Our restoration Brands were up modestly year-over-year.
D. Scott Patterson: As I described on last quarter's call, revenues from named storms have, on average, exceeded 10% of our total restoration revenue since 2019. For 2025, revenues from named storms amounted to less than 2% of total restoration revenues. We finished the year down 4% in restoration, relative to an industry that we believe was down over 20%. Our platform investments and focus on day-to-day service delivery continues to drive gains in wallet share with key national accounts and overall market share. Looking forward, we expect to show growth for the full year 2026, assuming we return to historic average weather patterns. Our restoration brands have grown on average by 8% organically since 2019, and we expect that to continue on average going forward.
Our backlog at year end was down from the prior year pointing to a revenue decline for q1.
As I described on last quarter's call revenues from named storms have on average exceeded 10%
However, we've seen an uptick in activity over the last week from the expansive winter storm.
of our Total Restoration Revenue since 2019.
It's still very early but based on activity levels and the nature of the quick response mitigation work.
For 2025, revenues from named storms amounted to less than 2%.
Of Total Restoration revenues.
We expect to show, q1 results that are modestly up over the prior year.
We finished the year down 4% in Restoration.
Moving to our Roofing segment.
Relative to an industry that we believe was down over 20%.
Revenue for the quarter, we're up a few percentage points. The result of Tuck under Acquisitions made during the year.
Our platform investments and focus on day-to-day service delivery.
However, as expected revenues were down or organically by over 5%.
Continues to drive gains in wallet share with national accounts and overall market share.
D. Scott Patterson: Our backlog at year-end was down from the prior year, pointing to a revenue decline for Q1. However, we've seen an uptick in activity over the last week from the expansive winter storm. It's still very early, but based on activity levels and the nature of the quick response mitigation work, we expect to show Q1 results that are modestly up over the prior year. Moving to our roofing segment, revenues for the quarter were up a few percentage points, the result of tuck under acquisitions made during the year. However, as expected, revenues were down organically by over 5%. The demand environment in roofing remains muted. New commercial construction outside of the data center and power verticals is down significantly. On the reroof side, we continue to see tighter capital expenditure budgets among our customers and delays with some larger projects.
Scott Patterson: Our backlog at year-end was down from the prior year, pointing to a revenue decline for Q1. However, we've seen an uptick in activity over the last week from the expansive winter storm. It's still very early, but based on activity levels and the nature of the quick response mitigation work, we expect to show Q1 results that are modestly up over the prior year. Moving to our roofing segment, revenues for the quarter were up a few percentage points, the result of tuck under acquisitions made during the year. However, as expected, revenues were down organically by over 5%. The demand environment in roofing remains muted. New commercial construction outside of the data center and power verticals is down significantly. On the reroof side, we continue to see tighter capital expenditure budgets among our customers and delays with some larger projects.
The demand environment environment in Roofing remains muted?
New commercial construction outside of the data center and power verticals is down significantly.
Looking forward, we expect to show growth for the full year 2026, assuming we return to historic, average weather patterns.
Our restoration brands have grown, on average, by 8% organically since 2019.
On the rear roof side. We continue to see tighter capital expenditure budgets, amongst our customers and delays with some larger projects.
D. Scott Patterson: Our backlog at year-end was down from the prior year, pointing to a revenue decline for Q1. However, we've seen an uptick in activity over the last week from the expansive winter storm. It's still very early, but based on activity levels and the nature of the quick response mitigation work, we expect to show Q1 results that are modestly up over the prior year. Moving to our roofing segment, revenues for the quarter were up a few percentage points, the result of tuck-under acquisitions made during the year. However, as expected, revenues were down organically by over 5%. The demand environment in roofing remains muted. New commercial construction outside of the data center and power verticals is down significantly. On the reroof side, we continue to see tighter capital expenditure budgets amongst our customers and delays with some larger projects.
And we expect that to continue on average, going forward.
As I noted last quarter, we're confident that our Market position and relationships remain strong,
Bid activity is solid.
Our backlog at year end was down from the prior year pointing to a revenue decline for q1.
And our backlog is stabilized.
However, we've seen an uptick in activity over the last week from the expansive winter storm.
Our expectation is that we will show modest organic growth this year with SE sequential Improvement. Quarter to quarter.
It's still very early but based on activity levels and then nature of the quick response mitigation work.
Looking to q1, we expect revenues to be up mid single digit versus the prior year and approximately flat organically.
We expect to show Q1 results that are modestly up over the prior year.
Moving to our Roofing segment.
Revenues for the quarter—we're up a few percentage points. The result of tuck-under acquisitions made during the year.
Now, to our home service Brands where revenues were up by 3% over the prior year, better than expectation and a result were proud of in an environment where consumer confidence remains depressed.
However, as expected, revenues were down organically by over 5%.
D. Scott Patterson: As I noted last quarter, we're confident that our market position and relationships remain strong. Bid activity is solid, and our backlog is stabilized. Our expectation is that we will show modest organic growth this year, with sequential improvement quarter to quarter. Looking to Q1, we expect revenues to be up mid-single digit versus the prior year and approximately flat organically. Now to our home service brands, where revenues were up by 3% over the prior year, better than expectation and a result we're proud of in an environment where consumer confidence remains depressed. The consumer index was down again in December, marking 5 months of sequential decline. As I said on the last few calls, our teams are doing more with less by incremental improving lead to estimate ratios, close ratios, and average job size.
Scott Patterson: As I noted last quarter, we're confident that our market position and relationships remain strong. Bid activity is solid, and our backlog is stabilized. Our expectation is that we will show modest organic growth this year, with sequential improvement quarter to quarter. Looking to Q1, we expect revenues to be up mid-single digit versus the prior year and approximately flat organically. Now to our home service brands, where revenues were up by 3% over the prior year, better than expectation and a result we're proud of in an environment where consumer confidence remains depressed. The consumer index was down again in December, marking 5 months of sequential decline. As I said on the last few calls, our teams are doing more with less by incremental improving lead to estimate ratios, close ratios, and average job size.
The consumer index was down again. In December marking, 5 months of sequential decline.
The demand environment in Roofing remains muted.
New commercial construction outside of the data center and power verticals is down significantly.
As I said out on the last few calls, our teams are doing more with less by incremental improving lead to estimate ratios.
Close ratios and average job size.
On the rear roof side. We continue to see tighter capital expenditure budgets amongst our customers.
D. Scott Patterson: As I noted last quarter, we're confident that our market position and relationships remain strong. Bid activity is solid, and our backlog is stabilized. Our expectation is that we will show modest organic growth this year, with sequential improvement quarter to quarter. Looking to Q1, we expect revenues to be up mid-single digit versus the prior year and approximately flat organically. Now to our home service brands, where revenues were up by 3% over the prior year, better than expectation and a result we're proud of in an environment where consumer confidence remains depressed. The consumer index was down again in December, marking five months of sequential decline. As I laid out on the last few calls, our teams are doing more with less by incrementally improving the lead to estimate ratios, close ratios, and average job size.
And delays with some larger projects.
Current economic and Industry indicators, do not suggest an improved environment through 2026.
as I noted last quarter, we're confident that our Market position in relationships, remain strong,
Our lead flow, the last several weeks.
Bid activity is solid.
Is flat to slightly down with prior year.
And our backlog is stabilized.
if this continues, our current conversion metrics,
Our expectation is that we will show modest organic growth this year with sequential Improvement quarter to quarter.
Would suggest that we will drive higher Revenue year-over-year in the low to mid single-digit range for q1 and 2026.
Looking to q1, we expect revenues to be up mid single digit, versus the prior year and a proximately flat organically.
And I'll finish with Century fire where we had a strong Q4 and finish to the year.
Revenues were up over 10% versus the prior year with high single digit organic growth.
D. Scott Patterson: Current economic and industry indicators do not suggest an improved environment through 2026. Our lead flow the last several weeks is flat to slightly down with prior year. If this continues, our current conversion metrics would suggest that we will drive higher revenue year over year in the low to mid-single digit range for Q1 and 2026. And I'll finish with Century Fire, where we had a strong Q4 and finish to the year. Revenues were up over 10% versus the prior year, with high single-digit organic growth. Century continues to experience solid growth on both sides of its business, that is, installation and repair, service, and inspection. The growth is broad-based across almost all our branches at Century.
Scott Patterson: Current economic and industry indicators do not suggest an improved environment through 2026. Our lead flow the last several weeks is flat to slightly down with prior year. If this continues, our current conversion metrics would suggest that we will drive higher revenue year over year in the low to mid-single digit range for Q1 and 2026. And I'll finish with Century Fire, where we had a strong Q4 and finish to the year. Revenues were up over 10% versus the prior year, with high single-digit organic growth. Century continues to experience solid growth on both sides of its business, that is, installation and repair, service, and inspection. The growth is broad-based across almost all our branches at Century.
Now, to our home service Brands where revenues were up by 3% over the prior year, better than expectation and a result. We're proud of in an environment where consumer confidence remains depressed.
Century continues to experience solid growth on both sides of its business. That is installation.
And repair, service and inspection.
The consumer index was down again. In December marking, 5 months of sequential decline.
The grow the growth is broad-based across almost all our branches at Century.
We're benefiting on the installation side of our business.
As I said out on the last few calls, our teams are doing more with less by incremental improving lead to estimate ratios.
Close ratios and average job size.
D. Scott Patterson: Current economic and industry indicators do not suggest an improved environment through 2026. Our lead flow the last several weeks is flat to slightly down with prior year. If this continues, our current conversion metrics would suggest that we will drive higher revenue year over year in the low to mid-single digit range for Q1 and 2026. And I'll finish with Century Fire, where we had a strong Q4 and finish to the year. Revenues were up over 10% versus the prior year, with high single-digit organic growth. Century continues to experience solid growth on both sides of its business, that is, installation and repair, service and inspection. The growth is broad-based across almost all our branches at Century.
From solid activity, and multi family and Warehouse with some positive exposure to Data Center Construction.
Current economic and Industry indicators, do not suggest an improved environment through 2026.
Our backlog is strong and activity levels. Remain buoyant
Our lead flow, the last several weeks.
Is flat to slightly down with prior year.
Looking forward, we expect another year of 10% growth or more spread evenly across the quarters.
if this continues, our current conversion metrics,
Let Me Now call on Jeremy to review our results.
In detail and provide a Consolidated look forward.
We would suggest that we will drive higher revenue year-over-year in the low to mid single-digit range for Q1 and 2026.
And I'll finish with Century Fire, where we had a strong Q4 and finish to the year.
D. Scott Patterson: We're benefiting on the installation side of our business from solid activity in multifamily and warehouse, with some positive exposure to data center construction. Our backlog is strong, and activity levels remain buoyant. Looking forward, we expect another year of 10% growth or more, spread evenly across the quarters. Let me now call on Jeremy to review our results in detail and provide a consolidated look forward.
Scott Patterson: We're benefiting on the installation side of our business from solid activity in multifamily and warehouse, with some positive exposure to data center construction. Our backlog is strong, and activity levels remain buoyant. Looking forward, we expect another year of 10% growth or more, spread evenly across the quarters. Let me now call on Jeremy to review our results in detail and provide a consolidated look forward.
Thank you Scott. Good morning everyone. As you just heard for the fourth quarter, we delivered on our expectations, provided on our Q3 call which culminated in solid annual operating and financial performance.
Revenues were up over 10% versus the prior year with high single digit organic growth.
Century continues to experience solid growth on both sides of its business—that is, installation.
As we look back at our Consolidated annual results for 2025, we are pleased with the growth. We delivered on the earnings lines, notwithstanding the Topline headwinds. We were facing throughout the year.
And repair, service and inspection.
D. Scott Patterson: We're benefiting on the installation side of our business from solid activity in multifamily and warehouse, with some positive exposure to data center construction. Our backlog is strong, and activity levels remain buoyant. Looking forward, we expect another year of 10% growth or more spread evenly across the quarters. Let me now call on Jeremy to review our results in detail and provide a consolidated look forward.
The the growth is broad-based across almost all our branches. At Century, we're benefiting on the installation side of our business.
I'll first walk through a summary of these Financial metrics and then move on to reviews of our segmented. Divisional performance, as well as our cash flow and balance sheet.
From solid activity and multi family and Warehouse with some positive exposure.
To Data Center Construction.
Jeremy Alan Rakusin: Thank you, Scott. Good morning, everyone. As you just heard, for the fourth quarter, we delivered on our expectations provided on our Q3 call, which culminated in solid annual operating and financial performance. As we look back at our consolidated annual results for 2025, we are pleased with the growth we delivered on the earnings lines, notwithstanding the top-line headwinds we were facing throughout the year. I'll first walk through a summary of these financial metrics and then move on to reviews of our segmented divisional performance, as well as our cash flow and balance sheet. Note that my upcoming comments on our Adjusted EBITDA and Adjusted EPS results, respectively, reflect adjustments to GAAP operating earnings and GAAP EPS, which are disclosed in this morning's release and are consistent with our approach in prior periods.
Jeremy Rakusin: Thank you, Scott. Good morning, everyone. As you just heard, for the fourth quarter, we delivered on our expectations provided on our Q3 call, which culminated in solid annual operating and financial performance. As we look back at our consolidated annual results for 2025, we are pleased with the growth we delivered on the earnings lines, notwithstanding the top-line headwinds we were facing throughout the year. I'll first walk through a summary of these financial metrics and then move on to reviews of our segmented divisional performance, as well as our cash flow and balance sheet. Note that my upcoming comments on our Adjusted EBITDA and Adjusted EPS results, respectively, reflect adjustments to GAAP operating earnings and GAAP EPS, which are disclosed in this morning's release and are consistent with our approach in prior periods.
Levels. Remain, buoyant
Note that my upcoming comments on our adjusted e and adjusted EPS results, respectively, reflect adjustments to gaap operating earnings, and gaap EPS, which are disclosed in this morning's release and our consistent with our approach in Prior periods.
Looking forward, we expect another year of 10% growth or more, spread evenly across the quarters.
During the fourth quarter, our Consolidated revenues were 1.38 billion dollars up 1% versus the prior year period.
Let me now call on Jeremy to review our results.
In detail and provide a Consolidated look forward.
Jeremy Alan Rakusin: Thank you, Scott, and good morning, everyone. As you just heard, for the fourth quarter, we delivered on our expectations provided on our Q3 call, which culminated in solid annual operating and financial performance. As we look back at our consolidated annual results for 2025, we are pleased with the growth we delivered on the earnings lines, notwithstanding the top-line headwinds we were facing throughout the year. I'll first walk through a summary of these financial metrics and then move on to reviews of our segmented divisional performance, as well as our cash flow, and balance sheet. Note that my upcoming comments on our adjusted EBITDA and adjusted EPS results, respectively, reflect adjustments to GAAP operating earnings and GAAP EPS, which are disclosed in this morning's release... and are consistent with our approach in prior periods.
Our adjusted. EBA of 138 million was in line with Q4 2024 yielding a margin of 9.9%.
Slightly down from the 10.1% level during the prior year.
Thank you Scott. Good morning everyone. As you just heard for the fourth quarter, we delivered on our expectations, provided on our Q3 call which culminated in solid annual operating and financial performance.
Our Q4 adjusted EPS was 1.37, cents up from a134 cents in last year's fourth quarter.
As we look back at our Consolidated annual results for 2025, we are pleased with the growth. We delivered on the earnings lines, notwithstanding the Topline headwinds. We were facing throughout the year.
Jeremy Alan Rakusin: During the fourth quarter, our consolidated revenues were $1.38 billion, up 1% versus the prior year period. Our adjusted EBITDA of $138 million was in line with Q4 2024, yielding a margin of 9.9%, slightly down from the 10.1% level during the prior year. Our Q4 adjusted EPS was $1.37, up from $1.34 in last year's fourth quarter. For the full year, consolidated revenues increased 5% to $5.5 billion, and adjusted EBITDA came in at $563 million, up 10% over the prior year and delivering a 10.2% margin, up 40 basis points compared to 9.8% in 2024.
Jeremy Rakusin: During the fourth quarter, our consolidated revenues were $1.38 billion, up 1% versus the prior year period. Our adjusted EBITDA of $138 million was in line with Q4 2024, yielding a margin of 9.9%, slightly down from the 10.1% level during the prior year. Our Q4 adjusted EPS was $1.37, up from $1.34 in last year's fourth quarter. For the full year, consolidated revenues increased 5% to $5.5 billion, and adjusted EBITDA came in at $563 million, up 10% over the prior year and delivering a 10.2% margin, up 40 basis points compared to 9.8% in 2024.
I'll first walk through a summary of these financial metrics, and then move on to reviews of our segmented, divisional performance, as well as our cash flow and balance sheet.
For the full year Consolidated revenues increased 5% to 5.5 billion dollars and adjusted Eva came in at 563 million dollars up, 10% over the prior year and delivering a 10.2% margin up. 40 basis points compared to 9.8% in 2024.
Adjusted EPS for the 2025 fiscal year was 5.75 up. 15% versus 2024
Jeremy Alan Rakusin: During the fourth quarter, our consolidated revenues were $1.38 billion, up 1% versus the prior year period. Our Adjusted EBITDA of $138 million was in line with Q4 2024, yielding a margin of 9.9%, slightly down from the 10.1% level during the prior year. Our Q4 adjusted EPS was $1.37, up from $1.34 in last year's fourth quarter. For the full year, consolidated revenues increased 5% to $5.5 billion, and Adjusted EBITDA came in at $563 million, up 10% over the prior year, and delivering a 10.2% margin, up 40 basis points compared to 9.8% in 2024.
Note that my upcoming comments on our adjusted e and adjusted EPS results, respectively, reflect adjustments to gaap operating earnings, and gaap EPS, which are disclosed in this morning's release and our consistent with our approach in Prior periods.
During the fourth quarter, consolidated revenues were $1.38 billion, up 1% versus the prior year period.
This 5 10 and 15% top to bottom line annual growth profile. Reflects the exceptional efforts of our operating leaders across every brand as they emphasize the efficient jobs execution in the face of Market challenges,
And drove margin Improvement where possible?
Our adjusted EA of $138 million was in line with Q4 2024, yielding a margin of 9.9%.
turning now, to a segmented walkthrough of our 2 divisions,
Slightly down from the 10.1% level during the prior year.
Our Q4 adjusted EPS was $1.37, up from $1.34 in last year's fourth quarter.
Jeremy Alan Rakusin: Adjusted EPS for the 2025 fiscal year was $5.75, up 15% versus 2024. This 5%, 10%, and 15% top to bottom line annual growth profile reflects the exceptional efforts of our operating leaders across every brand as they emphasize efficient jobs execution in the face of market challenges and drove margin improvement where possible. Turning now to a segmented walkthrough of our two divisions. FirstService Residential revenues during the fourth quarter were $563 million, up 8%, and the division reported EBITDA of $51.5 million, a 12% increase over the prior year period. Our margin for the quarter was 9.1%, modestly up from the 8.8% in Q4 2024. The quarterly performance largely mirrored the full-year growth profile for the division.
Jeremy Rakusin: Adjusted EPS for the 2025 fiscal year was $5.75, up 15% versus 2024. This 5%, 10%, and 15% top to bottom line annual growth profile reflects the exceptional efforts of our operating leaders across every brand as they emphasize efficient jobs execution in the face of market challenges and drove margin improvement where possible. Turning now to a segmented walkthrough of our two divisions. FirstService Residential revenues during the fourth quarter were $563 million, up 8%, and the division reported EBITDA of $51.5 million, a 12% increase over the prior year period. Our margin for the quarter was 9.1%, modestly up from the 8.8% in Q4 2024. The quarterly performance largely mirrored the full-year growth profile for the division.
First service residential revenues during the fourth quarter were 563 million up 8% and the division reported ebita of 51.5 million. A 12% increase over the prior year period.
Our margin for the quarter was 9.1% modestly up from the 8.8% in Q4 2024.
Jeremy Alan Rakusin: Adjusted EPS for the 2025 fiscal year was $5.75, up 15% versus 2024. This 5, 10, and 15 percent top to bottom line annual growth profile reflects the exceptional efforts of our operating leaders across every brand, as they emphasized efficient job execution in the face of market challenges and drove margin improvement where possible. Turning now to a segmented walkthrough of our two divisions. FirstService Residential revenues during the fourth quarter were $563 million, up 8%, and the division reported EBITDA of $51.5 million, a 12% increase over the prior year period. Our margin for the quarter was 9.1%, modestly up from the 8.8% in Q4 2024. The quarterly performance largely mirrored the full year growth profile for the division.
For the full year, consolidated revenues increased 5% to $5.5 billion, and adjusted EBITDA came in at $563 million, up 10% over the prior year and delivering a 10.2% margin, up 40 basis points compared to 9.8% in 2024.
The quarterly performance largely mirrored the full year growth profile for the division. We closed out the year with annual revenues of 2.3 billion up 7% over 2024 including 4% organic growth
Adjusted EPS for the 2025 fiscal year was $0.0575, up 15% versus 2024.
Annual EBA increased 13% with our full year margin at 9.8% up. 50 basis points over the 9.3% margin for 2024
This 5, 10, and 15% top-to-bottom line annual growth profile reflects the exceptional efforts of our operating leaders across every brand, as they emphasized efficient jobs execution in the face of market challenges.
And drove margin Improvement where possible?
Turning now to a segmented walkthrough of our two divisions,
In summary the first service residential division achieved key financial targets for the year. Getting back to Mid single digits annual organic hotline growth. While also driving profitability to the upper end of our 9 to 10% annual margin band.
Jeremy Alan Rakusin: We closed out the year with annual revenues of $2.3 billion, up 7% over 2024, including 4% organic growth. Annual EBITDA increased 13%, with our full-year margin at 9.8%, up 50 basis points over the 9.3% margin for 2024. In summary, the FirstService Residential division achieved key financial targets for the year, getting back to mid-single digit annual organic top-line growth, while also driving profitability to the upper end of our 9% to 10% annual margin band. Looking next at our FirstService Brands division, the fourth quarter included revenues of $820 million, down 3% compared to Q4 2024, and EBITDA was $88.5 million, down 12% year-over-year.
Jeremy Rakusin: We closed out the year with annual revenues of $2.3 billion, up 7% over 2024, including 4% organic growth. Annual EBITDA increased 13%, with our full-year margin at 9.8%, up 50 basis points over the 9.3% margin for 2024. In summary, the FirstService Residential division achieved key financial targets for the year, getting back to mid-single digit annual organic top-line growth, while also driving profitability to the upper end of our 9% to 10% annual margin band. Looking next at our FirstService Brands division, the fourth quarter included revenues of $820 million, down 3% compared to Q4 2024, and EBITDA was $88.5 million, down 12% year-over-year.
For a service residential revenues during the fourth quarter were 563 million up 8% and the division reported ebita of 51.5 million a 12% increase over the prior year period.
looking next at our first service Brands division, the fourth quarter included revenues of 820 million down 3%, compared to Q4 2024 and EPA was 88.5 million dollars down, 12% year-over-year,
Our margin for the quarter was 9.1%, modestly up from the 8.8% in Q4 2024.
Jeremy Alan Rakusin: We closed out the year with annual revenues of $2.3 billion, up 7% over 2024, including 4% organic growth. Annual EBITDA increased 13%, with our full year margin at 9.8%, up 50 basis points over the 9.3% margin for 2024. In summary, the FirstService Residential division achieved key financial targets for the year, getting back to mid-single digit annual organic top-line growth, while also driving profitability to the upper end of our 9% to 10% annual margin band. Looking next at our FirstService Brands division, the fourth quarter included revenues of $820 million, down 3% compared to Q4 2024, and EBITDA was $88.5 million, down 12% year-over-year.
The quarterly performance largely mirrors the full-year growth profile for the division. We close out the year with annual revenues of $2.3 billion, up 7% over 2024, including 4% organic growth.
In due to declines, in organic Topline performance and the related negative operating leverage at our restoration and Roofing Brands partially offset by another strong quarter of organic growth and profitability at Sentry Fire Protection.
Annual EBA increased 13%, with our full-year margin at 9.8%, up 50 basis points over the 9.3% margin for 2024.
The Brands division margin during the quarter was 10.8% down, 110 basis points from 11.9% in the prior year quarter.
Jeremy Alan Rakusin: These year-over-year decreases were due to declines in organic top-line performance and the related negative operating leverage at our restoration and roofing brands, partially offset by another strong quarter of organic growth and profitability at Century Fire Protection. The brands division margin during the quarter was 10.8%, down 110 basis points from 11.9% in the prior year quarter. For the full year, revenues were $3.2 billion, and EBITDA came in at $354 million, both up 4% over prior year. As a result, our full-year brands margin remained in line with the prior year at 11%. Finally, two remaining points to highlight regarding profitability below the operating division lines that contributed to the 15% annual EPS growth.
Jeremy Rakusin: These year-over-year decreases were due to declines in organic top-line performance and the related negative operating leverage at our restoration and roofing brands, partially offset by another strong quarter of organic growth and profitability at Century Fire Protection. The brands division margin during the quarter was 10.8%, down 110 basis points from 11.9% in the prior year quarter. For the full year, revenues were $3.2 billion, and EBITDA came in at $354 million, both up 4% over prior year. As a result, our full-year brands margin remained in line with the prior year at 11%. Finally, two remaining points to highlight regarding profitability below the operating division lines that contributed to the 15% annual EPS growth.
As a result, our full year Brands margin remained in line with the prior year at 11%.
In summary, the FirstService Residential division achieved key financial targets for the year, getting back to mid-single digits annual organic topline growth, while also driving profitability to the upper end of our 9 to 10% annual margin band.
Finally, 2 remaining points to highlight regarding profitability below the operating division lines that contributed to the 15% annual EPS growth.
Jeremy Alan Rakusin: These year-over-year decreases were due to declines in organic top-line performance and the related negative operating leverage at our restoration and roofing brands, partially offset by another strong quarter of organic growth and profitability at Century Fire Protection. The brands division margin during the quarter was 10.8%, down 110 basis points from 11.9% in the prior year quarter. For the full year, revenues were $3.2 billion, and EBITDA came in at $354 million, both up 4% over prior year. As a result, our full-year brands margin remained in line with the prior year at 11%. Finally, two remaining points to highlight regarding profitability below the operating division lines that contributed to the 15% annual EPS growth.
looking next at our first service Brands division, the fourth quarter included revenues of 820 million down 3%, compared to Q4 2024 and EPA was 88.5 million dollars down, 12% year-over-year,
During the current fourth quarter and annually for 2025 versus the comparable prior year periods.
Most of the variance was attributable to the positive impact of non-cash. Foreign Exchange movements. Largely reversing the negative impacts. We saw in 2024
In due to declines, in organic Topline performance and the related negative operating leverage at our restoration and Roofing Brands partially offset by another strong quarter of organic growth and profitability at Sentry Fire Protection.
Second, our annual interest costs were lower throughout all periods in 2025 compared to the prior year.
Due to lower debt levels on our balance sheet and decline in interest rates.
The Brands division margin during the quarter was 10.8% down, 110 basis points from 11.9% in the prior year quarter.
I'll now summarize our cash flow and capital deployment.
Jeremy Alan Rakusin: First, we reported significantly lower corporate costs, both during the current fourth quarter and annually for 2025 versus the comparable prior year periods. Most of the variance was attributable to the positive impact of non-cash foreign exchange movements, largely reversing the negative impacts we saw in 2024. Second, our annual interest costs were lower throughout all periods in 2025 compared to the prior year, due to lower debt levels on our balance sheet and declining interest rates. I'll now summarize our cash flow and capital deployment. During Q4, operating cash flow was $155 million, a 33% increase over the prior year quarter, and contributing to annual cash flow from operations of more than $445 million, which was up 56% versus 2024.
Jeremy Rakusin: First, we reported significantly lower corporate costs, both during the current fourth quarter and annually for 2025 versus the comparable prior year periods. Most of the variance was attributable to the positive impact of non-cash foreign exchange movements, largely reversing the negative impacts we saw in 2024. Second, our annual interest costs were lower throughout all periods in 2025 compared to the prior year, due to lower debt levels on our balance sheet and declining interest rates. I'll now summarize our cash flow and capital deployment. During Q4, operating cash flow was $155 million, a 33% increase over the prior year quarter, and contributing to annual cash flow from operations of more than $445 million, which was up 56% versus 2024.
For the full year revenues were 3.2 billion. And EBA came in at 354 million, both up 4% over prior year.
During Q4, operating cash flow was 155 million a33 increase over the prior year quarter and contributing to annual cash flow from operations of more than 445 million.
Brands' margin remained in line with the prior year at 11%.
Which was up 56% versus 2024.
Jeremy Alan Rakusin: First, we recorded significantly lower corporate costs, both during the current fourth quarter and annually for 2025 versus the comparable prior year periods. Most of the variance was attributable to the positive impact of non-cash foreign exchange movements, largely reversing the negative impacts we saw in 2024. Second, our annual interest costs were lower throughout all periods in 2025 compared to the prior year, due to lower debt levels on our balance sheet and declining interest rates. I'll now summarize our cash flow and capital deployment. During Q4, operating cash flow was $155 million, a 33% increase over the prior year quarter, and contributing to annual cash flow from operations of more than $445 million, which was up 56% versus 2024.
Finally, 2 remaining points to highlight regarding profitability below the operating division lines that contributed to the 15% annual EPS growth.
Our Capital expenditures during 2025 totaled at 128 million and we expect 2026 capex to be approximately 140 million.
And increase proportionate to the collective growth of our businesses.
First, we reported significantly lower corporate costs, both during the current fourth quarter and annually for 2025 versus the comparable prior year periods.
Our acquisition spending during the year totaled, 107 million, as we remain, selective and disciplined in a competitive acquisition environment.
Most of the variance was attributable to the positive impact of non-cash. Foreign Exchange movements. Largely reversing the negative impacts. We saw in 2024
Finally we announced yesterday at 11% dividend. Increase to $122 cents per share. Annually in US Dollars up from the prior 10 cents.
Second, our annual interest costs will be lower throughout all periods in 2025 compared to the prior year.
Due to lower debt levels on our balance sheet and declining interest rates.
Jeremy Alan Rakusin: Our capital expenditures during 2025 totaled $128 million, and we expect 2026 CapEx to be approximately $140 million, an increase proportionate to the collective growth of our businesses. Our acquisition spending during the year totaled $107 million, as we remain selective and disciplined in a competitive acquisition environment. Finally, we announced yesterday an 11% dividend increase to $1.22 per share annually in US dollars, up from the prior $1.10. Beyond financing these capital outlays, our strong free cash flow contributed to further strengthening of our balance sheet throughout the year. At 2025 year-end, our leverage sits at 1.6 times net debt to adjusted EBITDA, down from 2 times at prior year-end.
Jeremy Rakusin: Our capital expenditures during 2025 totaled $128 million, and we expect 2026 CapEx to be approximately $140 million, an increase proportionate to the collective growth of our businesses. Our acquisition spending during the year totaled $107 million, as we remain selective and disciplined in a competitive acquisition environment. Finally, we announced yesterday an 11% dividend increase to $1.22 per share annually in US dollars, up from the prior $1.10. Beyond financing these capital outlays, our strong free cash flow contributed to further strengthening of our balance sheet throughout the year. At 2025 year-end, our leverage sits at 1.6 times net debt to adjusted EBITDA, down from 2 times at prior year-end.
Beyond financing. These Capital outlays are strong free cash flow contributed to further straightening of our balance sheet throughout the year.
I'll now summarize our cash flow and capital deployment.
At 2025 urine, our leverage sits at 1.6 times net debt to adjusted Ava.
During Q4, operating cash flow was 155 million, a 333% increase over the prior year quarter.
Down from 2 times at prior year, end.
And contributing to annual cash flow from operations of more than 445 million.
Jeremy Alan Rakusin: Our capital expenditures during 2025 totaled $128 million, and we expect 2026 CapEx to be approximately $140 million, an increase proportionate to the collective growth of our businesses. Our acquisition spending during the year totaled $107 million, as we remain selective and disciplined in a competitive acquisition environment. Finally, we announced yesterday an 11% dividend increase to $1.22 per share annually in US dollars, up from the prior $1.10. Beyond financing these capital outlays, our strong free cash flow contributed to further strengthening of our balance sheet throughout the year. At 2025 year-end, our leverage sits at 1.6x net debt to adjusted EBITDA, down from 2x at prior year-end....
which was up 56% versus 2024.
with cash on hand and undrawn capacity within our bank revolving credit facility aggregating to 970 million
We maintain significant liquidity to direct towards attractive investment opportunities as they emerge.
A capital expenditures during 2025 totaled, 128 million and we expect 2026 capex to be approximately 140 million.
And increased proportionate to the collective growth of our businesses.
Finally, in terms of our Outlook, Scott has already provided detailed commentary on the Topline growth indicators for the individual brands.
Our acquisition spending during the year totaled $107 million, as we remain selective and disciplined in a competitive acquisition environment.
On a Consolidated basis for the upcoming first quarter, we are forecasting Revenue growth to be in the mid single digit range.
Finally, we announced yesterday at 11% dividend increase to $1.22 per share. Annually in US Dollars up from the prior $110.
Jeremy Alan Rakusin: With cash on hand and undrawn capacity within our bank revolving credit facility aggregating to $970 million, we maintain significant liquidity to direct towards attractive investment opportunities as they emerge. Finally, in terms of our outlook, Scott has already provided detailed commentary on the top-line growth indicators for the individual brands. On a consolidated basis for the upcoming first quarter, we are forecasting revenue growth to be in the mid-single digit range. In subsequent quarters, throughout the year, we expect to see an uptick with high single digit year-over-year increases in revenue, primarily driven by organic growth. Any tuck-under acquisitions during the year will contribute further to this top-line growth profile. In terms of consolidated EBITDA for the first quarter, we expect to be roughly in line with Q1 2025.
Jeremy Rakusin: With cash on hand and undrawn capacity within our bank revolving credit facility aggregating to $970 million, we maintain significant liquidity to direct towards attractive investment opportunities as they emerge. Finally, in terms of our outlook, Scott has already provided detailed commentary on the top-line growth indicators for the individual brands. On a consolidated basis for the upcoming first quarter, we are forecasting revenue growth to be in the mid-single digit range. In subsequent quarters, throughout the year, we expect to see an uptick with high single digit year-over-year increases in revenue, primarily driven by organic growth. Any tuck-under acquisitions during the year will contribute further to this top-line growth profile. In terms of consolidated EBITDA for the first quarter, we expect to be roughly in line with Q1 2025.
In subsequent quarters throughout the year. We expect to see an uptick with high single-digit year-over-year increases in Revenue, primarily driven by organic growth.
Any tuck under Acquisitions. During the year, will contribute further to this Topline growth profile.
Beyond financing. These Capital outlays are strong free cash flow contributed to further straightening of our balance sheet throughout the year.
In terms of Consolidated, Eva for the first quarter, we expect to be roughly in line with q1 2025.
At 2025 urine, our leverage sits at 1.6 times net debt to adjusted Ava.
Jeremy Alan Rakusin: With cash on hand and undrawn capacity within our bank revolving credit facility aggregating to $970 million, we maintain significant liquidity to direct towards attractive investment opportunities as they emerge. Finally, in terms of outlook, Scott has already provided detailed commentary on the top line growth indicators for the individual brands. On a consolidated basis for the upcoming first quarter, we are forecasting revenue growth to be in the mid-single digit range. In subsequent quarters, throughout the year, we expect to see an uptick with high single digit year-over-year increases in revenue, primarily driven by organic growth. Any tuck-under acquisitions during the year will contribute further to this top line growth profile. In terms of consolidated EBITDA for the first quarter, we expect to be roughly in line with Q1 2025.
Down from 2 times at the prior year end.
For the balance of the year, we anticipate evaa year over year, growth in the high, single digits at similar rates or slightly better than Revenue growth.
with cash on hand and undrawn capacity within our bank revolving credit facility aggregating to $970 million
We maintain significant liquidity to direct towards attractive investment opportunities as they emerge.
Consolidated. EBA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin. We just reported for 2025
Finally, in terms of our Outlook, Scott has already provided detailed commentary on the Topline growth indicators for the individual brands.
On a consolidated basis for the upcoming first quarter, we are forecasting revenue growth to be in the mid-single-digit range.
Operator, this concludes, uh, prepared comments. Uh, you can now open up the call to questions. Thank you very much. Thank you as a reminder, to ask a question. Please press star, 1 1 1 on your telephone and wait for your name, to be announced to withdraw your question. Please, press star, 1, 1 1 again and please stand by while we compile our Q&A roster.
Jeremy Alan Rakusin: For the balance of the year, we anticipate EBITDA year-over-year growth in the high single digits at similar rates or slightly better than revenue growth. Consolidated EBITDA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin we just reported for 2025. Operator, this concludes the prepared comments. You can now open up the call to questions. Thank you very much.
Jeremy Rakusin: For the balance of the year, we anticipate EBITDA year-over-year growth in the high single digits at similar rates or slightly better than revenue growth. Consolidated EBITDA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin we just reported for 2025. Operator, this concludes the prepared comments. You can now open up the call to questions. Thank you very much.
Our first question will be coming from Frederick Bastion of Raymond James, your line is open.
In subsequent quarters throughout the year, we expect to see an uptick with high single-digit year-over-year increases in revenue, primarily driven by organic growth.
Uh, good morning, Scott and Jeremy. Um,
Any tuck under Acquisitions. During the year, will contribute further to this Topline growth profile.
Jeremy Alan Rakusin: For the balance of the year, we anticipate EBITDA year-over-year growth in the high single digits at similar rates or slightly better than revenue growth. Consolidated EBITDA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin we just reported for 2025. Operator, this concludes the prepared comments. You can now open up the call to questions. Thank you very much.
In terms of consolidated EVA for the first quarter, we expect to be roughly in line with Q1 2025.
Just want to talk about m&a, I mean, cracks appear to be showing in in private Equity, various reports, suggesting that mid-market firms are holding on to Investments, they can't sell and then struggling to raise capital.
To buy businesses that, you know, that interior should be positive for strategic buyers, like for service.
Operator: Thank you. As a reminder, to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again, and please stand by while we compile our Q&A roster. Our first question will be coming from Frederic Bastien of Raymond James. Your line is open.
Operator: Thank you. As a reminder, to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again, and please stand by while we compile our Q&A roster. Our first question will be coming from Frederic Bastien of Raymond James. Your line is open.
For the balance of the year, we anticipate EVA year-over-year growth in the high single digits, at similar rates or slightly better than revenue growth.
Uh, from your perspective, are you seeing any change? Um, is the company is competitive landscape improving from say, you know, where it was 3 366 12 months ago.
Um, we haven't seen it yet. Frederick
Consolidated EBITDA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin we just reported for 2025.
It's uh, it's definitely a a slower Market than say 12 months ago.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again, and please stand by while we compile our Q&A roster. Our first question will be coming from Frederic Bastien of Raymond James. Your line is open.
Frederic Bastien: Hi, good morning, Scott and Jeremy. Just want to talk about M&A. I mean, cracks appear to be showing in private equity, various reports suggesting that mid-market firms are holding onto investments they can't sell and then struggling to raise capital to buy businesses. That, you know, in theory, should be positive for strategic buyers like FirstService. From your perspective, are you seeing any change? Is the competitive landscape improving from, say, you know, where it was 3, 6, 12 months ago?
Frederic Bastien: Hi, good morning, Scott and Jeremy. Just want to talk about M&A. I mean, cracks appear to be showing in private equity, various reports suggesting that mid-market firms are holding onto investments they can't sell and then struggling to raise capital to buy businesses. That, you know, in theory, should be positive for strategic buyers like FirstService. From your perspective, are you seeing any change? Is the competitive landscape improving from, say, you know, where it was 3, 6, 12 months ago?
Uh, particularly in Roofing but really across the board. You know, we know of a number of
Opportunities that have been pulled or delayed until the environment improves.
Um,
Operator, this concludes, uh, prepared comments. Uh, you can now open up the call to questions. Thank you very much. Thank you. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. And please stand by while we compile our Q&A roster.
They, they still remain high across the board. We haven't, um,
Frederic Bastien: Good morning, Scott and Jeremy. Just want to talk about M&A. I mean, cracks appear to be showing in private equity, various reports suggesting that mid-market firms are holding onto investments they can't sell and then struggling to raise capital to buy businesses. That, you know, that in theory, should be positive for strategic buyers like FirstService. From your perspective, are you seeing any change? Is the company-- is the competitive landscape improving from, say, you know, where it was 3, 6, 12 months ago?
Our first question will be coming from Frederick Bastion of Raymond James, your line is open.
Seen. Um,
Uh, good morning, Scott and Jeremy. Um,
Mid-market, private Equity deals, come to the market. Um,
D. Scott Patterson: We haven't seen it yet, Frederick. It's definitely a slower market than, say, 12 months ago, particularly in roofing, but really across the board. You know, we know of a number of opportunities that have been pulled or delayed until the environment improves. And there's no indication that multiples are trending higher or lower. They still remain high across the board. We haven't seen mid-market private equity deals come to the market. You know, I'm just thinking about it. Really, it's we haven't seen it yet, I would say, Frederick.
Scott Patterson: We haven't seen it yet, Frederick. It's definitely a slower market than, say, 12 months ago, particularly in roofing, but really across the board. You know, we know of a number of opportunities that have been pulled or delayed until the environment improves. And there's no indication that multiples are trending higher or lower. They still remain high across the board. We haven't seen mid-market private equity deals come to the market. You know, I'm just thinking about it. Really, it's we haven't seen it yet, I would say, Frederick.
Uh, you know, I'm just I'm just thinking about it, really. It's it's, uh, we haven't seen it yet. I would say Frederick.
Just want to talk about M&A. I mean, cracks appear to be showing in private equity—various reports are suggesting that mid-market firms are holding on to investments they can't sell and are struggling to raise capital.
Okay, thanks for that. Um now obviously, recognizing it's still tough out there.
To buy businesses is that, you know, the interior should be positive for strategic buyers, like for a service?
Uh, from your perspective, are you seeing any change? Um, is the company is competitive landscape improving from say, you know, where it was 3, 36 12 months ago,
D. Scott Patterson: We haven't seen it yet, Frederic. It's definitely a slower market than, say, 12 months ago, particularly in roofing, but really across the board. You know, we know of a number of opportunities that have been pulled or delayed until the environment improves. There's no indication that multiples are trending higher or lower. They still remain high across the board. We haven't seen mid-market private equity deals come to the market. You know, I'm just thinking about it. Really it's we haven't seen it yet, I would say, Frederic.
Um, where do you see the best place to deploy future capital? Is it in newer platforms like uh Roofing or restoration or you know, or go back to the monk more long, dated franchises like California cause that I know you
Um, we haven't seen it yet, Frederick.
Months ago.
Uh, particularly in roofing, but really across the board. You know, we know of a number of
You uh, you bought like the 20s franchises in the, you know, early probably 10 years ago. 5, 10 years ago, where do you stand on potentially consolidating the rest of the the the California cause of franchises.
Yeah, I mean definitely we want to own the major markets.
Opportunities that have been pulled or delayed until the environment improves.
Um,
Um, over time.
Uh, particularly if they're underperforming.
um,
And there's no indication that multiples are trending higher or lower. Uh,
Frederic Bastien: Okay, thanks for that. Now, obviously recognizing it's still tough out there, where do you see the best place to deploy future capital? Is it in newer platforms like roofing or restoration, or, you know, or go back to the more long-dated franchises like California Closets? I know you bought, like, the 20 or so largest franchises in the early, probably 10 years ago, five, 10 years ago. Where do you stand on potentially consolidating the rest of the California Closets franchises?
Frederic Bastien: Okay, thanks for that. Now, obviously recognizing it's still tough out there, where do you see the best place to deploy future capital? Is it in newer platforms like roofing or restoration, or, you know, or go back to the more long-dated franchises like California Closets? I know you bought, like, the 20 or so largest franchises in the early, probably 10 years ago, five, 10 years ago. Where do you stand on potentially consolidating the rest of the California Closets franchises?
They—they still remain high across the board. We haven't, um,
Seen. Um,
But it uh you know that that will be sort of 1 step at a time as those families are ready to sell.
Mid-market, private equity deals come to the market, um,
Uh, you know, I'm just I'm just thinking about it, really. It's it's, uh, we haven't seen it yet. I would say Frederick.
Frederic Bastien: Okay, thanks for that. Now, obviously recognizing it's still tough out there, where do you see the best place to deploy future capital? Is it in newer platforms like roofing or restoration, or, you know, or go back to the more long dated franchises like California Closets? I know you bought, like, the 20 or so largest franchises in, you know, early, probably 10 years ago, 5, 10 years ago. Where do you stand on potentially consolidating the rest of the California Closets franchises?
Okay, thanks for that. Um, now obviously recognizing and still tough out there.
Uh, it's been um, it's been a few years since we pulled in a California, Closet franchise, but I think on average, we would expect to pull in 1 a year, and I think the same at Paul Davis too. Uh, you know, if it in the best interest of the brand, if there's an underperforming Market, um,
D. Scott Patterson: Yeah, I mean, definitely, we want to own the major markets over time, particularly if they're underperforming. That will be sort of one step at a time as those families are ready to sell. It's been a few years since we pulled in a California Closets franchise, but I think on average, we would expect to pull in one a year. I think the same at Paul Davis, too. You know, if it's in the best interest of the brand, if there's an underperforming market, we will look to pull that franchise in and operate it. We would expect to see one or two of those a year as well. Otherwise, it would be tuck unders within our existing platforms. That's our focus.
Scott Patterson: Yeah, I mean, definitely, we want to own the major markets over time, particularly if they're underperforming. That will be sort of one step at a time as those families are ready to sell. It's been a few years since we pulled in a California Closets franchise, but I think on average, we would expect to pull in one a year. I think the same at Paul Davis, too. You know, if it's in the best interest of the brand, if there's an underperforming market, we will look to pull that franchise in and operate it. We would expect to see one or two of those a year as well. Otherwise, it would be tuck unders within our existing platforms. That's our focus.
We will look to pull that franchise in and and operate it and uh we would expect to see you know 1 or 2 of those a year as well.
Uh, otherwise.
Um, where do you see the best place to deploy future capital? Is it in newer platforms like, uh, Roofing or Restoration or, you know, or go back to the more long-dated franchises like California Closets that I know you—
um, it would be
tucked under within our existing platforms, uh, that's our Focus. I would say that we are being
very patient in the current environment. Um,
D. Scott Patterson: Yeah, I mean, definitely we want to own the major markets, over time, particularly if they're underperforming. But it, you know, that will be sort of one step at a time as those families are ready to sell. It's been a few years since we pulled in a California Closets franchise, but I think on average, we would expect to pull in one a year. And I think the same at Paul Davis, too. You know, if in the best interest of the brand, if there's an underperforming market, we will look to pull that franchise in and operate it. And we would expect to see, you know, one or two of those a year as well. Otherwise, it would be tuck-unders within our existing platforms. That's our focus.
You uh, you bought like the 20s franchises in the, you know, early probably 10 years ago. 5, 10 years ago, where do you stand on potentially consolidating the rest of the the the California cause of franchises.
multiples are high and and they uh, there aren't uh,
Yeah, I mean, definitely, we want to own the major markets.
Um, over time.
High number of Quality Companies coming to Market. So we are
Uh, particularly if they're underperforming.
um,
focused on picking our spots and finding the right Partners. If there's a situation where the founder is looking to exit,
But it, uh, you know, that will be sort of one step at a time as those families are ready to sell.
that's not a great fit for us. Uh, we're focused on
Partnering. And then, uh, driving sustainable growth.
Thank you. I appreciate your comments.
That's all I have.
D. Scott Patterson: I would say that we are being very patient in the current environment. Multiples are high, and there aren't a high number of quality companies coming to market. So we are focused on picking our spots and finding the right partners. If there's a situation where the founder is looking to exit, that's not a great fit for us. We're focused on partnering and then driving sustainable growth.
Scott Patterson: I would say that we are being very patient in the current environment. Multiples are high, and there aren't a high number of quality companies coming to market. So we are focused on picking our spots and finding the right partners. If there's a situation where the founder is looking to exit, that's not a great fit for us. We're focused on partnering and then driving sustainable growth.
Uh, it's been um, it's been a few years since we pulled in a California, Closet franchise, but I think on average, we would expect to pull in 1 a year, and I think the same at Paul Davis too. Uh, you know, if it in the best interest of the brand, if there's an underperforming Market, um,
And our next question will be coming from Stephen mlad of BMO Capital markets. Your line is open.
Uh, thank you. Good morning, guys.
We will look to pull that franchise in and operate it, and we would expect to see one or two of those a year as well.
Uh, otherwise.
um, it would be
D. Scott Patterson: I would say that we are being very patient in the current environment. Multiples are high and there aren't a high number of quality companies coming to market. So we are focused on picking our spots and finding the right partners. If there's a situation where the founder is looking to exit, that's not a great fit for us. We're focused on partnering and then driving sustainable growth.
tucked under within our existing platforms, uh, that's our Focus. I would say that we are being
very patient in the current environment. Um,
Multiples are high and, uh, there are, uh,
Um, lots of great color on the call, so thank you. Um, I just wanted to uh just just focus on the margins a little bit uh with respect to the Outlook. Um, would it would it be fair to say that your margin Outlook in kind of both segments is uh, is sort of flattish through the year, presumably. Um, sounds like not much moving in the FSR margin, but maybe you'll see some headwinds in q1, but on a full year basis in Brands, would you expect both segments to be sort of flattish here over here?
High number of Quality Companies coming to Market. So we are
Frederic Bastien: Thank you. I appreciate your comments. That's all I have.
Frederic Bastien: Thank you. I appreciate your comments. That's all I have.
Operator: Our next question will be coming from Stephen MacLeod of BMO Capital Markets. Your line is open.
Operator: Our next question will be coming from Stephen MacLeod of BMO Capital Markets. Your line is open.
Focused on picking our spots and finding the right partners. If there's a situation where the founder is looking to exit,
Stephen MacLeod: Thank you. Good morning, guys. Lots of great color on the call, so thank you. I just wanted to focus in on the margins a little bit with respect to the outlook. Would it be fair to say that your margin outlook in kind of both segments is sort of flattish through the year? Presumably, sounds like not much movement in the FSR margin, but maybe you'll see some headwinds in Q1. But on a full year basis in brands, would you expect both segments to be sort of flattish year over year?
Stephen MacLeod: Thank you. Good morning, guys. Lots of great color on the call, so thank you. I just wanted to focus in on the margins a little bit with respect to the outlook. Would it be fair to say that your margin outlook in kind of both segments is sort of flattish through the year? Presumably, sounds like not much movement in the FSR margin, but maybe you'll see some headwinds in Q1. But on a full year basis in brands, would you expect both segments to be sort of flattish year over year?
That's not a great fit for us. Uh, we're focused on
Partnering. And then, uh, driving sustainable growth.
Frederic Bastien: Thank you. I appreciate your comments. That's all I have.
Thank you. I appreciate your comments.
That's all I have.
Operator: And our next question will be coming from Stephen MacLeod of BMO Capital Markets. Your line is open.
And our next question will be coming from Stephen McLd of BMO Capital Markets. Your line is open.
Jeremy Alan Rakusin: Thank you. Good morning, guys. Lots of great color on the call, so thank you. I just wanted to focus in on the margins a little bit, with respect to the outlook. Would it be fair to say that your margin outlook in kind of both segments is sort of flattish through the year? Presumably, sounds like not much movement in the FSR margin, but maybe you'll see some.
Yeah. Hey Stephen. It's Jeremy. Uh, correct. Full year. Both divisions, uh, roughly in line and, and hence the, uh, consolidated margin in line, you know, the the first quarter, we expect residential margins to be roughly in line. Again, consistent with the full year and the a decline in Brands margins, um, in the first quarter. And, and, and hence, the sort of flat ebta with a little bit of Revenue growth in the first quarter, um, right to Brand margin, as well as the client, and then picking up, um, in sequential quarters. As we see, um, you know, commensurate uptick in in Revenue growth.
Uh, thank you. Good morning, guys.
Jeremy Alan Rakusin: Yeah. Hi, Stephen, it's Jeremy. Correct. Full year, both divisions, roughly in line and hence the consolidated margin in line. You know, the first quarter, we expect Residential margins to be roughly in line, again, consistent with the full year and a decline in Brands margins in the first quarter, and hence the sort of flat EBITDA with a little bit of revenue growth in the first quarter.
Jeremy Rakusin: Yeah. Hi, Stephen, it's Jeremy. Correct. Full year, both divisions, roughly in line and hence the consolidated margin in line. You know, the first quarter, we expect Residential margins to be roughly in line, again, consistent with the full year and a decline in Brands margins in the first quarter, and hence the sort of flat EBITDA with a little bit of revenue growth in the first quarter.
Okay, that's great. Thank you. Um, and then just with respect to um, you know, Scott, you you talked about uh just the recent freeze that we saw through North America and and uh, you know, potentially an uptick in activity um, is I know early days, but is there any way to kind of quantify? You know what, that potentially could could look like as the year?
Stephen MacLeod: ... headwinds in Q1, but on a full year basis in brands, would you expect both segments to be sort of flattish year-over-year?
Progresses.
uh, know it's it's
Um, lots of great color on the call, so thank you. Um, I just wanted to uh just just focus on the margins a little bit uh, with respect to the Outlook. Um, what would it be fair to say that your margin Outlook in kind of both segments is uh, is sort of flattish through the year, presumably. Um, sounds like not much moving in the FSR margin, but maybe you'll see some headwinds in q1, but on a full year basis in Brands, would you expect both segments to be sort of flattish year-over-year?
Jeremy Alan Rakusin: Yeah. Hey, Stephen, it's Jeremy. Correct. Full year, both divisions, roughly in line, and hence the consolidated margin in line. You know, the Q1, we expect residential margins to be roughly in line, again, consistent with the full year, and a decline in brands margins in the Q1, and hence the sort of flat EBITDA with a little bit of revenue growth in the Q1.
it's still very early in taking shape, um,
Stephen MacLeod: Right.
Stephen MacLeod: Right.
Jeremy Alan Rakusin: So brands margin a little declining and then picking up in sequential quarters as we see, you know, commensurate uptick in revenue growth.
Jeremy Rakusin: So brands margin a little declining and then picking up in sequential quarters as we see, you know, commensurate uptick in revenue growth.
And some of the areas are impacted, they're still frozen. So there is an opportunity when, When the Thought starts
Stephen MacLeod: Okay, that's great. Thank you. And then just with respect to, you know, Scott, you talked about just the recent freeze that we saw through North America and, you know, potentially an uptick in activity. I know early days, but is there any way to kind of quantify, you know, what that potentially could look like as the year progresses?
Stephen MacLeod: Okay, that's great. Thank you. And then just with respect to, you know, Scott, you talked about just the recent freeze that we saw through North America and, you know, potentially an uptick in activity. I know early days, but is there any way to kind of quantify, you know, what that potentially could look like as the year progresses?
uh, but very hard to quantify at this point, I mean, we've we've attempted it for q1, uh, just based on on some of the activity, you know, as I said, we
Uh, we expect our revenues to be up modestly, our backlog of year end.
It's Jeremy, uh, correct. Full year both divisions, uh, roughly in line and, and hence the, uh, consolidated margin in line, you know, the the first quarter, we expect residential margins to be roughly in line. Again, consistent with the full year and the decline in Brands margins, um, in the first quarter. And, and, and hence, the sort of flat even
Stephen MacLeod: Right.
Jeremy Alan Rakusin: So Brands margin is a little declining and then picking up in sequential quarters as we see, you know, commensurate uptick in revenue growth.
De with a little bit of revenue growth in the first quarter, um, to brand margin as well as the client, and then picking up, um, in sequential quarters. As we see, um, you know, a commensurate uptick in revenue growth.
Stephen MacLeod: Okay, that's great. Thank you. And then just with respect to, you know, Scott, you talked about just the recent freeze that we saw through North America and, you know, potentially an uptick in activity. I know early days, but is there any way to kind of quantify, you know, what that potentially could look like as the year progresses?
D. Scott Patterson: No. It's still very early in taking shape, and some of the areas are impacted, they're still frozen. So there is an opportunity-
Which was pointing to a soft q1. Uh, we do think the activity will uh, take us back to, you know, through prior year.
Scott Patterson: No. It's still very early in taking shape, and some of the areas are impacted, they're still frozen. So there is an opportunity-
Uh modestly.
But um,
you know, mitigation work comes in, we respond and and move on and
Stephen MacLeod: Yeah
Stephen MacLeod: Yeah
D. Scott Patterson: ... when the thaw starts. But very hard to quantify at this point. I mean, if we've attempted it for Q1, just based on some of the activity. You know, as I said, we expect our revenues to be up modestly. Our backlog at year-end was down because we didn't have a carryover from Q4 storms, which was pointing to a soft Q1. We do think the activity will take us back to, you know, through prior year, modestly. But you know, mitigation work comes in, we respond and move on. And for the most part, the jobs are smaller at this point, and the unknown is the reconstruction. You know, will there be any? Will we get the work, and how much revenue will it generate?
Scott Patterson: ... when the thaw starts. But very hard to quantify at this point. I mean, if we've attempted it for Q1, just based on some of the activity. You know, as I said, we expect our revenues to be up modestly. Our backlog at year-end was down because we didn't have a carryover from Q4 storms, which was pointing to a soft Q1. We do think the activity will take us back to, you know, through prior year, modestly. But you know, mitigation work comes in, we respond and move on. And for the most part, the jobs are smaller at this point, and the unknown is the reconstruction. You know, will there be any? Will we get the work, and how much revenue will it generate?
for the most part, the jobs are smaller at this point and the unknown is
Okay, that's great. Thank you. Um, and then just with respect to um you know, Scott you you you talked about uh just the recent freeze that we saw through North America and and uh you know, potentially an uptick in activity um, is I know early days, but is there any way to kind of quantify? You know what, that potentially could could look like as the year?
uh, the Reconstruction, you know, will there be any
Progresses.
D. Scott Patterson: No. It's still very early in taking shape, and some of the areas are impacted; they're still frozen. So there is an opportunity-
uh, know it's it's
Uh, will we get the work and and how much revenue will it generate? So that will evolve
it's, it's still very early in taking shape, um,
uh, in the coming in the coming weeks and months but it's um,
Stephen MacLeod: Yeah
D. Scott Patterson: ... when the thaw starts, but very hard to quantify at this point. I mean, if we've attempted it for Q1, just based on some of the activity. You know, as I said, we expect our revenues to be up modestly. Our backlog at year-end was down because we didn't have a carryover from Q4 storms, which was pointing to a soft Q1. We do think the activity will take us back to, you know, through prior year, modestly. But, you know, mitigation work comes in, we respond and move on. And for the most part, the jobs are smaller at this point, and the unknown is the reconstruction. You know, will there be any? Will we get the work, and how much revenue will it generate?
still too early to really give you any more than that.
And some of the areas are impacted—they're still frozen. So there is an opportunity when the thaw starts.
At this point, I mean, if we've attempted it for Q1, just based on some of the activity, you know, as I said, we—
Yeah. Yeah, that's fair. I, I figured that would be the case. Um, and would it be fair to assume that, like, in Q4, you had basically zero revenues from named storms relative to 60 million last year. Is that right? Right? Yeah.
uh, we expect our revenues to be up modestly, our backlog of year end.
Was down because we didn't have a carryover from from Q4 storms. Um,
Yeah, okay. Um, and then maybe just finally just speaking of capital allocation. Um, would you would you consider, uh, sort of being active on the buyback given, uh, given where the stock is. And, and, uh, and given the ncib, you have outstanding
Which was pointing to a soft q1. Uh, we do think the activity will uh, take us back to, you know, through prior year.
D. Scott Patterson: So that will evolve in the coming weeks and months, but it's still too early to really give you any more than that.
Scott Patterson: So that will evolve in the coming weeks and months, but it's still too early to really give you any more than that.
Uh modestly.
Uh, that is that is not something that uh that we discussed. Um,
But um,
Okay. That would be a board level discussion and it hasn't come up.
You know, mitigation work comes in, we respond, and move on.
Stephen MacLeod: Yeah. Yeah, that's fair. I figured that would be the case. Would it be fair to assume that, like, in Q4, you had basically zero revenues from named storms relative to $60 million last year? Is that right?
Stephen MacLeod: Yeah. Yeah, that's fair. I figured that would be the case. Would it be fair to assume that, like, in Q4, you had basically zero revenues from named storms relative to $60 million last year? Is that right?
Okay. Okay, that's great. Thanks guys. I appreciate it.
For the most part, the jobs are smaller at this point, and the unknown is
Uh, the reconstruction, you know, will there be any—
D. Scott Patterson: So that will evolve in the coming weeks and months, but it's still too early to really give you any more than that.
Uh, will we get the work and and how much revenue will it generate? So that will evolve
D. Scott Patterson: Right. Yeah.
Scott Patterson: Right. Yeah.
Stephen MacLeod: Yeah. Yeah, okay. And then maybe just finally, just, speaking of capital allocation, would you, would you consider sort of being active on the buyback, given, given where the stock is and, and, and given the NCIB you have outstanding?
Stephen MacLeod: Yeah. Yeah, okay. And then maybe just finally, just, speaking of capital allocation, would you, would you consider sort of being active on the buyback, given, given where the stock is and, and, and given the NCIB you have outstanding?
Uh, in the coming weeks and months, but it's, um,
Stephen MacLeod: Yeah. Yeah, that's fair. I, I figured that would be the case, and would it be fair to assume that, like in Q4, you had basically zero revenues from named storms relative to $60 million last year? Is that right?
It's still too early to really give you any more than that.
D. Scott Patterson: That is, that is not something that we've discussed, Steven.
Scott Patterson: That is, that is not something that we've discussed, Steven.
D. Scott Patterson: Right. Yeah.
Stephen MacLeod: Yeah. Yeah, okay. And then maybe just finally, just speaking of capital allocation, would you consider sort of being active on the buyback, given where the stock is and given the NCIB you have outstanding?
Stephen MacLeod: Okay.
Stephen MacLeod: Okay.
D. Scott Patterson: That would be a board-level discussion, and it hasn't come up.
Scott Patterson: That would be a board-level discussion, and it hasn't come up.
Stephen MacLeod: Okay. Okay, that's great. Thanks, guys. I appreciate it.
Stephen MacLeod: Okay. Okay, that's great. Thanks, guys. I appreciate it.
Yeah. Yeah, that's fair. I, I figured that would be the case. Um, and would it be fair to assume that it, like, in Q4, you had basically zero revenues from named storms relative to 60 million last year? Is that right? Right? Yeah, yeah, that's right. Okay. Um, and then maybe just finally just speaking of capital, allocation, um, would you would you consider uh, sort of being active on the buyback given, uh, given where the stock is, and
Operator: Our next question will be coming from Stephen Sheldon of William Blair. Your line is open.
Hey, Scott and Jeremy. Thanks for taking my questions first, just on on kind of margins. Great year-over-year, margin Trends and residential. Once again, this quarter and then full year results, came in closer to the high end of that 9 to 10% margin range. You could talk about their. So, can you unpack some of the levers driving? That is that still mainly being driven by some of the offshoring and AI leverage. And I think that about accounting and call center operations, and and has your thinking on the margins trajectory over the next few years changed at auditing. And you already talked about kind of flattish for 2026, but you know, is there an opportunity down the road? You think we could potentially get the margin in residential into the double digit range above 10%?
Operator: Our next question will be coming from Stephen Sheldon of William Blair. Your line is open.
And, uh, and given the ncib you have outstanding.
D. Scott Patterson: That is not something that we've discussed, Stephen.
Stephen Sheldon: Hey, Scott and Jeremy, thanks for taking my questions. First, just on kind of margins, great year-over-year margin trends in residential once again this quarter, and then full year results came in closer to the high end of that 9 to 10% margin range you've historically talked about there. So can you unpack some of the levers driving that? Is that still mainly being driven by some of the offshoring and AI leverage, and I think you talked about accounting and call center operations? And has your thinking on the margin trajectory over the next few years changed at all? I mean, you already talked about kind of flattish for 2026, but, you know, is there an opportunity down the road, you think, where you could potentially get the margin in residential into the double-digit range, above 10%?
Stephen Sheldon: Hey, Scott and Jeremy, thanks for taking my questions. First, just on kind of margins, great year-over-year margin trends in residential once again this quarter, and then full year results came in closer to the high end of that 9 to 10% margin range you've historically talked about there. So can you unpack some of the levers driving that? Is that still mainly being driven by some of the offshoring and AI leverage, and I think you talked about accounting and call center operations? And has your thinking on the margin trajectory over the next few years changed at all? I mean, you already talked about kind of flattish for 2026, but, you know, is there an opportunity down the road, you think, where you could potentially get the margin in residential into the double-digit range, above 10%?
Uh, that is—that is not something that, uh, that we've discussed. Um,
Stephen MacLeod: Okay.
D. Scott Patterson: That would be a board-level discussion, and it hasn't come up.
Stephen MacLeod: Okay. Okay, that's great. Thanks, guys. I appreciate it.
Okay. That would be a board level discussion and it hasn't come up.
Okay. Okay, that's great. Thanks guys. I appreciate it.
Operator: Our next question will be coming from Stephen Sheldon of William Blair. Your line is open.
Yeah.
Yeah, Stephen Jeremy again. Um, the the progression we we've done a lot of the, um, you know, the heavy lifting in those areas. In fact, they started in 24 and really started to, um, play out on the margin Improvement in 25. Um, we're starting to lap those now, um, you know, so a lot of
And our next question will be coming from Stephen Sheldon of William Blair. Your line is open.
Stephen Sheldon: Hey, Scott and Jeremy, thanks for taking my questions. First, just on kind of margins, great year-over-year margin trends in residential once again this quarter, and then full year results came in closer to the high end of that 9 to 10% margin range you've historically talked about there. So can you unpack some of the levers driving that? Is that still mainly being driven by some of the offshoring and AI leverage, and I think you talked about accounting and call center operations. And has your thinking on the margin trajectory over the next few years changed at all? I mean, you already talked about kind of flattish for 2026, but, you know, is there an opportunity down the road, you think, where you could potentially get the margin in residential into the double-digit range, above 10%?
Of the, um, and you saw the margins start to taper towards the, the margin expansion start to taper towards the back, end of the year, which is indicative that, you know, we we've squeezed a lot of the, the low hanging fruit, um, teams always working on on related initiatives, to, to those, uh, that you just called out, uh, as well as others. And, uh, again, we don't see much for 26.
Jeremy Alan Rakusin: Yeah, Stephen, Jeremy again. The progression, we've done a lot of the, you know, the heavy lifting in those areas. In fact, they started in 2024 and really started to play out on the margin improvement in 2025. We're starting to lap those now. Yeah, so a lot of the, the... And you saw the margin start to taper towards the, the margin expansion start to taper towards the back end of the year, which is indicative that, you know, we, we've squeezed a lot of the, the low-hanging fruit. Team's always working on related initiatives to those that you just called out, as well as others.
Jeremy Rakusin: Yeah, Stephen, Jeremy again. The progression, we've done a lot of the, you know, the heavy lifting in those areas. In fact, they started in 2024 and really started to play out on the margin improvement in 2025. We're starting to lap those now. Yeah, so a lot of the, the... And you saw the margin start to taper towards the, the margin expansion start to taper towards the back end of the year, which is indicative that, you know, we, we've squeezed a lot of the, the low-hanging fruit. Team's always working on related initiatives to those that you just called out, as well as others.
But, uh, in terms of going about 10%, uh, yeah. That's that's an opportunity over uh, a multi-year Time Horizon, for sure. And uh, we'll continue to uh, to evaluate the team's progress in that and then, you know, call out the opportunities as we see them coming through.
Hey Scott. Jeremy, thanks for taking my question. First, just on, on kind of margins. Great year-over-year, margin Trends and residential. Once again, this quarter and then full year results, came in closer to the high end of that 9 to 10% margin range. You've historically talked about there. So, can you unpack some of the levers driving? That, is that still mainly being driven by some of the offshoring and AI leverage. And I think you talked about accounting and call center operations and, and has your thinking on the margins trajectory over the next few years changed at all. I mean, you already talked about kind of flattish for 2026, but you know, is there an opportunity down the road? You think we could potentially get the margin in residential into the double digit range above 10%?
Jeremy Alan Rakusin: Yeah, Stephen, Jeremy again. The progression, we've done a lot of the, you know, the heavy lifting in those areas. In fact, they started in 2024 and really started to play out on the margin improvement in 2025. We're starting to lap those now. You know, so a lot of the... And you saw the margins start to taper towards the, the margin expansion start to taper towards the back end of the year, which is indicative that, you know, we, we've squeezed a lot of the, the low-hanging fruit. Teams are always working on related initiatives to those that you just called out, as well as others.
Got it, that's helpful. And then wanted to ask about just the roofing side and and I guess from your view, I get the new construction piece, you know. That's that's
something that, uh, yeah, if you can look at permits to start with either that's, you know, it's been been very weak and and not not a lot of pickup that we're expecting here over the next year or 2, but I guess on the re-roofing side
Jeremy Alan Rakusin: Again, we don't see much for 2026, but in terms of going above 10%, yeah, that's an opportunity over a multiyear time horizon for sure. We'll continue to evaluate the team's progress in that and then, you know, call out the opportunities as we see them coming through.
Jeremy Rakusin: Again, we don't see much for 2026, but in terms of going above 10%, yeah, that's an opportunity over a multiyear time horizon for sure. We'll continue to evaluate the team's progress in that and then, you know, call out the opportunities as we see them coming through.
Jeremy Alan Rakusin: And, again, we don't see much for 2026, but, in terms of going above 10%, yeah, that's, that's an opportunity over a, a multi-year time horizon for sure. And, we'll continue to, to evaluate the team's, progress in that and then, you know, call out the opportunities as we see them coming through.
You know what could it take for that to pick up? Um, you know, I guess the question would really be how long can commercial properties? Wait and push out re-roofing? As I would assume that that that can only be delayed for so long before that owner or manager takes on bigger risks related to it with a bigger loss potential? Um so I guess you have how you know, how long can can reroofing, really stay kind of depressed. Um,
Stephen Sheldon: Got it. That's helpful. And then wanted to ask about just the roofing side. And I guess from your view, I guess, the new construction piece, you know, that's something that, you know, can look at permits and starts and see that that's, you know, it's been very weak, and not a lot of pickup that we're expecting here over the next year or two. But I guess on the reroofing side, you know, what could it take for that to pick up? You know, I guess, the question would really be, how long can commercial properties wait and push out reroofing? As I would assume that that can only be delayed for so long before that owner or manager takes on bigger risks related to it with a bigger loss potential.
Stephen Sheldon: Got it. That's helpful. And then wanted to ask about just the roofing side. And I guess from your view, I guess, the new construction piece, you know, that's something that, you know, can look at permits and starts and see that that's, you know, it's been very weak, and not a lot of pickup that we're expecting here over the next year or two. But I guess on the reroofing side, you know, what could it take for that to pick up? You know, I guess, the question would really be, how long can commercial properties wait and push out reroofing? As I would assume that that can only be delayed for so long before that owner or manager takes on bigger risks related to it with a bigger loss potential.
Yeah, certainly it it, uh, you know, it can't be deferred for for long Steven. And, and we do think the market is stabilized. Uh,
Yeah, Stephen Jeremy again. Um, the the progression we we've done a lot of the, um, you know, the heavy lifting in those areas. In fact, they started in 24 and really started to, um, play out on the margin Improvement in 25. Um, we're starting to lap those now, um, you know, so a lot of the, um, the and you saw the margin start to taper towards the, the margin expansion start to taper towards the back, end of the year, which is indicative that, you know, we we've squeezed a lot of the, the low hanging fruit, um, teams always working on on related initiatives, to, to those, uh, that you just called out, uh, as well as others. And, uh, again, we don't see much for 26, but, uh, in terms of going about 10%, uh, yeah, that's, that's an opportunity over, uh, a multi-year Time Horizon, for sure. And, uh, we'll continue to, uh, to evaluate the team's progress in that and then, you know, call out the opportunity.
As we see them coming through it.
Stephen Sheldon: Got it. That's helpful. And then wanted to ask about just the roofing side. And I guess from your view, I guess, the new construction piece, you know, that, that's something that, you know, you can look at permits and starts and see that that's, you know, it's been very weak, and not a lot of pickup that we're expecting here over the next year or two. But I guess on the reroofing side, you know, what could it take for that to pick up? You know, I guess, the question would really be: How long can commercial properties wait and push out reroofing? As I would assume that that can only be delayed for so long before that owner or manager takes on bigger risks related to it with a bigger loss potential.
Our backlogs certainly has stabilized and it's heavily weighted towards re-roof as you would expect. Um, you know, historically we've been 2/3, re-roof and 1/3 new construction and so we're very much focused on the re-roof side of that.
Uh, so the overall Market has shrunk
Stephen Sheldon: So, I guess, yeah, you know, how long can reroofing really stay kind of depressed? Thanks.
Stephen Sheldon: So, I guess, yeah, you know, how long can reroofing really stay kind of depressed? Thanks.
Got it, that's helpful. And then wanted to ask about just the roofing side and and I guess from your view, I get the new construction piece, you know, that that's something that uh yeah if you can look at permits and start some people that's you know it's been very weak and and not not a lot of pickup that we're expecting here over the next year or 2, but I guess on the re-roofing side
um,
and,
D. Scott Patterson: Yeah, certainly, it, it, you know, it can't be deferred for long, Stephen. And we do think the market has stabilized. Our backlog certainly has stabilized, and it's heavily weighted towards reroof, as you would expect. You know, historically, we've been 2/3 reroof and 1/3 new construction, and so we're very much focused on the reroof side of that. So the overall market has shrunk, certainly. But our momentum in reroof has stabilized, and as I said, we expect to grow this year, and look for sequential improvement quarter to quarter. And you know, generally, we feel optimistic. We're bidding work. We feel good about our market position. We believe in our leadership locally, branch to branch.
Scott Patterson: Yeah, certainly, it, it, you know, it can't be deferred for long, Stephen. And we do think the market has stabilized. Our backlog certainly has stabilized, and it's heavily weighted towards reroof, as you would expect. You know, historically, we've been 2/3 reroof and 1/3 new construction, and so we're very much focused on the reroof side of that. So the overall market has shrunk, certainly. But our momentum in reroof has stabilized, and as I said, we expect to grow this year, and look for sequential improvement quarter to quarter. And you know, generally, we feel optimistic. We're bidding work. We feel good about our market position. We believe in our leadership locally, branch to branch.
Look for sequential Improvement. Uh, quarter to quarter.
and um,
You know, generally we feel optimistic.
Uh, we're bidding work.
Um,
Stephen Sheldon: So I guess, yeah, you know, how long can reroofing really stay kind of depressed? Thanks.
We feel good about our Market position. We believe in our leadership locally Branch to branch.
You know what could it take for that to pick up? Um, you know, I guess the question would really be how long can commercial properties? Wait and push out re-roofing? As I would assume that that that can only be delayed for so long before that owner or manager takes on bigger risks related to it with a bigger loss potential? Um so I guess you have how you know, how long can can reroofing, really stay kind of depressed. Um,
D. Scott Patterson: Yeah, certainly, you know, it can't be deferred for long, Stephen. We do think the market has stabilized. Our backlog certainly has stabilized, and it's heavily weighted towards reroof, as you would expect. You know, historically, we've been 2/3 reroof and 1/3 new construction, and so we're very much focused on the reroof side of that. So the overall market has shrunk, certainly. But our momentum in reroof has stabilized, and as I said, we expect to grow this year, and look for sequential improvement, quarter to quarter. You know, generally, we feel optimistic. We're bidding work. We feel good about our market position. We believe in our leadership, locally, branch to branch.
And um, certainly we we uh, will continue to invest in the platform this year.
Thanks, yeah, certainly it. It, uh, you know, it can't be deferred for for long Steven. And, and we do think the market is stabilized. Uh,
And hopefully in further tuck under acquisition. So we we're feeling we're feeling optimistic that, um,
uh, you know, we'll we'll start to see, um,
quarter over quarter and year-over-year growth from here.
Very helpful. Thank you.
And our next question.
Roof in one-third new construction. And so we're very much focused on the re-roof side of that.
Will be coming from Aaron Kyle of CIBC your line is open.
Uh, so the overall market has shrunk.
uh, certainly. Um, but our
Um momentum and re-roof has stabilized. And as I said, we expect to grow this year.
um,
D. Scott Patterson: Certainly, we will continue to invest in the platform this year and hopefully in further tuck-under acquisitions. We're feeling optimistic that, you know, we'll start to see quarter-over-quarter and year-over-year growth from here.
and,
Scott Patterson: Certainly, we will continue to invest in the platform this year and hopefully in further tuck-under acquisitions. We're feeling optimistic that, you know, we'll start to see quarter-over-quarter and year-over-year growth from here.
Look for sequential improvement, quarter to quarter.
and uh,
You know, generally, we feel optimistic.
Uh, we're bidding work.
Um,
Hi, good morning, and thanks for taking the questions. Um, I just want to stick on the the roofing segments uh here and maybe uh, start with more of a macro question. I guess as your your views at the relates to the new construction cycle in the US and and the question is kind of on the basis of, you know, if you could construction remains depressed here as it is looking to be. Um, if you anticipate competition in like the re-roof segment to intensify further than it's already been, or I may be mentioned at the stabilizing but just anything you can uh to speak to
D. Scott Patterson: And, certainly, we will continue to invest in the platform this year and hopefully in further tuck-under acquisitions. So we're feeling optimistic that, you know, we'll start to see quarter-over-quarter and year-over-year growth from here.
We feel good about our Market position. We believe in our leadership locally Branch to branch.
Uh, just competition in that space would be helpful.
Tim James: ... Very helpful. Thank you.
Tim James: ... Very helpful. Thank you.
Operator: Our next question will be coming from Erin Kyle of CIBC. Your line is open.
Operator: Our next question will be coming from Erin Kyle of CIBC. Your line is open.
And, um, certainly we, we, uh, will continue to invest in the platform this year.
Yeah. I mean the competition has intensified uh certainly there are fewer opportunities and and more companies bidding and it uh it has compressed gross margins.
Erin Kyle: Hi, good morning, and thanks for taking the questions. I just want to stick on the roofing segment here. Maybe start with more of a macro question. I guess, as your view as it relates to the new construction cycle in the US. And the question is kind of on the basis of, you know, if new construction remains depressed here, as it's looking to be, do you anticipate competition in, like, the re-roof segment to intensify further than it's already been? Or I know you've mentioned it's stabilizing, but just anything you can just speak to just competition in that space would be helpful.
Erin Kyle: Hi, good morning, and thanks for taking the questions. I just want to stick on the roofing segment here. Maybe start with more of a macro question. I guess, as your view as it relates to the new construction cycle in the US. And the question is kind of on the basis of, you know, if new construction remains depressed here, as it's looking to be, do you anticipate competition in, like, the re-roof segment to intensify further than it's already been? Or I know you've mentioned it's stabilizing, but just anything you can just speak to just competition in that space would be helpful.
And hopefully in further tuck under acquisition. So we we're feeling we're feeling optimistic that, um,
and um,
uh, you know, we'll we'll start to see, um,
quarter over quarter and year-over-year growth from here.
so we we don't expect that to alleviate in the near term until there is
Frederic Bastien: Very helpful. Thank you.
Very helpful. Thank you.
Operator: Our next question will be coming from Erin Kyle of CIBC. Your line is open.
Uh, an uptick in the in the new construction Market.
And our next question.
And I, I don't know that I can give you more than that.
Will be coming from Aaron Kyle of CIBC your line is open.
Erin Kyle: Hi, good morning, and thanks for taking the questions. I just wanna stick on the roofing segment here. Maybe start with more of a macro question. I guess as your view as it relates to the new construction cycle in the US. And the question is kind of on the basis of, you know, if new construction remains depressed here, as it's looking to be, do you anticipate competition in, like, the reroof segment to intensify further than it's already been? Or I know you've mentioned it's stabilizing, but just anything you can add to speak to just competition in that space would be helpful.
Hi, good morning, and thanks for taking the questions. Um, I just want to stick on the
D. Scott Patterson: Yeah, I mean, the competition has intensified. Certainly, there are fewer opportunities and more companies bidding, and it has compressed gross margins. So we don't expect that to alleviate in the near term until there is an uptick in the new construction market. I don't know that I can give you more than that, Erin.
Scott Patterson: Yeah, I mean, the competition has intensified. Certainly, there are fewer opportunities and more companies bidding, and it has compressed gross margins. So we don't expect that to alleviate in the near term until there is an uptick in the new construction market. I don't know that I can give you more than that, Erin.
No, that that's helpful there. Um, maybe I'll switch gears, um, on m&a as well. And you mentioned that uh, in response to previous questions. Um, but I for 2026, uh, is briefing, still a focus area for for tuck and m&a and then maybe more broadly here. If we think about, uh, your commercial maintenance businesses that you currently operate in. Uh, what is the appetite? Maybe for a another large platform deal in an adjacent space or any, any larger m&a
D. Scott Patterson: Yeah, I mean, the competition has intensified. Certainly there are fewer opportunities and more companies bidding, and it has compressed gross margins. And so we don't expect that to alleviate in the near term until there is an uptick in the new construction market. And I don't know that I can give you more than that, Erin.
The roofing segments, uh, here and maybe, uh, starts with more of a macro question. I guess your your views as it relates to the new construction cycle in the US. And and the question is kind of on the basis of, you know, if new construction remains depressed here as it, it's looking to be um, do you anticipate competition in like the re-roof segment to intensify further than it's already been? Or I mean you mentioned it's stabilizing but just anything you can uh, to speak to uh just competition in that space would be helpful.
Um, I think we're we're focused primarily on tuck Hunters right now and certainly Roofing. There's an area where we're uh we're committed to
Erin Kyle: No, that's, that's helpful there. Maybe I'll switch gears on M&A as well. And you mentioned it in response to a previous question. But for 2026, is roofing still a focus area for tuck-in M&A? And then maybe more broadly here, if we think about your commercial maintenance businesses that you currently operate in, what is the appetite maybe for another large platform deal in an adjacent space or any, any larger M&A?
Erin Kyle: No, that's, that's helpful there. Maybe I'll switch gears on M&A as well. And you mentioned it in response to a previous question. But for 2026, is roofing still a focus area for tuck-in M&A? And then maybe more broadly here, if we think about your commercial maintenance businesses that you currently operate in, what is the appetite maybe for another large platform deal in an adjacent space or any, any larger M&A?
Again, you know, I I said, we're picking our spots. We're very patient and it's about the, uh,
Yeah. I mean the competition has intensified uh certainly there are fewer opportunities and and more companies bidding and it uh it has compressed gross margins.
the leadership and the partnership.
and um,
we're open-minded to, um,
Larger Acquisitions certainly. And I it would be, uh,
So we don’t expect that to alleviate in the near term until there is—
Uh, an uptick in the, in the new construction market.
And I I don't know what I can give you more than that error.
Erin Kyle: No, that's, that's helpful there. Maybe I'll switch gears on M&A as well. And you mentioned it in response to a previous question. But I-- for 2026, is roofing still a focus area for tuck in M&A? And then maybe more broadly here, if we think about your commercial maintenance businesses that you currently operate in, what is the appetite maybe for another large platform deal in an adjacent space or any larger M&A?
You know, an adjacency and I'm not sure it would, um, would be a platform per our description, which would be sort of a operating team. It's more likely to be
uh, within restoration or within Roofing, or within uh, fire
D. Scott Patterson: I think we're focused primarily on tuck-unders right now, and certainly roofing is an area where we're committed to. Again, you know, I said, we're picking our spots, we're very patient, and it's about the leadership and the partnership. We're open-minded to larger acquisitions, certainly, and it would be, you know, an adjacency, and I'm not sure it would be a platform per our description, which would be sort of a separate operating team. It's more likely to be within restoration or within roofing or within fire. But we're open-minded, certainly, but also being cautious around valuation in a market that's still, you know, in our mind, overheated.
um,
Scott Patterson: I think we're focused primarily on tuck-unders right now, and certainly roofing is an area where we're committed to. Again, you know, I said, we're picking our spots, we're very patient, and it's about the leadership and the partnership. We're open-minded to larger acquisitions, certainly, and it would be, you know, an adjacency, and I'm not sure it would be a platform per our description, which would be sort of a separate operating team. It's more likely to be within restoration or within roofing or within fire. But we're open-minded, certainly, but also being cautious around valuation in a market that's still, you know, in our mind, overheated.
but uh, we're we're open-minded, uh, certainly but
No, that that's helpful there. Um, maybe I'll switch gears, um, on m&a as well and you mentioned it uh, in response to previous questions. Um, but I for 2026, uh, is briefing, still a focus area for for tuck and m&a and then maybe more broadly here if we think about, um,
also, uh, being cautious around around valuation and
uh in a market that's still uh, you know, in our mind over overheated
Your commercial maintenance, businesses that you currently operate in. Uh, what is the appetite? Maybe for a another large platform deal in an adjacent space or any. Any larger m&a
D. Scott Patterson: I think we're focused primarily on tuck-unders right now, and certainly roofing is an area where we're committed to. Again, you know, I said we're picking our spots, we're very patient, and it's about the leadership and the partnership. We're open-minded to larger acquisitions, certainly, and it would be, you know, an adjacency, and I'm not sure it would be a platform per our description, which would be sort of a separate operating team. It's more likely to be within restoration or within roofing or within fire. But we're open-minded, certainly, but also being cautious around valuation in a market that's still, you know, in our mind, overheated.
Thank you, that's helpful. I will pass the line.
um,
I think we're, we're
And our next question will be coming from the line of Tim, James of TD Cohen?
Your line is open.
focused primarily on tuck Hunters right now and certainly Roofing is an area where we're uh we're committed to
Again, you know, I I said, we're picking our spots. We're very patient and it's about the, uh,
the leadership and the partnership.
we're open-minded to, um,
Larger acquisitions, certainly. And I—it would be, uh,
Thank you. Um um, thank you for the uh, the time. Uh, my first question going back to m&a for a minute. Um, appreciate the comments on kind of the the competitiveness in that market. Can you talk about, if valuations do remain high, whether it's, you know, through 26 into 27,
You know, an adjacency—and I'm not sure it would, um, would be a platform per our description, which would be sort of a separate operating team. It's more likely to be—
Erin Kyle: Thank you. That's helpful. I will pass the line.
Erin Kyle: Thank you. That's helpful. I will pass the line.
Uh, within restoration or within roofing, or within, uh, fire, um,
Operator: Our next question will be coming from the line of Tim James of TD Cowen. Your line is open.
Operator: Our next question will be coming from the line of Tim James of TD Cowen. Your line is open.
but uh, we're we're open-minded, uh, certainly but
Does that change your Approach at all? And what what I'm thinking about, rather simplistically is, do you change the risk profile of the businesses you buy or do you, you know, pay higher valuations, how how do you approach it as as multiples? Uh and as the competition for m&a, remains relatively elevated
Tim James: Thank you. Thank you for the time. My first question, going back to M&A for a minute, appreciate the comments on kind of the competitiveness in that market. Can you talk about if valuations do remain high, whether it's, you know, through 2026 into 2027, does that change your approach at all? What I, what I'm thinking about, rather simplistically, is, do you change the risk profile of the businesses you buy, or do you, you know, pay higher valuations? How do you approach it as multiples, and as the competition for M&A remains relatively elevated?
Tim James: Thank you. Thank you for the time. My first question, going back to M&A for a minute, appreciate the comments on kind of the competitiveness in that market. Can you talk about if valuations do remain high, whether it's, you know, through 2026 into 2027, does that change your approach at all? What I, what I'm thinking about, rather simplistically, is, do you change the risk profile of the businesses you buy, or do you, you know, pay higher valuations? How do you approach it as multiples, and as the competition for M&A remains relatively elevated?
also, uh, being cautious around around valuation and
Uh, we would approach it the same way we did uh this past year.
Um,
uh in a market that's still uh, you know, in our mind over overheated
Erin Kyle: Thank you. That's helpful. I will pass the line.
Thank you, that's helpful. I will pass the line.
You know, as as Jeremy said, we allocated, uh, over a 100 million on tuck under but these are these are solid.
Operator: Our next question will be coming from the line of Tim James of TD Cowen. Your line is open.
And our next question will be coming from the line of Tim James of TD Cowen. Your line is open.
Tim James: Thank you. Thank you for the time. My first question, going back to M&A for a minute, I appreciate the comments on kind of the competitiveness in that market. Can you talk about if valuations do remain high, whether it's, you know, through 2026 into 2027, does that change your approach at all? And what I'm thinking about, rather simplistically, is: do you change the risk profile of the businesses you buy, or do you, you know, pay higher valuations? How do you approach it as multiples, and as the competition for M&A remains relatively elevated?
with, um, with great leadership that fills whites space for us or or adds to our service line,
and,
these are at, uh,
Valuations that we're we were were comfortable with.
And um in most cases we were able to differentiate ourselves from private equity and and increasingly we're seeing opportunities.
To do that.
D. Scott Patterson: We would approach it the same way we did this past year. You know, as Jeremy said, we allocated over $100 million on tuck unders. These are solid, good add-ons with great leadership that fills white space for us, or adds to our service line. These are at valuations that we're comfortable with. In most cases, we were able to differentiate ourselves from private equity, and increasingly, we're seeing opportunities to do that with families and owners that want to be in a family where they're not resold. They want a forever owner.
Scott Patterson: We would approach it the same way we did this past year. You know, as Jeremy said, we allocated over $100 million on tuck unders. These are solid, good add-ons with great leadership that fills white space for us, or adds to our service line. These are at valuations that we're comfortable with. In most cases, we were able to differentiate ourselves from private equity, and increasingly, we're seeing opportunities to do that with families and owners that want to be in a family where they're not resold. They want a forever owner.
Uh, with families and owners.
that, um,
Want to be in a family where they're not resold.
Uh, they want to they want to Forever owner.
Thank you. Um um, thank you for the uh, the time. Uh, my first question going back to m&a for a minute. Um, appreciate the comments on kind of the the competitiveness in that market. Can you talk about, if valuations, do remain high, whether it's, you know, through 26 into 27, does that change your Approach at all? And what what I'm thinking about, rather simplistically is, do you change the risk profile of the businesses you buy or do you, you know, pay higher valuations, how how do you approach it as as?
D. Scott Patterson: We would approach it the same way we did this past year. You know, as Jeremy said, we allocated over $100 million on tuck-unders, but these are solid good add-ons with great leadership that fills white space for us or adds to our service line. And these are at valuations that we're comfortable with. And in most cases, we were able to differentiate ourselves from private equity, and increasingly, we're seeing opportunities to do that with families and owners that want to be in a family where they're not resold. They want a forever owner. So we're seeing more opportunities like that.
Elevated.
And uh so we're seeing more opportunities uh like that and and so I would we're we're not going to uh change our risk profile. Um
Uh, we would approach it the same way we did uh this past year.
Um,
and less, uh, the returns uh,
You know, as, as Jeremy said, we allocated, uh, over a 100 million on tuck Hunters, but these are, these are solid.
Uh, good add-ons.
Change to to hit our hurdle rates. Uh we'll continue to to work hard and and if if you know I would think that in 2026 it may well be a capital allocation year similar to 25. And what we're we're we're comfortable with that.
with, um, with great leadership that fills white space for us or or adds to our service line,
and,
these are at, uh,
Valuations that we were comfortable with.
D. Scott Patterson: So we're seeing more opportunities like that, and so we're not going to change our risk profile, unless the returns change to hit our hurdle rates. We'll continue to work hard, and if... You know, I would think that in 2026, it may well be a capital allocation year similar to 2025, and we're comfortable with that.
Scott Patterson: So we're seeing more opportunities like that, and so we're not going to change our risk profile, unless the returns change to hit our hurdle rates. We'll continue to work hard, and if... You know, I would think that in 2026, it may well be a capital allocation year similar to 2025, and we're comfortable with that.
And um in most cases we were able to differentiate ourselves from private equity and and increasingly we're seeing opportunities.
To do that.
Uh, with families and owners.
Okay, that's helpful. And then, you know, is there any sort of Silver Lining here potentially in the roofing business with, you know, you talked about it being very competitive, gross margin pressure, are you seeing any silver lining in that that maybe is kind of shaking out some businesses to, to look for um, a sale opportunity? Or is it too early to to to see that yet in the marketplace?
that, um,
Want to be in a family where they're not resold.
Uh, they want to they want a forever owner.
I think that's true. There are uh we're seeing opportunities that that they're reluctant to transact, because
um,
D. Scott Patterson: So, I would – we're not going to change our risk profile unless the returns change to hit our hurdle rates. We'll continue to work hard. And if, you know, I would think that in 2026, it may well be a capital allocation year similar to 2025, and we're comfortable with that.
Their revenue and and Ava maybe down from from previous years. But
it's um,
And uh so we're seeing more opportunities uh like that and and so I would we're we're not going to uh change our risk profile. Um
Tim James: Okay, that's helpful. And then, you know, is there any sort of silver lining here, potentially in the roofing business with, you know, you've talked about it being very competitive, gross margin pressure. Are you seeing any silver lining in that, that maybe is kind of shaking out some businesses to look for a sale opportunity, or is it too early to see that yet in the marketplace?
Tim James: Okay, that's helpful. And then, you know, is there any sort of silver lining here, potentially in the roofing business with, you know, you've talked about it being very competitive, gross margin pressure. Are you seeing any silver lining in that, that maybe is kind of shaking out some businesses to look for a sale opportunity, or is it too early to see that yet in the marketplace?
And last, uh, the returns, uh,
You know the markets not going to change dramatically uh in in 26 certainly. And so we are seeing we are seeing opportunities um
where uh the the seller um, comes to grips with um,
a lower valuation based on on, uh,
Tim James: Okay, that's helpful. And then, you know, is there any sort of silver lining here, potentially in the roofing business with, you know, you've talked about it being very competitive, gross margin pressure? Are you seeing any silver lining in that, that maybe is kind of shaking out some businesses to look for a sale opportunity? Or is it too early to see that yet in the marketplace?
Change to to hit our hurdle rates. Uh we'll continue to to work hard and and if if you know I would think that in 2026 it may well be a capital allocation year similar to 25. And what we're we're comfortable with that.
uh, results that that are lower than the past few years.
D. Scott Patterson: No, I think that's true. I think that's true. There are. We're seeing opportunities that they're reluctant to transact because their revenue and EBITDA may be down from previous years, but it's, you know, the market's not gonna change dramatically in 2026, certainly. And so we are seeing, we are seeing opportunities where the seller comes to grips with a lower valuation based on results that are lower than the past few years.
Scott Patterson: No, I think that's true. I think that's true. There are. We're seeing opportunities that they're reluctant to transact because their revenue and EBITDA may be down from previous years, but it's, you know, the market's not gonna change dramatically in 2026, certainly. And so we are seeing, we are seeing opportunities where the seller comes to grips with a lower valuation based on results that are lower than the past few years.
Okay, that's great. Thank you very much.
And as a reminder to ask a question. Please press star 1, 1 on your telephone, and wait, for your name to be announced.
Our next question will be coming from Daryl. Young, a stifel, your line is open.
D. Scott Patterson: No, I think that's true. I think that's true. There are -- we're seeing opportunities that they're reluctant to transact because their revenue and EBITDA may be down from previous years. But it's, you know, the market's not gonna change dramatically in 2026, certainly. And so we are seeing opportunities where the seller comes to grips with a lower valuation based on results that are lower than the past few years.
Okay, that's helpful. And then, you know, is there any sort of Silver Lining here potentially in the roofing business? With, you know, you talked about it being very competitive, gross margin pressure, are you seeing any silver lining in that that maybe is kind of shaking out some businesses to, to look for um, a sale opportunity? Or is it too early to to, to see that yet in the marketplace? Know, I think that's true. I think that's true. There are uh, we're seeing opportunities that there there were reluctant to transact because
Their revenue, and even—but maybe down from previous years, but—
it's um,
Frederic Bastien: Okay, that's great. Thank you very much.
Frederic Bastien: Okay, that's great. Thank you very much.
Hey, good morning everyone. Uh just wanted to Circle back on margins for a second. I might have expected to see um more margin expansion as opposed to the the guide for flattish this year. Just given the operating efficiencies you've had. And I wonder if uh possibly your toggling between the price volume equation, and some of your end markets and maybe giving away some price in order to to keep the growth going, is that the right way to think about it or is, is there something else going on? That's keeping margins. Um call it, you know, lower for longer
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. Our next question will be coming from Darryl Young of Stifel. Your line is open.
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. Our next question will be coming from Darryl Young of Stifel. Your line is open.
Um, dare I assume you're talking more on the brand segment.
You know the markets not going to change dramatically uh in in 26 certainly. And so we are seeing we are seeing opportunities um
Well, even within with even within, um, resi as well.
where uh the the seller um, comes to grips with um,
Daryl Young: Hey, good morning, everyone. Just wanted to circle back on margins for a second. I might have expected to see more margin expansion as opposed to the guide for flattish this year, just given the operating efficiencies you've had. And I wonder if possibly you're toggling between the price volume equation in some of your end markets and maybe giving away some price in order to keep the growth going. Is that the right way to think about it, or is there something else going on that's keeping margins, call it, you know, lower for longer?
Daryl Young: Hey, good morning, everyone. Just wanted to circle back on margins for a second. I might have expected to see more margin expansion as opposed to the guide for flattish this year, just given the operating efficiencies you've had. And I wonder if possibly you're toggling between the price volume equation in some of your end markets and maybe giving away some price in order to keep the growth going. Is that the right way to think about it, or is there something else going on that's keeping margins, call it, you know, lower for longer?
a lower valuation based on on, uh,
uh, results that that are lower than
in the past few years.
Tim James: Okay, that's great. Thank you very much.
Okay, that's great. Thank you very much.
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. Our next question will be coming from Daryl Young, of Stifel. Your line is open.
And as a reminder to ask a question. Please press star 1, 1 on your telephone, and wait, for your name to be announced.
Daryl Young: Hey, good morning, everyone. Just wanted to circle back on margins for a second. I might have expected to see more margin expansion as opposed to the guide for flattish this year, just given the operating efficiencies you've had. And I wonder if possibly you're toggling between the price volume equation in some of your end markets and maybe giving away some price in order to keep the growth going. Is that the right way to think about it, or is there something else going on that's keeping margins, call it, you know, lower for longer?
Our next question will be coming from Daryl. Young a seifu. Your line is open.
Okay, well, I'll touch on Brent, you know, Scott touched on it. Uh, um, in Roofing, um, the the competitive environment. A lot of our competitors that were accustomed to getting a lot of new construction work, migrating to re-roof and putting pressure on bidding and, um, and gross margin. So we're, we're going to see Roofing margins notwithstanding, the uptick in the top line through the year, uh, a compression on margins, um, in that business. And that'll be offset in the brand segment by. Um, uh, you know, better margin.
D. Scott Patterson: Darryl, I assume you're talking more on the brand segment?
Scott Patterson: Darryl, I assume you're talking more on the brand segment?
Daryl Young: Well, even within resi as well.
Daryl Young: Well, even within resi as well.
D. Scott Patterson: Okay, well, I'll touch on brand. You know, Scott touched on it. In roofing, the competitive environment, a lot of our competitors that were accustomed to getting a lot of new construction work, migrating to reroofs and putting pressure on bidding and gross margin. So we're gonna see roofing margins, notwithstanding the uptick in the top line through the year, a compression on margins, in that business. And that'll be offset in the brand segment by, you know, better margins year over year in 2026 for restoration. Again, a function of higher normalized activity levels, higher revenue growth, and so forth. So that's really the puts and takes, for the most part, in the year in brand. And then in residential, you know, we don't get a lot of pricing in that business.
Scott Patterson: Okay, well, I'll touch on brand. You know, Scott touched on it. In roofing, the competitive environment, a lot of our competitors that were accustomed to getting a lot of new construction work, migrating to reroofs and putting pressure on bidding and gross margin. So we're gonna see roofing margins, notwithstanding the uptick in the top line through the year, a compression on margins, in that business. And that'll be offset in the brand segment by, you know, better margins year over year in 2026 for restoration. Again, a function of higher normalized activity levels, higher revenue growth, and so forth. So that's really the puts and takes, for the most part, in the year in brand. And then in residential, you know, we don't get a lot of pricing in that business.
D. Scott Patterson: Daryl, I assume you're talking more on the brand segment?
Hey, good morning everyone. Uh just wanted to Circle back on margins for a second. I might have expected to see um more margin expansion as opposed to the the guide for flattish this year. Just given the operating efficiencies you've had and I wonder if uh, possibly you're toggling between the price volume equation and some of your end markets and maybe giving away some price in order to to keep the growth going. Is that the right way to think about it or is, is there something else going on? That's keeping margins. Um call it, you know, lower for longer
Um, dare I assume you're talking more on the brand segment.
Daryl Young: Well, even within, resi as well.
D. Scott Patterson: Okay, well, I'll touch on brand. You know, Scott touched on it. In roofing, the competitive environment, a lot of our competitors that were accustomed to getting a lot of new construction work, migrating to reroofs and putting pressure on bidding and gross margin. So we're gonna see roofing margins, notwithstanding the uptick in the top line through the year, a compression on margins in that business. And that'll be offset in the brand segment by, you know, better margins year-over-year in 2026 for restoration. Again, a function of higher normalized activity levels, higher revenue growth, and so forth. So that's really the puts and takes, for the most part, in the year in brand. And then in residential, you know, we don't get a lot of pricing in that business.
Well, even within, even within, um, resi as well.
Year-over-year in 26 for restoration, a gain of function of higher normalized, activity levels, higher Revenue growth and so forth. So, that's really the puts and takes for the most part in the year, in in Brands. And then at residential, you know, we don't get a lot of pricing in that business. It's a very high variable cost business. Um, so, you know, growing revenues and even day in lock step is is the typical path. We happen to, uh, Garner, a lot of efficiencies in, in, in 25, in the areas that we've spoken about through the year and we're starting to lap that. Now, again, I, I mentioned earlier, we'll continue to look at other opportunities for efficiencies.
Um,
But I, you know, I wouldn't be baking in a lot of that into the Baseline model for 2026.
D. Scott Patterson: It's a very high variable cost business. So, you know, growing revenues and EBITDA in lockstep is the typical path. We happen to garner a lot of efficiencies in 25 in the areas that we've spoken about through the year, and we're starting to lap that now. Again, I mentioned it earlier, we'll continue to look at other opportunities for efficiencies. But I, you know, I wouldn't be baking in a lot of that into the baseline model for 2026.
Scott Patterson: It's a very high variable cost business. So, you know, growing revenues and EBITDA in lockstep is the typical path. We happen to garner a lot of efficiencies in 25 in the areas that we've spoken about through the year, and we're starting to lap that now. Again, I mentioned it earlier, we'll continue to look at other opportunities for efficiencies. But I, you know, I wouldn't be baking in a lot of that into the baseline model for 2026.
Are these projects getting big enough and uh fast enough that that you could potentially have a cross sell or a go-to market approach between say Century, fire and Roofing and and maybe even restoration where you you you kind of create national account strategy across all your divisions to to tackle the data center build out.
No, we're not. Uh, we're not approaching it that way.
Uh, Daryl century.
D. Scott Patterson: It's a very high variable cost business. So, you know, growing revenues and EBITDA in lockstep is the typical path. We happen to garner a lot of efficiencies in 25 in the areas that we've spoken about through the year, and we're starting to lap that now. Again, I mentioned it earlier, we'll continue to look at other opportunities for efficiencies. But I, you know, I wouldn't be baking in a lot of that into the baseline model for 2026.
Um, has long-term relationships with a few large, uh, General Contractors that
Okay, well, I'll touch on Brent, you know, Scott touched on it. Uh, um, in Roofing, um, the the competitive environment. A lot of our competitors that were accustomed to getting a lot of new construction work, migrating to re-roof and putting pressure on bidding and, um, and gross margin. So we're, we're going to see Roofing margins notwithstanding, the uptick in the top line through the year, uh, a compression on margins, um, in that business. And that'll be offset in the brand segment by. Um, uh, you know, better margins year-over-year in. 26 for restoration again, a function of higher normalized, activity levels, higher Revenue growth and so forth. So, that's really the puts and takes for the most part in the year, in in Brands. And then at residential, you know, we don't get a lot of pricing in that business. It's a very high variable cost business. Um, so, you know, growing revenues and even day in lock step is is the typical path.
Daryl Young: Got it. Okay, thanks. And then you touched on data centers in one of your remarks. Are these projects getting big enough and fast enough that you could potentially have a cross-sell or a go-to market approach between, say, Century Fire and Roofing and maybe even restoration, where you kinda create national account strategy across all your divisions to tackle the data center build-out?
Daryl Young: Got it. Okay, thanks. And then you touched on data centers in one of your remarks. Are these projects getting big enough and fast enough that you could potentially have a cross-sell or a go-to market approach between, say, Century Fire and Roofing and maybe even restoration, where you kinda create national account strategy across all your divisions to tackle the data center build-out?
Uh, you know, are involved in new construction or warehouses and also engaged in data center Contra Construction Construction. So century
is um,
I I mentioned it earlier, we'll continue to look at other opportunities for efficiencies.
Um,
Is is benefiting, uh, from the, from the data center Center, boom. Uh, but definitely, uh, picking their spots and being cautious about balancing, this work
But I, you know, I wouldn't be baking in a lot of that into the Baseline model for 2026.
Daryl Young: Got it. Okay, thanks. And then, you touched on data centers, in one of your remarks. Are these projects getting big enough and, fast enough that you could potentially have a cross-sell or a go-to market approach between, say, Century Fire, Roofing, and maybe even Restoration, where you kinda create national account strategy across all your divisions to tackle the data center build-out?
And these customers with other day-to-day customers, and I don't see us tilting more.
D. Scott Patterson: No, we're not, we're not approaching it that way, Darryl. Century has long-term relationships with a few large general contractors that you know are involved in new construction of warehouses and also engaged in data center construction. So Century is benefiting from the data center boom, but definitely picking their spots and being cautious about balancing this work and these customers with other day-to-day customers. And I don't see us tilting more to data centers than the current mix reflects. Roofing doesn't have the same relationships. And you know, I think we're very cautious about really leaning in rather than focusing on durable, sustainable growth.
Scott Patterson: No, we're not, we're not approaching it that way, Darryl. Century has long-term relationships with a few large general contractors that you know are involved in new construction of warehouses and also engaged in data center construction. So Century is benefiting from the data center boom, but definitely picking their spots and being cautious about balancing this work and these customers with other day-to-day customers. And I don't see us tilting more to data centers than the current mix reflects. Roofing doesn't have the same relationships. And you know, I think we're very cautious about really leaning in rather than focusing on durable, sustainable growth.
To Data Centers than the, current current mix reflects Roofing doesn't have the same relationships.
and um,
you know, it it, uh, I think we're very, uh, cautious about um,
really leaning in, um,
rather than focusing on durable sustainable growth.
D. Scott Patterson: No, we're not approaching it that way, Daryl. Century has long-term relationships with a few large general contractors that, you know, are involved in new construction of warehouses and also engaged in data center construction. So Century is benefiting from the data center boom. But definitely picking their spots and being cautious about balancing this work and these customers with other day-to-day customers. And I don't see us tilting more to data centers than the current mix reflects. Roofing doesn't have the same relationships. And, you know, it I think we're very cautious about really leaning in rather than focusing on durable, sustainable growth.
Got it. Okay, thanks and then, um, you touched on data centers, uh, in in 1, of your remarks are these projects getting big enough and, uh, fast enough, that that you could potentially have a cross sell, or a go-to market approach between say Century, fire and Roofing and and maybe even restoration where you you you kind of create national account strategy across all your divisions to to tackle the data center build out.
No, we're not. We're not approaching it that way.
Uh, we we've seen a few of our competitors, um,
Uh, Daryl century.
Jump in. Um,
um, has long-term relationships with a few large General Contractors that
And it it really uh consumes them and uh they let down they they're you know, they've let down their day-to-day customers. So we're we're approaching it in a different way and only at Century fire at this point.
Uh, you know, are involved in new construction or warehouses, and also engaged in data center contract construction. So, Century—
Good context. Thanks very much.
is um,
That's it for me.
Yeah.
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Is benefiting, uh, from the, from the data center Center, boom. Uh, but definitely, uh, picking their spots and being cautious about balancing, this work
And these customers with other day-to-day customers, and I don't see us tilting more.
D. Scott Patterson: We've seen a few of our competitors jump in, and it really consumes them, and they let down their day-to-day customers, you know. So we're approaching it in a different way and only at Century Fire at this point.
Scott Patterson: We've seen a few of our competitors jump in, and it really consumes them, and they let down their day-to-day customers, you know. So we're approaching it in a different way and only at Century Fire at this point.
To data centers, then the current mix reflects. Roofing doesn't have the same relationships.
and um,
you know, it it, uh, I think we're very, uh, cautious about um,
really leaning in, um,
D. Scott Patterson: We've seen a few of our competitors jump in, and it really consumes them, and they're, you know, they've let down their day-to-day customers. So we're approaching it in a different way and only at Century Fire at this point.
rather than focusing on durable, sustainable growth.
Daryl Young: Good context. Thanks very much. That's it for me.
Daryl Young: Good context. Thanks very much. That's it for me.
Uh, we we've seen a few of our competitors, um,
Operator: Thank you. This concludes today's program. Thank you for participating. You may now disconnect.
Operator: Thank you. This concludes today's program. Thank you for participating. You may now disconnect.
Jump in. Um,
And it it really uh consumes them and uh they let down they they're you know, they've let down their day-to-day customers. So we're we're approaching it in a different way and only at Century fire at this point.
Daryl Young: Good context. Thanks very much. That's it for me.
Good context. Thanks very much.
That's it for me.
Operator: Thank you. And this concludes today's program. Thank you for participating. You may now disconnect.
Thank you.
And this concludes today's program. Thank you for participating. You may now disconnect.
