FirstService’s Q3 2024 earnings surpassed expectations, reinforcing its position as a North American leader in outsourced property services. Driven by exceptional results within its Brands division, the company posted record revenues and profitability, reflecting strong operational execution across both of its service platforms—FirstService Residential and FirstService Brands.
Key Financial Highlights
During the third quarter, FirstService achieved significant gains across core financial metrics:
Total revenue reached $1.40 billion, a 25% increase compared to Q3 2023.
Adjusted EBITDA surged 43% year-over-year, climbing to $160 million.
Adjusted EPS grew to $1.63, up 30% from the prior-year quarter.
Operating earnings rose sharply to $125.9 million, up from $73.6 million in Q3 2023.
GAAP EPS nearly doubled to $1.34, compared to $0.73 in the same quarter last year.
Notably, the company generated $77 million in net earnings during the quarter, underscoring the strength of its operating model.
Strategic Initiatives and Market Performance
FirstService’s Q3 results were powered by distinct performance drivers in each of its core divisions.
FirstService Brands
The Brands division led the charge, posting $836.5 million in revenue, a 44% increase from Q3 2023. Key contributors included:
10% organic revenue growth, fueled by elevated demand in restoration services—particularly from localized weather events and large-loss insurance claims.
A boost from the Roofing Corp of America acquisition, which helped scale the division’s footprint and capabilities.
Improved margins across home services brands, driven by fewer promotional discounts and greater operational efficiency.
As a result, the division’s Adjusted EBITDA rose to $105.8 million, while operating earnings more than doubled to $87.1 million.
FirstService Residential
Meanwhile, the Residential division generated $559.6 million in revenue, up 4% year-over-year, with 3% organic growth. Although top-line growth moderated due to budget pressures among community associations, the division maintained strong profitability:
Adjusted EBITDA rose modestly to $58.6 million, compared to $56.6 million in Q3 2023.
Operating earnings remained stable at $49.1 million.
Challenges and Outlook
While FirstService’s momentum remains strong, it continues to navigate a few external challenges:
Rising budget constraints within community association clients tempered service scope in certain markets.
Acquisition-related volatility led to minor earnings adjustments, though these were offset by overall margin expansion.
Looking ahead, management expects continued growth driven by:
The ongoing strength in restoration and home services, which remain essential in both reactive and proactive property maintenance.
A robust pipeline of strategic acquisitions, with further integration expected to enhance scale and synergies.
Healthy EBITDA margins and disciplined capital allocation, supporting long-term shareholder value.
CEO Scott Patterson emphasized confidence in a “strong finish to the year,” reflecting the company’s visibility into Q4 operations and continued strength across business lines.
Conclusion
FirstService’s Q3 2024 performance confirms its ability to scale profitably, even amid shifting market dynamics. With its Brands division delivering exceptional results and Residential operations holding firm, the company continues to set the pace in outsourced property services. Through strategic acquisitions, operational excellence, and a diversified portfolio, FirstService is poised to finish the year on a high note—and build momentum well into 2025.
