FirstService’s Q4 2024 earnings concluded the year with strong growth, fueled by operational excellence and a diversified business model. Despite economic uncertainties, the company executed effectively across its core platforms—FirstService Residential and FirstService Brands—ending the year with record revenues and a solid outlook for 2025.
Key Financial Highlights
FirstService reported impressive fourth-quarter results:
Revenues rose 27% year-over-year to $1.37 billion, including 10% organic growth.
Adjusted EBITDA jumped 33% to $137.9 million, reflecting improved margin discipline.
Adjusted EPS increased 21% to $1.34, up from $1.11 in Q4 2023.
GAAP net income climbed to $50.2 million, while GAAP EPS surged to $0.71, up from $0.14 in the prior year.
For the full year, the company delivered:
$5.22 billion in revenue, a 20% increase from 2023.
Adjusted EBITDA of $513.7 million, up 24%.
Adjusted EPS of $5.00, compared to $4.66 in 2023.
Net income of $187.8 million, up from $147 million the year before.
Strategic Initiatives and Market Performance
FirstService’s two main segments continued to outperform.
FirstService Residential
This segment posted $521.3 million in Q4 revenue, up 5%, with 3% organic growth. Growth stemmed from new high-rise contracts in markets like Toronto, Chicago, and Texas. However, community-level budget constraints moderated gains. Still, Adjusted EBITDA grew 6% to $46.0 million, supported by stable operating margins.
FirstService Brands
This segment led the charge with $844.1 million in Q4 revenue, representing a 45% increase, and 16% organic growth. The surge was powered by heightened weather-related restoration activity and the integration of Roofing Corp of America, acquired in late 2023. Adjusted EBITDA skyrocketed to $100.7 million, up from $61.1 million, driven by operating leverage and efficiencies across home service brands.
Collectively, these results highlight FirstService’s successful strategy of targeted acquisitions and organic expansion across fragmented service categories.
Challenges and Outlook
While FirstService enters 2025 with confidence, it continues to face industry headwinds, including rising labor costs, economic uncertainty, and community-level budget tightening. Nonetheless, the company’s balanced portfolio and track record of operational execution provide a strong foundation.
CEO Scott Patterson emphasized, “Our teams were focused on driving healthy profitable growth… reinforcing our expectations for a strong 2025.”
Looking forward, investors can expect FirstService to continue investing in scalable growth through strategic M&A, process optimization, and expansion into underpenetrated U.S. and Canadian markets.
