v3.26.1
Segments
 6 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segments

12. Segments

The operations of the Company are conducted through two operating segments: Maintenance Services and Development Services, which are also its reportable segments.

Maintenance Services primarily consists of recurring landscape maintenance services and snow removal services as well as supplemental landscape enhancement services.

Development Services primarily consists of landscape architecture and development services for new construction and large scale redesign projects.

The operating segments identified above are determined based on the services provided, and they reflect the manner in which operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. The CODM is the Company’s Chief Executive Officer. The CODM uses Adjusted EBITDA as the measure of profitability to evaluate the performance of the Company's operating segments. The CODM utilizes the identified metrics as part of the annual budgeting and forecasting process and during the monthly business reviews when making decisions about the allocation of resources.

As part of the CODM's review of operating results, the CODM considers direct costs, which include direct labor and materials, as a significant segment expense. The CODM evaluates segment performance each period against historical results factoring in macroeconomic factors such as direct labor and materials to assess segment performance.

The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies” in the notes to our consolidated financial statements in the Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Eliminations represent eliminations of intersegment revenues. Intersegment revenue transactions are recorded at current market price. The Company does not currently provide asset information by segment, as this information is not used by management when allocating resources or evaluating performance.

The following is a summary of certain financial data for each of the segments and reconciliation of Segment Adjusted EBITDA to (Loss) before income taxes:

 

 

Three Months Ended March 31, 2026

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

554.6

 

 

$

149.6

 

 

$

(1.3

)

 

$

702.9

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

339.5

 

 

 

112.3

 

 

 

(1.2

)

 

 

 

Other segment items(b)

 

 

145.6

 

 

 

27.7

 

 

 

(0.1

)

 

 

 

Segment Adjusted EBITDA

 

 

69.5

 

 

 

9.6

 

 

 

—

 

 

 

79.1

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

13.7

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

47.4

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

5.3

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

5.7

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

4.7

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

2.3

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

492.8

 

 

$

171.9

 

 

$

(2.1

)

 

$

662.6

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

293.4

 

 

 

128.9

 

 

 

(2.2

)

 

 

 

Other segment items(b)

 

 

143.1

 

 

 

25.8

 

 

 

0.1

 

 

 

 

Segment Adjusted EBITDA

 

 

56.3

 

 

 

17.2

 

 

 

—

 

 

 

73.5

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

12.8

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

31.8

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

7.1

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

7.8

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

4.6

 

Debt extinguishment (e)

 

 

 

 

 

 

 

 

 

 

 

0.7

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

8.7

 

 

 

 

Six Months Ended March 31, 2026

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

991.0

 

 

$

328.8

 

 

$

(2.1

)

 

$

1,317.7

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

592.4

 

 

 

245.2

 

 

 

(2.1

)

 

 

 

Other segment items(b)

 

 

293.6

 

 

 

56.1

 

 

 

—

 

 

 

 

Segment Adjusted EBITDA

 

 

105.0

 

 

 

27.5

 

 

 

—

 

 

 

132.5

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

27.2

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

90.3

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

11.5

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

12.7

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

8.9

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(18.1

)

 

 

 

 

Six Months Ended March 31, 2025

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

902.1

 

 

$

363.7

 

 

$

(4.0

)

 

$

1,261.8

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

523.5

 

 

 

275.0

 

 

 

(4.0

)

 

 

 

Other segment items(b)

 

 

287.6

 

 

 

54.1

 

 

 

—

 

 

 

 

Segment Adjusted EBITDA

 

 

91.0

 

 

 

34.6

 

 

 

—

 

 

 

125.6

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

26.9

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

62.3

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

15.2

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

17.0

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

9.4

 

Debt extinguishment (e)

 

 

 

 

 

 

 

 

 

 

 

0.7

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(5.9

)

 

 

 

Three Months Ended
March 31,

 

 

Six Months Ended March 31, 2026

 

Capital Expenditures

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Maintenance Services

 

$

54.7

 

 

$

31.3

 

 

$

103.5

 

 

$

73.0

 

Development Services

 

 

4.1

 

 

 

2.3

 

 

 

10.0

 

 

 

19.3

 

Capital Expenditures

 

$

58.8

 

 

$

33.6

 

 

$

113.5

 

 

$

92.3

 

 

(a)
The Company's significant segment expense, direct costs, aligns with the segment level information that is regularly provided to our CODM. Direct costs include direct labor, materials, and other costs that are directly incurred as a result of the delivery of services. Direct costs do not include costs of sales that are allocated to services including fuel and depreciation. Intersegment expenses are included within the amounts shown.
(b)
Other segment items for both segments primarily include indirect compensation costs, auto and equipment costs, selling, general, and administrative costs and allocation of corporate expenses.
(c)
Business transformation and integration costs consist of severance and related costs, information technology, infrastructure, transformation, and other costs. These costs represent expenses related to distinct initiatives, typically significant enterprise-wide changes, including actions taken as part of the Company's One BrightView initiative. Such expenses are excluded from Segment Adjusted EBITDA disclosed above since such expenses vary in amount based on occurrence as well as factors specific to each of the activities, are outside of the normal operations of the business, and create a lack of comparability between periods.
(d)
Represents equity-based compensation expense and related taxes recognized for equity incentive plans outstanding.
(e)
Represents losses on the extinguishment of debt related to Amendment No. 9 to the Credit Agreement, in the fiscal year ended September 30, 2025 and includes accelerated amortization of deferred financing fees and original issue discount as well as fees paid to lenders and third parties.