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Our people are the heart and soul of FirstService and our greatest asset.
We’re very proud of how we performed in 2025 in the face of numerous macro challenges.
Most of our brands were dealing with lower demand drivers throughout the year from the economic uncertainty resulting from trade tensions, geopolitical conflict, a weak housing market and deteriorating consumer confidence. In addition, our restoration and roofing brands experienced an unusually mild year in terms of claim volume and weather-related damage.
Despite these headwinds we grew our revenues by 5%, increased EBITDA by 10% — reflecting a 40 basis-point margin improvement — and delivered earnings per share growth of 15%.
This growth and increased profitability are a testament to the commitment of our teams and a positive reflection on the diversification of our brands and resilience of our business model. Over the years, we have demonstrated our ability to win and grow in difficult markets, and our results in 2025 are yet another example.
We view the current economic uncertainty and challenging demand environment not as a setback, but rather as an opportunity to invest and further differentiate our brands from the competition. During 2025 we continued to invest in all our brands with a long-term growth mindset.
Notable examples include:
Simply put, we did not modify our investment plan in the face of a down market. We will continue to execute on these initiatives in 2026.
Other noteworthy highlights in 2025 include:
We expanded our consolidated EBITDA margin again in 2025, up from 9.8% to 10.2% — our third consecutive year of margin enhancement. This progress reflects the disciplined execution of our operating teams, who remain relentlessly focused on driving efficiencies while also improving service quality and customer experience. Two areas worthy of special mention are (i) our restoration brands, for delivering material margin improvement despite lower revenues — the evolving technology platform and tools are enabling efficiencies with more to come; and (ii) FirstService Residential, for leveraging AI and process transformation to enhance margins by 50 basis points in 2025.
Across all our brands, teams are highly motivated to drive incremental margin improvement on average annually.
Our annual cash flow from operations grew by more than 50% to approximately $450 million in 2025, driven by increased profitability and a heightened focus on working capital management. The strong result enabled us to reinvest in the businesses through growth-oriented capital expenditures while allocating more than $100 million toward strategic tuck-under acquisitions to expand our geographic footprint and add ancillary service lines.
Importantly, we also paid down our debt by over $200 million bringing our Debt/EBITDA ratio down from 2.0 X at the end of 2024 to a conservative 1.6 X at the end of 2025. Our strong cash flow combined with approximately $1 billion of debt availability provides us with significant financial flexibility to pursue growth opportunities as they arise.
We are a service company of more than 30,000 associates, and we know our people are our greatest asset. We are united by a shared set of values and a commitment to #FirstServeOthers. This unique FirstService culture is our day-to-day differentiator and has been the foundation of our success for more than 30 years.
Our commitment to our people is reflected in programs like the FirstService Relief Fund, which supports team members facing financial hardship. Since its inception, the fund has awarded more than $2 million in grants to employees and their families, with employee contributions going directly to help colleagues during difficult times.
2025 marked an important personal milestone for me: my 30th year with FirstService and my 10th year serving as Chief Executive Officer. I have been proud to be part of this organization from the day I joined, and it’s been my honor and privilege to lead it over the past decade. My greatest source of pride is our culture and our unwavering focus on serving our customers, our communities, and one another.
We are pleased with our performance in 2025 and are confident we will deliver another solid year of top- and bottom-line growth in 2026.
Our long-term goal is to grow our revenues at an average annual rate of at least 10% with incremental growth at the EBITDA and earnings per share lines. We have exceeded this target for more than 30 years and are confident we will continue delivering on this stated goal for years to come. In 2025 our top line fell short of 10% due to the challenging macro environment. We have experienced years like this in the past and know they are temporary pauses in our consistent track record of growth.
We have strong leadership positions with modest shares in huge essential property service markets. We successfully differentiate from our competition through a relentless focus on customer service. Our teams know this commitment to day-to-day service excellence enables us to drive incremental market share gains and grow in any economic environment.
In closing, I would like to thank our operating leaders for their shared passion for building iconic, winning brands, and our teams for living our values and delivering on our brand promises every day. I would also like to thank our Board of Directors for their guidance and our long-time shareholders for their continued support.
D. Scott Patterson
Chief Executive Officer
Our discipline and proven business model has led to more than three decades of consistent growth and solid shareholder returns.
Our companies strive to foster a strong culture that embraces diversity and inclusion, attracts those who share our values and offers opportunities for professional development and growth.
Learn what makes FirstService a leader in outsourced essential property services and our companies’ employers of choice in their respective industries.