Capital Allocation and Tax Savings Reinvested into Fleet Expansion
BrightView plans to reinvest tax savings, including approximately $20 million from reduced federal taxes, into fleet expansion and technology upgrades.
The company is prioritizing organic growth over acquisitions, focusing on reinvesting savings into operational improvements.
Management highlighted that accelerated depreciation and tax benefits will enable further fleet refreshes without increasing tax payments in 2026.
These strategic reinvestments are expected to enhance employee satisfaction, customer service, and long-term profitability.
APS segment revenue was $38 million, up 3% year-over-year and 6% sequentially, with adjusted gross margin at 26%.
Average rental fleet utilization was just under 78%, up nearly 600 basis points from prior year.
Custom Truck delivered 21% revenue growth and 17% adjusted EBITDA growth in Q2 2025 versus Q2 2024.
ERS adjusted gross profit was $100 million, up 20% year-over-year, with a 59% adjusted gross margin slightly lower due to higher rental asset sales mix.
ERS segment revenue increased more than 23% to $170 million, with rental revenue up 17% and rental asset sales up 40%.
Net leverage improved to 4.66x at quarter end, with plans to reduce below 3x by end of fiscal 2026.
Net rental CapEx was $64 million in Q2, with fleet age improving slightly to 3 years.
Q2 revenue was $511 million, adjusted gross profit $157 million, and adjusted EBITDA $93 million, up 21%, 17%, and 17% respectively year-over-year.
TES gross margin was 15.5%, down year-over-year but up 45 basis points sequentially, expected to improve in H2 2025.
TES segment sales were $303 million, up more than 22% year-over-year and 30% sequentially, marking the second highest quarterly sales in history.
Dafinchi