Dulles Airport Wants More Cargo And United Airlines Is Ready
Virginia's state economic development authority has ambitious goals for Dulles International Airport.
It wants 'to position Dulles as America's next great cargo gateway, particularly for international air cargo,' said Jason El Koubi, its president and CEO. In particular, he said, 'We want to make it the next great cargo airport on the East Coast.'
The East Coast is a tough neighborhood for cargo airport competition, with Newark and Kennedy International Airport well-established and Philadelphia International Airport expanding.
The Virginia Economic Development Partnership faces two issues at Dulles: The airport's cargo handling capabilities must grow, and the proclivity of Virgina companies to ship cargo at Dulles must grow with it.
Dulles touts advantages in geography and infrastructure that should help it to acquire a bigger presence. 'Virginia is positioned for that,' said Eric Jehu, the partnership's vice president for transportation and logistics. 'Countries are moving to the Southeast and MidAtlantic, and the center of population is moving to the South and West.' But for now, he said, 'Air cargo is a missing piece.'
El Koubi said Virginia has various potential users for improved air cargo service, 'We are already a leader in aerospace and defense and advanced materials, and we are a strong emerging player in advanced pharmaceutical manufacturing,' he said. 'All of those will be strengthened by an air cargo capability,' he said.
Over the next 15 years Dulles plans expansion spending of $9 billion, including preliminary spending for a fifth runway. Fifty-one airlines use the airport, including hub carrier United, which operates 260 daily departures and serves 40 international destinations. In May, United will begin Dulles-Dakar service: Next year, the airport will open a 14-gate $700 million concourse for United.
'We have a strong network to feed Dulles,' said Chris Busch, United vice president for cargo. 'We use our network to bring freight to Dulles, and we have a trucking operation throughout the East Coast. The air product is there. It's the rest of the infrastructure that needs to update.'
A primary issue is that passenger aircraft from Europe come in with high utilization of their cargo bellies, but they are rarely full when they depart. Cargo bellies are 'full coming in and empty going out,' said Jehu. He envisions transatlantic freighter capability, but noted, 'We need to fill the planes we have first.'
For now, Kennedy, Newark and Philadelphia airports all handle more cargo than Dulles does. According to the statistics on each airport's web site, about 1.7 million tons of cargo passed through JFK in 2024, while Newark handled 711,000 tons, Philadelphia handled 524,000 tons and Dulles handled 247,000 tons. However, in terms of 2023 international outbound cargo capacity, Dulles has about 207,000 tons while Philadelphia has about 61 tons, according to statistics provided by the partnership.
In 2021, in a Forbes story entitled 'Philadelphia Airport Plans To Rule Over East Coast Cargo With $1.8 Billion Project,' PHL laid out plans for about 800,000 square feet of additional cargo buildings as well as ten spots for overnight parking by widebody cargo aircraft. The airport currently has about 600,000 square feet of cargo buildings. (The $1.8 billion is for both cargo and passenger expansion.)
'PHL is advancing its cargo development strategy by collaborating with industry experts and investing in cutting-edge technology,' said Philadelphia airport spokeswoman Heather Redfern, in an email. This spring, the airport will break ground on a 261,000-cargo refrigeration facility. 'The PHL Cool Port will feature cooler and frozen zones to support the handling of pharmaceuticals, life sciences, perishable foods, and specialized electronics,' Redfern said.
Philadelphia also plans a new 150,000 square foot cargo facility. While Dulles is a transatlantic hub for United, Philadelphia is a transatlantic hub for American, which has 340 daily departures to 110 destinations in 24 countries.
Richard Golinowski, airport manager at Dulles, said, 'We are primed for cargo operation and we are looking at our cargo facilities, trying to figure out whether we can expand where we are or whether we should move to the south end of the airport.' The intent, he said, is 'to fill in the blocks on the airport to make sure we can accept the cargo business.'
Carriers included United, FedEx, UPS and the international passenger carriers 'are ready to accept more cargo.' The airport has capacity with 12,000 acres, four runways and a fifth in the planning stages. Also, 'We are so close to highways,' Golinowski said. 'We have the road structure in Virginia to get cargo to and from the airport and the rest of the state and the region.
'We need the demand,' he said. 'We can support whatever cargo there is.'
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COMPANY REAFFIRMS FISCAL YEAR 2025 GUIDANCE1 FY25 Guidance Total Revenue $2.68B to $2.73B Adjusted EBITDA2 $348M to $362M Adjusted EBITDA Margin2 ~130bps Adjusted Free Cash Flow2 $60M to $75M "We continue to execute on our One BrightView strategy, which is underpinned by prioritizing our employees and delivering best-in-class service to our customers," said Dale Asplund, BrightView President and Chief Executive Officer. "Our record year-to-date Adjusted EBITDA and Adjusted EBITDA margin reflect the meaningful progress of our transformation as we continue to focus on driving sustained, long-term profitable growth and shareholder value." _______________1 For assumptions underlying the fiscal year 2025 guidance, see the Q3 2025 presentation at Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Free Cash Flow are non-GAAP measures. Refer to the "Non-GAAP Financial Measures" section for more information. 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Refer to the "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" sections for more information. Basic Earnings (Loss) per Share is determined by dividing Net Income (Loss) available to common shareholders by the Weighted average number of common shares outstanding. Net income (Loss) available to common shareholders is calculated as Net Income (Loss) less dividends declared on Series A Convertible Preferred Shares and Earnings allocated to Convertible Preferred Shares For the three months ended June 30, 2025, total revenue decreased 4.1% to $708.3 million driven by a $13.7 million decrease in our development services revenue due to timing delays in development projects, combined with a $13.3 million year over year decrease in our commercial landscaping business, primarily driven by a decline in commercial landscaping services. 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Total BrightView Balance Sheet Metrics ($ in millions) June 30, 2025 September 30, 2024 June 30, 2024 Total Financial Debt1 $ 876.8 $ 877.3 $ 885.3 Minus: Total Cash & Equivalents 79.1 140.4 115.9 Total Net Financial Debt2 $ 797.7 $ 736.9 $ 769.4 Total Net Financial Debt to Adjusted EBITDA ratio3 2.3x 2.3x 2.4x 1Total Financial Debt includes total long-term debt, net of original issue discount, and finance lease obligations. 2Total Net Financial Debt equals Total Financial Debt minus Total Cash & Equivalents. 3Total Net Financial Debt to Adjusted EBITDA ratio equals Total Net Financial Debt divided by the trailing twelve month Adjusted EBITDA. As of June 30, 2025, the Company's Total Net Financial Debt was $797.7 million, an increase of $60.8 million compared to $736.9 million as of September 30, 2024. The Company's Total Net Financial Debt to Adjusted EBITDA ratio was 2.3x as of June 30, 2025, compared to 2.3x as of September 30, 2024. Conference Call Information A conference call to discuss the third quarter fiscal 2025 financial results is scheduled for August 7, 2025, at 8:30 a.m. EDT. The U.S. toll-free dial-in for the conference call is (800) 274-8461 and the international dial-in is +1 (203) 518-9814. The Conference Access Code is BRIGHT. A live audio webcast of the conference call will be available on the Company's investor website where presentation materials will be posted prior to the call. A replay of the call will be available until 11:59 p.m. EDT on August 21, 2025. To access the recording, dial (800) 839-5495 (Access Code 27525). A link to the current Earnings Call slides can be found at About BrightView BrightView (NYSE: BV), the nation's largest commercial landscaper, proudly designs, creates, and maintains some of the best landscapes on Earth and provides the most efficient and comprehensive snow and ice removal services. With a dependable service commitment, BrightView brings brilliant landscapes to life at premier properties across the United States, including business parks and corporate offices, homeowners' associations, healthcare facilities, educational institutions, retail centers, resorts and theme parks, municipalities, golf courses, and sports venues. BrightView also serves as the Official Field Consultant to Major League Baseball. Through industry-leading best practices and sustainable solutions, BrightView is invested in taking care of our team members, engaging our clients, inspiring our communities, and preserving our planet. Visit and connect with us on X, Facebook, and LinkedIn. Forward Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. All statements, other than statements of historical facts included in this presentation, including statements concerning our plans, objectives, goals, beliefs, business outlook, business trends, expectations regarding our industry, strategy, future events, future operations, future liquidity and financial position, future revenues, projected costs, prospects, plans and objectives of management and other information, may be forward-looking statements. Words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," or "anticipates," and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts or guarantees of future performance and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to: competitive industry pressures; our ability to preserve long-term customer relationships; a determination by customers to reduce their outsourcing or use of preferred vendors; inconsistent practices and the operating results of individual branches; our ability to implement our business strategies and achieve our growth objectives; impacts of future acquisitions or other strategic transactions; the possibility that costs or difficulties related to the integration of acquired businesses' operations will be greater than expected and the possibility that integration efforts will disrupt our business and strain management time and resources; the potential impacts on revenues and our financial condition caused by any disposition of assets or discontinuation of lines of business; the seasonal nature of our landscape maintenance services; our dependence on weather conditions and the impact of severe weather and climate change on our business; disruptions in our supply chain and changes in our ability to source adequate supplies and materials in a timely manner; changes in general economic conditions can result in delays in construction activities which can adversely affect our development services segment; any failure to accurately estimate the overall risk, requirements, or costs when we bid on or negotiate contracts that are ultimately awarded to us and, for such contracts, the ability to collect amounts owed under such contracts; the conditions and periodic fluctuations of the new commercial construction sector, as well as spending on repair and upgrade activities; the level, timing and location of snowfall; our ability to retain or hire our executive management and other key personnel; our ability to attract, retain and maintain positive relations with workers; any failure to properly verify employment eligibility of our employees; the liability exposure from our use of subcontractors to perform work under certain customer contracts; our recognition of future impairment charges; laws and governmental regulations, including those relating to employees, wage and hour, immigration, human health, safety, transportation and the associated financial impact of such regulations; environmental, health and safety laws and regulations, including laws pertaining to the use of pesticides, herbicides and fertilizers, or liabilities thereunder, as well as the related risk of potential litigation; the distraction and impact caused by litigation, of adverse litigation judgments and settlements resulting from legal proceedings; tax increases and changes in tax rules; any increase in on-job accidents involving employees; any failure, inadequacy, interruption, security failure or breach of our information technology systems; compliance with data privacy regulations; any adverse consequences of our substantial indebtedness; our ability to adequately protect our intellectual property; increases in interest rates governing our variable rate indebtedness increasing the cost of servicing our substantial indebtedness; risks related to counterparty credit worthiness or non-performance of the derivative financial instruments we utilize; restrictions within our debt agreements that limit our flexibility in operating; our ability to generate sufficient cash flow to satisfy our significant debt service obligations; the incurrence of substantially more debt, including off-balance sheet financing, contractual obligations and general and commercial liabilities; any failure to extend credit under our facility or reduce the borrowing base under our Revolving Credit Facility; any future sales, or the perception of future sales, by us or our affiliates, which could cause the market price for our common stock to decline; the ability of KKR and One Rock to exert significant influence over us; anti-takeover provisions in our organizational documents that could delay or prevent a change in control; the authorization of our Board of Directors to issue and designate shares of our preferred stock in additional series without stockholder approval; the fact that the holders of our Series A Preferred Stock may have different interests from and vote their shares in a manner deemed adverse to, holders of our common stock; the dividend, liquidation, and redemption rights of the holders of our Series A Preferred Stock; our certificate of incorporation restricting all stockholder litigation matters to the Court of Chancery of the State of Delaware and the federal district courts of the United States of America; general business, economic, and financial market conditions; increases in raw material costs, fuel prices, wages and other operating costs, and changes in our ability to source adequate supplies and materials in a timely manner; occurrence of natural disasters, terrorist attacks, global health emergencies and other external events; heightened inflation, geopolitical conflicts, recession, financial market disruptions, trade policies and tariffs, and other economic conditions; environmental, social and governance matters and/or our reporting of such matters; significant changes in our stock price and its ability for resale; securities analysts' reports about our business or their downgrade of our stock or sector; maintaining effective internal controls; and costs and requirements imposed as a result of maintaining compliance with the requirements of being a public company. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Item 1A. Risk Factors" in our Form 10-K for the fiscal year ended September 30, 2024, and such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement made in this press release speaks only as of the date on which it was made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Non-GAAP Financial Measures To supplement the Company's financial information presented in accordance with GAAP and aid understanding of the Company's business performance, the Company uses certain non-GAAP financial measures, namely "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income (Loss)", "Adjusted Earnings (Loss) per Share", "Adjusted Free Cash Flow", "Total Financial Debt", "Total Net Financial Debt" and "Total Net Financial Debt to Adjusted EBITDA ratio". We believe Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share, Adjusted Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and Total Net Financial Debt to Adjusted EBITDA ratio assist investors in comparing our results across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management regularly uses these measures as tools in evaluating our operating performance, financial performance and liquidity. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share, Adjusted Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and Total Net Financial Debt to Adjusted EBITDA ratio to supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. In addition, we believe that Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share, Adjusted Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and Total Net Financial Debt to Adjusted EBITDA ratio are frequently used by investors and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share, Adjusted Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and Total Net Financial Debt to Adjusted EBITDA ratio when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Adjusted EBITDA: We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, as further adjusted to exclude certain non-cash, non-recurring and other adjustment items. Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA, defined above, divided by Net Service Revenues. Adjusted Net Income (Loss): We define Adjusted Net Income (Loss) as net income (loss) including interest and depreciation, and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions and the removal of the discrete tax items. Adjusted Earnings per Share: We define Adjusted Earnings per Share as Adjusted Net Income divided by the (i) weighted average number of common shares outstanding used in the calculation of basic earnings per share plus (ii) shares of common stock related to the Series A Preferred Stock on an as-converted basis, assumed to be converted for the entire period. The addition of shares of common stock related to the Series A Convertible Preferred Stock on an as-converted basis reflects the dilutive impact of the potential conversion of the Series A Preferred Stock and is expected to provide comparability in future periods. Adjusted Free Cash Flow: We define Adjusted Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from the sale of property and equipment. Total Financial Debt: We define Total Financial Debt as total long-term debt, net of original issue discount, and finance lease obligations. Total Net Financial Debt: We define Total Net Financial Debt as Total Financial Debt minus total cash and cash equivalents. Total Net Financial Debt to Adjusted EBITDA ratio: We define Total Net Financial Debt to Adjusted EBITDA ratio as Total Net Financial Debt divided by the trailing twelve month Adjusted EBITDA. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share, Adjusted Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and Total Net Financial Debt to Adjusted EBITDA ratio are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or the ratio of net income (loss) to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of Adjusted Free Cash Flow available for management's discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to the same or other similarly titled measures of other companies and can differ significantly from company to company. BrightView Holdings, Inc. Consolidated Balance Sheets (Unaudited) (in millions)* June 30, 2025 September 30, 2024 Assets Current assets: Cash and cash equivalents $ 79.1 $ 140.4 Accounts receivable, net 396.2 415.2 Unbilled revenue 108.9 137.8 Other current assets 81.1 86.7 Total current assets 665.3 780.1 Property and equipment, net 493.1 391.9 Intangible assets, net 73.5 95.8 Goodwill 2,015.7 2,015.7 Operating lease assets 74.6 81.3 Other assets 35.0 27.0 Total assets $ 3,357.2 $ 3,391.8 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 120.4 $ 144.1 Deferred revenue 99.7 83.8 Current portion of self-insurance reserves 57.2 52.8 Accrued expenses and other current liabilities 207.2 237.7 Current portion of operating lease liabilities 24.8 24.9 Total current liabilities 509.3 543.3 Long-term debt, net 790.7 802.5 Deferred tax liabilities 47.2 43.9 Self-insurance reserves 124.7 112.8 Long-term operating lease liabilities 55.8 62.6 Other liabilities 42.8 44.3 Total liabilities 1,570.5 1,609.4 Mezzanine equity: Series A convertible preferred shares, $0.01 par value, 7% cumulative dividends; 500,000 shares issued and outstanding as of June 30, 2025 and September 30, 2024, aggregate liquidation preference of $512.0 as of June 30, 2025 and September 30, 2024 507.1 507.1 Stockholders' equity: Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued or outstanding as of June 30, 2025 and September 30, 2024 — — Common stock, $0.01 par value; 500,000,000 shares authorized; 109,500,000 and 108,200,000 shares issued and 95,000,000 and 94,800,000 shares outstanding as of June 30, 2025 and September 30, 2024, respectively 1.1 1.1 Treasury stock, at cost; 14,500,000 and 13,400,000 shares as of June 30, 2025 and September 30, 2024, respectively (188.1 ) (173.5 ) Additional paid-in capital 1,507.8 1,518.1 Accumulated deficit (40.6 ) (68.9 ) Accumulated other comprehensive (loss) (0.6 ) (1.5 ) Total stockholders' equity 1,279.6 1,275.3 Total liabilities, mezzanine equity and stockholders' equity $ 3,357.2 $ 3,391.8 (*) Amounts may not total due to rounding. BrightView Holdings, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 (in millions)* Net service revenues $ 708.3 $ 738.8 $ 1,970.0 $ 2,038.4 Cost of services provided 537.4 561.2 1,524.8 1,575.0 Gross profit 170.9 177.6 445.2 463.4 Selling, general and administrative expense 106.2 120.1 343.5 375.0 Gain on divestiture - (0.1 ) - (44.0 ) Amortization expense 7.1 8.6 22.3 27.4 Income from operations 57.6 49.0 79.4 105.0 Other (income) expense (0.7 ) 0.5 0.1 (1.5 ) Interest expense, net 13.4 15.1 40.3 48.2 Income before income taxes 44.9 33.4 39.0 58.3 Income tax expense 12.6 9.9 10.7 17.5 Net income $ 32.3 $ 23.5 $ 28.3 $ 40.8 Less: Dividends on Series A convertible preferred shares 8.9 8.9 26.8 26.7 Net income attributable to common stockholders $ 23.4 $ 14.6 $ 1.5 $ 14.1 Earnings per share Basic earnings per share $ 0.16 $ 0.10 $ 0.01 $ 0.09 Diluted earnings per share $ 0.15 $ 0.10 $ 0.01 $ 0.09 BrightView Holdings, Inc. Net Loss (Income) Available to Common Shareholders (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 (in millions)* Net income $ 32.3 $ 23.5 $ 28.3 $ 40.8 Less: Dividends on Series A convertible preferred shares (8.9 ) (8.9 ) (26.8 ) (26.7 ) Less: Earnings allocated to Convertible Preferred Shares (8.5 ) (5.3 ) (0.5 ) (5.1 ) Net income available to common shareholders $ 14.9 $ 9.3 $ 1.0 $ 9.0 BrightView Holdings, Inc. Segment Reporting (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 (in millions)* Maintenance Services $ 508.8 $ 524.7 $ ... 1,410.9 $ 1,477.5 Development Services 201.3 215.0 565.0 564.8 Eliminations (1.8 ) (0.9 ) (5.9 ) (3.9 ) Net Service Revenues $ 708.3 $ 738.8 $ 1,970.0 $ 2,038.4 Maintenance Services $ 98.3 $ 16.8 $ 171.3 $ 34.7 Development Services 5.2 6.4 24.5 11.3 Capital Expenditures $ 103.5 $ 23.2 $ 195.8 $ 46.0 Maintenance Services $ 81.7 $ 80.4 $ 172.7 $ 166.9 Development Services 31.5 27.5 66.1 52.6 Adjusted EBITDA $ 113.2 $ 107.9 $ 238.8 $ 219.5 (*) Amounts may not total due to rounding. BrightView Holdings, Inc. Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended June 30, 2025 2024 (in millions)* Cash flows from operating activities: Net income $ 28.3 $ 40.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 101.2 79.8 Amortization of intangible assets 22.3 27.4 Amortization of financing costs and original issue discount 2.2 2.0 Loss on debt extinguishment 0.7 0.6 Deferred taxes 0.8 (10.1 ) Equity-based compensation 13.6 15.1 Realized gain on hedges (4.1 ) (8.5 ) Gain on divestiture — (44.0 ) Other non-cash activities (2.2 ) (6.0 ) Change in operating assets and liabilities: Accounts receivable 10.0 (9.9 ) Unbilled and deferred revenue 44.7 47.1 Other operating assets (3.5 ) 21.4 Accounts payable and other operating liabilities (6.6 ) (3.6 ) Net cash provided by operating activities 207.4 152.1 Cash flows from investing activities: Purchase of property and equipment (195.8 ) (46.0 ) Proceeds from sale of property and equipment 14.2 14.1 Proceeds from divestiture — 51.6 Other investing activities 2.4 3.2 Net cash (used) provided by investing activities (179.2 ) 22.9 Cash flows from financing activities: Repayments of finance lease obligations (38.4 ) (26.4 ) Repayments of receivables financing agreement (27.9 ) (82.2 ) Proceeds from receivables financing agreement, net of issuance costs 14.5 0.5 Debt issuance and prepayment costs (1.3 ) (2.4 ) Series A preferred stock dividend (26.9 ) (8.9 ) Proceeds from issuance of common stock, net of share issuance costs 2.8 1.3 Repurchase of common stock and distributions (14.5 ) (3.1 ) Contingent business acquisition payments (0.5 ) (4.7 ) Increase in book overdrafts 2.5 — Other financing activities 0.2 (0.2 ) Net cash (used) by financing activities (89.5 ) (126.1 ) Net change in cash and cash equivalents (61.3 ) 48.9 Cash and cash equivalents, beginning of period 140.4 67.0 Cash and cash equivalents, end of period $ 79.1 $ 115.9 Supplemental Cash Flow Information: Cash paid for income taxes, net $ 2.4 $ 14.8 Cash paid for interest $ 43.3 $ 61.9 Non-cash Series A Preferred Stock dividends $ — $ 8.9 Accrual for property and equipment $ 9.1 $ 21.3 (*) Amounts may not total due to rounding. BrightView Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, (in millions)* 2025 2024 2025 2024 Adjusted EBITDA Net income $ 32.3 $ 23.5 $ 28.3 $ 40.8 Income tax expense 12.6 9.9 10.7 17.5 Interest expense, net 13.4 15.1 40.3 48.2 Depreciation expense 38.9 28.1 101.2 79.8 Amortization expense 7.1 8.6 22.3 27.4 Business transformation and integration costs (a) 4.2 17.1 21.2 33.9 Gain on divestiture (b) — (0.1 ) — (44.0 ) Equity-based compensation (c) 4.7 5.1 14.1 15.3 Debt extinguishment (d) — 0.6 0.7 0.6 Adjusted EBITDA $ 113.2 $ 107.9 $ 238.8 $ 219.5 Adjusted Net Income Net income $ 32.3 $ 23.5 $ 28.3 $ 40.8 Amortization expense 7.1 8.6 22.3 27.4 Business transformation and integration costs (a) 4.2 17.1 21.2 33.9 Gain on divestiture (b) — (0.1 ) — (44.0 ) Equity-based compensation (c) 4.7 5.1 14.1 15.3 Debt extinguishment (d) — 0.6 0.7 0.6 Income tax adjustment (e) (2.8 ) (6.5 ) (14.0 ) (5.9 ) Adjusted Net Income $ 45.5 $ 48.3 $ 72.6 $ 68.1 Adjusted Free Cash Flow Cash flows provided by operating activities $ 55.8 $ 42.7 $ 207.4 $ 152.1 Minus: Capital expenditures 103.6 23.2 195.8 46.0 Plus: Proceeds from sale of property and equipment 6.5 11.5 14.2 14.1 Adjusted Free Cash Flow $ (41.3 ) $ 31.0 $ 25.8 $ 120.2 Adjusted Earnings per Share Numerator: Adjusted Net Income $ 45.5 $ 48.3 $ 72.6 $ 68.1 Denominator: Weighted average number of common shares outstanding – basic 95,228,000 94,549,000 95,302,000 94,668,000 Plus: Dilutive impact of Series A convertible preferred stock as-converted 54,242,000 54,242,000 54,242,000 54,127,000 Adjusted weighted average number of common shares outstanding 149,470,000 148,791,000 149,544,000 148,795,000 Adjusted Earnings per Share $ 0.30 $ 0.32 $ 0.48 $ 0.46 (*) Amounts may not total due to rounding. BrightView Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (a) Business transformation and integration costs consist of (i) severance and related costs; (ii) business integration costs and (iii) information technology infrastructure, transformation costs, and other. Three Months Ended June 30, Nine Months Ended June 30, (in millions)* 2025 2024 2025 2024 Severance and related costs $ — $ 4.3 $ (0.4 ) $ 10.5 Business integration (f) 0.2 0.4 — (0.5 ) IT, infrastructure, transformation, and other (g) 4.0 12.4 21.6 23.9 Business transformation and integration costs $ 4.2 $ 17.1 $ 21.2 $ 33.9 (b) Represents the realized gain on sale and transaction related expenses related to the divestiture of U.S. Lawns on January 12, 2024. (c) Represents equity-based compensation expense and related taxes recognized for equity incentive plans outstanding. (d) Represents losses on the extinguishment of debt related to Amendment No. 9 to the Credit Agreement, in the fiscal year ended September 30, 20025, and includes accelerated amortization of deferred financing fees and original issue discount as well as fees paid to lenders and third parties. (e) Represents the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of the applicable discrete tax items, which collectively result in a reduction of income tax (benefit). The tax effect of pre-tax items excluded from Adjusted Net Income is computed using the statutory rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. Discrete tax items include changes in laws or rates, changes in uncertain tax positions relating to prior years and changes in valuation allowances. Three Months Ended June 30, Nine Months Ended June 30, (in millions)* 2025 2024 2025 2024 Tax impact of pre-tax income adjustments $ 3.1 $ 6.9 $ 14.0 $ 19.3 Discrete tax items (0.3 ) (0.4 ) — (13.4 ) Income tax adjustment $ 2.8 $ 6.5 $ 14.0 $ 5.9 (f) Represents isolated expenses specifically related to the integration of acquired companies such as one-time employee retention costs, employee onboarding and training costs, fleet and uniform rebranding costs, and adjustments to performance based contingent consideration. The Company excludes Business integration costs from the measures disclosed above since such expenses vary in amount due to the number of acquisitions and size of acquired companies as well as factors specific to each acquisition, and as a result lack predictability as to occurrence and/or timing, and create a lack of comparability between periods. (g) Represents 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 the measures 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. Total Financial Debt and Total Net Financial Debt (in millions)* June 30, 2025 September 30, 2024 June 30, 2024 Long-term debt, net $ 790.7 $ 802.5 $ 807.0 Plus: Current portion of long term debt — — — Financing costs, net 5.8 6.5 6.8 Present value of net minimum payment - finance lease obligations (h) 80.3 68.3 71.5 Total Financial Debt 876.8 877.3 885.3 Less: Cash and cash equivalents (79.1 ) (140.4 ) (115.9 ) Total Net Financial Debt $ 797.7 $ 736.9 $ 769.4 Total Net Financial Debt to Adjusted EBITDA ratio 2.3x 2.3x 2.4x (h) Balance is presented within Accrued expenses and other current liabilities and Other liabilities in the Consolidated Balance Sheet. (*) Amounts may not total due to rounding. Source: BrightView Landscapes View source version on Contacts For More Information: Investor Relations Chris Stoczko, Vice President of FinanceIR@ News Media David Freireich, Vice President of Communications & Public Sign in to access your portfolio
