Segments

6 Months Ended

Mar. 31, 2025

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 evaluates the performance of the Company’s operating segments based upon Net Service Revenues, Adjusted EBITDA and Capital Expenditures. Management uses Adjusted EBITDA to evaluate performance and profitability of each operating segment.

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, 2024. As previously disclosed, effective October 1, 2024, certain expenses previously classified as "Corporate", including corporate executive compensation, finance, legal and information technology and other corporate costs, are allocated to the two reportable segments on a pro rata basis, based on segment revenue. Prior period segment results have been recast to be consistent with the current presentation. There were no changes to the Company's consolidated financial statements. Eliminations represent eliminations of intersegment revenues. 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:

	Three Months Ended March 31,						Six Months Ended March 31,
	2025			2024			2025			2024
Maintenance Services	$	492.8		$	510.5		$	902.1		$	952.8
Development Services		171.9			164.4			363.7			349.7
Eliminations		(2.1	)		(2.0	)		(4.0	)		(2.9	)
Net Service Revenues	$	662.6		$	672.9		$	1,261.8		$	1,299.6
Maintenance Services	$	31.3		$	9.3		$	73.0		$	17.8
Development Services		2.3			3.3			19.3			4.9
Capital Expenditures	$	33.6		$	12.6		$	92.3		$	22.7
Maintenance Services	$	56.3		$	55.1		$	91.0		$	86.5
Development Services		17.2			9.7			34.6			25.0
Segment Adjusted EBITDA(1)	$	73.5		$	64.8		$	125.6		$	111.5

(1)Presented below is a reconciliation of (Loss) before income taxes to Segment Adjusted EBITDA:

	Three Months Ended March 31,					Six Months Ended March 31,
	2025		2024			2025			2024
Segment Adjusted EBITDA	$	73.5	$	64.8		$	125.6		$	111.5
Interest expense, net		12.8		16.0			26.9			33.0
Depreciation expense		31.8		26.1			62.3			51.7
Amortization expense		7.1		8.7			15.2			18.8
Business transformation and integration costs (a)		7.8		6.1			17.0			16.9
Gain on divestiture (b)				(43.9	)		—			(43.9	)
Equity-based compensation (c)		4.6		4.8			9.4			10.1
Debt extinguishment (d)		0.7		—			0.7			—
Income (loss) before income taxes	$	8.7	$	47.0		$	(5.9	)	$	24.9

(a)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.

(b)Represents the realized gain on sale and transaction related expenses from 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, 2025 and includes accelerated amortization of deferred financing fees and original issue discount as well as fees paid to lenders and third parties.