BrightView Holdings, Inc.BV

BrightView Holdings, Inc. Segments Disclosure

10-KFiled Nov 19, 20254 min read

15. Segments

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

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 cost, 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. 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. Intersegment revenue transactions are recorded at current market price.

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

 

 

 

Fiscal Year Ended
September 30, 2025

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

1,891.3

 

 

$

789.1

 

 

$

(7.6

)

 

$

2,672.8

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

1,086.5

 

 

 

581.0

 

 

 

(7.4

)

 

 

 

Other segment items(b)

 

 

559.3

 

 

 

101.3

 

 

 

(0.2

)

 

 

 

Segment Adjusted EBITDA

 

 

245.5

 

 

 

106.8

 

 

 

—

 

 

 

352.3

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

53.7

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

142.2

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

29.3

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

26.1

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

19.0

 

Debt extinguishment (e)

 

 

 

 

 

 

 

 

 

 

 

0.7

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

81.3

 

 

 

 

Fiscal Year Ended
September 30, 2024

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

1,964.0

 

 

$

808.8

 

 

$

(5.7

)

 

$

2,767.1

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

1,114.5

 

 

 

613.8

 

 

 

(2.7

)

 

 

 

Other segment items(b)

 

 

613.3

 

 

 

106.5

 

 

 

(3.0

)

 

 

 

Segment Adjusted EBITDA

 

 

236.2

 

 

 

88.5

 

 

 

—

 

 

 

324.7

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

62.4

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

108.4

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

35.8

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

44.1

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

20.5

 

Gain on Divestiture (f)

 

 

 

 

 

 

 

 

 

 

 

(43.6

)

Debt extinguishment (e)

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

96.5

 

 

 

 

Fiscal Year Ended
September 30, 2023

 

 

 

Maintenance

 

 

Development

 

 

Eliminations

 

 

Total

 

Net Service Revenues

 

$

2,066.5

 

 

$

758.0

 

 

$

(8.5

)

 

$

2,816.0

 

Less segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs(a)

 

 

1,154.7

 

 

 

586.7

 

 

 

(8.8

)

 

 

 

Other segment items(b)

 

 

678.7

 

 

 

105.7

 

 

 

0.3

 

 

 

 

Segment Adjusted EBITDA

 

 

233.1

 

 

 

65.6

 

 

 

—

 

 

 

298.7

 

Reconciliation of total segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

97.4

 

Depreciation expense

 

 

 

 

 

 

 

 

 

 

 

105.2

 

Amortization expense

 

 

 

 

 

 

 

 

 

 

 

44.5

 

Business transformation and integration costs (c)

 

 

 

 

 

 

 

 

 

 

 

23.7

 

Equity-based compensation (d)

 

 

 

 

 

 

 

 

 

 

 

22.3

 

COVID-19 related expenses (g)

 

 

 

 

 

 

 

 

 

 

 

0.4

 

Debt extinguishment (e)

 

 

 

 

 

 

 

 

 

 

 

8.3

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

$

(3.1

)

 

 

 

 

Fiscal Year Ended

 

Capital Expenditures

 

September 30,
2025

 

 

September 30,
2024

 

 

September 30,
2023

 

Maintenance Services

 

$

205.0

 

 

$

64.4

 

 

$

61.2

 

Development Services

 

 

49.2

 

 

 

14.0

 

 

 

10.1

 

Capital Expenditures

 

$

254.2

 

 

$

78.4

 

 

$

71.3

 

 

(a)
The Company’s significant segment expense, direct costs, aligns with the segment level information that is regularly provided to our chief operating decision maker. 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 Amendments No. 9, No. 8, and No. 7 to the Credit Agreement, in the fiscal years ended September 30, 2025, 2024, and 2023, respectively, and includes accelerated amortization of deferred financing fees and original issue discount as well as fees paid to lenders and third parties.

(f)
Represents the realized gain on sale and transaction related expenses from the divestiture of U.S. Lawns on January 12, 2024.

(g)
Represents expenses related to the Company’s response to the COVID-19 pandemic principally temporary and incremental salary and related expenses, personal protective equipment, cleaning and supply purchases, and other.

Historical Timeline

Fiscal YearFiled
2025Nov 19, 2025Showing above
2024Nov 13, 2024
2023Nov 16, 2023
2022Nov 17, 2022
2021Nov 17, 2021
2020Nov 18, 2020
2019Nov 21, 2019
2018Nov 28, 2018

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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