FirstService Shares Tumble as Commercial Property Slump Hits Revenue

The company’s largest division, FirstService Brands, bore the brunt of the downturn, posting a 3% decline in organic growth. This contraction stems primarily from reduced activity at Roofing Corp. of America, which handles large-scale commercial and industrial installations. While the firm’s Residential segment managed a 5% organic growth boost through new contract wins, it was not enough to offset the broader macroeconomic headwinds.

Chief Executive Scott Patterson warned investors that these conditions are unlikely to improve before the year ends, projecting that top-line growth will remain flat or show only modest improvement in the coming months. Despite the revenue disappointment, FirstService managed to outperform on profitability. Adjusted earnings reached $1.75 per share, surpassing the $1.71 consensus forecast, even as net earnings per share dipped slightly to $1 from $1.01 in the same period last year.