FirstService shares fell after the company posted a slight revenue miss, as weakening commercial-property conditions continued to drag on growth and are expected to persist through the rest of the year.
Shares traded nearly 12% lower in Toronto at 176.20 Canadian dollars ($125.08).
The property-services company reported second-quarter revenue of $1.45 billion, which was 2% higher than a year prior but below forecasts of $1.49 billion.
Of its two core segments FirstService Brands, its largest, saw organic growth decline by 3%, largely due to reduced activity levels at its Roofing Corp. of America business. Revenue for the segment was $832.4 million.
Roofing Corp of America is FirstService's full-service provider of commercial, industrial and residential roof replacements and repairs, new roof installation, which has been hit by softer commercial real-estate conditions.
At its FirstService Residential segment, organic growth was 5% on the back of new contract wins, reaching $616.8 million of revenue.
Chief Executive Scott Patterson said that the company continues to navigate macroeconomic headwinds that have weighed on organic growth, a drag that will likely persist in the second half of the year.
"Given the persistence of these market conditions, we expect our top-line growth in the back half of the year to be similar or modestly better than our year-to-date performance," Patterson said.
Net earnings in the quarter rose to $60.9 million, from $55.4 million a year earlier. On a per-share basis, net earnings were $1 a share, compared with $1.01 a share a year earlier.
On an adjusted basis, which strips out exceptional items and one-off costs, earnings came to $1.75 a share, beating forecasts of $1.71 a share, according to FactSet.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 23, 2026 11:05 ET (15:05 GMT)
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