FirstService’s leadership position in highly fragmented markets, combined with its proven acquisition strategy, creates sustainable competitive advantages that are difficult to replicate. With over 30 years of public market experience, the firm has consistently delivered annual revenue growth while maintaining strong profitability metrics.
The company’s business model is particularly attractive due to its recurring revenue streams and defensive characteristics. Property management and essential services like restoration, fire protection, and roofing are non-discretionary expenditures that provide stability through economic cycles. A diversified portfolio across residential and commercial segments, spanning both franchise and company-owned operations, creates multiple growth vectors while reducing concentration risk. The company’s scale advantages, proprietary products, and national coverage serve as formidable competitive differentiators that enable premium pricing and market share gains.
Meanwhile, the stock trades at 28.1 times the company’s forward earnings forecast. That’s a high number only if you disregard strong revenue and earnings growth and the company’s exceptional dominance in its sector. We think a defensive business model, recurring revenue streams, market-leading positions, and a demonstrated ability to generate consistent cash flow through economic cycles reflect a premium quality investment for the long term.
FIRSTSERVICE CORP. (Toronto symbol FSV) is your #1 Aggressive Buy for 2025.
The company has two main businesses: FirstService Residential provides property management services, such as collecting monthly condominium maintenance fees, preparing financial statements, and providing on-site security and property cleaning/maintenance services; and FirstService Brands offers a wide variety of property management services through several franchised businesses, including Paul Davis Restoration, CertaPro Painters, California Closets, Post Home Inspectors, Floor Coverings International and College Pro Painters.
FirstService operates in a highly fragmented industry, so it tends to fuel its growth with acquisitions. It cuts the risk of this strategy by focusing on smaller businesses that expand its market share and geographic reach. As well, many of the former owners continue to run their businesses. That lets FirstService utilize their local knowledge and expertise.
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For example, the company recently paid an undisclosed amount for two businesses: Springer-Peterson Roofing & Sheet Metal, which provides roofing installation and repair services to commercial customers in central Florida; and A-1 All American, a commercial roofing firm based in San Diego, California.
FirstService’s acquisitions and organic growth create compelling long-term value
In the first nine months of 2025, FirstService spent $96.4 million on acquisitions of smaller firms (all amounts in U.S. dollars). Those new businesses helped lift its revenue in the quarter ended September 30, 2025, by 3.7%, to $1.45 billion from $1.40 billion a year earlier. However, that missed the consensus forecast of $1.47 billion as bad weather limited work by its restoration and roofing services.
Thanks to a cost-control plan, earnings before unusual items also gained 9.5%, to $80.81 million from $73.77 million. Due to more shares outstanding, earnings per share rose at a slower pace of 8.0%, to $1.76 from $1.63. That topped the consensus estimate of $1.73 a share.
For all of 2025, FirstService’s earnings will probably rise 17% to $5.87 U.S. a share, and the stock trades at 28.1 times that forecast. While high, that’s still an acceptable multiple due to the recurring revenue from its service contracts and high customer retention rate (about 95%). What’s more, the company has little exposure to U.S. tariffs.
The company also increased your quarterly dividend by 10.0% with the April 2025 payment, to $0.275 a share from $0.25. The new annual rate of $1.10 yields 0.7%.
Recommendation in The Successful Investor: FirstService Corp. is a buy.
