FirstService offers you high‑quality, asset‑light exposure to non‑discretionary property services, anchored by recurring community association management fees and essential maintenance, restoration and fire protection services. The company’s Residential division provides relatively stable, contractual revenue, while the Brands division adds cyclical upside tied to weather events, insurance restoration and construction activity.
Financially, the company has demonstrated consistent growth and improving profitability, leaving ample capacity for further acquisitions that can support earnings growth.
FIRSTSERVICE CORP. (Toronto symbol FSV; www.firstservice.com) has two main businesses:
FirstService Brands (58% of its 2025 revenue, 61% of earnings) offers a wide variety of property management services through several franchised businesses, including Paul Davis Restoration (water, fire and mold cleanup), CertaPro Painters (painting and decorating), California Closets (closet and home storage solutions), Pillar to Post Home Inspectors, and Floor Coverings International.
FirstService Residential (42%, 39%) provides property management services such as collecting monthly condominium fees and cleaning/maintenance work.
FirstService tends to use acquisitions to fuel its growth and expand its geographic reach. It cuts the risk of this strategy by focusing on smaller firms that it can easily absorb.
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In 2025, FirstService spent $107.2 million buying new businesses (all amounts except share price and market cap in U.S. dollars). Those new businesses helped lift its revenue in the quarter ended December 31, 2025, by 1.3%, to $1.38 billion from $1.37 billion a year earlier. New contract wins lifted revenue at FirstService Residential by 8.0%. However, revenue at FirstService Brands fell 2.8% due to a slowdown in roofing and restoration activity.
Earnings before unusual items also improved 2.6%, to $62.57 million from $60.95 million. Due to more shares outstanding, earnings per share rose at a slower pace of 2.2%, to $1.37 from $1.34.
The company can easily afford to keep making acquisitions. As of December 31, 2025, its long-term debt was $1.07 billion, which is a low 16.4% of its market cap. It also held cash of $154.4 million.
FirstService operates in a highly fragmented industry, so it tends to fuel its growth with acquisitions. As mentioned, 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.
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 track record of payout increases continues to lengthen
FirstService’s outlook remains positive, and importantly, the U.S. accounts for 88% of the company’s overall revenue, so it has little exposure to U.S. tariffs.
With the April 2026 payment, the company will raise your quarterly dividend by 10.9%, to $0.305 a share from $0.275. The new annual rate of $1.22 yields 0.9%. FirstService has now increased its annual dividend by at least 10% each year for the past 11 years.
The company’s earnings will probably rise 7% to $6.20 a share in 2026. The stock trades at 23.3 times that forecast. That’s a reasonable multiple in light of FirstService’s recurring revenue streams. The recent winter storms in Canada and the U.S. should also spur demand for its restoration services.
Recommendation in The Successful Investor: FirstService Corp. is a buy.
