Strategic Transformation and Operational Performance

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• Achieved a second consecutive quarter of organic Land Maintenance revenue growth, driven by a 4% expansion in the contract book of business since Q2 2025.

• Improved customer retention by 250 basis points year-over-year to 84.6%, which management identifies as the primary catalyst for sustainable mid-to-upper single-digit growth.

• Reduced frontline employee turnover by 7 percentage points through investments in safety, benefits, and consistent service hours, positioning BrightView as an employer of choice.

• Strategically opted against short-term fuel surcharges on existing contracts to prioritize long-term customer partnerships over temporary macroeconomic cost pressures.

• Mitigated approximately $2 million of the $4 million fuel headwind through route-based scheduling technology, idle time reduction, and proactive fuel hedging.

• Shifted branch performance quartiles significantly, with over half of branches now exceeding 85% retention compared to only 40% in the prior year.

• Accelerated sales force productivity, with the first cohort of new sellers driving a 20% year-to-date increase in new contract sales.

Growth Trajectory and Financial Outlook

• Reaffirmed Land Maintenance revenue growth guidance of 2% to 3% for fiscal 2026, with Q4 expected to accelerate to a range of 3% to 6%.

• Anticipates that the maturing sales force and improved retention will drive profitable top-line growth into 2027 and toward 2030 long-term targets.

• Expects free cash flow conversion to improve significantly in 2027 as the fleet refresh program passes its peak capital expenditure requirements.

• Assumes fuel headwinds will persist through the remainder of the fiscal year, though management expects to continue leveraging efficiency tools to manage volatility.

• Projects that the nonroutine self-insurance adjustment will not recur, allowing underlying margin expansion to become more visible in future periods.

Nonroutine Adjustments and Structural Changes

• Recorded a $16 million nonroutine self-insurance adjustment primarily related to the adverse development of claims from 2023 and prior years.

• Successfully closed over 85% of legacy claims from 2023 and earlier to prevent further unpredictable cost developments and mask operational progress.

• Extended all three debt tranches and increased liquidity capacity by $100 million, receiving over 2x financial commitments for the term loan extension.

• Incurred a $4 million margin headwind from sales force investments, representing an 80 basis point impact year-to-date as part of a long-term growth strategy.