Service International’s Q4 Revenue Rises 1.7% to $1.11B While EBITDA Misses
Service International delivered Q4 revenue of $1.11 billion, up 1.7%, and adjusted EPS of $1.14, both matching forecasts. Adjusted EBITDA of $331.7 million missed by 9.2%, free cash flow margin declined to 7.8% from 13.9%, and FY2026 EPS guidance midpoint of $4.20 trailed estimates by 1.3%.
1. Q4 Financial Results
Service International reported fourth quarter revenue of $1.11 billion, a 1.7% year-over-year increase that met expectations, and delivered adjusted EPS of $1.14, in line with consensus estimates.
2. Profitability Performance
Adjusted EBITDA totaled $331.7 million, a 9.2% shortfall versus forecasts, while operating margin held at 24.8% and free cash flow margin declined to 7.8% from 13.9% year-on-year.
3. Guidance Outlook
The company issued FY2026 adjusted EPS guidance with a midpoint of $4.20, missing analysts’ estimates by 1.3%, as Wall Street projects roughly 3.6% revenue growth next year, below the sector average.
4. Market Reaction
Shares fell 3.6% on the day of the report, reflecting investor concern over the EBITDA miss and weakened cash flow outlook, prompting questions about growth sustainability.