Tear Sheet: Outdoor Home Services Holdings LLC (dba TruGreen)

This report does not constitute a rating action. Outdoor Home Services' (dba TruGreen) revenue stayed flat in 2025 as residential volumes remained soft. However, TruGreen?s S&P Global Ratings-adjusted EBITDA margin increased by 70 basis points (bps) to 16.4% from 15.7% in 2024. Margin expanded primarily from commodity deflation, favorable pricing, and more efficient sales and marketing spend. The company improved its profitability by about 200 bps over the last four years, with S&P Global Ratings-adjusted leverage declining to 6.9x from 7.8x. This reflects management?s ability to execute organic growth initiatives including improving customer and employee retention. However, persistent cost pressures will likely offset further near-term margin benefits from these factors, resulting in our forecast for temporarily higher leverage of mid-7x

...(Editor's Note: S&P Global Ratings believes there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly.)...

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