Badger Infrastructure Solutions (BDGI) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 revenue of $208.2 million, up 11% year-over-year, with gross margin rising to 30.5% from 29.2% in 2024, and double-digit growth in gross profit and adjusted EBITDA, reflecting strong operating efficiencies and successful pricing strategies.

• Adjusted EBITDA increased 18% to $52.7 million, and adjusted EBITDA margin rose by 140 basis points to 25.3% (Q2 2024: 23.9%).

• Adjusted earnings per share reached $0.60, a 33% increase compared to the prior year.

• Year-to-date, revenue grew 9%, adjusted EBITDA 17%, and adjusted net earnings per share 32% over the prior year.

• Continued focus on margin expansion, disciplined pricing, and targeted sales efforts to maximize fleet utilization.

Financial highlights

• Q2 2025 revenue: $208.2 million (Q2 2024: $186.8 million); gross profit margin: 30.5% (2024: 29.2%).

• Adjusted EBITDA: $52.7 million (up from $44.6 million); adjusted EBITDA margin: 25.3% (2024: 23.9%).

• Net earnings: $18.5 million (Q2 2024: $11.9 million); net earnings per share: $0.55 (2024: $0.35).

• Revenue per truck per month (RPT) was $41,867, up 2.5% year-over-year, indicating improved fleet utilization.

• General and administrative expenses were $10.8 million, or 5% of revenue, consistent with the prior year.

Outlook and guidance

• Expecting continued strong demand across end markets, including data centers, infrastructure, and energy projects, with positive momentum anticipated into the back half of 2025.

• Full-year 2025 fleet strategy targets manufacturing 180–210 hydrovacs, retiring 90–130 units, and refurbishing 50–60 trucks, with refurbishments likely at the lower end of the range.

• Revenue growth rate for the remainder of the year expected to remain in the low double digits, with long-term targets of 12–14% annual growth.

• Plans to grow hydrovac fleet by 4% to 7% in 2025, with total capital spend projected at $95–$115 million.

• Intends to renew NCIB and maintain ability for opportunistic share repurchases and dividend payments.