Badger Infrastructure Solutions (BDGI) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached CAD 209.4 million, up 7% year-over-year, driven by 10% growth in U.S. operations, while Canadian revenue declined 12%.

• Adjusted EBITDA increased 11% to CAD 58.3 million, with margin rising to 27.8% from 26.9% last year.

• Adjusted earnings per share rose 6% to CAD 0.73; net earnings per share remained flat at CAD 0.68.

• Commercial strategy enabled wins in data centers, microchip plants, energy grid, and infrastructure projects.

• Board approved a quarterly dividend of CAD 0.18 per share and expanded the share buyback program.

Financial highlights

• Gross profit margin stable at 32.5% versus 32.1% last year.

• Adjusted EBITDA: CAD 58.3 million (up from CAD 52.7 million); margin: 27.8%.

• Net earnings: CAD 23.3 million, flat year-over-year; Adjusted net earnings: CAD 25.1 million (up from CAD 23.8 million).

• Revenue per truck per month was CAD 46,851, slightly down due to Canadian softness; U.S. RPT flat.

• General and administrative expenses decreased to CAD 9.8 million (4.7% of revenue) from CAD 10.1 million (5.2%).

Outlook and guidance

• U.S. market expected to remain robust, with project activity resuming post-election.

• Canadian revenue anticipated to recover in 2025 as deferred projects start.

• Truck fleet growth to be at the low end of 7%-10% guidance; truck retirements tracking high end of range.

• 2024 capital spend forecast: CAD 90 million to CAD 130 million for new builds, refurbishments, and equipment.

• Management expects to return to defined revenue growth ranges in the back half of 2025.