Badger Infrastructure Solutions (BDGI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $745 million in 2024, up 9% year-over-year, driven by commercial and pricing strategies and increased customer demand.

• Adjusted EBITDA grew 17% to $176.1 million for the year; Q4 Adjusted EBITDA up 28% to $44.0 million.

• Adjusted EPS increased 24% to $1.68 for 2024; Q4 Adjusted EPS up 131% to $0.37.

• Board approved a 4.2% increase in quarterly cash dividend, effective Q1 2025.

• Repurchased 240,400 shares in 2024 under NCIB, with $6 million purchased in late 2024 and another $6 million in early 2025 at an average price of CAD $36.89.

Financial highlights

• Q4 revenue increased 8% year-over-year to $187.2 million, led by 11% growth in U.S. operations; Canadian operations down 11%.

• Gross profit margin improved to 29.5% in Q4 (from 26.2% last year) and 29.3% for 2024 (from 27.9% in 2023).

• Adjusted EBITDA margin rose to 23.6% for 2024, up from 22.0% in 2023.

• Net earnings for 2024 were $47.9 million, up from $41.8 million in 2023; net earnings per share rose to $1.39.

• Cash flow from operations before working capital adjustments was $176.0 million for 2024.

Outlook and guidance

• 2025 fleet plan: manufacture 180–210 hydrovacs, refurbish 50–60, retire 90–130 units, targeting 4–7% fleet growth to 1,710–1,760 units.

• Capital spending guidance for 2025 is $95–$115 million, including production, refurbishments, and ancillary equipment.

• Focus remains on U.S. market growth, operational efficiency, and leveraging customer relationships.

• Management remains cautious on Canadian market due to tariffs and political uncertainty.

• Disciplined fleet management and utilization to support organic growth.