Black Diamond Group (BDI) investor relations material

Executive summary

• Consolidated revenue reached $129.2 million, up 23% year-over-year, driven by recurring rental and lodging revenue streams.

• Adjusted EBITDA rose 4% to $30.4 million, with margin moderation due to increased lower-margin lodging revenue from the Royal Camp acquisition.

• Adjusted EPS was $0.09, down 50% year-over-year, mainly due to higher depreciation, interest, share count, and a $3.6 million provision for BC PST assessments.

• Free cash flow for the quarter was $14.6 million.

• Multi-year market tailwinds across infrastructure, government, energy, and mining sectors are driving demand.

Financial highlights

• Consolidated rental revenue increased 17% year-over-year to $45.0 million; contracted future rental revenue at $136.5 million.

• MSS rental revenue rose 8% to $28.6 million; WFS revenue surged 55% to $72.2 million.

• LodgeLink total trade value rose 69% to $43.5 million; net revenue up 64% to $5.4 million.

• Adjusted EBITDA margin declined to 23.5% from 27.7% year-over-year.

• Net debt at quarter end was $351.0 million, with leverage at 2.4x trailing 12-month adjusted EBITDA.

Outlook and guidance

• CapEx expected to accelerate in the second half of the year due to strong demand, especially in MSS.

• WFS has over $2 billion in formal bids outstanding, more than double current fleet capacity, with large Canadian projects expected to materialize into 2027 and beyond.

• Significant growth opportunities identified in MSS in the Southern and Western U.S. and Canada, with tight utilization and robust project activity.

• LodgeLink poised for further growth with new software launch and strong customer adoption.

• Anticipates increased organic capital investment in Canada and the US for the remainder of 2026 and into 2027.