Badger Infrastructure Solutions (BDGI) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $186.8M, up 9% year-over-year, driven by strong U.S. market performance and offset by Canadian softness.

• Adjusted EBITDA rose 14% to $44.6M, with margin improving to 23.9% from 22.8%.

• U.S. revenue grew 14% to $165.6M, while Canadian revenue declined 19% to $21.2M due to delayed project starts and lower market activity.

• Continued execution of commercial strategy, winning projects in data centers, microchip plants, energy, and infrastructure sectors.

• Board approved a quarterly dividend of CAD $0.18 per share for Q3 2024.

Financial highlights

• Total Q2 revenue: $186.8M (Q2 2023: $171.9M), driven by U.S. growth.

• Adjusted EBITDA margin improved to 23.9% from 22.8% year-over-year.

• Adjusted earnings per share rose 18% to $0.45; net earnings for Q2: $11.9M.

• Gross profit margin was stable at 29.2% compared to 29.1% last year.

• Revenue per truck per month (RPT) was $43,161, down from $44,502 in Q2 2023.

Outlook and guidance

• Canadian revenues expected to remain soft until delayed projects commence later in 2024 or early 2025.

• Fleet count growth now expected at the lower end of the 7%-10% range due to lower utilization, mainly in Canada.

• Anticipates an active emergency response season but does not forecast non-recurring disaster work into guidance.

• Confident in achieving 12%-14% revenue growth in 2025 through improved utilization and pricing.

• 2024 capital spend forecast: $90M-$130M for new builds, refurbishments, and ancillary equipment.