Badger Infrastructure Solutions (BDGI) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $237.3 million, up 13% year-over-year, with double-digit growth in gross profit, adjusted EBITDA, and adjusted net earnings.

• Adjusted EBITDA increased 15% to $66.8 million, with margin rising to 28.2%, reflecting operational efficiencies and pricing strategies.

• Revenue and profitability grew at more than double the rate of fleet growth, demonstrating strong operating leverage.

• Year-to-date, revenue grew 11%, adjusted EBITDA 16%, and adjusted EPS up 29% (net earnings per share up 40%).

• Board approved a quarterly cash dividend of CAD $0.1875 per share for Q4 2025.

Financial highlights

• Adjusted EBITDA margin improved to 28.2% from 27.8% in Q3 2024.

• Adjusted EPS increased 25% to $0.91 per share.

• Net earnings for Q3 2025 were $29.0 million, up from $23.3 million in Q3 2024.

• G&A expenses were $10.6 million (4% of revenue), down from 5% last year.

• Cash flow from operating activities before working capital adjustments was $66.7 million.

Outlook and guidance

• Full-year Hydrovac production expected at the upper end of 180-210 units due to increased demand.

• 2025 retirements projected at the upper end of 90-130 units; refurbishment range reduced to 30-40 units, with a new facility planned for 2026.

• Capital spend guidance raised to $115-$130 million for 2025.

• Anticipates continued growth in key US regions and large metropolitan areas, with strong infrastructure and construction spending.