Bird Construction (BDT) Investor Day 2024 summary

Strategic direction and growth initiatives

• Launched the 2025-2027 strategic plan focused on disciplined, diversified growth by geography and end market, building on the previous plan's success and targeting operational excellence, talent development, and expansion into high-growth sectors.

• Strategic pillars include a collaborative One Bird culture, data-driven operational excellence, and a focus on profitable, accretive growth with financial flexibility and shareholder returns.

• Expansion into key markets such as British Columbia and Ontario, leveraging recent acquisitions and self-perform capabilities to access infrastructure, mining, and energy transition opportunities.

• Targeting high-demand sectors like data centers, healthcare, manufacturing, and energy transition projects, supported by deep technical expertise and national reach.

• Emphasizing collaborative delivery models, with over 75% of backlog and pending backlog in such models to reduce risk and drive value.

Financial guidance and performance targets

• 2025-2027 targets include an organic revenue CAGR of 10% +/- 2%, an 8% adjusted EBITDA margin by 2027, and a 33% dividend payout ratio of net income.

• Revenue projected to reach CAD 4.8 billion by 2027, with EBITDA of approximately CAD 390 million and continued margin accretion driven by infrastructure and industrial growth.

• Margin improvement attributed to business mix shift toward higher-margin infrastructure and industrial sectors, disciplined project selection, and efficiencies from technology and data analytics.

• Dividend increased by 50% with a commitment to maintain a 33% payout ratio, reflecting confidence in future cash flows and performance.

• Balanced capital allocation strategy with investments in CapEx, acquisitions, and dividends, supported by a strong balance sheet and ample liquidity for future growth.

Financial performance and shareholder value

• Achieved significant growth during the 2022-2024 plan, with revenue rising from $2.4B in 2021 to an estimated $3.5B in 2024 and adjusted EBITDA margin expanding to ~6%.

• Outpaced the TSX Composite Index by ~181% in total shareholder return since 2022, with a $900M increase in market cap.

• Increased monthly dividend by 215% from 2022 to 2024, with a further 50% increase effective November 29, 2024.

• Strong balance sheet with $102M in cash, $244M working capital, and an adjusted net debt to TTM adjusted EBITDA ratio of 0.86x as of June 30, 2024.

• Capital allocation priorities include internal investments, opportunistic acquisitions, and maintaining a long-term dividend payout ratio of 33%.