Bird Construction (BDT) Investor Day 2024 summary

Strategic direction and growth pillars

• Launched the 2025-2027 strategic plan focused on disciplined, diversified growth by geography and end market, emphasizing operational excellence and expansion into strategic markets and large capital investment projects.

• Three strategic pillars: One Team (collaborative culture), One Mission (data-driven operational excellence), and One Goal (profitable, accretive growth with financial flexibility and shareholder returns).

• Plan developed through a year-long, company-wide process involving over 75 contributors and extensive board review.

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

• Expansion into key strategic markets, including infrastructure, buildings, and industrial sectors, with a focus on large capital investment projects and self-perform capabilities.

Financial targets and performance

• 2025-2027 targets: organic revenue CAGR of 10% +/-2%, 8% adjusted EBITDA margin by 2027, and 33% dividend payout ratio of net income, with an additional 5% growth in 2025 from the Jacob Bros. acquisition.

• Revenue projected to reach CAD 4.8 billion by 2027, with EBITDA of approximately CAD 390 million and a 200 basis point margin improvement over three years.

• 2022-2024 plan exceeded internal targets, with revenue rising from $2.4B in 2021 to an estimated $3.5B in 2024 and significant margin accretion.

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

• 50% dividend increase announced, with intention to maintain a 33% payout ratio and a balanced capital allocation approach.

Market positioning and business development

• Strategic expansion into British Columbia and Ontario to leverage government infrastructure investment and access high-growth markets.

• Targeting high-growth sectors: data centers (CAD 15B annual TAM), healthcare (CAD 10B), manufacturing (CAD 38B), mining (CAD 12-18B), and airports (CAD 2-3B).

• MRO and CSU divisions positioned as leaders in industrial maintenance and electrification, with a $25B-$30B annual addressable market.

• Strong presence in energy transition markets, including wind, hydro, nuclear, and critical minerals, with a $3B annual TAM in clean power generation.

• Recurring revenue contracts at CAD 1B, with growth expected as new clients and contract renewals are secured.