Bird Construction (BDT) Q1 2025 earnings summary

Executive summary

• Achieved 4.3% year-over-year revenue growth in Q1 2025, with significant gross profit and EBITDA margin expansion, and adjusted earnings growth outpacing revenue growth.

• Record backlog reached CAD 4.3 billion, with $1.3B in new securements in Q1, providing strong visibility into future revenues and margin accretion.

• Strategic focus on margin-accretive sectors, diversification, disciplined project selection, and increased self-perform capabilities are driving improved margin profiles and economic resilience.

• Maintained a healthy balance sheet, strong operating cash flow, and significant liquidity, enabling balanced capital allocation and ongoing investments.

• Strong presence in infrastructure, building, industrial, and energy markets, with major project awards in transportation, buildings, industrial, nuclear, and LNG sectors.

Financial highlights

• Q1 2025 construction revenue was CAD 717.6 million ($717.6M), up 4.3% year-over-year from CAD 688.2 million.

• Gross profit margin increased to 9.4% from 8% in Q1 2024, with all business units contributing to the improvement.

• Adjusted EBITDA rose 41% to CAD 34.1 million (4.8% of revenue), compared to CAD 24.2 million (3.5%) in Q1 2024.

• Net income was CAD 9.4 million ($0.17/share), down from CAD 10 million ($0.19/share) due to non-cash amortization of acquisition intangibles; adjusted earnings increased 14.5% to CAD 12.9 million.

• Operating cash flow before working capital changes was $38.4M, with free cash flow conversion of net income at 62.9%.

Outlook and guidance

• Guidance for 2025 and 2027 is reaffirmed, with growth expected to be more weighted to the second half of 2025 due to deferred industrial maintenance.

• Margin profile in backlog and pending backlog is higher than prior periods, supporting continued margin expansion.

• EBITDA and adjusted earnings growth are expected to outpace revenue growth throughout 2025.

• Active bidding environment and strong pipeline of opportunities expected to sustain or grow backlog.

• Full-year organic revenue growth expected in line with strategic targets; margin accretion to continue.