Bird Construction (BDT) Q2 2024 earnings summary

Executive summary

• Achieved significant revenue and profitability growth in Q2 2024, with revenue up 27% year-over-year to CAD 874 million and Adjusted EBITDA up 58% to CAD 47 million, outpacing revenue increases.

• Net income and EPS increased 56% year-over-year in Q2 2024, with margin accretion and record-high work volumes.

• Completed the acquisition of Jacob Bros., expanding self-perform capabilities and infrastructure presence in Western Canada and British Columbia.

• Diversified business model, collaborative delivery, and disciplined project selection drive margin improvement and recurring revenue.

• Strong operational cash flows and disciplined capital allocation support growth and shareholder returns.

Financial highlights

• Q2 2024 construction revenue: CAD 873.5 million, up 27% year-over-year; YTD revenue: CAD 1.56 billion, up 28%.

• Adjusted EBITDA: CAD 46.6 million (Q2), up 58% year-over-year; margin at 5.3%, up from 4.3% last year.

• Net income: CAD 21.4 million; EPS: CAD 0.40; Adjusted EPS: CAD 0.42.

• Gross profit margin improved to 8.6% from 7.9% year-over-year; YTD gross margin up 60 bps to 8.3%.

• Operating cash flow before non-cash working capital up 65% for the quarter and 69% YTD.

Outlook and guidance

• Expects strong full-year growth in earnings, revenue, and operating cash flows, with 2024 revenue projected to approach CAD 3.5 billion including Jacob Bros.

• Jacob Bros. expected to add over CAD 350 million of risk-balanced, margin-accretive backlog and pending backlog.

• Anticipates continued margin improvement, with EBITDA margin expected to reach or exceed 6% by year-end 2024.

• Plans to retain over two-thirds of net income to support organic growth and strategic M&A.

• 2024 Investor Day scheduled for October 9th to unveil 2025-2027 strategic plan.