Bird Construction (BDT) Q2 2024 earnings summary

Executive summary

• Achieved over 27% year-over-year revenue growth in Q2 2024, with Adjusted EBITDA up 58% to CAD 46.6 million and net income up 56% to CAD 21.4 million, driven by strategic focus and disciplined project selection.

• Record-high backlog reached CAD 3.4 billion, with over 90% low to medium risk contract types and 75% collaborative projects, and $0.9B in recurring revenue contracts.

• Completed acquisition of Jacob Bros., expanding self-perform and infrastructure capabilities in Western Canada, expected to generate CAD 300 million in annual revenue and CAD 37 million Adjusted EBITDA.

• Diversified business model and collaborative delivery drive margin accretion, recurring revenue, and strong operational cash flows.

• Strong demand environment across public and private sectors, especially in energy transition, infrastructure, and institutional markets.

Financial highlights

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

• Gross profit margin improved to 8.6% from 7.9% in Q2 2023; YTD gross margin up 60 bps to 8.3%.

• Adjusted EBITDA: CAD 46.6 million (Q2), up 58% year-over-year; margin at 5.3%, up from 4.3% in Q2 2023.

• Net income: CAD 21.4 million; EPS: CAD 0.40; Adjusted EPS: CAD 0.42, both up 56% year-over-year.

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

Outlook and guidance

• Expects continued top-line organic growth through 2024, with combined revenue (post-Jacob Bros) projected to approach CAD 3.5 billion.

• Jacob Bros. expected to add over CAD 350 million in backlog and significant opportunities in Western Canada.

• Anticipates continued margin improvement, with 2024 Adjusted EBITDA margin expected to reach or exceed 6%.

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

• 2025 to 2027 strategic plan and guidance to be unveiled at Investor Day in October.