Bird Construction (BDT) Q2 2025 earnings summary

Executive summary

• Achieved record backlog of $4.6 billion at quarter end, up 36% year-over-year, with $1.2 billion in new awards in Q2 and robust demand in infrastructure, defense, healthcare, and power generation sectors.

• Margin improvement in Q2 2025: gross profit margin rose to 10.6% from 8.6%, adjusted EBITDA margin to 6.5% from 5.3%, and adjusted earnings per share increased to $0.50.

• Revenue for Q2 2025 was $850.8 million, down 2.6% year-over-year, impacted by client-driven project deferrals and delays amid economic uncertainty.

• Strategic focus on high-demand, lower-risk sectors and collaborative contract types, with over 90% of projects in collaborative delivery models.

• Operational excellence demonstrated on large capital projects, including LNG, nuclear, transit, and defense contracts.

Financial highlights

• Q2 2025 revenue: $850.8 million, down 2.6% year-over-year; YTD revenue: $1.57 billion, up slightly from $1.56 billion in 2024.

• Gross profit margin improved to 10.6% in Q2 (from 8.6%); adjusted EBITDA: $54.9 million (6.5% margin), up 17.9% year-over-year.

• Net income: $20.3 million and EPS $0.37, down from $21.4 million and $0.40 in 2024, impacted by non-cash amortization.

• Adjusted earnings: $27.6 million and adjusted EPS $0.50, up from $22.7 million and $0.42.

• Free cash flow conversion of net income at 55.9%; free cash flow per share $0.99; operational cash flow before working capital changes was $54.5 million in Q2 2025.

Outlook and guidance

• 2027 Strategic Plan targets 8% adjusted EBITDA margin and 10% +/- 2% organic revenue CAGR, with only a 120 basis point gap remaining.

• Positive revenue growth anticipated in H2 2025, though at a moderated pace due to economic uncertainty and project delays.

• 2025 EBITDA margin expected to be higher than 2024 but likely below the 7% previously targeted.

• Expects acceleration in 2026 and 2027 as market clarity improves and delayed projects resume.

• Management expects seasonal working capital investments to unwind in the second half of 2025.