Bird Construction (BDT) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue and earnings growth in Q3 2024, driven by higher embedded margins, robust backlog, and strategic acquisitions including Jacob Bros and NorCan, which expanded capabilities and backlog.

• Diversified business model, disciplined project selection, and focus on high-growth sectors such as energy transition, nuclear, civil infrastructure, and data-related infrastructure support long-term growth and margin accretion.

• Recognition as a TSX30 winner and addition to the TSX Composite Index reflect strategic focus and balance sheet strength.

• Emphasis on collaborative delivery models and recurring revenue contracts enhances long-term visibility.

Financial highlights

• Q3 2024 revenue grew 15% year-over-year to $898.9M; YTD revenue up 23% to $2.46B; net income for Q3 was $36.2M (up 26%); Adjusted EBITDA rose 42% to $70.1M (7.8% margin); Adjusted EPS up 27% to $0.69.

• Gross profit margin improved to 11.4% in Q3 (from 9.3% last year); YTD gross margin at 9.4% (up from 8.3%).

• Operating cash flow generation up 44% in Q3 and 56% YTD, with accessible cash at $160M as of September 30, 2024.

• Backlog at September 30, 2024 reached $3.8B, with pending backlog up 36% YTD to $4.1B and $900M in recurring revenue contracts.

Outlook and guidance

• FY2024 revenue expected at approximately $3.4B with Adjusted EBITDA margin exceeding 6%; 2025 guidance includes approaching 7% EBITDA margin, with further organic improvements and full-year Jacob Bros contribution.

• Strategic plan targets 10% annual organic growth ±2% through 2027, with revenue reaching $4.8B and 8% Adjusted EBITDA margin by FY2027.

• Dividend payout ratio targeted at 33% of net income, with five consecutive years of dividend increases and monthly dividend per share at $0.07 effective November 2024.

• Two-thirds of net income to be retained for organic growth and strategic M&A.