Black Diamond Group (BDI) Investor presentation summary

Financial performance highlights

• Adjusted EBITDA for Q2 2025 reached $29.2 million, exceeding consensus estimates, with a 5% YoY increase to $55.7 million for the first half of 2025.

• Consolidated rental revenue rose 9% YoY to $38.6 million, and profit increased 23% YoY to $9.2 million.

• EPS grew 25% YoY to $0.15, driven by compounding EBITDA and rental revenue growth.

• Free cash flow for Q2 2025 was $19.5 million, up 7% YoY, supporting a 17% dividend increase.

• Net debt stood at $232 million, with a leverage ratio of 1.9x and available liquidity of $192.9 million.

Business segment performance

• Modular Space Solutions (MSS) delivered record quarterly rental revenue of $26.4 million, up 19% YoY, with average monthly rental rates rising 8%.

• Workforce Solutions (WFS) revenue increased 6% YoY to $46.7 million, with growing diversification across industries and geographies.

• LodgeLink platform achieved gross bookings of $25.7 million, up 5% YoY, and room nights sold grew 17% YoY to 531,967.

• MSS fleet utilization remained above 80%, and WFS utilization was supported by asset and industry diversification.

• MSS lease portfolio average duration reached ~51 months, with contracted future rental revenue of $152 million.

Strategic initiatives and growth

• Completed a successful bought deal to maximize financial flexibility and expanded the ABL facility to $425 million, extendable to 2030.

• Continued focus on organic growth capex, with $27.5 million in capital commitments and a hurdle rate of ~20% on new investments.

• Recent acquisition in British Columbia added 329 space rental units for $20.5 million.

• LodgeLink expanded its presence in Australia and continues to scale with over 1,800,000 rooms listed and 1,050 corporate customers.

• Dividend reinstated in 2021 and increased four times, now at $0.035 per share quarterly.