Black Diamond Group (BDI) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of CAD 159.9 million, up 52% YoY, and Adjusted EBITDA of CAD 42.3 million, up 33%; growth included a significant Royal Camp contribution and continued LodgeLink expansion.

• Basic Adjusted EPS was CAD 0.19, up 19% YoY; reported EPS was CAD 0.16 versus CAD 0.19, reflecting lower margins, higher depreciation and financing costs, and increased shares.

Financial highlights

• Gross profit rose 31% to CAD 65.6 million; gross margin fell 670 bps to 41.0% as direct costs increased 71%.

• Adjusted EBIT increased 22% to CAD 23.6 million; profit declined 10% to CAD 11.0 million and profit before income taxes fell 17% to CAD 13.8 million.

• Funds from Operations rose 32% to CAD 43.6 million and free cash flow increased 47% to CAD 33.8 million; 9M free cash flow grew 12% to CAD 66.4 million.

• 9M revenue increased 34% to CAD 419.0 million and Adjusted EBITDA rose 20% to CAD 104.7 million; profit fell 46% to CAD 14.6 million and Basic Adjusted EPS declined 23% to CAD 0.33.

Outlook and guidance

• Management expects continued profitable growth, citing favourable demand across three geographies and key end markets; Canadian WFS had CAD 2.3 billion of formal advanced bids outstanding, well over twice current fleet capacity.

• WFS utilization is expected to step up by H2 2027; large-project mobilizations and revenue are expected to ramp over time into 2028, subject to negotiations, regulatory progress and customer schedules.

• Q4 revenue mix and margins are expected to be relatively comparable to prior years; MSS sales delayed from Q3 are expected to lift Q4 sales.

• LodgeLink growth showed no current indication of moderating; LodgeLink 3.0 was nearing completion, with an accelerated launch expected around Q1 2027.

• Higher CapEx is expected next year, with most investment directed to MSS; near-term WFS investment is focused on Australia and the U.S., while MSS expects stable recurring rental revenue and disciplined fleet investment.