Bird Construction Q2 Earnings Call Highlights

Bird Construction (TSE:BDT) reported second-quarter 2026 revenue above C$1 billion for the first time in its history, as broad-based project activity, backlog growth and improved margins supported results under the company’s 2027 strategic plan.

Revenue rose 22.6% year over year to C$1.043 billion, with more than 80% of the increase coming from organic growth, President and Chief Executive Officer Teri McKibbon said during the company’s earnings call. All three operating businesses contributed to organic growth, while the infrastructure segment also benefited from FRPD, acquired in October 2025.

McKibbon said the quarter was notable because revenue, adjusted EBITDA margin, backlog and cash flow improved simultaneously. She attributed the performance to a distributed work program across sectors and regions, along with Bird’s self-perform capabilities, labor access, technical expertise and national operating reach.

Margins Expand as Revenue Rises

Adjusted EBITDA increased 34.6% to C$73.9 million, while adjusted EBITDA margin expanded 60 basis points from a year earlier to 7.1%. Gross profit was C$109.8 million, representing a gross-profit margin of 10.5%.

Chief Financial Officer Wayne Gingrich said margin improvement reflected disciplined project selection, a better project mix and increased self-perform participation. Operating leverage also contributed, with general and administrative expenses declining to 5.4% of revenue from 6.4% in the prior-year period.

Adjusted earnings rose 40% to C$38.6 million, or C$0.70 per share. Net income was C$30.3 million, or C$0.55 per share. Gingrich noted that net income included non-cash warrant-related impacts tied to a strategic customer arrangement and a non-cash expense associated with shares issued to another strategic partner.

For the first six months of 2026, revenue increased 16.5% to C$1.83 billion. Adjusted EBITDA rose 24.8% to C$111 million, and the adjusted EBITDA margin improved to 6.1%. Net income increased 40.5% to C$41.7 million, while cash flow from operating activities improved by C$188.8 million year over year to C$64.5 million.

Backlog Reaches Approximately C$12 Billion

Bird secured nearly C$1.8 billion of work during the second quarter, exceeding work executed by C$707 million. Contracted backlog reached C$6.1 billion at quarter-end, up 30.6% from a year earlier, while pending backlog increased 57.5% to C$6 billion. Combined backlog was approximately C$12 billion.

McKibbon said more than 80% of the combined backlog consists of collaborative contract structures, recurring revenue programs and work in high-demand sectors. The backlog includes more than C$1.4 billion of master service agreement and other recurring revenue expected to be earned over the next four years.

Subsequent to the quarter, Bird announced approximately C$1 billion in project awards and agreements spanning nuclear, civil, marine and mine infrastructure, industrial facilities and maintenance, and buildings work.

The company identified industrial opportunities in oil, gas and LNG, chemicals, power, renewables and nuclear. Its building-sector focus includes data centers, defense, Arctic and remote projects, and social infrastructure. Infrastructure priorities include mining, critical minerals, transportation, utilities, transmission and distribution.

Industrial Ramp Expected to Support Second Half

Management said revenue growth accelerated faster than originally expected because of seasonal activity in buildings and the ramp-up of industrial work programs that had been delayed through much of 2025 and early 2026.

Gingrich said those industrial programs began returning late in the second quarter and are expected to make a more meaningful contribution through the second half. During the question-and-answer session, McKibbon cited demand in chemicals, oil-loading facilities, maintenance turnarounds planned for the third and fourth quarters, renewables and nuclear.

Bird also expects infrastructure to contribute meaningfully to revenue and margins in the second half, Gingrich said. In buildings, management pointed to stronger performance in more complex, higher-margin market sectors.

The company’s data-center project with Bell in Regina began contributing during the second quarter but was still ramping. Gingrich said Bird had reached roughly 50% of its expected labor loading and expects the project to be a strong contributor in the third and fourth quarters as well as the first half of 2027. The company expects to reach its full labor target during the fourth quarter.

Outlook and Financial Position

Bird said it expects full-year revenue growth that may exceed 20% compared with 2025. Management also expects further adjusted EBITDA margin improvement as industrial programs return to full capacity during the second half, while reiterating its goal of reaching an 8% adjusted EBITDA margin in 2027.

Gingrich said the company was not changing its previously communicated margin outlook. Bird’s trailing 12-month adjusted EBITDA margin was 6.7% at the end of the quarter, compared with 6.5% in the prior period.

Cash flow from operating activities was C$58.4 million in the second quarter, an improvement of C$133.8 million from the prior-year period. On a trailing 12-month basis, Bird generated C$262 million of free cash flow, or C$4.73 per share.

The company ended the quarter with C$264.3 million of cash and C$446.5 million available under its syndicated credit facility. During the quarter, Bird received a BBB (low) investment-grade rating from DBRS and completed its inaugural C$250 million senior unsecured notes offering. Adjusted net debt to trailing 12-month adjusted EBITDA was 0.96 times, and the current ratio was 1.32 times.

McKibbon said Bird is beginning its strategic planning process for 2028 through 2030, while remaining focused on executing the current plan. On the Ring of Fire opportunity with Marten Falls First Nation, she said community-related work is expected to continue through 2026, while larger work tied to mine access could potentially develop in 2027, subject to design, permitting and timing considerations.

About Bird Construction (TSE:BDT)

Bird Construction Inc operates as a general contractor in the Canadian construction market. The company focuses primarily on projects in the industrial, commercial and institutional sectors of the general contracting industry. It provides construction services such as new construction for industrial, commercial, and institutional markets; industrial maintenance, repair and operations (MRO) services, heavy civil construction and contract surface mining; as well as vertical infrastructure including, electrical, mechanical, and specialty trades.

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