Badger Infrastructure Solutions Ltd. ((TSE:BDGI)) has held its Q1 earnings call. Read on for the main highlights of the call.
Badger Infrastructure Solutions Ltd. recently held an earnings call that highlighted a strong performance, showcasing significant growth in revenue, adjusted EBITDA, and fleet size. Despite facing challenges from adverse weather conditions, the company maintained its market share and is well-positioned for future growth. The overall sentiment was positive, with the benefits far outweighing the minor hurdles encountered.
Record Quarter with Revenue Growth
Badger Infrastructure Solutions reported a record quarter with a 7% increase in top-line revenue, reaching $172.6 million. This growth was primarily driven by the company’s strategic focus on commercial expansion and fleet growth, underscoring its ability to capitalize on market opportunities.
Increase in Adjusted EBITDA and Margins
The company achieved a 16% year-over-year growth in adjusted EBITDA, with margins improving by 150 basis points to 19.6%. This reflects Badger’s operational efficiency and its ability to enhance profitability despite external challenges.
Growth in Fleet
Badger’s fleet saw a 9% increase year-over-year, totaling 1,661 hydrovacs. The company plans to continue this trajectory with a projected fleet growth of 4% to 7% for the year, indicating a robust strategy for capacity expansion.
Strong Financial Health
The financial health of Badger remains strong, with adjusted earnings per share growing by 36% to $0.19. The compliance leverage ended at a favorable 1.4x debt to EBITDA, highlighting the company’s solid financial management.
Continued Demand and Market Share
Badger continues to capture market share, driven by increasing demand across infrastructure and construction markets. This positions the company well to leverage future opportunities in these sectors.
Adverse Weather Impact
The company faced operational challenges due to historically adverse weather in the southern United States during January and February. However, Badger successfully navigated these obstacles, demonstrating resilience in its operations.
Manufacturing Slight Decrease
There was a slight decrease in manufacturing, with 50 hydrovacs produced this quarter compared to 52 in Q1 of 2024. This minor reduction did not significantly impact the overall positive performance of the company.
Forward-Looking Guidance
Looking ahead, Badger Infrastructure Solutions provided robust guidance, reflecting strong financial performance and strategic focus. The company plans to manufacture 180 to 210 hydrovacs in 2025, retire 90 to 130 units, and refurbish 50 to 60 units, aiming for a fleet growth of 4% to 7%. With a strong balance sheet and a focus on capturing market share, Badger is well-prepared for future challenges and opportunities.
In summary, Badger Infrastructure Solutions Ltd. delivered a strong earnings call, marked by impressive revenue growth, increased profitability, and strategic fleet expansion. Despite minor challenges, the company remains on a positive trajectory, with a solid financial position and a clear focus on future growth opportunities.