Bird Construction ((TSE:BDT)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The latest earnings call for Bird Construction painted a picture of strong performance and growth, with the company achieving record backlog and revenue growth. The sentiment was overwhelmingly positive, driven by strategic positioning and government support. Despite some short-term impacts from industrial maintenance deferrals, the overall outlook remains optimistic due to a strong balance sheet and continued demand in target sectors.
Record Backlog
Bird Construction announced a record backlog of $4.3 billion at the end of the quarter, with $1.3 billion added in Q1 alone. This impressive figure exceeded the work executed by 85%, showcasing the company’s robust pipeline and strong market position.
Revenue and Margin Growth
The company reported a 4.3% year-over-year increase in construction revenue, reaching $717.6 million. Additionally, the adjusted EBITDA margin improved significantly to 4.8% from 3.5% in Q1 2024, marking a 41% increase. This growth reflects Bird’s effective cost management and operational efficiency.
Strong Balance Sheet
Bird’s financial health remains solid, with $137.8 million in cash and cash equivalents and $336.7 million available under its credit facility. This strong liquidity position provides the company with the flexibility to pursue strategic opportunities and weather any potential market fluctuations.
Strategic Positioning and Government Support
Bird is strategically positioned to capitalize on government initiatives aimed at establishing Canada as a global energy superpower. The company sees significant opportunities in the energy, mining, and transportation sectors, which are expected to drive future growth.
Successful Project Awards
The company secured several new projects, including a highway improvement project, a transit hub, and various industrial contracts. These awards highlight the demand for Bird’s services across its target sectors and underscore its competitive edge in the market.
Industrial Maintenance Deferrals
Some industrial maintenance work has been deferred to the latter half of the year, impacting revenue growth in Q1 and expected to continue affecting Q2. Despite this, the company remains confident in its ability to meet its financial targets for the year.
Impact on Net Income
Despite overall growth, Bird’s net income and earnings per share experienced a slight decline due to noncash amortization of acquisition intangibles. Net income stood at $9.4 million compared to $10 million in the prior year, reflecting these accounting adjustments.
Forward-Looking Guidance
Looking ahead, Bird Construction’s CEO Teri McKibbon highlighted the company’s strong performance and strategic direction. With record backlog levels and a 4.3% revenue growth, Bird is on track to achieve its 2027 target of an 8% EBITDA margin. The company’s focus on margin-accretive sectors and disciplined project selection is expected to drive further growth, supported by a robust bidding pipeline and favorable market conditions.
In conclusion, Bird Construction’s earnings call showcased a company on a strong growth trajectory, with record backlog and revenue growth underscoring its strategic positioning and operational excellence. Despite some short-term challenges, the overall sentiment remains positive, with a strong balance sheet and continued demand in key sectors providing a solid foundation for future success.