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Black Diamond Group (TSE:BDI)
TSX:BDI
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Black Diamond (BDI) AI Stock Analysis

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TSE:BDI

Black Diamond

(TSX:BDI)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
C$18.50
â–²(2.27% Upside)
Action:Reiterated
Date:08/25/26
The score is primarily held back by weaker financial quality in the latest TTM—margin compression, higher leverage, and notably poor free-cash-flow conversion—despite steady revenue growth. Technicals are mildly bearish in the near term, reinforcing a cautious stance. Valuation is the biggest downside risk given the high P/E and low yield. These negatives are partially offset by a positive earnings-call backdrop (strong YoY revenue growth, sizable pipeline, and adequate liquidity/leverage within management’s target range).
Positive Factors
Revenue Growth and Pipeline
Strong revenue growth and a pipeline spanning more than 20 projects across energy, mining, infrastructure, data centers and defense provide multi-year demand visibility and support potential fleet expansion.
Negative Factors
Margin Compression
Persistent mix shift toward lower-margin lodging and higher operating costs could limit earnings conversion even as revenue grows. Margin recovery may depend on utilization, pricing and greater contribution from higher-margin rentals.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Pipeline
Strong revenue growth and a pipeline spanning more than 20 projects across energy, mining, infrastructure, data centers and defense provide multi-year demand visibility and support potential fleet expansion.
Read all positive factors

Black Diamond (BDI) vs. iShares MSCI Canada ETF (EWC)

Black Diamond Business Overview & Revenue Model

Company Description
Black Diamond Group Limited specializes in providing adaptable prefabricated structures for temporary or semi-permanent use, including both modular workspaces and comprehensive workforce housing solutions. The company operates through two distinct...

Black Diamond Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and growth-oriented outlook: strong top-line growth (revenue +23%) and solid cash generation alongside a large $2 billion+ bid pipeline and accelerating demand for rental, lodging and software services. Key operational achievements include a successful on-time/on-budget ERP implementation, LodgeLink momentum, VAPS expansion and robust liquidity (ABL expansion and net debt/EBITDA at 2.4x). Near-term challenges include compressed reported EPS and adjusted EPS, margin moderation driven by a higher share of lower-margin lodging revenue after the Royal acquisition, a $3.6 million BC sales tax charge, declines in certain sales lines (WFS sales -70%, MSS sales -18%), and temporary working capital impacts from the ERP rollout. Overall the positives around recurring revenue growth, pipeline visibility, balance sheet strength and product/platform momentum outweigh the near-term earnings and mix headwinds.
Positive Updates
Consolidated Revenue Growth
Consolidated revenue of $129.2 million, up 23% year-over-year, driven by strength in recurring rental and lodging revenue streams.
Negative Updates
Reported EPS Decline
Reported earnings per share were $0.01, down from $0.15 in the comparative quarter, reflecting near-term dilutive impacts from acquisition-related costs and mix shifts.
Read all updates
Q2-2026 Updates
Negative
Consolidated Revenue Growth
Consolidated revenue of $129.2 million, up 23% year-over-year, driven by strength in recurring rental and lodging revenue streams.
Read all positive updates
Company Guidance
Management said they expect CapEx to accelerate in H2 2026 as fleet growth is aligned to customer demand after Q2 CapEx of $24.9M (‑23% YoY) and capital commitments of $34.2M (+24% YoY), noting most committed spend is MSS growth with only modest WFS fleet spend today; they reported consolidated revenue $129.2M (+23% YoY) and adjusted EBITDA $30.4M (+4%), consolidated rental revenue $45.0M (+17%), contracted future rental revenue $136.5M, EPS $0.01 (adjusted EPS $0.09 vs $0.18 prior, including a $3.6M BC sales tax charge add‑back), free cash flow $14.6M and FFO $28.6M, with a strong balance sheet (net debt $351M, net debt/TTM adjusted EBITDA 2.4x within 2–3x target, ABL expanded to $550M and nearly $200M liquidity); segment detail and forward drivers include WFS revenue $72.2M (+55%) and adj. EBITDA $15.6M (+3%) with utilization 55.2% and a >$2B bid pipeline across >20 projects (~2–3 year average term, >2x current fleet capacity), MSS rental revenue $28.6M (+8%) and adj. EBITDA $20.9M (+3%) with utilization 77.9%, avg. rental rates +3% and VAPS +35% (11.7% of rental revenue, target mid‑teens), plus LodgeLink momentum (trade value $43.5M +69%, net revenue $5.4M +64%, travel sold >215,000 +44%) and the expectation of step‑change utilization as large projects FID.

Black Diamond Financial Statement Overview

Summary
Income statement trends are mixed (TTM revenue +4.9% but margins compressed, with net margin down to ~4.6%). Balance sheet leverage has increased (debt-to-equity ~1.00) and ROE moderated (~5.9%). Cash flow quality is the weakest area, with TTM free cash flow sharply lower (~$1.4M vs ~$16.3M prior) and very low FCF-to-net income (~1.6%), indicating weaker cash conversion.
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue508.49M456.92M403.00M393.50M324.54M339.55M
Gross Profit165.11M163.85M183.77M174.45M138.14M111.63M
EBITDA125.22M126.43M102.53M98.81M84.27M61.23M
Net Income23.40M34.84M25.65M30.36M26.38M20.36M
Balance Sheet
Total Assets1.08B1.02B748.55M647.64M649.44M530.34M
Cash, Cash Equivalents and Short-Term Investments27.04M24.70M13.32M6.51M8.31M4.56M
Total Debt410.00M382.49M262.66M211.74M249.06M179.68M
Total Liabilities665.69M620.93M421.50M353.68M376.90M283.54M
Stockholders Equity408.92M397.45M323.19M290.08M268.53M234.46M
Cash Flow
Free Cash Flow1.44M16.30M2.14M63.91M16.55M33.26M
Operating Cash Flow92.84M116.98M111.36M133.00M70.79M71.14M
Investing Cash Flow-232.91M-240.10M-112.25M-68.59M-101.94M-33.63M
Financing Cash Flow159.05M134.89M7.53M-65.88M34.51M-36.56M

Black Diamond Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.09
Price Trends
50DMA
18.49
Negative
100DMA
18.23
Negative
200DMA
16.95
Positive
Market Momentum
MACD
-0.39
Positive
RSI
39.86
Neutral
STOCH
28.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDI, the sentiment is Negative. The current price of 18.09 is below the 20-day moving average (MA) of 18.12, below the 50-day MA of 18.49, and above the 200-day MA of 16.95, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BDI.

Black Diamond Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
C$3.89B65.0413.41%1.20%7.38%-39.80%
70
Outperform
C$656.88M10.0412.07%4.62%-4.10%82.03%
69
Neutral
C$958.05M11.2412.64%5.14%1.80%13.21%
67
Neutral
C$869.04M19.5915.18%2.88%8.97%27.62%
63
Neutral
C$2.48B22.829.35%3.26%8.87%-1.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
C$1.18B49.385.89%0.98%15.17%-32.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BDI
Black Diamond
17.41
5.85
50.57%
TSE:BDT
Bird Construction
70.24
44.95
177.75%
TSE:DBM
Doman Building Materials Group
10.90
1.77
19.32%
TSE:DXT
Dexterra Group
13.91
4.79
52.49%
TSE:MTL
Mullen Group
25.79
12.70
97.02%
TSE:WJX
Wajax Corporation
30.33
8.05
36.12%

Black Diamond Corporate Events

Business Operations and Strategy
LodgeLink Showcases Growth Strategy at Canaccord Genuity Conference
Positive
Aug 7, 2026
LodgeLink, the technology-enabled workforce travel platform owned by industrial services firm Black Diamond Group, specializes in managing complex crew travel through a proprietary system that integrates lodging, logistics, and payment solutions a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 25, 2026