Canada's Badger Infrastructure tops Q4 revenue estimates on strong fleet utilization
Overview
North America's largest non-destructive excavating firm's Q4 revenue rose 14%, beating expectations
Adjusted EBITDA for Q4 grew 2% YoY, but missed estimates
Company announced on Thursday a 4% increase in quarterly dividend for 2026
Outlook
Badger plans to grow fleet by 7% to 10% in 2026
Company expects capital spend of $198 mln to $230 mln in 2026
Badger plans $15 mln to $25 mln investment in new service lines
Result Drivers
CORE SERVICE GROWTH - Revenue from non-destructive excavation services grew to $202.3 mln from $175.8 mln a year ago
INVESTMENTS IN FLEET AND WORKFORCE - Co increased investments in operations workforce and fleet expansion to support growth
HIGHER FLEET UTILIZATION - Revenue per truck per month (RPT), a key measure of utilization, increased to $41,756 from $38,395 in the prior-year quarter
Company press release: ID:nGNX63bPjV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $213.52 mln | $206.99 mln (7 Analysts) |
Q4 Net Income |
| $8.45 mln |
|
Q4 Adjusted EBITDA | Miss | $44.91 mln | $48.51 mln (7 Analysts) |
Q4 Adjusted EBITDA Margin |
| 21.00% |
|
Q4 Basic EPS |
| $0.25 |
|
Q4 Pretax Profit |
| $11.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Badger Infrastructure Solutions Ltd is C$82.00, about 15.9% above its March 5 closing price of C$70.75
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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