Canada's Badger Infrastructure Q1 revenue beats on strong end-market demand, higher fleet utilization

Overview

• Canada non-destructive excavation firm's Q1 revenue rose 18%, beating analyst expectations

• Adjusted EBITDA for Q1 climbed 13%, beating analyst expectations

• Company repurchased 47,373 shares under NCIB during the quarter

Outlook

• Badger expects strong end-market growth and customer demand to continue in 2026

• Company raises planned 2026 fleet growth to upper end of 7% to 10% range

• Badger expects 2026 capital spend of $198 mln to $230 mln including tariffs

Result Drivers

• STRONG END-MARKET DEMAND - Co said Q1 growth reflected strength in core end markets and customer demand

• HIGHER FLEET UTILIZATION - Increased utilization and year-over-year fleet growth supported revenue gains

• ONGOING INVESTMENTS - Co said investments in team and branch network positioned it to benefit from demand

Company press release: ID:nGNX9f8VTq

Key Details

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$78.50, about 22.1% above its April 29 closing price of C$64.28

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