Bird Construction ((TSE:BDT)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Bird Construction’s recent earnings call presented a mixed outlook, reflecting both achievements and challenges. The company celebrated record backlog levels and strategic acquisitions, which bode well for future growth. However, it also faced decreased earnings and margin pressure, alongside concerns about a client’s creditworthiness. Despite these hurdles, the outlook remains cautiously optimistic, with expectations for improvement as delayed projects commence in 2026 and beyond.
Record Backlog and Strategic Positioning
Bird Construction reported a record combined backlog exceeding $10 billion, providing strong visibility into future work. This backlog is well-diversified, with a high proportion of collaborative contracts that support long-term growth and margin expansion. This strategic positioning is expected to drive the company’s success in the coming years.
Recognition and Achievements
The company was recognized by the Toronto Stock Exchange, ranking 17th on the 2025 TSX 30. This accolade highlights Bird Construction’s successful strategic focus and execution, underscoring its position as a leader in the industry.
Revenue Growth
Bird Construction reported a revenue of $951 million for the third quarter, marking a 5.8% increase from the previous year. Notably, over 60% of this growth was organic, demonstrating the company’s ability to expand its operations and market presence effectively.
Strategic Acquisitions
The acquisition of FRPD has expanded Bird’s capabilities in marine construction, dredging, and land foundation. This strategic move has created new cross-selling opportunities, enhancing the company’s competitive edge and market reach.
Earnings Decrease
Despite the positive revenue growth, Bird Construction experienced a decrease in net income and earnings per share, which fell to $31.7 million and $0.57 per share, respectively, compared to $36.2 million and $0.66 in 2024. This decline highlights the financial challenges the company is currently facing.
Margin Pressure
The company’s gross profit percentage decreased from 11.4% in 2024 to 10.7%, influenced by a higher proportion of lower-margin buildings work and delays in project starts. This margin pressure is a key area of concern for the company moving forward.
Creditworthiness Concerns
Concerns have been raised about the creditworthiness of a specific client, with a potential maximum exposure of approximately $62 million. This issue underscores the importance of managing client relationships and financial risks effectively.
Project Delays
Delays in certain industrial projects and maintenance programs have shifted expected revenue into 2026, impacting near-term financial performance. These delays highlight the challenges in project execution and the need for effective management strategies.
Forward-Looking Guidance
During the earnings call, CEO Teri McKibbon provided forward-looking insights, noting that Bird Construction’s revenue for the quarter reached $951 million, with a 5.8% increase from the previous year. The company reported a record combined backlog exceeding $10 billion, providing significant visibility into future revenue streams for 2026 and 2027. Despite a slight decrease in quarterly margins, Bird remains confident in achieving an 8% adjusted EBITDA margin by 2027, supported by strong demand across key sectors and the federal government’s emphasis on infrastructure investment.
In conclusion, Bird Construction’s earnings call highlighted a blend of achievements and challenges. While the company celebrated record backlog levels and strategic acquisitions, it also faced decreased earnings and margin pressure. The outlook remains cautiously optimistic, with expectations for improvement as delayed projects commence in 2026 and beyond. Investors and stakeholders will be keenly watching how the company navigates these challenges and capitalizes on its strategic opportunities.