Badger Infrastructure Solutions (BDGI) AI Stock Analysis

• Market Cap: C$2.15B
• Dividend Yield: 0.99%
• Average Volume (3M): 84.13K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.08
• Revenue Growth: 13.02%
• EPS Growth: 52.88%
• Country: CA
• Employees: 2,517
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.47
• Shares Outstanding: 33,740,240
• 10 Day Avg. Volume: 113,393
• 30 Day Avg. Volume: 84,125
• PEG Ratio: 0.39
• Price to Book (P/B): 6.10
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 54.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$79.12
• Price Target Upside: 24.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): C$929.27M

• Rating: 61 Neutral
• Price Target: C$70.00 ▲(9.75% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is primarily supported by strong growth and improved profitability, but is held back by 2025 margin compression, elevated leverage and weaker free-cash-flow conversion. Technically, the stock shows soft momentum (below key moving averages with negative MACD), and valuation appears somewhat expensive given the ~29.9 P/E and modest yield.

Positive Factors

Strong revenue growth

Consistent top-line expansion into 2025 (≈29.6% YoY) reflects durable demand for hydrovac and infrastructure services across utilities, construction and municipal markets. Sustained revenue growth supports scale benefits, improves unit economics, and underpins long-term capacity investment and regional market share gains.

Improved returns and profitability

ROE rising to ~20.4% signals the business is converting growth into shareholder returns after earlier losses. That improvement indicates effective capital deployment and operational leverage, supporting a sustainable profitability baseline if management maintains pricing discipline and utilization of its fleet.

Solid operating cash flow generation

Operating cash flow growth to ~$211M demonstrates strong core cash generation even as the company scales. Reliable operating cash underpins reinvestment in hydrovac fleet and working capital, reduces reliance on external financing, and provides a base for funding growth or deleveraging over the medium term.

Negative Factors

2025 margin compression

A material step-down in gross and operating margins in 2025 suggests rising input costs, pricing pressure, or mix shifts that erode profitability. If these structural cost pressures or competitive pricing dynamics persist, margin recovery could be slow, reducing cash flow and limiting reinvestment or return to shareholders.

Elevated leverage

Meaningful leverage (~0.87 debt/equity) that rose with asset expansion reduces financial flexibility. Higher debt amplifies sensitivity to margin and cash-flow swings, increases interest obligations, and constrains the company's ability to fund opportunistic growth or weather cyclical slowdowns without raising additional capital.

Weak free cash flow conversion

FCF falling while operating cash and net income diverge indicates heavier reinvestment or working-capital strain. Low FCF conversion (~22% of net income) makes funding fleet replacement, capex, or debt paydown more variable, raising execution risk and potentially limiting capacity to sustain dividends or buybacks.

Badger Infrastructure Solutions Business Overview & Revenue Model

Company Description

Badger Infrastructure Solutions Ltd. provides non-destructive excavating and related services in Canada and the United States. Its Badger Hydrovac technology uses a pressurized water stream to liquefy the soil cover, which is then removed with a vacuum system and deposited into a storage tank. The company offers daylighting services for visual confirmation of buried lines, directional drilling test holes, sacrificial anode installation, pipeline and utility crossings, and subsurface utility engineering test holes applications; slot trenching services; and service repair pits for gas service tie-in, electric cable fault repair, water main and service repair, and telecom splice applications. It also provides pole and piling holes services for utility, traffic signal, and transmission pole holes, as well as light standard and sign post holes; pole removals; end-bearing, pilot holes for friction, and spread footing piles; and well monitor installations applications. In addition, the company offers debris removal services for frac tank clean-outs, road and box culvert clean-outs, pipe-rammed casing clean-outs, ballast and filter media removal, and inside structures and buildings material removal; pipeline excavation services for pipeline crossing and tie-in, hydro probing, utility conflict, and oil and fuel spill applications; and anode installation, emergency response, and potholing services, as well as designs, engineers, and supplies excavation shoring systems. It serves the aggregate, construction, engineering, industrial, mining, oil and gas, power generation, transportation, and utility industries, as well as railway hydrovac services. As of December 31, 2021, it had a fleet of 1,371 Badger hydrovacs. The company was formerly known as Badger Daylighting Ltd. and changed its name to Badger Infrastructure Solutions Ltd. in May 2021. Badger Infrastructure Solutions Ltd. was founded in 1992 and is headquartered in Calgary, Canada.

How the Company Makes Money

Badger Infrastructure Solutions generates revenue primarily through its utility construction and maintenance services. The company's revenue model is based on project contracts with municipalities, utility companies, and private sector clients, which can range from short-term projects to long-term service agreements. Key revenue streams include fees for excavation and drilling services, installation of utility infrastructure, and ongoing maintenance contracts. Additionally, BDGI may benefit from significant partnerships with utility providers and government contracts, which can provide a stable source of income and contribute to its overall earnings. The company's focus on expanding its service offerings and geographic presence also plays a crucial role in driving revenue growth.

Badger Infrastructure Solutions Financial Statement Overview

Summary

Strong revenue growth and improved profitability with solid ROE (~20.4% in 2025), but the 2025 margin step-down (gross margin ~18.3% vs ~29.3% in 2024), elevated leverage (debt/equity ~0.87), and weaker free-cash-flow conversion (FCF down ~17.5% YoY; ~22% of net income) reduce the quality of the fundamentals.

Income Statement

The company shows a strong multi-year growth profile, with revenue rising sharply into 2025 (up ~29.6% year over year) after solid gains in 2022–2024. Profitability has also improved meaningfully from the 2021 loss to healthy earnings in 2023–2025, with net margin reaching ~7.1% in 2025. The key weakness is margin compression in 2025: gross margin fell to ~18.3% from ~29.3% in 2024, and operating margin declined to ~8.1% from ~11.6%, suggesting higher costs or pricing pressure despite strong top-line momentum.

Balance Sheet

The balance sheet is reasonably supported by equity, and shareholder returns are strong (return on equity ~20.4% in 2025, up from ~18.5% in 2024 and ~8.2% in 2022). However, leverage is meaningful and has remained elevated as the business scaled: debt relative to equity is ~0.87 in 2025 (similar to ~0.85–0.86 in 2023–2024) and total debt has increased notably alongside asset growth. Overall, the capital structure looks manageable, but higher leverage reduces flexibility if margins remain under pressure.

Cash Flow

Cash generation from core operations is solid and improving in absolute dollars (operating cash flow rose to ~$211M in 2025 from ~$127M in 2024). That said, cash conversion is a mixed picture: free cash flow declined in 2025 (down ~17.5% year over year) and free cash flow was only ~22% of net income, indicating heavier reinvestment and/or working-capital drag. While operating cash flow is close to accounting earnings (~0.96x in 2025), the weaker free cash flow profile introduces more variability in funding capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	744.24M	682.16M	575.99M	450.13M
Gross Profit	212.50M	217.80M	190.64M	140.41M	92.08M
EBITDA	218.37M	142.91M	115.09M	83.77M	44.14M
Net Income	82.76M	47.83M	41.67M	18.46M	-8.66M
Balance Sheet
Total Assets	1.09B	695.53M	653.70M	556.63M	487.55M
Cash, Cash Equivalents and Short-Term Investments	6.54M	14.61M	8.45M	5.45M	4.11M
Total Debt	354.39M	220.15M	209.40M	167.62M	135.26M
Total Liabilities	689.08M	437.48M	410.47M	331.60M	267.02M
Stockholders Equity	405.86M	258.05M	243.23M	225.03M	220.53M
Cash Flow
Free Cash Flow	45.68M	34.06M	11.42M	-4.49M	6.94M
Operating Cash Flow	210.93M	127.35M	121.36M	59.10M	49.01M
Investing Cash Flow	-174.72M	-94.60M	-108.37M	-58.16M	-42.45M
Financing Cash Flow	-49.97M	-27.28M	-9.89M	225.09K	-15.94M

Badger Infrastructure Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDGI, the sentiment is Negative. The current price of 63.78 is below the 20-day moving average (MA) of 68.80, below the 50-day MA of 72.33, and below the 200-day MA of 63.91, indicating a bearish trend. The MACD of -2.44 indicates Positive momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BDGI.

Badger Infrastructure Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRL	73 Outperform	$15.21B	5.72	56.38%	0.09%	13.97%	715.65%
ARE	70 Outperform	C$2.72B	130.21	1.66%	2.38%	25.68%	―
WSP	70 Outperform	C$29.91B	33.67	10.86%	0.60%	18.85%	29.60%
STN	66 Neutral	$13.95B	30.82	15.28%	0.67%	11.73%	41.17%
BDT	64 Neutral	C$1.98B	33.32	21.42%	2.88%	6.26%	0.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDGI	61 Neutral	C$2.15B	29.89	24.10%	0.99%	13.02%	52.88%

Badger Infrastructure Solutions Corporate Events

Badger Posts Double-Digit 2025 Growth and Unveils Record 2026 Fleet Expansion

Badger Infrastructure Solutions reported strong 2025 results, with revenue rising 12% to $831.7 million and adjusted EBITDA up 13% to $198.2 million, driven by higher revenue per truck and broad end-market demand. The company also returned $30.7 million to shareholders through dividends and share repurchases, and increased its quarterly dividend by 4% for early 2026.

Management highlighted improving market conditions in the second half of 2025 and robust fleet utilization, prompting increased investment in workforce, branch expansion and equipment. For 2026, Badger plans a record hydrovac fleet build of 270 to 310 units, targeting 7% to 10% net fleet growth, a move that underscores confidence in demand and supports its strategy to drive long-term shareholder value and strengthen its industry position.

The most recent analyst rating on (TSE:BDGI) stock is a Buy with a C$83.00 price target. To see the full list of analyst forecasts on Badger Infrastructure Solutions stock, see the TSE:BDGI Stock Forecast page.

Badger Infrastructure Sets March Date for Q4 2025 Results and Investor Call

Badger Infrastructure Solutions, a leading North American provider of non-destructive excavation services built around its in-house manufactured Badger Hydrovac fleet, focuses on high-risk underground environments for infrastructure and commercial construction customers. The company’s vertically integrated model, including its Red Deer manufacturing facility and specialty units, underpins its capacity to meet demand near dense networks of power, communication, water, gas, and sewer lines.

The company announced it will release its fourth quarter 2025 financial results after markets close on March 5, 2026, followed by a conference call and webcast for investors, analysts, and brokers on March 6, 2026, at 10:00 a.m. EST. The scheduled disclosure and investor call underscore Badger’s ongoing engagement with capital markets and provide a formal forum for stakeholders to assess the company’s operational performance and outlook within the infrastructure services sector.

The most recent analyst rating on (TSE:BDGI) stock is a Buy with a C$85.00 price target. To see the full list of analyst forecasts on Badger Infrastructure Solutions stock, see the TSE:BDGI Stock Forecast page.