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Badger Infrastructure Solutions
(TSX:BDGI)
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Rating:71Outperform
Price Target:
C$105.00
▲(66.43% Upside)
Action:Upgraded
Date:05/02/26
The score is driven primarily by solid and improving operating performance and profitability, supported by a constructive uptrend in the technicals. These positives are tempered by weak free-cash-flow conversion and moderate leverage, while the very high P/E meaningfully drags the valuation component despite a modest dividend and generally positive earnings-call outlook with tariff and capex risks.
Positive Factors
Sustained Profitability & High ROE
Consistent mid-to-high industry margins and a ~25% ROE indicate durable operating profitability and efficient capital deployment. These metrics support the company's ability to fund growth, reinvest in fleet renewal, and sustain shareholder returns through cycles, assuming operations remain stable.
Negative Factors
Weak Free Cash Flow Conversion
Low FCF conversion (~23% of net income) and recent negative FCF growth limit internal funding for expansion, debt reduction, and returns. Persistent weak conversion raises reliance on external financing or higher leverage when capex needs or working-capital swings persist, stressing long-term financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability & High ROE
Consistent mid-to-high industry margins and a ~25% ROE indicate durable operating profitability and efficient capital deployment. These metrics support the company's ability to fund growth, reinvest in fleet renewal, and sustain shareholder returns through cycles, assuming operations remain stable.
Read all positive factors
Badger Infrastructure Solutions (BDGI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.18B
Dividend Yield0.81%
Average Volume (3M)84.13K
Price to Earnings (P/E)33.6
Beta (1Y)0.97
Revenue Growth13.42%
EPS Growth17.76%
CountryCA
Employees2,807
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.01
Shares Outstanding33,659,560
10 Day Avg. Volume113,393
30 Day Avg. Volume84,125
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)8.37
Price to Sales (P/S)2.92
P/FCF Ratio74.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$100.43Price Target Upside59.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.31
Revenue Forecast (FY)C$960.81M
Badger Infrastructure Solutions Business Overview & Revenue Model
Company Description
Badger Infrastructure Solutions Ltd., a company established in Calgary, Canada, in 1992, delivers non-destructive excavating and related support services throughout Canada and the United States. Formerly known as Badger Daylighting Ltd. until its ...
How the Company Makes Money
Badger makes money primarily by providing field services using its fleet of hydrovac and related excavation units, charging customers for the use of equipment and crews on job sites. The core revenue stream is service revenue from hydrovac (and ai...
Badger Infrastructure Solutions Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call communicates strong operational and financial momentum: record revenue, year-over-year adjusted EBITDA growth, improved RPT and fleet expansion, plus discipline around leverage and shareholder returns. Management is investing aggressively in fleet builds, branch expansion, Operational Excellence and two adjacent service lines to capture substantial market demand. Principal risks/near-term negatives include tariff uncertainty (potential $18M–$30M cost exposure), elevated 2026 capital requirements and short-term margin pressure from hiring and rollout investments, and potential manufacturing capacity constraints that may necessitate a U.S. facility. Overall, positive fundamentals and clear mitigation plans outweigh the near-term headwinds.Positive Updates
Record Revenue and Top-Line Growth
Full-year 2025 revenue exceeded $830 million, up 12% year-over-year; fourth quarter revenue grew 14% YoY, reflecting strong demand across core end markets.
Negative Updates
Tariff Risk and Potential Cost Headwind
U.S. heavy-duty truck tariff guidance (25% on non-U.S. content) could increase Badger's 2026 cost exposure by an estimated $18 million to $30 million if fully applicable; management is exploring mitigations (including possible U.S. manufacturing).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Top-Line Growth
Full-year 2025 revenue exceeded $830 million, up 12% year-over-year; fourth quarter revenue grew 14% YoY, reflecting strong demand across core end markets.
Read all positive updates
Company Guidance
For 2026 Badger guided a record manufacturing build of 270–310 new hydrovac units, 30–50 refurbishments and 130–150 retirements, targeting net fleet growth of about 7%–10% (from 1,723 units at year‑end 2025 to roughly 1,844–1,895 units); capital spending was guided at pre‑tariff $170–200M (management also cited an inclusive range of ~$198–230M when accounting for potential tariff exposure of ~$18–30M), which includes $15–25M to launch two new service lines; management reiterated a desire to remain within its 1.0–2.0x total debt-to-compliance EBITDA target (ended 2025 at 1.3x), and noted continued shareholder returns (Board-approved 4% quarterly dividend increase for Q1 2026 after returning $31M in 2025 — $18M dividends and $13M repurchases of 492,800 shares at CAD 37.78).Badger Infrastructure Solutions Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 955.05M | 846.26M | 744.24M | 682.16M | 743.11M | 450.13M |
| Gross Profit | 221.07M | 154.74M | 217.80M | 190.64M | 103.58M | 92.08M |
| EBITDA | 207.78M | 188.21M | 139.27M | 127.23M | 115.19M | 44.14M |
| Net Income | 67.91M | 60.26M | 47.83M | 41.67M | 23.81M | -8.66M |
Balance Sheet | ||||||
| Total Assets | 791.56M | 797.33M | 695.53M | 653.70M | 556.63M | 487.55M |
| Cash, Cash Equivalents and Short-Term Investments | 6.80M | 4.76M | 14.61M | 8.45M | 5.45M | 4.11M |
| Total Debt | 296.46M | 258.07M | 220.15M | 209.40M | 167.62M | 135.26M |
| Total Liabilities | 500.61M | 501.79M | 437.48M | 410.47M | 331.60M | 267.02M |
| Stockholders Equity | 290.94M | 295.54M | 258.05M | 243.23M | 225.03M | 220.53M |
Cash Flow | ||||||
| Free Cash Flow | 37.82M | 33.27M | 34.06M | 11.42M | -4.49M | 6.94M |
| Operating Cash Flow | 185.35M | 153.60M | 127.35M | 121.36M | 59.10M | 49.01M |
| Investing Cash Flow | -156.47M | -127.23M | -94.60M | -108.37M | -58.16M | -42.45M |
| Financing Cash Flow | -23.15M | -36.39M | -27.28M | -9.89M | 225.09K | -15.94M |
Badger Infrastructure Solutions Technical Analysis
Positive
63.09
Price Trends
89.11
Positive
77.46
Positive
74.81
Positive
Market Momentum
1.39
Positive
59.25
Neutral
62.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDGI, the sentiment is Positive. The current price of 63.09 is below the 20-day moving average (MA) of 92.20, below the 50-day MA of 89.11, and below the 200-day MA of 74.81, indicating a bullish trend. The MACD of 1.39 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 62.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDGI.
Badger Infrastructure Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$3.18B | 33.57 | 23.71% | 0.99% | 13.42% | 17.76% | |
70 Outperform | C$14.30B | 5.77 | 48.91% | 0.09% | 16.01% | 776.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$4.24B | 85.06 | 11.25% | 2.88% | 1.05% | -50.79% | |
61 Neutral | C$11.11B | 22.65 | 15.21% | 0.67% | 7.61% | 27.00% | |
61 Neutral | C$24.45B | 24.67 | 10.39% | 0.60% | 8.70% | 33.66% | |
58 Neutral | C$3.69B | 98.05 | 3.71% | 2.38% | 26.30% | ― |
* Industrials Sector Average
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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.