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Badger Infrastructure Solutions
(TSX:BDGI)
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Rating:64Neutral
Price Target:
C$95.00
â–¼(-3.43% Downside)
Action:Downgraded
Date:08/01/26
The score is driven primarily by solid underlying financial performance and a strong, optimistic earnings update (robust growth and reaffirmed fleet expansion guidance). Offsetting these positives are weaker cash conversion (low TTM free cash flow vs net income) and increased leverage, along with a softer near‑term technical setup (below 20/50‑day averages) and a relatively high P/E with a low dividend yield.
Positive Factors
Sustained multi‑year revenue growth
Badger has delivered durable top‑line expansion from 2021 to the TTM period, including Q2 revenue +23% YoY and multi‑year scaling. Broad end‑market exposure (utilities, data centers, industrial) supports steady demand for hydrovac services, underpinning long‑term revenue growth beyond cyclical spikes.
Negative Factors
Weak free cash flow conversion
FFO to FCF conversion is strained: FCF around $11.5M (≈6% of net income) implies much of reported earnings are consumed by reinvestment and working capital. That weak conversion increases reliance on external capital for fleet growth and limits durable internally funded returns or shock absorption.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained multi‑year revenue growth
Badger has delivered durable top‑line expansion from 2021 to the TTM period, including Q2 revenue +23% YoY and multi‑year scaling. Broad end‑market exposure (utilities, data centers, industrial) supports steady demand for hydrovac services, underpinning long‑term revenue growth beyond cyclical spikes.
Read all positive factors
Badger Infrastructure Solutions (BDGI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.00B
Dividend Yield0.88%
Average Volume (3M)84.13K
Price to Earnings (P/E)29.3
Beta (1Y)0.91
Revenue Growth16.24%
EPS Growth10.17%
CountryCA
Employees2,807
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.13
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$107.17Price Target Upside8.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.43
Revenue Forecast (FY)C$986.88M
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call signals strong operational and financial momentum: record organic revenue growth (+23% YoY), robust adjusted EBITDA growth (+25% YoY) and improved RPT (+14% YoY) driven by higher utilization, pricing momentum and analytics‑led operational gains. The company is investing to scale (new U.S. plant, service lines, hiring and operational programs) and has a solid balance sheet (C$300M bond, leverage ~1.5x EBITDA). Near‑term headwinds include investment‑related gross margin dilution (~50–70 bps), some early‑quarter delays capturing pricing in select markets, limited quantified backlog disclosure, and remaining uncertainty around U.S. plant capex/timing and tariff exposure. Overall, the positive operational results and balance sheet flexibility outweigh the near‑term investment and execution uncertainties.Positive Updates
Record Top-Line Growth
Second quarter revenue of $257.0 million, up 23% year‑over‑year, driven by broad-based demand across diverse end markets (LNG, semiconductors, hospitals, data centers, utilities, transportation, etc.).
Negative Updates
Near‑Term Margin Impact from Investments
Ongoing investments (hiring, training, operational excellence and new service lines) reduced gross profit margins by approximately 50–70 basis points in Q2 and are an expected near‑term drag.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Top-Line Growth
Second quarter revenue of $257.0 million, up 23% year‑over‑year, driven by broad-based demand across diverse end markets (LNG, semiconductors, hospitals, data centers, utilities, transportation, etc.).
Read all positive updates
Company Guidance
Management's guidance reiterated that Badger expects full‑year 2026 fleet growth at the high end of its 7–10% target, plans to refurbish 30–50 units and retire 130–150 units, and is progressing on a second U.S. manufacturing plant expected online in H2 2027/early 2028; Q2 results supporting that outlook included revenue of $257.0M (+23% YoY), adjusted EBITDA $66.1M (+25%) with a 25.7% margin (+40 bps), adjusted EPS $0.69 (+15%), RPT of $47.7k (+14%), a fleet of 1.82k hydrovacs (+8%), Red Deer delivering 80 units (vs. 51 LY) while the quarter retired 36 and refurbished 12 units, and a near‑term gross profit hit of ~50–70 bps from strategic investments—financial flexibility is reinforced by a C$300M 5.375% five‑year bond, ample undrawn capacity on the five‑year credit facility with compliance leverage at 1.5x (midpoint of 1x–2x target), YTD NCIB purchases of 80.7k shares at a $63.18 average and plans to renew the NCIB, and management reiterates a return to a 25–30% EBITDA margin by 2027.Badger Infrastructure Solutions Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 846.26M | 744.24M | 682.16M | 743.11M | 450.13M |
| Gross Profit | 234.93M | 154.74M | 217.80M | 190.64M | 103.58M | 92.08M |
| EBITDA | 202.13M | 188.21M | 139.27M | 127.23M | 115.19M | 44.14M |
| Net Income | 71.83M | 60.26M | 47.83M | 41.67M | 23.81M | -8.66M |
Balance Sheet | ||||||
| Total Assets | 883.96M | 797.33M | 695.53M | 653.70M | 556.63M | 487.55M |
| Cash, Cash Equivalents and Short-Term Investments | 7.06M | 4.76M | 14.61M | 8.45M | 5.45M | 4.11M |
| Total Debt | 327.82M | 258.07M | 220.15M | 209.40M | 167.62M | 135.26M |
| Total Liabilities | 572.16M | 501.79M | 437.48M | 410.47M | 331.60M | 267.02M |
| Stockholders Equity | 311.79M | 295.54M | 258.05M | 243.23M | 225.03M | 220.53M |
Cash Flow | ||||||
| Free Cash Flow | 11.46M | 33.27M | 34.06M | 11.42M | -4.49M | 6.94M |
| Operating Cash Flow | 187.48M | 153.60M | 127.35M | 121.36M | 59.10M | 49.01M |
| Investing Cash Flow | -186.44M | -127.23M | -94.60M | -108.37M | -58.16M | -42.45M |
| Financing Cash Flow | -812.08K | -36.39M | -27.28M | -9.89M | 225.09K | -15.94M |
Badger Infrastructure Solutions Technical Analysis
Positive
98.37
Price Trends
91.25
Negative
81.17
Positive
76.86
Positive
Market Momentum
-0.70
Positive
47.92
Neutral
48.04
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 98.37 is above the 20-day moving average (MA) of 91.33, above the 50-day MA of 91.25, and above the 200-day MA of 76.86, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$14.06B | 32.92 | 7.89% | 0.09% | 14.82% | -82.14% | |
72 Outperform | C$26.83B | 27.48 | 9.52% | 0.93% | 10.24% | 14.12% | |
64 Neutral | C$3.00B | 29.31 | 24.14% | 0.78% | 16.24% | 10.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$3.64B | 71.67 | 11.25% | 1.19% | 1.05% | -50.79% | |
61 Neutral | C$11.84B | 24.08 | 15.21% | 0.99% | 7.61% | 27.00% | |
60 Neutral | C$3.11B | -49.20 | -6.76% | 1.52% | 21.48% | -323.81% |
* 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.