Badger Infrastructure Solutions (TSE:BDGI)
TSX:BDGI
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Badger Infrastructure Solutions
(TSX:BDGI)
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Rating:65Neutral
Price Target:
C$70.00
▲(10.41% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid fundamental performance (strong growth and ROE) and a positive earnings-call outlook (fleet expansion, disciplined leverage, shareholder returns), partially offset by margin compression and mixed cash conversion. Technicals are currently bearish (price below key moving averages and negative MACD), and valuation looks somewhat demanding at ~30x earnings with a modest yield.
Positive Factors
Sustained revenue growth and higher revenue-per-truck
Consistent top-line growth and rising revenue per truck indicate durable demand for hydrovac services and improving unit economics. Higher RPT and revenue momentum support capacity utilization, steady service cashflows, and scalable margins over a 2–6 month horizon as fleet deployment expands.
Negative Factors
Material margin compression in 2025
Sharp year-over-year margin declines suggest structural cost pressures or pricing erosion that can persist as the company invests in growth. Sustained lower margins reduce internal funding capacity for capex and returns, increasing reliance on leverage or equity if margins don’t recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth and higher revenue-per-truck
Consistent top-line growth and rising revenue per truck indicate durable demand for hydrovac services and improving unit economics. Higher RPT and revenue momentum support capacity utilization, steady service cashflows, and scalable margins over a 2–6 month horizon as fleet deployment expands.
Read all positive factors
Badger Infrastructure Solutions (BDGI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.14B
Dividend Yield0.99%
Average Volume (3M)84.13K
Price to Earnings (P/E)41.0
Beta (1Y)0.99
Revenue Growth13.02%
EPS Growth52.88%
CountryCA
Employees2,517
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.47
Shares Outstanding33,740,240
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$79.20Price Target Upside24.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.29
Revenue Forecast (FY)C$928.50M
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 v...
How the Company Makes Money
BDGI generates revenue by providing hydrovac and related field services to customers that need safe excavation and exposure of underground utilities and infrastructure. The primary revenue stream is service revenue billed for hydrovac work perform...
Badger Infrastructure Solutions Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 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
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 846.26M | 744.24M | 682.16M | 575.99M | 450.13M |
| Gross Profit | 154.74M | 217.80M | 190.64M | 140.41M | 92.08M |
| EBITDA | 159.01M | 142.91M | 115.09M | 83.77M | 44.14M |
| Net Income | 60.26M | 47.83M | 41.67M | 18.46M | -8.66M |
Balance Sheet | |||||
| Total Assets | 797.33M | 695.53M | 653.70M | 556.63M | 487.55M |
| Cash, Cash Equivalents and Short-Term Investments | 4.76M | 14.61M | 8.45M | 5.45M | 4.11M |
| Total Debt | 258.07M | 220.15M | 209.40M | 167.62M | 135.26M |
| Total Liabilities | 501.79M | 437.48M | 410.47M | 331.60M | 267.02M |
| Stockholders Equity | 295.54M | 258.05M | 243.23M | 225.03M | 220.53M |
Cash Flow | |||||
| Free Cash Flow | 33.27M | 34.06M | 11.42M | -4.49M | 6.94M |
| Operating Cash Flow | 153.60M | 127.35M | 121.36M | 59.10M | 49.01M |
| Investing Cash Flow | -127.23M | -94.60M | -108.37M | -58.16M | -42.45M |
| Financing Cash Flow | -36.39M | -27.28M | -9.89M | 225.09K | -15.94M |
Badger Infrastructure Solutions Technical Analysis
Positive
63.40
Price Trends
67.07
Negative
71.06
Negative
64.98
Negative
Market Momentum
-1.47
Negative
48.16
Neutral
67.51
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 63.4 is above the 20-day moving average (MA) of 62.51, below the 50-day MA of 67.07, and below the 200-day MA of 64.98, indicating a neutral trend. The MACD of -1.47 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 67.51 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$14.95B | 5.72 | 56.38% | 0.09% | 13.97% | 715.65% | |
70 Outperform | C$3.15B | 130.21 | 1.66% | 2.38% | 25.68% | ― | |
70 Outperform | C$29.51B | 33.67 | 10.86% | 0.60% | 18.85% | 29.60% | |
69 Neutral | C$13.65B | 30.82 | 15.28% | 0.67% | 11.73% | 41.17% | |
65 Neutral | C$2.14B | 41.05 | 25.34% | 0.99% | 13.02% | 52.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$2.62B | 33.32 | 21.42% | 2.88% | 6.26% | 0.52% |
* Industrials Sector Average
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Badger Infrastructure Solutions
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Badger Infrastructure Solutions Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Badger Posts Double-Digit 2025 Growth and Unveils Record 2026 Fleet Expansion
Positive
Mar 6, 2026
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 m...
Financial Disclosures
Badger Infrastructure Sets March Date for Q4 2025 Results and Investor Call
Neutral
Feb 9, 2026
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...
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.