Badger Infrastructure Solutions (TSE:BDGI)
TSX:BDGI
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Badger Infrastructure Solutions
(TSX:BDGI)
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Rating:61Neutral
Price Target:
C$70.00
▲(9.12% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Badger Infrastructure Solutions (BDGI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$2.16B
Dividend Yield0.99%
Average Volume (3M)84.13K
Price to Earnings (P/E)29.9
Beta (1Y)1.05
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 Ratio0.39
Price to Book (P/B)6.10
Price to Sales (P/S)2.13
P/FCF Ratio54.15
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit8.44
Enterprise Value/Ebitda10.43
Forecast
1Y Price Target
$78.88Price Target Upside22.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.25
Revenue Forecast (FY)$929.27M
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
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, wh...
Badger Infrastructure Solutions Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance for Badger Infrastructure Solutions, with significant growth in revenue, adjusted EBITDA, and fleet size, along with a strong financial position. While adverse weather posed challenges, the company successfully navigated these obstacles, maintaining its market share and positioning itself well for future growth. Overall, the positive aspects significantly outweigh the minor challenges faced.Positive Updates
Record Quarter with Revenue Growth
Top line revenue of $172.6 million grew by 7% over the prior year, driven by the focus on commercial strategy and growth in fleet.
Negative Updates
Adverse Weather Impact
Historically adverse weather in the southern United States during January and February affected operations.
Read all updates
Q1-2025 Updates
Positive
Negative
Record Quarter with Revenue Growth
Top line revenue of $172.6 million grew by 7% over the prior year, driven by the focus on commercial strategy and growth in fleet.
Read all positive updates
Company Guidance
During the first quarter 2025 earnings call for Badger Infrastructure Solutions Limited, the company provided robust guidance reflecting strong financial performance and strategic focus. Revenue for Q1 2025 increased by 7% year-over-year to $172.6 million, driven by growth in end markets and fleet expansion. Adjusted EBITDA rose by 16% with a margin improvement to 19.6%, up from 18.1% in 2024. Gross profit margins also increased to 25.5% from 24.8% last year. The company reported a revenue per truck per month of $35,034, consistent with the prior year, and expanded its hydrovac fleet by 9% year-over-year, ending the quarter with 1,661 units. Badger plans to manufacture 180 to 210 hydrovacs in 2025, retire 90 to 130 units, and refurbish 50 to 60 units, aiming for a fleet growth of 4% to 7% this year. The balance sheet remains strong, with a leverage ratio of 1.4x debt to EBITDA, down from 1.5x last year. Badger continues to focus on capturing market share and remains prepared for potential impacts from tariffs, with strong demand anticipated across North America.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 | 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
Negative
64.15
Price Trends
71.60
Negative
72.76
Negative
64.17
Negative
Market Momentum
-2.64
Positive
40.57
Neutral
25.36
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 64.15 is below the 20-day moving average (MA) of 67.34, below the 50-day MA of 71.60, and below the 200-day MA of 64.17, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.36 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $15.15B | 5.72 | 56.38% | 0.09% | 13.97% | 715.65% | |
70 Outperform | C$2.72B | 130.21 | 1.66% | 2.38% | 25.68% | ― | |
70 Outperform | C$29.68B | 33.67 | 10.86% | 0.60% | 18.85% | 29.60% | |
66 Neutral | $13.93B | 30.82 | 15.28% | 0.67% | 11.73% | 41.17% | |
64 Neutral | C$1.97B | 33.32 | 21.42% | 2.88% | 6.26% | 0.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $2.16B | 29.89 | 24.10% | 0.99% | 13.02% | 52.88% |
* Industrials Sector Average
TSE:BDGI
Badger Infrastructure Solutions
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24.89
63.41%
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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.