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Badger Infrastructure Solutions (TSE:BDGI)
TSX:BDGI
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Badger Infrastructure Solutions
(TSX:BDGI)
Rating:74Outperform
Price Target:
C$51.00
▲(12.21%Upside)
Positive Factors
Dividends
The company announced a 4% increase in its quarterly dividend to $0.1875 per share, reflecting a forward yield of approximately 2%.
Financial Performance
Badger delivered 16% year-over-year EBITDA growth, showcasing improved resilience and operating leverage.
Organic Growth
Badger is seen as one of the most compelling organic growth stories in the industrials space, benefiting from the broadening adoption of non-destructive hydrovac excavation.
Negative Factors
Macro Uncertainty
Given some near-term macro uncertainty, a more cautious approach to the shares is being taken.
Scaling Challenges
It could take several years for the company to scale to target levels, while risk from macro factors remains.
Badger Infrastructure Solutions (BDGI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$1.53B
Dividend Yield1.57%
Average Volume (3M)70.44K
Price to Earnings (P/E)23.0
Beta (1Y)0.83
Revenue Growth10.97%
EPS Growth24.27%
CountryCA
Employees2,517
SectorIndustrials
Sector Strength91
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.14
Shares Outstanding33,752,240
10 Day Avg. Volume56,541
30 Day Avg. Volume70,436
Financial Highlights & Ratios
PEG Ratio6.14
Price to Book (P/B)3.92
Price to Sales (P/S)0.00
P/FCF Ratio20.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$49.29Price Target Upside8.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Badger Infrastructure Solutions Business Overview & Revenue Model
Company DescriptionBadger Infrastructure Solutions (BDGI) is a leading provider in the non-destructive excavation industry, primarily offering hydrovac services to safely and efficiently expose underground infrastructure. Operating across several sectors including utility, oil and gas, and construction, BDGI utilizes its fleet of specialized vacuum trucks to deliver essential excavation services that minimize damage to existing utilities and reduce environmental impact.
How the Company Makes MoneyBDGI generates revenue primarily through its hydrovac excavation services, charging clients based on the scope and complexity of each project. Key revenue streams include service contracts with utility companies, municipalities, and industrial clients requiring safe excavation around underground infrastructure. The company may also engage in partnerships or collaborations with firms in related sectors to expand its service offerings and market reach, contributing to its earnings.
Badger Infrastructure Solutions Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 23.17%|
Next Earnings Date:Jul 31, 2025
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.Q1-2025 Updates
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.
Increase in Adjusted EBITDA and Margins
Adjusted EBITDA grew by 16% year-over-year, with margins increasing by 150 basis points to 19.6%.
Growth in Fleet
Badger's fleet grew by 9% year-over-year with 1,661 hydrovacs, and a planned growth of 4% to 7% for the year.
Strong Financial Health
Adjusted earnings per share grew 36% to $0.19 per share, and compliance leverage ended at 1.4x debt to EBITDA.
Continued Demand and Market Share
Badger continues to capture market share with increasing demand across infrastructure and construction markets.
Negative Updates
Adverse Weather Impact
Historically adverse weather in the southern United States during January and February affected operations.
Manufacturing Slight Decrease
Manufactured 50 hydrovacs this quarter versus 52 in Q1 of 2024, a minor decrease.
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
Badger Infrastructure Solutions exhibits solid financial health with stable profitability and efficient cash management. The balance sheet shows reasonable leverage, but there is room for improvement in equity levels to reduce financial risk. Overall, the company maintains a robust financial position with opportunities for growth in revenue and profitability.Income Statement
The company shows a healthy gross profit margin of approximately 29.4% TTM, indicating efficient cost management. Net profit margin is modest at around 6.5% TTM, reflecting stable profitability. Revenue growth is impressive over the years; however, recent growth in TTM is less pronounced. EBITDA margin of 22.8% TTM suggests strong operational efficiency.70
Positive
Balance Sheet
Debt-to-equity ratio is moderate at 0.95, indicating manageable leverage. Return on Equity (ROE) at 19.4% TTM reflects good profitability relative to equity. Equity ratio of 38.2% shows a stable capital structure, yet slightly below optimal for minimizing risk.65
Positive
Cash Flow
The company maintains strong operating cash flows, with a high operating cash flow to net income ratio of 2.96 TTM, indicating excellent cash generation. Free cash flow has grown steadily, with a positive growth rate from previous years, demonstrating effective cash management.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 756.02M | 744.95M | 906.01M | 570.81M | 568.75M | 558.63M | Gross Profit |
| 222.03M | 218.01M | 253.19M | 139.15M | 119.01M | 164.34M | EBIT |
| 95.15M | 86.06M | 82.50M | 34.87M | -2.31M | 41.16M | EBITDA |
| 172.10M | 160.75M | 152.86M | 94.45M | 69.29M | 114.27M | Net Income Common Stockholders |
| 49.35M | 47.87M | 55.35M | 18.29M | -11.25M | 19.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.12M | 14.62M | 11.28M | 5.40M | 5.25M | 17.30M | Total Assets |
| 664.84M | 669.42M | 868.21M | 533.00M | 606.41M | 622.88M | Total Debt |
| 242.07M | 220.28M | 210.92M | 165.99M | 172.47M | 146.94M | Net Debt |
| 240.95M | 205.66M | 202.41M | 160.59M | 167.23M | 129.64M | Total Liabilities |
| 410.50M | 411.22M | 545.16M | 310.15M | 325.20M | 294.37M | Stockholders Equity |
| 254.35M | 258.20M | 323.05M | 222.85M | 281.20M | 328.52M |
| Cash Flow | Free Cash Flow | ||||
| 48.65M | 43.82M | 10.01M | 1.57M | 11.77M | 76.66M | Operating Cash Flow |
| 146.28M | 146.28M | 161.19M | 68.33M | 67.37M | 139.25M | Investing Cash Flow |
| -94.61M | -99.37M | -143.94M | -59.95M | -54.13M | -62.96M | Financing Cash Flow |
| -59.35M | -41.16M | -13.14M | -7.18M | -25.20M | -67.28M |
Badger Infrastructure Solutions Technical Analysis
Positive
45.45
Price Trends
40.73
Positive
40.01
Positive
38.70
Positive
Market Momentum
1.21
Positive
64.30
Neutral
60.69
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 45.45 is above the 20-day moving average (MA) of 44.83, above the 50-day MA of 40.73, and above the 200-day MA of 38.70, indicating a bullish trend. The MACD of 1.21 indicates Positive momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 60.69 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$1.52B | 15.15 | 26.31% | 2.46% | 16.14% | 27.71% | |
79 Outperform | C$1.22B | 11.35 | 10.81% | 5.74% | 3.28% | -14.21% | |
74 Outperform | $1.53B | 22.99 | 19.89% | 1.57% | 10.97% | 24.27% | |
73 Outperform | C$488.55M | 11.92 | 8.09% | 6.20% | -2.65% | -47.65% | |
73 Outperform | C$1.68B | 15.12 | 15.75% | 5.51% | 11.00% | 13.78% | |
66 Neutral | $4.51B | 12.29 | 5.40% | 248.53% | 4.14% | -12.41% | |
55 Neutral | C$1.21B | ― | -9.26% | 3.94% | 1.70% | -154.73% |
* Industrials Sector Average
Performance Comparison
TSE:BDGI
Badger Infrastructure Solutions
45.45
4.23
10.27%
TSE:WJX
Wajax Corporation
22.58
-1.97
-8.02%
TSE:WTE
Westshore Terminals
27.21
5.57
25.74%
TSE:BDT
Bird Construction
27.47
4.61
20.17%
TSE:MTL
Mullen Group
13.93
1.44
11.53%
TSE:ARE
Aecon Group Inc.
19.29
3.24
20.19%
Badger Infrastructure Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
Badger Infrastructure Solutions Secures Shareholder Approval at 2025 Annual Meeting
Positive
Apr 30, 2025
Badger Infrastructure Solutions announced that all motions at its 2025 annual shareholders’ meeting were approved, with a significant 82.36% of common shares represented. All ten director nominees were elected, and Deloitte LLP was appointed as the company’s auditor. The approval of executive compensation reflects strong shareholder support, indicating confidence in the company’s strategic direction.
Business Operations and StrategyFinancial Disclosures
Badger Infrastructure Solutions Reports Strong Q1 2025 Growth
Positive
Apr 29, 2025
Badger Infrastructure Solutions Ltd. reported a strong start to 2025 with a 7% increase in revenue to $172.6 million and a 16% rise in Adjusted EBITDA compared to the previous year. Despite challenging weather conditions in the southern U.S., the company demonstrated operational resilience and is preparing for further growth in its hydrovac services, planning to expand its fleet by 4% to 7% to meet increasing demand.
Shareholder MeetingsFinancial Disclosures
Badger Infrastructure Solutions Announces Q1 2025 Results Release and Annual Meeting Details
Neutral
Apr 9, 2025
Badger Infrastructure Solutions Ltd. has announced the release date for its Q1 2025 financial results, which will be available on April 29, 2025, followed by a conference call on April 30, 2025. Additionally, the company has filed its Management Information Circular for the 2025 Annual Meeting of Shareholders, scheduled for April 30, 2025, where shareholders can participate virtually. These announcements are significant for stakeholders as they provide insights into the company’s financial performance and strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.