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Black Diamond Group (TSE:BDI)
TSX:BDI
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Black Diamond (BDI) AI Stock Analysis

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TSE:BDI

Black Diamond

(TSX:BDI)

Rating:78Outperform
Price Target:
C$13.50
▲(16.38% Upside)
Black Diamond's overall stock score reflects its strong financial performance, positive technical indicators, and successful corporate events. The company's robust earnings call and strategic initiatives further bolster its growth outlook. However, managing increased leverage and maintaining revenue growth will be crucial for sustaining long-term stability.
Positive Factors
Equity Financing
BDI recently completed a ~$42 million equity financing, providing the company with additional dry powder to continue on its organic growth path, and pursue additional M&A.
Modular Solutions Growth
BDI continues to generate solid growth in its Modular Solutions business, while the backdrop for Workforce Housing is improving dramatically.
Valuation Potential
BDI trades at ~6x our 2026 EBITDA estimate, which sits toward the bottom end of its peers, providing potential for valuation improvement.
Negative Factors
Valuation Compared to Peers
BDI trades at ~6x our 2026 EBITDA estimate, which sits toward the bottom end of its peers (which trade in the 7-10x range).

Black Diamond (BDI) vs. iShares MSCI Canada ETF (EWC)

Black Diamond Business Overview & Revenue Model

Company DescriptionBlack Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, custom manufactured modular facilities, and blast resistant structures. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary products and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. company also provides specialized field rentals to oil and gas industries. Black Diamond Group Limited markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. The company was founded in 2003 and is headquartered in Calgary, Canada.
How the Company Makes MoneyBlack Diamond, Inc. generates revenue primarily through the sale of its outdoor equipment and apparel. The company's revenue model is structured around direct sales through its online platform and retail stores, as well as wholesale distribution to specialty outdoor retailers and major sporting goods chains. Key revenue streams include the sale of climbing gear, skiing equipment, and technical apparel. Black Diamond also benefits from strategic partnerships and sponsorships with professional athletes who endorse and use their products, enhancing brand visibility and reputation. Seasonal demand and innovation in product development significantly contribute to its earnings, with a focus on maintaining quality and meeting the specific needs of outdoor sports enthusiasts.

Black Diamond Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: -4.05%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented notable revenue and profit growth, strong performance in key segments, and successful financing efforts, indicating a positive outlook. However, challenges such as the decline in WFS sales revenue and asset write-offs due to wildfires were noted. Overall, the positive highlights significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Increased Revenue and Profit
Consolidated revenue reached $105.4 million, a 10% increase from the comparative quarter. Profit for the second quarter increased 23% to $9.2 million, with basic EPS improving by 25% to $0.15 per share.
Strong Performance in Modular Space Solutions
Modular Space Solutions business unit delivered a record rental revenue of $26.4 million, up 19% from the comparative quarter. Contracted future rental revenue increased by 12%, indicating strength in the segment.
Successful Bought Deal Financing
Closed a bought deal financing raising net proceeds of $40.7 million, which was heavily oversubscribed, providing financial flexibility for future growth.
LodgeLink and Workforce Solutions Growth
LodgeLink room night bookings reached over 135,000, driving gross bookings to $25.7 million, up 5% from the comparative quarter. Workforce Solutions segment revenue increased by 6% to $46.7 million.
Improved Fleet Utilization
Consolidated fleet utilization was 76.7%, up 120 basis points from the comparative quarter, with MSS utilization at 81.2%.
Negative Updates
Decline in WFS Sales Revenue
WFS sales revenue of $7 million was down 10% from the comparative quarter due to a shift from used fleet sales.
Asset Write-off Due to Wildfires
A small number of assets were destroyed by wildfires in Northern BC, resulting in a write-off, though insurance proceeds partially offset the loss.
ERP Project Costs
ERP upgrade has cost $4.6 million so far, with $7.3 million remaining from the initial project budget, prior to scheduled go-live in the first half of 2026.
Company Guidance
During Black Diamond's Second Quarter 2025 Results Conference Call, the company reported several positive financial metrics and strategic insights. Consolidated revenue for the quarter was $105.4 million, marking a 10% increase from the same period last year, while adjusted EBITDA rose by 5% to $29.2 million. Rental revenue, considered the core of their business, reached $38.6 million, a 9% increase, driven by capital investments in fleet assets and a favorable operating environment. Capital expenditures for the quarter were $32.5 million, and future contracted rental revenue increased by 9% to over $152 million. Profit for the quarter surged by 23% to $9.2 million, enhancing EPS by 25% to $0.15 per share. The Modular Space Solutions unit achieved a quarterly rental revenue record of $26.4 million, up 19%, while the Workforce Solutions segment saw a 6% revenue increase to $46.7 million. Additionally, the company completed a successful bought deal financing in July, raising $40.7 million, positioning them well for upcoming M&A opportunities and expected growth in workforce solutions. The company maintains a constructive outlook for continued growth and strategic progression into 2026.

Black Diamond Financial Statement Overview

Summary
Black Diamond shows robust financial performance with strong revenue growth and efficient operations. The balance sheet reflects a solid equity position, albeit with increased leverage. Cash flow management is commendable, ensuring liquidity amidst growth investments.
Income Statement
75
Positive
The company demonstrates a solid revenue growth trajectory with a notable increase in revenue from $324.5M in 2022 to $431.6M TTM, representing a strong growth rate. Gross profit margin remains healthy at approximately 40.6% TTM, indicating efficient cost management. However, there is a slight decline in gross profit compared to the previous year, potentially impacting future profitability. Net profit margin is stable at around 7%, supported by consistent EBIT and EBITDA margins, illustrating sound operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.8, suggesting manageable leverage. Stockholders' equity grew steadily, enhancing the equity ratio to about 42.9% TTM, indicating a strong capital structure. However, total debt has increased to $257.6M, which could pose risks if cash flows fluctuate. The company's assets also increased, supporting its growth strategy.
Cash Flow
80
Positive
The company shows strong cash flow management with significant operating cash flow of $116.9M TTM, covering its capital expenditures. Free cash flow growth is remarkable, moving from $2.1M in 2024 to $8.5M TTM, indicating improving liquidity. The operating cash flow to net income ratio is robust, suggesting effective conversion of earnings into cash. However, the high capital expenditure might pressure future free cash flow unless revenue growth continues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue403.00M393.50M324.54M339.55M179.86M
Gross Profit183.77M174.45M138.14M111.63M72.21M
EBITDA102.53M98.81M84.27M61.23M35.83M
Net Income25.65M30.36M26.38M20.36M-2.39M
Balance Sheet
Total Assets748.55M647.64M649.44M530.34M511.89M
Cash, Cash Equivalents and Short-Term Investments13.32M6.51M8.31M4.56M3.68M
Total Debt262.66M211.74M249.06M179.68M198.56M
Total Liabilities421.50M353.68M376.90M283.54M285.21M
Stockholders Equity323.19M290.08M268.53M234.46M212.71M
Cash Flow
Free Cash Flow2.14M63.91M16.55M33.26M14.06M
Operating Cash Flow111.36M133.00M70.79M71.14M50.03M
Investing Cash Flow-112.25M-68.59M-101.94M-33.63M-109.85M
Financing Cash Flow7.53M-65.88M34.51M-36.56M59.04M

Black Diamond Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.60
Price Trends
50DMA
10.78
Positive
100DMA
9.78
Positive
200DMA
9.31
Positive
Market Momentum
MACD
0.22
Positive
RSI
53.57
Neutral
STOCH
38.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDI, the sentiment is Neutral. The current price of 11.6 is below the 20-day moving average (MA) of 11.89, above the 50-day MA of 10.78, and above the 200-day MA of 9.31, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BDI.

Black Diamond Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$775.10M22.3910.23%1.16%13.22%3.33%
77
Outperform
C$534.69M20.599.64%7.39%7.68%-20.47%
73
Outperform
C$495.69M13.846.93%6.11%2.19%-48.80%
72
Outperform
C$617.47M17.9914.80%3.52%-5.62%88.69%
58
Neutral
HK$13.99B4.55-2.78%5.71%2.20%-57.37%
54
Neutral
C$526.13M2.81%0.39%-16.92%77.04%
45
Neutral
C$771.18M26.96-2.30%1.46%-5.64%-121.91%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BDI
Black Diamond
11.60
1.85
18.97%
TSE:AFN
Ag Growth International
41.47
-12.82
-23.61%
TSE:CHR
Chorus Aviation
20.35
2.63
14.84%
TSE:DIV
Diversified Royalty Corp
3.44
0.85
32.82%
TSE:DXT
Dexterra Group
10.05
4.03
66.94%
TSE:WJX
Wajax Corporation
23.19
0.25
1.09%

Black Diamond Corporate Events

Private Placements and FinancingDividendsBusiness Operations and StrategyFinancial Disclosures
Black Diamond Group Reports Strong Q2 2025 Results and Declares Dividend
Positive
Aug 7, 2025

Black Diamond Group Limited reported a strong second quarter in 2025, with a 9% increase in consolidated rental revenue and a 23% rise in profit compared to the previous year. The company declared a dividend and completed a public offering, enhancing its financial position and liquidity. The outlook remains stable with anticipated growth opportunities, driven by increased rental rates and asset investments, particularly in the Modular Space Solutions segment.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Closes $42.38 Million Public Offering to Bolster Growth
Positive
Jul 16, 2025

Black Diamond Group Limited has successfully closed a $42.38 million bought deal public offering of common shares, led by a syndicate of underwriters. The proceeds will be used to reduce the company’s indebtedness and potentially fund capital expenditures, strategic acquisitions, and organic growth initiatives. This move is expected to strengthen Black Diamond’s financial position and support its expansion in the modular space rentals and workforce accommodation sectors.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Files Final Prospectus for $36.85 Million Public Offering
Positive
Jul 10, 2025

Black Diamond Group Limited has filed a final short form prospectus for a $36.85 million public offering of common shares in Canada, excluding Québec. This move, led by Raymond James Ltd., is part of the company’s strategy to strengthen its financial position and expand its market presence. The offering is not registered under U.S. securities laws and is not available for sale in the United States. This development is expected to enhance Black Diamond’s operational capabilities and industry positioning, potentially benefiting stakeholders by increasing the company’s capacity to serve its diverse customer base across various sectors.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Financial Disclosures
Black Diamond Group Sets Date for Q2 2025 Earnings Release and Call
Neutral
Jul 8, 2025

Black Diamond Group Limited announced the schedule for its second quarter 2025 financial results release and conference call. The company will release its earnings after markets close on August 7, 2025, followed by a conference call on August 8, 2025, where CEO Trevor Haynes and CFO Toby LaBrie will discuss the results. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Announces $36.85 Million Public Offering to Boost Growth
Positive
Jun 25, 2025

Black Diamond Group Limited has announced a $36.85 million bought deal public offering of common shares, with Raymond James Ltd. as the lead underwriter. The proceeds from this offering will be used for capital expenditures, strategic acquisitions, organic growth initiatives, debt reduction, and general corporate purposes. The offering is expected to close by July 16, 2025, subject to necessary approvals. This move is poised to strengthen Black Diamond’s financial position and support its growth strategies across its operating regions.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Business Operations and Strategy
Black Diamond Releases 2025 Corporate Responsibility Report Highlighting ESG Commitment
Positive
May 30, 2025

Black Diamond Group Limited has released its 2025 Corporate Responsibility Report, emphasizing its commitment to environmental, social, and governance matters. The report highlights the company’s progress in emissions reduction, safety, and community investment, showcasing its values-based culture and commitment to continuous improvement. Black Diamond’s strategic focus on corporate responsibility is designed to drive growth, profitability, and value for stakeholders, aligning with industry standards and enhancing its market position.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Black Diamond Group Secures Strong Shareholder Support at 2025 Annual Meeting
Positive
May 13, 2025

Black Diamond Group Limited announced the successful approval of all resolutions at its 2025 Annual Meeting, with a significant shareholder turnout of approximately 65.64%. The meeting saw the election of directors and the appointment of Ernst & Young LLP as auditors, reflecting strong shareholder support and confidence in the company’s governance. This development is likely to bolster Black Diamond’s operational stability and enhance its positioning in the specialty rentals and industrial services industry.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

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.Date of analysis: Aug 12, 2025