Black Diamond Group (TSE:BDI)
TSX:BDI
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Black Diamond
(TSX:BDI)
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Rating:65Neutral
Price Target:
C$16.50
â–²(2.55% Upside)
Action:ReiteratedDate:03/01/26
The score is primarily driven by solid operating performance (revenue growth and improved profitability) but held back by higher leverage and uneven free-cash-flow conversion. Technicals are constructive and support the mid-60s score, while valuation is the main drag due to the high P/E and low dividend yield. Earnings-call commentary adds support via confident guidance and execution, tempered by near-term utilization/backlog softness and acquisition-driven debt.
Positive Factors
Multi‑year revenue CAGR
Sustained high CAGRs show the business has scalable demand and repeatable growth across segments. Multi-year compounding revenue and EBITDA expansion support durable operating leverage, funding reinvestment and making longer-term margin and cash‑flow targets more attainable.
Negative Factors
Rising leverage from acquisitions
Higher leverage from recent M&A reduces financial flexibility and raises refinancing and interest‑rate risk if demand softens. Even with leverage near targets, elevated debt constrains free cash deployment for deleveraging or shareholder returns during cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi‑year revenue CAGR
Sustained high CAGRs show the business has scalable demand and repeatable growth across segments. Multi-year compounding revenue and EBITDA expansion support durable operating leverage, funding reinvestment and making longer-term margin and cash‑flow targets more attainable.
Read all positive factors
Black Diamond (BDI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.09B
Dividend Yield0.93%
Average Volume (3M)150.52K
Price to Earnings (P/E)26.8
Beta (1Y)0.99
Revenue Growth19.27%
EPS Growth47.30%
CountryCA
Employees507
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding67,803,000
10 Day Avg. Volume106,824
30 Day Avg. Volume150,516
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)2.35
Price to Sales (P/S)2.04
P/FCF Ratio57.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.00Price Target Upside30.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.81
Revenue Forecast (FY)C$574.38M
Black Diamond Business Overview & Revenue Model
Company Description
Black 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 ...
How the Company Makes Money
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Black Diamond Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong full-year top-line growth, record rental revenues in MSS, robust multi-year CAGRs, successful strategic M&A (Royal Camp), improved profitability, and healthy free cash flow and leverage metrics. Near-term operational headwinds include lower Q4 utilization across segments, variability in sales/project revenue, a modest decline in future contracted rental revenue, and higher net debt due to the Royal acquisition. Management emphasized disciplined capital allocation, active bid pipelines, and expectation of improved demand and step-change utilization later in 2026 into 2027, suggesting confidence in recovery and continued compounding growth.Positive Updates
Strong Annual Revenue Growth
Consolidated revenue for FY2025 was CAD 456.9M, up 13% year-over-year, supported by recurring rental revenue and growth across business units.
Negative Updates
Q4 Utilization Declines
Consolidated utilization fell to 72.2% in Q4 (down 460 bps YoY). MSS utilization was 77.6% (down 480 bps YoY) and WFS utilization was 56.8% (down 630 bps YoY), indicating near-term spare capacity.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Annual Revenue Growth
Consolidated revenue for FY2025 was CAD 456.9M, up 13% year-over-year, supported by recurring rental revenue and growth across business units.
Read all positive updates
Company Guidance
Black Diamond guided to steady near‑term operating conditions with a likely positive inflection in late 2026/early 2027: MSS is expected to deliver moderate rental revenue growth from organic fleet additions and modest average rent increases in line with inflation (after FY2025 MSS rental revenue of $107M and avg rates +7%), with utilization to remain within the company’s optimal range despite Q4 softness (Q4 consolidated utilization 72.2%, MSS 77.6%, WFS 56.8%); WFS is expected to be steady but episodic (Q1 2026 will be the first full quarter including Royal Camp, acquired for $165M) after a non‑material early contract termination that boosted Q4 but reduces near‑term run‑rate while assets are redeployed; LodgeLink growth should accelerate once a new suite of tools is launched later this year; capital allocation remains disciplined with 2025 capex of $105M, ~ $31M of capital commitments to date, ~$149.3M of future contracted rental revenue (‑6% YoY) and the ability to fund growth from strong cash generation (FY2025 free cash flow $88M, +10%), a strengthened balance sheet (year‑end net debt $328M vs $223.6M in 2024, liquidity >$96M, net debt/TTM adjusted EBITDA 2.0x at the low end of a 2–3x target, ABL expanded from $325M to $425M) and lower blended borrowing costs (quarterly avg interest 4.35%, down 101 bps).Black Diamond Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 456.92M | 403.00M | 393.50M | 324.54M | 339.55M |
| Gross Profit | 163.85M | 183.77M | 174.45M | 138.14M | 111.63M |
| EBITDA | 126.43M | 102.53M | 98.81M | 84.27M | 61.23M |
| Net Income | 34.84M | 25.65M | 30.36M | 26.38M | 20.36M |
Balance Sheet | |||||
| Total Assets | 1.02B | 748.55M | 647.64M | 649.44M | 530.34M |
| Cash, Cash Equivalents and Short-Term Investments | 24.70M | 13.32M | 6.51M | 8.31M | 4.56M |
| Total Debt | 404.90M | 262.66M | 211.74M | 249.06M | 179.68M |
| Total Liabilities | 620.93M | 421.50M | 353.68M | 376.90M | 283.54M |
| Stockholders Equity | 397.45M | 323.19M | 290.08M | 268.53M | 234.46M |
Cash Flow | |||||
| Free Cash Flow | 16.30M | 2.14M | 63.91M | 16.55M | 33.26M |
| Operating Cash Flow | 116.98M | 111.36M | 133.00M | 70.79M | 71.14M |
| Investing Cash Flow | -240.10M | -112.25M | -68.59M | -101.94M | -33.63M |
| Financing Cash Flow | 134.89M | 7.53M | -65.88M | 34.51M | -36.56M |
Black Diamond Technical Analysis
Positive
16.09
Price Trends
16.39
Negative
15.48
Positive
13.86
Positive
Market Momentum
-0.15
Negative
50.77
Neutral
75.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDI, the sentiment is Positive. The current price of 16.09 is above the 20-day moving average (MA) of 15.85, below the 50-day MA of 16.39, and above the 200-day MA of 13.86, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDI.
Black Diamond Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$701.99M | 10.32 | 10.91% | 5.09% | 3.71% | -12.70% | |
65 Neutral | C$1.09B | 26.80 | 9.85% | 0.93% | 19.27% | 47.30% | |
64 Neutral | C$2.28B | 33.32 | 21.42% | 2.88% | 6.26% | 0.52% | |
64 Neutral | C$836.38M | 10.20 | 12.47% | 5.85% | 28.20% | 36.95% | |
64 Neutral | C$737.09M | 17.94 | 14.45% | 3.02% | -0.73% | 221.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$1.66B | 15.25 | 9.33% | 5.21% | 5.53% | -21.87% |
* Industrials Sector Average
TSE:BDI
Black Diamond
16.09
8.32
106.95%
TSE:BDT
Bird Construction
41.22
22.62
121.55%
TSE:DBM
Doman Building Materials Group
9.53
3.35
54.13%
TSE:DXT
Dexterra Group
11.81
4.75
67.28%
TSE:MTL
Mullen Group
17.33
5.73
49.45%
TSE:WJX
Wajax Corporation
32.13
16.94
111.58%
Black Diamond Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Black Diamond Posts Strong 2025 Results as Acquisitions and Rental Growth Lift Earnings
Positive
Feb 27, 2026
Black Diamond reported strong full-year 2025 results, with consolidated revenue rising 13% to $456.9 million, adjusted EBITDA up 12% to $126.4 million, and profit climbing 35% to $34.8 million, supported by steady rental growth and disciplined cap...
Financial Disclosures
Black Diamond Sets Date for 2025 Year-End Results and Investor Call
Neutral
Feb 5, 2026
Black Diamond Group Limited, a provider of modular space rentals, workforce accommodations and related asset management services across North America and Australia, plans to release its fourth quarter and full-year 2025 financial results after mar...
Financial Disclosures
Black Diamond Sets Date for 2025 Year-End Results and Investor Call
Neutral
Feb 5, 2026
Black Diamond Group Limited, a provider of modular space rentals, workforce accommodation solutions and related digital travel services across North America and the Asia-Pacific region, operates through its Modular Space Solutions (MSS) and Workfo...
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.