Black Diamond (BDI) AI Stock Analysis

• Market Cap: C$1.15B
• Dividend Yield: 0.93%
• Average Volume (3M): 150.52K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.95
• Revenue Growth: 19.27%
• EPS Growth: 47.30%
• Country: CA
• Employees: 507
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.11
• Shares Outstanding: 68,715,690
• 10 Day Avg. Volume: 106,824
• 30 Day Avg. Volume: 150,516
• PEG Ratio: 0.87
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 57.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.00
• Price Target Upside: 25.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): C$579.95M

• Rating: 65 Neutral
• Price Target: C$18.50 ▲(10.71% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 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 and EBITDA compounding

Sustained multi-year CAGRs show durable organic and rental-driven growth, implying expanding market penetration and scale benefits. Consistent compounding revenue and EBITDA growth supports long-term cash generation, reinvestment capacity and competitive positioning over the next 2–6 months.

Consistent strong operating cash flow

Robust operating cash flow provides a steady internal funding source for asset investment, contract-backed capex, and working‑capital needs. This persistent cash generation underpins operational resilience and the ability to fund growth or service debt even if free cash flow timing is uneven.

Strategic M&A and enhanced financing capacity

Targeted tuck-in M&A and a larger, extended ABL materially increase scale and liquidity. This strengthens market position in Workforce Solutions, provides acquisition optionality, and improves funding flexibility to deploy assets or withstand cyclical demand swings over the medium term.

Negative Factors

Rising leverage

Higher leverage reduces financial flexibility and increases exposure to interest-rate or demand shocks. With debt elevated after acquisitions, the company has less cushion to absorb weaker utilization or funding cost rises, making deleveraging and discretionary returns more constrained.

Weak and volatile free cash flow conversion

Low FCF conversion versus reported earnings indicates working capital swings and heavy reinvestment needs. This reduces capacity to pay down debt or return capital despite positive operating cash inflows, leaving balance sheet repair dependent on sustained margin and utilization improvements.

Margin volatility and 2025 gross margin decline

A material gross-margin decline signals pressure from pricing, mix or cost absorption and increases earnings cyclicality. Persistent margin volatility undermines predictability of cash flows and makes hitting leverage targets or funding organic growth more difficult if cost or utilization trends persist.

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 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 Money

Black Diamond generates revenue primarily through the sale of its outdoor equipment and apparel, which is distributed through various channels including specialty outdoor retailers, online platforms, and international distributors. The company has established key partnerships with retail chains and e-commerce platforms to expand its market reach. In addition to product sales, BDI also benefits from brand loyalty and a strong community presence within the climbing and skiing industries, which drives repeat purchases and customer engagement. Seasonal demand fluctuations, particularly during peak climbing and skiing seasons, contribute to revenue variations. Furthermore, Black Diamond invests in research and development to continually enhance its product offerings, which can lead to increased sales and market share.

Black Diamond Financial Statement Overview

Summary

Strong multi-year revenue scale-up and improved profitability with solid operating cash flow, but the profile is tempered by rising leverage, notably weaker/volatile margins in 2025, and inconsistent free cash flow conversion that reduces flexibility for deleveraging or shareholder returns.

Income Statement

Revenue has expanded materially over the period (from ~$180M in 2020 to ~$457M in 2025), showing solid top-line scale-up, though growth appears uneven year-to-year. Profitability is positive and improving versus 2020’s loss, with 2025 net margin at ~7.6% and EBITDA margin at ~27.7%. The main weakness is margin volatility: gross margin fell sharply in 2025 (~35.9%) versus 2023–2024 (~44–46%), which could signal pricing/usage mix or cost pressure even as operating profit dollars rose.

Balance Sheet

The balance sheet shows meaningful asset growth (total assets rising to ~$1.02B in 2025), but leverage has increased: debt-to-equity moved up to ~1.02 in 2025 from ~0.73–0.93 in prior years. Equity has grown as well (~$397M in 2025), helping support expansion, and return on equity is positive (~8.8% in 2025) after the 2020 setback. The key risk is the rising debt load (total debt ~$405M in 2025), which can reduce flexibility if demand softens or funding costs rise.

Cash Flow

Operating cash flow is consistently positive and increased to ~$117M in 2025, supporting earnings quality. However, free cash flow is volatile and relatively low versus profits in recent years (2025 free cash flow ~$16.3M, only ~14% of net income), and it declined sharply in 2025 (free cash flow growth -44.3%). This suggests heavier reinvestment and/or working-capital swings, leaving less cash available for debt reduction or shareholder returns despite solid operating inflows.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 16.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.71 is below the 20-day moving average (MA) of 16.96, above the 50-day MA of 16.29, and above the 200-day MA of 13.24, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBM	76 Outperform	C$897.33M	11.06	12.33%	5.85%	28.20%	36.95%
BDT	69 Neutral	C$1.76B	13.18	21.68%	2.88%	6.26%	0.52%
WJX	66 Neutral	C$737.61M	10.32	8.84%	5.09%	3.71%	-12.70%
BDI	65 Neutral	C$1.15B	26.80	10.23%	0.93%	19.27%	47.30%
DXT	64 Neutral	C$788.90M	17.94	14.38%	3.02%	-0.73%	221.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTL	61 Neutral	C$1.63B	24.51	9.33%	5.21%	5.53%	-21.87%

Black Diamond Corporate Events

Black Diamond Posts Strong 2025 Results as Acquisitions and Rental Growth Lift Earnings

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 capital deployment. Modular Space Solutions delivered record rental revenue and solid utilization, Workforce Solutions posted a 30% revenue increase boosted by the Royal Camp acquisition, and LodgeLink continued to scale its digital travel platform with double-digit growth in transaction value and net revenue.

The company expanded and extended its asset-based credit facility to 2030, completed equity financing, and executed two strategic acquisitions, enhancing its integrated service offering and regional footprint while maintaining leverage at the low end of its target range. Management continued to prioritize shareholder returns through higher dividends and share repurchases, underpinned by robust contracted future rental revenue and improved safety performance, signaling confidence in the durability of its rental-focused growth model.

The most recent analyst rating on (TSE:BDI) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Black Diamond Sets Date for 2025 Year-End Results and Investor Call

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 markets close on February 26, 2026, followed by a conference call and webcast on February 27 hosted by Chairman and CEO Trevor Haynes and EVP and CFO Toby LaBrie. The scheduled disclosure of results and management briefing signals an upcoming update on operating performance and strategic progress for investors and other stakeholders in sectors ranging from construction and resources to education and government, with the webcast and subsequent replay aimed at broadening access to the company’s outlook and reinforcing engagement with the capital markets.

The most recent analyst rating on (TSE:BDI) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Black Diamond Sets Date for 2025 Year-End Results and Investor Call

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 Workforce Solutions (WFS) units, serving a diversified customer base in construction, industrial, resource, education, financial, government and infrastructure markets. The company announced it will release its fourth-quarter and full-year 2025 financial results after the market close on February 26, 2026, followed by a management-hosted conference call and webcast on February 27, 2026, signaling continued engagement with analysts and investors and providing stakeholders an upcoming opportunity to assess its operational performance and strategic positioning in the modular infrastructure and workforce accommodation sectors.

The most recent analyst rating on (TSE:BDI) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.