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Bird Construction (TSE:BDT)
TSX:BDT

Bird Construction (BDT) AI Stock Analysis

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Bird Construction

(TSX:BDT)

Rating:81Outperform
Price Target:
C$30.00
▲(8.11%Upside)
Bird Construction's overall score is driven by strong financial performance and a positive earnings call, which highlight robust growth and strategic market positioning. Technical analysis provides a mixed outlook, while recent corporate events support future growth prospects. Valuation remains reasonable, adding to the stock's attractiveness.
Positive Factors
Analyst Recommendation
Analyst's recommendation for Bird Construction is a 'BUY'.
Financial Performance
Q4/2024 revenue increased 18% year-over-year, driven by the Industrial and Buildings segments, with EBITDA increasing 64% year-over-year.
Market Demand
Bird continues to enjoy strong secular demand from end markets such as energy & power, transportation infrastructure, advanced buildings, and industrial.
Negative Factors
Debt Position
Bird's net debt position stood at 0.5x EBITDA, with management prioritizing dividend growth, organic growth investments, and successful acquisitions.
Investor Perception
The quality of the company's backlog appears underappreciated by investors, being more diversified than ever before, growing, and with increasing margins.

Bird Construction (BDT) vs. iShares MSCI Canada ETF (EWC)

Bird Construction Business Overview & Revenue Model

Company DescriptionBird Construction Inc. (BDT) is a leading Canadian construction company that provides a comprehensive range of services across the construction industry. With a focus on safety, quality, and sustainability, Bird Construction operates in multiple sectors including industrial, commercial, institutional, and civil infrastructure. The company offers general contracting, construction management, and design-build services to both public and private sector clients, delivering projects of varying scope and complexity.
How the Company Makes MoneyBird Construction makes money primarily through its construction services, which include general contracting, construction management, and design-build solutions. Revenue is generated from contracts with clients in various sectors such as industrial, commercial, institutional, and civil infrastructure. The company leverages its expertise to manage projects from inception to completion, ensuring cost efficiency and timely delivery. Key revenue streams include project management fees, construction fees, and design and consulting fees. Bird Construction also benefits from strategic partnerships and joint ventures, which enhance its capacity to undertake large-scale projects and expand its market reach. Additionally, the company's focus on sustainability and innovation in construction practices contributes to its competitive advantage and attractiveness to environmentally conscious clients.

Bird Construction Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 7.10%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record backlog and revenue growth, driven by strategic positioning and government support. Although there were industrial maintenance deferrals impacting short-term revenue, the overall outlook remains positive due to a strong balance sheet and continued demand in target sectors.
Q1-2025 Updates
Positive Updates
Record Backlog
Bird Construction's backlog reached a record level of $4.3 billion at the end of the quarter, with $1.3 billion added in Q1, exceeding work executed by 85%.
Revenue and Margin Growth
Construction revenue increased by 4.3% year-over-year to $717.6 million, and the adjusted EBITDA margin improved to 4.8% from 3.5% in Q1 2024, representing an increase of 41%.
Strong Balance Sheet
Bird's liquidity position remains strong with $137.8 million of cash and cash equivalents and $336.7 million available under the company's credit facility.
Strategic Positioning and Government Support
Bird is well-positioned to benefit from government commitments to position Canada as a global energy superpower, with significant opportunities in energy, mining, and transportation sectors.
Successful Project Awards
Bird secured multiple new projects, including a highway improvement project, a transit hub, and various industrial contracts, highlighting demand across target sectors.
Negative Updates
Industrial Maintenance Deferrals
Some industrial maintenance work has been deferred to the latter half of the year, impacting revenue growth in Q1 and expected to continue affecting Q2.
Impact on Net Income
Despite overall growth, net income and earnings per share slightly declined due to noncash amortization of acquisition intangibles, with net income at $9.4 million compared to $10 million in the prior year.
Company Guidance
During Bird Construction's first quarter 2025 results call, CEO Teri McKibbon highlighted several key metrics reflecting the company's robust performance and strategic direction. Bird achieved record backlog levels, reaching $4.3 billion, alongside revenue growth of 4.3% to $717.6 million compared to the previous year. The company's adjusted EBITDA margin expanded to 4.8% for the quarter, with a trailing 12-month EBITDA margin of 6.5%, moving closer to the 2027 target of 8%. Bird added $1.3 billion to its backlog in Q1, exceeding work executed by 85%. The company also reported strong liquidity, maintaining $137.8 million in cash and access to $336.7 million under its credit facility. Bird's strategic focus on margin-accretive sectors, disciplined project selection, and enhanced self-performance capabilities is expected to drive further growth. Despite some industrial maintenance deferrals impacting revenue timing, the outlook remains optimistic, buoyed by a robust bidding pipeline and favorable market conditions across infrastructure, energy, and industrial sectors.

Bird Construction Financial Statement Overview

Summary
Bird Construction demonstrates solid financial health, characterized by robust revenue and profit growth, effective cost management, and strong cash generation. The balance sheet reflects a prudent approach to leverage, while cash flow metrics indicate efficient cash utilization.
Income Statement
87
Very Positive
Bird Construction shows strong revenue growth with a 15.8% increase in 2024 and a 21.4% increase in 2023. Gross profit margin is consistent at around 9.6%-9.7% over the TTM and 2024 period. Net profit margin has remained stable at approximately 2.9%, reflecting effective cost management. The EBIT and EBITDA margins have shown slight improvement, indicating efficient operational management.
Balance Sheet
78
Positive
The company has a stable equity ratio of around 25.2% TTM, slightly decreasing from 23.8% in 2024, suggesting maintained leverage levels. The debt-to-equity ratio is moderate at 0.68 TTM, indicating manageable debt levels. Return on equity has improved to 23.2% TTM from 23.3% in 2024, reflecting strong profitability relative to shareholder equity.
Cash Flow
82
Very Positive
Free cash flow has grown by 25.2% from 2024 to TTM, indicating strong cash generation. The operating cash flow to net income ratio of 0.99 TTM suggests efficient cash conversion, and the free cash flow to net income ratio of 0.70 TTM supports a healthy cash position relative to earnings.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.43B3.40B2.80B2.37B2.22B1.50B
Gross Profit
330.55M328.76M240.54M201.76M161.63M126.30M
EBIT
139.14M146.56M101.17M66.66M63.86M55.31M
EBITDA
223.09M214.15M137.94M115.50M98.89M78.80M
Net Income Common Stockholders
99.50M100.10M71.54M49.86M42.78M36.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
62.82M44.55M177.58M177.56M125.68M212.07M
Total Assets
1.21B1.81B1.42B1.23B1.14B1.06B
Total Debt
145.87M261.36M151.36M148.35M158.04M150.99M
Net Debt
83.06M216.80M-26.17M36.72M32.36M-61.08M
Total Liabilities
936.10M1.38B1.10B953.75M893.66M849.19M
Stockholders Equity
273.57M430.28M322.49M272.99M243.49M212.61M
Cash FlowFree Cash Flow
69.67M80.46M45.51M15.63M24.07M114.72M
Operating Cash Flow
98.33M114.24M75.80M43.40M35.83M128.95M
Investing Cash Flow
-120.80M-131.30M-27.51M-14.81M-23.30M-53.90M
Financing Cash Flow
26.84M16.83M-45.36M-44.28M-34.25M-43.28M

Bird Construction Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.75
Price Trends
50DMA
23.29
Positive
100DMA
22.87
Positive
200DMA
24.54
Positive
Market Momentum
MACD
1.15
Positive
RSI
69.94
Neutral
STOCH
85.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDT, the sentiment is Positive. The current price of 27.75 is above the 20-day moving average (MA) of 26.45, above the 50-day MA of 23.29, and above the 200-day MA of 24.54, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 69.94 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDT.

Bird Construction Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSBDT
81
Outperform
C$1.52B15.1526.31%2.46%16.14%27.71%
TSSTN
76
Outperform
$16.60B43.0113.13%0.58%15.62%9.66%
76
Outperform
$16.26B53.228.66%0.08%12.05%1.32%
TSWSP
75
Outperform
C$36.22B50.509.42%0.54%16.77%21.38%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
TSARE
55
Neutral
C$1.21B-9.26%3.94%1.70%-154.73%
TSMSP
21
Underperform
C$1.85M22.10%80.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BDT
Bird Construction
27.75
4.89
21.39%
TSE:ATRL
AtkinsRealis
93.50
39.84
74.25%
TSE:STN
Stantec
143.69
33.08
29.91%
TSE:MSP
Minaean SP Construction
0.04
0.02
100.00%
TSE:ARE
Aecon Group Inc.
19.32
3.27
20.37%
TSE:WSP
WSP Global
275.26
69.15
33.55%

Bird Construction Corporate Events

Business Operations and Strategy
Bird Construction Secures $525 Million in New Projects Across Key Sectors
Positive
May 21, 2025

Bird Construction Inc. has secured three significant projects worth over $525 million, enhancing its presence in the buildings and infrastructure sectors. These projects include the Transportation Safety and Technology Science Hub in Ottawa, the Beverly Heights Seniors Housing project in Edmonton, and a mining infrastructure upgrade. These awards underscore Bird’s strong market positioning and the trust clients place in its expertise, despite current economic uncertainties.

The most recent analyst rating on (TSE:BDT) stock is a Hold with a C$25.50 price target. To see the full list of analyst forecasts on Bird Construction stock, see the TSE:BDT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Bird Construction Reports Strong Q1 2025 Results with Record Backlog
Positive
May 14, 2025

Bird Construction Inc. reported strong financial results for the first quarter of 2025, with a 4% increase in construction revenue compared to the previous year. The company achieved record backlog levels, with over $1.3 billion in new contracts, and improved profit margins, highlighting its economic resilience and strategic focus. The company’s robust liquidity position and balanced capital allocation strategy support its growth initiatives and shareholder returns, positioning Bird well for continued success in the construction industry.

The most recent analyst rating on (TSE:BDT) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on Bird Construction stock, see the TSE:BDT Stock Forecast page.

Financial Disclosures
Bird Construction to Announce Q1 2025 Financial Results
Neutral
Apr 17, 2025

Bird Construction Inc. has announced that it will release its first quarter financial results for 2025 after market close on May 14, with a conference call and webcast scheduled for May 15. This announcement is significant as it provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Business Operations and Strategy
Bird Construction Secures $650 Million in New Projects, Strengthens Key Portfolios
Positive
Apr 16, 2025

Bird Construction Inc. has secured over $650 million in new project awards across its infrastructure, industrial, and buildings businesses, reinforcing its portfolios in defence, clean energy, and healthcare. The projects include a design-build contract for residential housing for Canadian Armed Forces members, a contract for Dow’s net-zero ethylene cracker site, a long-term care facility expansion in Kelowna, additional contracts for Ontario Power Generation’s nuclear operations, and a contract extension for the Woodfibre LNG project. These awards highlight Bird’s strong client relationships and its strategic positioning in economically resilient sectors, enhancing its backlog and visibility for future projects.

Business Operations and StrategyFinancial Disclosures
Bird Construction Reports Strong 2024 Growth and Sets Strategic Targets for 2025-2027
Positive
Mar 12, 2025

Bird Construction Inc. reported significant growth in 2024, with a $600 million increase in revenue and a rise in Adjusted EBITDA Margin to 6.3%. The company’s strategic initiatives have led to a strong financial performance, surpassing its 2022-2024 targets, and positioning it well for future growth as outlined in its 2025-2027 Strategic Plan. Bird’s focus on key Canadian market sectors and a collaborative client approach are expected to help it navigate potential economic and geopolitical uncertainties while continuing to deliver shareholder value.

Business Operations and Strategy
Bird Construction Secures Alliance for Toronto Transit Hub
Positive
Mar 10, 2025

Bird Construction Inc., through its joint venture Rail Connect Partners with AtkinsRéalis, has signed a Project Alliance Agreement with Metrolinx to deliver the East Harbour Transit Hub in Toronto. This project, one of Canada’s first major transit initiatives using an alliance contracting model, aims to enhance transit options and connectivity in the region, promising to reshape transportation in Toronto and improve the quality of life for the Greater Toronto community.

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.