tiprankstipranks
Trending News
More News >
Bird Construction (TSE:BDT)
TSX:BDT
Advertisement

Bird Construction (BDT) AI Stock Analysis

Compare
537 Followers

Top Page

TSE:BDT

Bird Construction

(TSX:BDT)

Rating:66Neutral
Price Target:
C$26.00
▲(13.59% Upside)
Bird Construction's overall stock score reflects strong financial performance and strategic focus, as highlighted in the earnings call. However, bearish technical indicators and recent revenue declines weigh on the score. The company's fair valuation and attractive dividend yield provide some support.
Positive Factors
Financial Performance
Bird reported solid Q2 results, with margins rising and strong bookings driving its backlog to near-record levels.
Market Opportunities
Bidding opportunities remain strong and margins continue to rise, supporting management's confidence in long-term targets.
Negative Factors
Investor Perception
The quality of the company's backlog appears underappreciated by investors, being more diversified than ever before, growing, and with increasing margins.
Revenue Concerns
Revenue weak again but margin story intact; reiterate BUY, C$35.00 target.

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

Bird Construction Business Overview & Revenue Model

Company DescriptionBird Construction Inc. operates as a general contractor in Canada. The company primarily focuses on projects in the industrial, commercial, and institutional sectors of the general contracting industry. It constructs industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; undertakes structural, mechanical, piping, electrical, and instrumentation works that include off-site metal and modular fabrication; and provides insulation, metal siding and cladding, ductwork, asbestos abatement, and high voltage testing and commissioning services, as well as constructs power lines. The company also engages in the civil construction operations, such as site preparation and earthworks, underground piping, foundations, and other concrete services, as well as mine support and hydroelectric construction service; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, it constructs and renovates hospitals, post-secondary education facilities, K-12 schools, recreation facilities, prisons, courthouses, government buildings, and long term care and senior housing facilities; and constructs and renovates office buildings, shopping malls, big box stores, hotels, and mixed-use high-rise and mid-rise residential projects, and well as offers electrical and related system services, which include electrical and mechanical infrastructure design and installation, data communications, security, and lifecycle services. It serves clients in the oil and gas, liquefied natural gas, mining, renewables, water and wastewater, nuclear, infrastructure, and residential sectors. Bird Construction Inc. was founded in 1920 and is based in Mississauga, Canada.
How the Company Makes MoneyBird Construction makes money through its comprehensive range of construction services. The primary revenue streams include construction management, where the company oversees project execution and ensures timely completion; design-build services, which involve both designing and constructing projects according to client specifications; and general contracting, where Bird Construction manages all aspects of the construction process. These services generate revenue through contracts with private developers, government entities, and other organizations. The company also benefits from strategic partnerships and joint ventures that enhance its ability to undertake large-scale projects, further contributing to its earnings. Bird's focus on efficiency, sustainability, and innovation strengthens its market position and helps maintain a steady flow of projects and revenue.

Bird Construction Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company with a strong strategic focus and improved margins but facing challenges due to economic uncertainty and project delays. The recognition as a best employer and a strong backlog are positive indicators, but revenue decline and uncertainty related to global trade and project delays are notable challenges.
Q2-2025 Updates
Positive Updates
Recognition as a Certified Best Employer
Bird Construction was recognized as a certified best employer in Canada, with a 95% employee survey response rate, indicating high employee engagement and satisfaction.
Improved Margins
Gross profit margin increased to 10.6% from 8.6% a year ago, and adjusted EBITDA margin rose to 6.5% from 5.3% last year, reflecting a strategic focus on higher-margin sectors.
Record Backlog
Bird secured nearly $1.2 billion in new awards in the quarter, growing the backlog to over $4.6 billion, which is over 36% higher than a year ago.
Strong Liquidity Position
The company maintains a strong liquidity position with $142.6 million of cash and cash equivalents and an additional $231.7 million available under the syndicated credit facility.
Strategic Sector Focus
Bird continues to focus on key sectors such as infrastructure, healthcare, defense, and energy, aligning with national priorities for growth and margin expansion.
Negative Updates
Revenue Decline
Construction revenue for the second quarter was $850.8 million, representing a 2.6% decrease compared to the same period in 2024.
Project Delays Due to Economic Uncertainty
Client decisions to delay projects amid economic uncertainty affected revenue and slowed down the pace of margin improvement.
Impact of Global Trade Uncertainty
Uncertainty around global trade deals and tariffs has led to delays in project starts, particularly impacting industrial clients.
Moderate Dividend Payout Ratio Increase
The dividend payout ratio is expected to be higher than the target 33% due to the current economic environment.
Company Guidance
During the Bird Construction Second Quarter 2025 Conference Call, Teri McKibbon, President and CEO, highlighted the company's progress and future outlook. Bird reported a gross profit margin improvement to 10.6% from 8.6% the previous year, with an adjusted EBITDA margin rising to 6.5% from 5.3%. The company secured $1.2 billion in new awards, increasing its record backlog to over $4.6 billion, a 36% increase year-over-year. Bird is on track to achieve its 2027 strategic target of an 8% EBITDA margin, having improved margins by 120 basis points in the quarter. Despite a slight revenue decrease due to client-driven project delays, the demand in key sectors remains robust, with $2.5 billion in year-to-date securements. The company continues to focus on high-margin sectors and strategic acquisitions, supported by a strong balance sheet and $142.6 million in cash. Bird's pending backlog includes $3.8 billion in awarded but not yet contracted work, with significant opportunities arising from global trends like increased defense spending and energy sector developments.

Bird Construction Financial Statement Overview

Summary
Bird Construction demonstrates solid financial health with strong revenue and profit growth, effective cost management, and robust cash generation. The balance sheet reflects prudent leverage management, 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.40B3.40B2.80B2.37B2.22B1.50B
Gross Profit349.30M328.76M240.54M201.76M161.63M126.30M
EBITDA231.06M214.15M137.94M115.50M98.89M78.80M
Net Income98.38M100.10M71.54M49.86M42.78M36.10M
Balance Sheet
Total Assets1.79B1.81B1.42B1.23B1.14B1.06B
Cash, Cash Equivalents and Short-Term Investments24.75M44.55M177.58M177.56M125.68M212.07M
Total Debt398.02M261.36M151.36M148.35M158.04M150.99M
Total Liabilities1.35B1.38B1.10B953.75M893.66M849.19M
Stockholders Equity437.22M430.28M322.49M272.99M243.49M212.61M
Cash Flow
Free Cash Flow59.58M80.46M45.51M15.63M24.07M114.72M
Operating Cash Flow90.29M114.24M75.80M43.40M35.83M128.95M
Investing Cash Flow-112.49M-131.30M-27.51M-14.81M-23.30M-53.90M
Financing Cash Flow63.10M16.83M-45.36M-44.28M-34.25M-43.28M

Bird Construction Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.89
Price Trends
50DMA
27.81
Negative
100DMA
25.82
Negative
200DMA
25.09
Negative
Market Momentum
MACD
-1.56
Positive
RSI
25.51
Positive
STOCH
6.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDT, the sentiment is Negative. The current price of 22.89 is below the 20-day moving average (MA) of 26.40, below the 50-day MA of 27.81, and below the 200-day MA of 25.09, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 25.51 is Positive, neither overbought nor oversold. The STOCH value of 6.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BDT.

Bird Construction Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
C$1.26B12.9625.25%3.36%8.49%14.10%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
$12.40B39.4014.26%0.57%
$11.08B6.3457.95%0.08%
78
Outperform
C$36.61B45.5310.52%0.53%18.24%28.47%
68
Neutral
C$1.29B50.422.78%3.72%20.53%74.96%
21
Underperform
C$7.05M6.4422.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BDT
Bird Construction
22.89
0.67
3.02%
STN
Stantec
109.43
27.47
33.52%
SNCAF
AtkinsRealis
67.73
27.98
70.39%
TSE:ARE
Aecon Group Inc.
20.43
2.57
14.39%
TSE:MSP
Minaean SP Construction
0.06
0.04
200.00%
TSE:WSP
WSP Global
281.21
59.05
26.58%

Bird Construction Corporate Events

Business Operations and StrategyFinancial Disclosures
Bird Construction Reports Strong Q2 2025 Results with Record Backlog
Positive
Aug 13, 2025

Bird Construction announced its 2025 second-quarter results, highlighting strong margin accretion and a record backlog despite temporary project delays due to changing market conditions. The company reported an increase in gross profit percentage and adjusted EBITDA margin compared to the previous year, with a record backlog of $4.6 billion, positioning it well for future growth. While revenue saw a slight decrease, Bird secured $1.2 billion in additional work, reflecting robust demand and a healthy balance sheet that supports its growth strategy.

The most recent analyst rating on (TSE:BDT) stock is a Hold with a C$31.00 price target. To see the full list of analyst forecasts on Bird Construction stock, see the TSE:BDT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Bird Construction Announces Successful Election of Board Members
Positive
Jul 7, 2025

Bird Construction Inc. announced the results of its Board of Directors election at the annual general meeting of shareholders. All nominees were successfully elected, with high percentages of votes in favor, ensuring continuity and stability in the company’s leadership. This announcement underscores Bird’s commitment to maintaining strong governance and leadership as it continues to serve Canada’s construction and maintenance industry.

The most recent analyst rating on (TSE:BDT) stock is a Hold with a C$26.00 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 Q2 2025 Financial Results
Neutral
Jul 3, 2025

Bird Construction Inc. announced the release date for its 2025 second quarter financial results, which will be available after market close on August 13, 2025. A conference call and live webcast to discuss these results will be hosted by the company’s executives on August 14, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:BDT) stock is a Hold with a C$26.00 price target. To see the full list of analyst forecasts on Bird Construction stock, see the TSE:BDT Stock Forecast page.

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.

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 19, 2025