Canada's Badger Infrastructure Solutions Q3 revenue beats estimates on pricing initiatives

Badger Infrastructure Solutions

Thu 22:10

Overview
North America excavation services provider's Q3 revenue rose 21% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 grew 25% and beat analyst expectations

Outlook
Company expects strong end-market growth and customer demand to continue into 2027
Company expects 2026 fleet growth at high end of 7% to 10% range
Company sees 2026 capital spend of $203 mln to $222 mln

Result Drivers
FLEET INVESTMENT AND PRICING - Co said revenue and profit growth were supported by continued investment in its fleet and pricing initiatives
VERTICALLY INTEGRATED MODEL - Co attributed margin improvement to its vertically integrated manufacturing and service model
END MARKET DEMAND - Co said growth was aided by demand from utility and infrastructure network expansion and large projects

Company press release: ID:nNFC94d8pM

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$286.53 mln
$281.008 mln (6 Analysts)
Q3 Net Income
 
$27.34 mln
 
Q3 Adjusted EBITDA
Beat
$83.44 mln
$79.67 mln (8 Analysts)
Q3 Adjusted EBITDA Margin
 
29.1%
 
Q3 Basic EPS
 
$0.81
 
Q3 Pretax Profit
 
$42.12 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Badger Infrastructure Solutions Ltd is C$114.00, about 35.7% above its November 4 closing price of C$84.01
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
Nov 4 - Canada's North American Construction Q3 revenue rises; tightens FY outlook
Nov 4 - Construction firm Tutor Perini's Q3 revenue beats estimates
Nov 3 - Everus Construction Q3 revenue beats on data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)