Canada's Black Diamond Q2 adjusted EPS falls 50% on BC PST provision

Black Diamond

30/07/2026 22:36

Overview
Canada workforce accommodation provider's Q2 revenue rose 23% yr/yr, slightly missing analyst expectations
Adjusted EBITDA for Q2 increased 4% yr/yr but missed analyst expectations
Adjusted EPS fell 50% yr/yr, mainly due to a provision for BC PST assessments

Outlook
Company expects timing of large Canadian projects to extend into 2027 and beyond
Black Diamond anticipates increased organic capital investment in Canada and U.S. for balance of 2026 and into 2027

Result Drivers
WORKFORCE SOLUTIONS GROWTH - Revenue rose 55% in Workforce Solutions, driven by contributions from Royal Camp, supporting growth in lodge services, rental, and non-rental revenue
MODULAR SPACE SOLUTIONS - MSS rental revenue increased 8% with stable utilization and higher average monthly rates, reflecting healthy customer activity
PROVISION FOR SALES TAX - Adjusted EPS fell due to a $3.6 mln provision for BC PST assessments, which the company is appealing

Company press release: ID:nGNX8CfyPQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$129.20 mln
C$129.76 mln (6 Analysts)
Q2 Adjusted EBITDA
Miss
C$30.40 mln
C$32.75 mln (6 Analysts)
Q2 FFO
 
C$28.60 mln
 
Q2 Adjusted EBIT
Miss
C$12.60 mln
C$18.59 mln (2 Analysts)
Q2 Basic EPS
 
C$0.01
 
Q2 Capex
 
C$24.90 mln
 
Q2 Gross Profit
 
C$52.20 mln
 
Q2 Pretax Profit
 
C$1.20 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Black Diamond Group Ltd is C$23.00, about 34.2% above its July 29 closing price of C$17.14
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
July 30 - Civeo Q2 revenue rises 11%, beats analyst estimates
July 29 - NPK International Q2 revenue rises on rental demand, raises FY earnings guidance
July 28 - Herc Holdings beats Q2 revenue estimates, lifts 2026 outlook

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(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.)