Bird Announces 2024 Fourth Quarter And Annual Results; Delivers $0.6b Revenue Growth, 6.3% Adj. Ebitda Margin, And Affirms 2025-2027 Strategic Plan Targets

Press Release

March 12, 2025

COMPANY: BIRD CONSTRUCTION INC.
LISTING: TORONTO STOCK EXCHANGE
CITY: MISSISSAUGA
SYMBOL: BDT
DATE: MARCH 12, 2025

SUBJECT: BIRD ANNOUNCES  2024 FOURTH QUARTER AND ANNUAL RESULTS; DELIVERS $0.6B REVENUE GROWTH, 6.3% ADJ. EBITDA MARGIN, AND AFFIRMS 2025-2027 STRATEGIC PLAN TARGETS

“Bird’s exceptional revenue and profitability growth in 2024, delivering almost $600 million of additional revenue while increasing our Adjusted EBITDA Margin by 1.3% to 6.3%, is the direct result of strategic changes we’ve made over the past several years to diversify our business, expand our capabilities and geographical reach, and risk-balance our work program with more collaborative contracting structures. These changes have created an economically resilient foundation that is prepared to achieve the Company’s 2025-2027 growth and profitability targets,” stated Teri McKibbon, President and CEO of Bird Construction. “Bird’s focus on key Canadian market sectors, our dedicated and experienced One Bird team, and our collaborative client approach position the Company well to manage potential impacts from near-term economic and geopolitical uncertainty, and to continue to deliver long-term shareholder value.”

FINANCIAL HIGHLIGHTS

Bird’s fourth quarter results capped off a strong 2024 fiscal year that saw revenue grow by 21% over 2023,  while achieving continued margin accretion and delivering earnings and operating cash flow improvements that significantly outpaced revenue growth. With these results, Bird has surpassed its 2022-2024 Strategic Plan targets, and in October 2024 the Company unveiled its 2025-2027 Strategic Plan and associated targets for future organic growth and profitability. During 2024, the Company continued to pursue accretive acquisitions that expanded its self-perform capabilities and further diversified the Company’s operations across Canada with the addition of NorCan and Jacob Bros to the One Bird team. Bird enters 2025 with a strong balance sheet and record liquidity, and remains committed to a balanced capital allocation strategy that targets a dividend payout ratio of net income of 33%, while retaining approximately two-thirds of net income to support organic growth and strategic M&A, as well as capital investments in technology and equipment to support further productivity and growth.

Full-Year 2024 compared to Full-Year 2023

• Construction revenue of $3,397.3 million was earned in 2024, compared to $2,798.8 million earned in 2023, representing a 21% increase year-over-year.

• Net income and earnings per share for the year ended December 31, 2024 were $100.1 million and $1.84, compared to $71.5 million and $1.33 in 2023, representing increases of 40% and 38%, respectively.

• Adjusted Earnings[1]^,[2] and Adjusted Earnings Per Share² were $111.3 million and $2.04 for full-year 2024, compared to $77.3 million and $1.44 in the prior year, representing increases of 44% and 42%, respectively.
• Adjusted EBITDA¹ for full-year 2024 was $212.8 million, or 6.3% of revenues, compared to $138.7 million, or 5.0% of revenues in 2023, representing an increase of 53%. Adjusted EBITDA Margin for 2024 was impacted by $5.8 million additional share-based compensation costs driven by significant appreciation of Bird’s common share price and total shareholder return during the quarter.

Fourth Quarter 2024 compared to Fourth Quarter 2023

• Construction revenue of $936.7 million was earned in Q4 2024 compared to $792.1 million earned in the prior year quarter, representing an 18% increase year-over-year.

• Net income and earnings per share were $32.5 million and $0.59 in Q4 2024, compared to $23.9 million and $0.44 in Q4 2023, representing increases of 36% and 32%, respectively.

• Adjusted Earnings^1,2 and Adjusted Earnings Per Share² were $37.3 million and $0.67 in Q4 2024, compared to $24.9 million and $0.46 in Q4 2023, representing increases of 50% and 45%, respectively.

• Adjusted EBITDA¹ of $71.9 million, or 7.7% of revenues in Q4 2024, compared to $43.9 million, or 5.5% of revenues in Q4 2023, representing an increase of 64%. Adjusted EBITDA Margin for Q4 2024 was impacted by $2.9 million additional share-based compensation costs driven by significant appreciation of Bird’s common share price and total shareholder return during the quarter.

HIGHLIGHTS

• Bird continued to deliver significant revenue growth in the fourth quarter of 2024, with almost half of the 18% growth from organic sources. The remainder of revenue growth was driven by Jacob Bros, acquired on August 1, 2024, and NorCan, acquired on January 18, 2024.

• The Company’s margin profiles in the fourth quarter of 2024 continued to improve compared to the prior year, with Gross Profit Percentage increasing to 10.3% compared to 9.2%, and Adjusted EBITDA Margin increasing to 7.7% from 5.5%. On a full-year basis, Gross Profit Percentage was 9.7%, 110 basis points higher than in 2023, and Adjusted EBITDA Margin was 6.3%, 130 basis points higher than in the prior year.

• Bird’s Backlog was $3.7 billion at December 31, 2024, with $862.4 million of securements in the fourth quarter ($3.7 billion year-to-date). Pending Backlog, which is work awarded but not yet contracted, was $3.9 billion at year-end and continues to include almost $900 million of master service agreement (“MSA”) and other recurring revenue to be earned over the next six years.

• At December 31, 2024, Bird had $177.4 million of cash and cash equivalents, with operating cash flows of $77.5 million in the fourth quarter before changes in non-cash working capital, a $30.0 million improvement over amounts generated in the prior year quarter. Seasonal unwinding of non-cash working capital balances in the quarter contributed and additional $60.3 million of operational cash flow.

• In December 2024, Bird amended the terms of its Syndicated Credit Facility to increase amounts available under the committed revolving facility by $100 million, raising the overall facility limit to $400 million.Amounts available under this revolving facility totalled $377.3 million at year-end, and the Syndicated Credit Facility continues to include a $100 million uncommitted accordion feature allowing the Company to increase the capacity of the term or revolving facilities with approval of the lenders.

• In December 2024, Bird paid a dividend of $0.07 per common share to shareholders on record at the end of November, reflecting the 50% dividend increase announced at the Company’s Investor Day on October 9, 2024.With this dividend increase, the Company has increased its dividend in three consecutive years by a total of 215%, and continues to target a dividend payout ratio of 33% of net income for its 2025-2027 Strategic Plan period.

• Subsequent to the quarter end, the Company announced that it was awarded the following projects and contracts:
  • Bird was awarded five projects with a combined value of approximately $470 million. These projects include Bird’s first project to be delivered through an Integrated Project Delivery (IPD) model in Atlantic Canada, two new buildings that support Ontario Power Generation’s nuclear program, civil infrastructure work with the Government of B.C., two significant multi-year agreements in the industrial maintenance sector, and a recreation centre redevelopment project in B.C.
  • Bird, as part of its 50/50 joint venture Rail Connect Partners, had finalized and signed a Project Alliance Agreement with Metrolinx to deliver the East Harbour Transit Hub, that will strengthen transit options for the City of Toronto. The project includes completion of the rail corridor and bridge widening over an important thoroughfare, and the commencement of the station works and associated infrastructure.
• The Board has declared eligible dividends of $0.07 per common share for each of March 2025 and April 2025.

CONFERENCE CALL AND WEBCAST

Bird will host an investor webcast to discuss the quarterly results on Thursday, March 13, 2025 at 10:00 a.m. ET, to discuss the Company’s results. Analysts and investors may connect to the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=MeDaZA1R. They may also dial 1-844-763-8274 for audio only or to enter the question queue; attendees are asked to be on the line 10 minutes prior to the start of the call. The presentation can also be found on our website at https://www.bird.ca/investors.

The Company’s Financial Statements and Management’s Discussion & Analysis (“MD&A”) will be filed and available on the System for Electronic Document Analysis and Retrieval (“SEDAR+”) at www.sedarplus.ca and on the Company’s website at www.bird.ca.

TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES

Throughout this News Release, certain terminology and financial measures are used that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP financial ratios, and supplementary financial measures. These measures may not be comparable with similar measures presented by other companies. Further information on these financial measures can be found in the “Terminology and Non-GAAP & Other Financial Measures” section in Bird’s most recently filed Management’s Discussion & Analysis for the period ended December 31, 2024, prepared as of March 12, 2025. This document is available on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the Company’s website at www.bird.ca.

“Backlog” is the total value of all contracts awarded to the Company, less the total value of work completed on these contracts as of the date of the most recently completed quarter. The Company’s Backlog equates to the Company’s remaining performance obligations as at December 31, 2024 and December 31, 2023.

“Adjusted Earnings” and “Adjusted EBITDA” are non-GAAP financial measures. “Adjusted Earnings Per Share” and “Adjusted EBITDA Margin” are non-GAAP financial ratios. “Pending Backlog” is a supplementary financial measure. In 2024, the Company changed the composition of Adjusted Earnings to exclude the amortization of acquisition-related intangible assets, other than software. Examples of acquisition-related intangibles include customer relationships, brand names and backlog. Prior period amounts for Adjusted Earnings have been adjusted to align with the revised composition.

Adjusted Earnings and Adjusted EBITDA are reconciled as follows:

For further information, please contact:

T.L. McKibbon, President & CEO or

W.R. Gingrich, CFO

Bird Construction Inc.

5700 Explorer Drive, Suite 400

Mississauga, ON L4W 0C6

Phone: (905) 602-4122

ABOUT BIRD CONSTRUCTION

Bird (TSX: BDT)  is a leading Canadian construction and maintenance company operating from coast-to-coast-to-coast. Servicing all of Canada’s major markets through a collaborative, safety-first approach, Bird provides a comprehensive range of construction services, self-perform capabilities, and innovative solutions to the industrial, buildings, and infrastructure markets. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders. www.bird.ca

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