Bird Announces 2025 First Quarter Results; Delivers Strong Margin Accretion and Record Backlog
Press Release
COMPANY: BIRD CONSTRUCTION INC.
LISTING: TORONTO STOCK EXCHANGE
CITY: MISSISSAUGA
SYMBOL: BDT
DATE: MAY 14, 2025
SUBJECT: BIRD ANNOUNCES 2025 FIRST QUARTER RESULTS; DELIVERS STRONG MARGIN ACCRETION AND RECORD BACKLOG
“Bird’s diversification and strategic focus on key market sectors has resulted in an economically resilient business that continues to drive both top line growth and margin accretion. Our extensive self-perform capabilities, focus on collaboration, and quality of delivery are valued by our clients and drove over $1.3 billion of new contracts and awards in the first quarter of 2025,” stated Teri McKibbon, President and CEO of Bird Construction. “While construction revenue growth is not always linear, the Company’s record combined backlog of contracted and awarded work, reflecting high proportions of collaborative contract structures and favourable embedded margins, provides Bird with good visibility into revenue growth and further margin accretion for full year 2025 and into 2026.”
FINANCIAL HIGHLIGHTS
Bird’s first quarter continued to deliver revenue growth and margin accretion, with revenues growing 4% over the first quarter of 2024, and Gross Profit Percentage and Adjusted EBITDA Margin each improving over 120 basis points to 9.4% and 4.8%, respectively. Adjusted Earnings and operating cash flow improvements continued to outpace revenue growth, while net income was marginally lower than 2024 reflecting the impact of non-cash amortization on Jacob Bros acquisition intangibles. Bird’s balance sheet and liquidity remains strong, supporting the Company’s balanced capital allocation strategy including capital investments to support organic growth, flexibility for the Company to pursue attractive M&A opportunities that may arise in the current active market, and providing returns to Bird’s shareholders through monthly dividends.
First Quarter 2025 compared to First Quarter 2024
- Construction revenue of $717.6 million was earned in Q1 2025 compared to $688.2 million earned in the prior year quarter, representing a 4% increase year-over-year.
- Net income and earnings per share were $9.4 million and $0.17 in Q1 2025, compared to $10.0 million and$0.19 in Q1 2024.
- Adjusted Earnings1 and Adjusted Earnings Per Share were $12.9 million and $0.23 in Q1 2025, compared to $11.3 million and $0.21 in Q1 2024, representing increases of 14% and 11%, respectively.
- Adjusted EBITDA1 of $34.1 million, or 4.8% of revenues in Q1 2025, compared to $24.2 million, or 3.5% of revenues in Q1 2024, representing an increase of 41%.
HIGHLIGHTS
- The Company’s margin profiles in the first quarter of 2025 continued to improve compared to the prior year, with Gross Profit Percentage increasing to 9.4% compared to 8.0%, and Adjusted EBITDA Margin increasing to 4.8% from 3.5%.
- At March 31, 2025, Bird’s Backlog of contracted work grew 16.4% from the prior quarter to over $4.3 billion, the highest Backlog reported in the Company’s history. Bird added over $1.3 billion to its Backlog in the first quarter between conversions of Pending Backlog and new awards, exceeding work executed in the quarter by 85%. The Company’s Pending Backlog of work awarded but not yet contracted grew modestly to $4.0 billion at quarter-end and continues to include over $950 million of master service agreement (“MSA”) and other recurring revenue to be earned over the next five years.
- The Company’s liquidity position remains strong at March 31, 2025, with $137.8 million of cash and cash equivalents, and an additional $336.7 million available under the Company’s Syndicated Credit Facility, to support ongoing investments in growth-related working capital, project-driven capital expenditures, and potential acquisitions to further diversify service offerings and self-perform capabilities.
- During the first quarter of 2025, 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.
- Subsequent to the quarter end, the Company announced that it was awarded five projects with a combined value exceeding $650 million across its infrastructure, industrial and buildings businesses. These projects include an award with Defence Construction Canada to design and construct 200 new residential housing units in Ontario, an award for the multi-phase expansion and renovation of a long-term care facility in British Columbia, additional project awards with Ontario Power Generation supporting ongoing nuclear operations, expanded scope on Dow’s Path2Zero project in Alberta, and a contract extension for early site development on the Woodfibre LNG project in British Columbia.
- 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, May 15, 2025 at 10:00 a.m. ET, to discuss the Company’s results. Analysts and investors may connect to the webcast at https://edge.media-server.com/mmc/p/spy8mqn6. Participants are invited to register for expedited access to the conference call: Registration Link. Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details. 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 March 31, 2025, prepared as of May 14, 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 March 31, 2025 and December 31, 2024.
“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
IBF4
