Black Diamond Reports First Quarter Results and Declares Dividend
Press Release
CALGARY, Alberta, April 30, 2026 — Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months ended March 31, 2026 (the “Quarter”) compared with the three months ended March 31, 2025 (the “Comparative Quarter”). All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Consolidated revenue for the Quarter of $130.0 million and Adjusted EBITDA1 for the Quarter of $32.0 million increased 27% and 21%, respectively, from the Comparative Quarter.
- Consolidated rental revenue for the Quarter of $43.8 million increased 16% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue at the end of the Quarter remains healthy at $142.5 million despite a decrease of 12% compared to the Comparative Quarter.
- Total capital expenditures for the Quarter of $16.8 million were consistent with the Comparative Quarter. Total capital commitments at the end of the Quarter of $26.5 million signify the breadth of opportunities across the business.
- Workforce Solutions (“WFS”) revenue of $81.5 million for the Quarter increased 54% from the Comparative Quarter, contributing to Adjusted EBITDA1 of $18.9 million up 48% from the Comparative Quarter. Increases were driven by higher lodge services revenue, up 226% from the Comparative Quarter and non-rental revenue, up 16% from the Comparative Quarter primarily due to contributions from recently acquired Royal Camp Services Ltd. (“Royal Camp”).
- WFS room count at the end of the Quarter of 13,514 rooms grew by 77% from the Comparative Quarter due to the Royal Camp acquisition. WFS utilization of 56.5% leaves ample capacity for deployment of assets on prospective projects in the current robust bid and sales pipeline.
- Modular Space Solutions (“MSS”) generated rental revenue of $26.8 million for the Quarter, up 5% from the Comparative Quarter contributing to Adjusted EBITDA1 of $19.4 million, which is in line with the Comparative Quarter. MSS utilization remains within the optimal range at 77.7% and average monthly rate per unit increased by 3% from the Comparative Quarter on a constant currency basis.
- MSS value-added products and services (“VAPS”) revenue of $2.7 million for the Quarter was up 35% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 up 250 basis points from the Comparative Quarter to 10.8%.
- LodgeLink Total Trade Value1 of $32.7 million for the Quarter increased 52% from the Comparative Quarter, driving net revenue up 37% from the Comparative Quarter, to $3.7 million. Total Travel Segments sold in the Quarter of 154,979 increased 15% from the Comparative Quarter.
- Basic earnings per share (“EPS”) declined to $0.04 per share from the Comparative Quarter, as a result of increased shares outstanding, higher stock based compensation expense and moderated activity in the Company’s legacy WFS operations, partially offset by meaningful contributions from Royal Camp and stable performance from MSS.
- Net Debt1 of $330.7 million at the end of the Quarter was essentially unchanged since December 31, 2025. Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA1 of 2.1x remains at the low end of the Company’s target range of 2.0x to 3.0x while available liquidity was $93.3 million at the end of the Quarter.
- Subsequent to the end of the Quarter, the Company expanded its secured asset-based credit facility (the “ABL Facility”) to $550.0 million from $425.0 million with no material amendments to the attractive terms.
- Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.045 payable on or about July 15, 2026 to shareholders of record on June 30, 2026.
Outlook
Exiting the Quarter, Black Diamond is operating from a position of stability, supported by steady operating conditions, sustained supportive macro tailwinds in core end-markets and momentum across the core rental platform. Business performance within the current operating environment is within expectations and the Company’s diversified industrial services and rental platform is poised to deliver consistent near-term results with an accelerating growth cadence anticipated in the latter half of the year.
The MSS business continues to deliver compounding rental revenue growth driven by targeted fleet additions, modest average rental rate improvement and sustained utilization within the optimal range. While demand across most North American end-markets remains healthy, public sector funding uncertainty in the education vertical, particularly in the U.S., continues to contribute to variability in the sales and non‑rental revenue streams. The U.S. represents a meaningful growth opportunity, with an emerging emphasis on data centres and related infrastructure. In Canada, elevated construction and major infrastructure activity is translating into consistent customer demand and strength in this area of the business.
While the Quarter reflected modest softening of activity levels within the legacy WFS operations, this is viewed as transitory due to the significant increase in the WFS sales pipeline. The potential for major resource, infrastructure development and defense investment in Canada represents significant mid-to-long-term upside, and the current volume and diversity of projects within the bid pipeline reflects this evolving opportunity. Royal Camp is performing to expectations, underscoring the value of this recently acquired business. Canadian utilization has been relatively consistent, while significant room capacity exists and remains as a meaningful advantage for the platform as we move into a period of escalating customer demand. Australian activity continues to improve, while the U.S. sees ample opportunity for redeployment following a sizable contract coming to an end last year.
LodgeLink’s solid performance trends underscore that this innovative software-enabled service offering presents accretive potential for the Company, which is expected to further compound as the platform drives towards General Availability (GA) of its new 3.0 product that seamlessly automates the entire workforce travel workflow from project initiation to a targeted completion.
With strong liquidity and a leverage ratio at the low end of our target range, the Company has significant financial flexibility across all its capital allocation mechanisms, including fleet expansion, asset refurbishments, inorganic growth, debt repayment and return to shareholders through dividends or share repurchases. Management continues to believe that the highest returns are generated through organic reinvestment in the business and will maintain its disciplined approach to capital deployment, with the majority of growth capital for assets supported by long‑term take‑or‑pay contracts, in line with customer demand.
Looking ahead, the Company remains focused on scaling the platform, expanding its high‑margin, recurring rental revenue and driving long‑term value creation through disciplined execution. The current operating environment informs baseline confidence and the significant upside scenario underpins a positive outlook for continued performance throughout the year.
1Adjusted EBITDA, Total Trade Value and Net Debt are non-GAAP financial measures. VAPS as a % of Rental Revenue and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio.
First Quarter 2026 Financial Highlights
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2026 | 2025 | Change |
| Financial Highlights | $ | $ | % |
| Total revenue | 130.0 | 102.2 | 27% |
| Gross profit | 54.0 | 44.3 | 22% |
| Administrative expenses | 23.5 | 19.4 | 21% |
| Adjusted EBITDA(1) | 32.0 | 26.5 | 21% |
| Adjusted EBIT(1) | 14.4 | 14.1 | 2% |
| Funds from Operations(1) | 30.2 | 26.5 | 14% |
| Per share ($) | 0.44 | 0.43 | 2% |
| Profit before income taxes | 4.7 | 7.5 | (37)% |
| Profit | 2.7 | 5.8 | (53)% |
| Earnings per share – Basic ($) | 0.04 | 0.10 | (60)% |
| Earnings per share – Diluted ($) | 0.04 | 0.09 | (56)% |
| Capital expenditures | 16.8 | 17.2 | (2)% |
| Property and equipment | 770.0 | 581.9 | 32% |
| Total assets | 1,027.7 | 753.3 | 36% |
| Long-term debt | 348.5 | 229.3 | 52% |
| Cash and cash equivalents | 18.7 | 12.7 | 47% |
| Return on Assets (%)(1) | 15.2% | 17.4% | (220) bps |
| Free Cashflow(1) | 17.8 | 16.9 | 5% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio. | |||
Additional Information
A copy of the Company’s unaudited interim condensed consolidated financial statements for the three months ended March 31, 2026 and 2025 and related management’s discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is an industrial services and asset management company with two operating business units – MSS and WFS. We operate in Canada, the United States and Australia.
MSS through its principal brands, BOXX Modular, CLM and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS, through its principal brands Black Diamond Lodging and Accommodations, Royal Camp, Summit Camps and Primco Dene Royal Camp Services Limited Partnership, owns a large rental fleet of modular accommodation assets of various types and offers a full range of catering and hospitality services both in concert with and independent of the provision of modular accommodation facilities. WFS rents, sells, services and provides ancillary products and services including turn-key operated camps with premium integrated catering and hospitality services to a wide array of customers in the resource, infrastructure, construction, disaster recovery and education sectors.
In addition, the WFS business unit also includes the Corporation’s wholly owned subsidiary, LodgeLink, which operates through a proprietary software platform, offering sophisticated solutions for workforce travel and logistics across North America, Australia and the Asia-Pacific region, enabling customers to efficiently manage the full travel cycle through a rapidly growing network of hotels, remote lodges and travel partners. LodgeLink solves the unique challenges associated with workforce crew travel and is complemented by Spencer Group of Companies’ high-touch boutique corporate travel management service.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Emma Covenden at 403-718-5062 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, May 1, 2026. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-800-715-9871. International callers should use 1-647-932-3411. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/14652
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
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