Black Diamond Reports Second Quarter 2025 Results and Declares Dividend

Press Release

CALGARY, Alberta, Aug. 07, 2025 Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI, OTCQX:BDIMF), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three and six months ended June 30, 2025 (the “Quarter”) compared with the three and six months ended June 30, 2024 (the “Comparative Quarter”). All financial figures are expressed in Canadian dollars.

Key Highlights from the Quarter

• Consolidated rental revenue of $38.6 million increased 9% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue at the end of the Quarter was $152.6 million, up $13.0 million or 9% from the end of the Comparative Quarter.
• Profit for the Quarter of $9.2 million increased 23% from the Comparative Quarter. Basic earnings per share of $0.15 increased 25% from the Comparative Quarter.
• Consolidated Adjusted EBITDA¹ of $29.2 million was up 5% from the Comparative Quarter.
• Consolidated utilization for the Quarter was 76.7%, with Modular Space Solutions (“MSS”) at 81.2% and Workforce Solutions (“WFS”) at 63.4%, compared to 75.5%, 80.7% and 62.4%, respectively, in the Comparative Quarter.
• MSS generated record quarterly rental revenue of $26.4 million, an increase of 19% from $22.2 million in the Comparative Quarter, due to growth in average monthly rental rates and number of units on rent. Average monthly rental rate per unit of $881 increased 8% from the Comparative Quarter.
• WFS revenue of $46.7 million increased 6% from the Comparative Quarter. The increase was driven by higher lodge services and non-rental revenue that increased 32% and 11%, respectively.
• LodgeLink generated a strong second quarter with total room nights sold of 135,815, an increase of 5% from the Comparative Quarter, driving Gross Bookings¹ to $25.7 million, an increase of 5% from $24.4 million in the Comparative Quarter. Net revenue of $3.3 million increased 14% from the Comparative Quarter with Net Revenue Margin¹ of 12.8%.
• Capital expenditures were $32.5 million for the Quarter, down from $53.5 million in the Comparative Quarter, which included $20.5 million for the acquisition of a fleet of 329 space rental units in British Columbia. The majority of growth capital was allocated to contracted project specific fleet units.
• Net Debt¹ of $232.0 million as at June 30, 2025 was up 4% from December 31, 2024. Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA¹ of 1.9x is below the target of 2.0x to 3.0x, while available liquidity was $192.9 million at the end of the Quarter.
• Subsequent to the Quarter, on July 16, 2025, the Company completed a bought deal public offering of common shares for aggregate gross proceeds of $42.4 million, including the exercise in full of the over-allotment option granted to underwriters of $5.5 million.
• Subsequent to the Quarter, the Company declared a third quarter dividend of $0.035 payable on or about October 15, 2025 to shareholders of record on September 30, 2025.

Outlook

The Company’s outlook for the balance of the year remains stable, with increasing opportunities anticipated as we look into 2026 and beyond. Performance of the core rental business is strong with consolidated future contracted rental revenue of $152.6 million at the end of the Quarter, up 9% from the Comparative Quarter. Further, capital commitments of $27.5 million at the end of the Quarter signify the breadth of opportunities across the platform to continue investing shareholder capital and compounding growth.

Carrying momentum from the first quarter, MSS generated record rental revenue of $26.4 million, up 19% from the Comparative Quarter driven primarily by higher average monthly rental rates and increased assets on rent as a result of ongoing organic fleet investments. Continued normal course contract renewals are expected throughout the remainder of the year, resulting in moderate average monthly rental rate growth. Utilization of MSS remains steady as does the demand across key operating geographies and industry verticals, namely education and construction. Sales revenue increased 13% from the Comparative Quarter to $14.9 million. Although this revenue stream has a degree of variability, it generally correlates with economic activity in the countries in which the Company operates.

Performance of the WFS segment is primarily driven by the core rental business, which is a representation of both rental revenue and lodge services revenue. Combined, these revenue streams grew to $24.2 million, up by 9% from the Comparative Quarter with a robust increase of 32% in lodge services revenue offset by a modest decrease of 7% in rental revenue. Sales revenue of $7.0 million was down 10% from the Comparative Quarter and is indicative of the intentional pivot from right-sizing the fleet over the past several years to maintaining units in favor of expected rental opportunities on the horizon. This approach and trend is likely to continue through the balance of 2025. Consolidated WFS revenue increased by 6% to $46.7 million, showcasing a stabilization that is expected to continue through the second half of the year. Management then anticipates more meaningful growth in the mid-to-long-term correlating with major infrastructure opportunities in Canada from expedited nation building projects. This would be a catalyst for improved utilization and increased rental rates thereby leading to the prospective characteristics required for new capital investment in Canadian large format fleet assets.

LodgeLink produced a strong quarter with total room nights sold of 135,815, rising 5% from the Comparative Quarter. Gross Bookings¹ also increased 5% to $25.7 million driving net revenue up 14% to $3.3 million with a 90 basis point improvement in Net Revenue Margin¹ of 12.8%. The platform is already beginning to realize the positive effects of the ongoing technology transition and accelerated investment in product development that has further differentiated its value proposition within the large total addressable global workforce travel market. As the platform scales, with an expanding service offering, and the supplier and customer ecosystems compound, revenue growth is expected to accelerate from current levels. Subsequent to the Quarter, the Company closed a tuck-in acquisition of Spencer Group of Companies, a corporate travel management business headquartered in Australia, offering an opportunity for accelerated growth in the market.

Black Diamond is well positioned to fund continued organic and inorganic growth opportunities with available liquidity of $192.9 million, and Net Debt to TTM Adjusted Leverage EBITDA¹ of 1.9x at the end of the Quarter, which is slightly below the Company’s targeted range of 2.0x to 3.0x. Further, the recent successful completion of the bought deal public offering of common shares subsequent to the Quarter increases the previously stated liquidity by $42.4 million, providing ample flexibility for the Company to take advantage of organic and inorganic growth opportunities.

Management reaffirms that the Company’s diversified rental platform can continue to compound shareholder returns despite potential macro-economic uncertainty from ever-changing trade and tariff policies. As Black Diamond operates locally within its geographic regions, and does not typically move assets across borders, management does not expect any first-order tariff and trade-war related measures to have a material effect on the Company. While there have been no material effects to date, the Company continues to monitor the effects of tariffs on the macro-economic environment as it relates to its customer base.

Overall, the Company remains focused on driving profitable growth through its stable, recurring, high-margin rental revenue streams across all three operating countries. The second half of 2025 is expected to be steady, underpinned by anticipated strong secular tailwinds, and supported by healthy future contracted rental revenue, a growing fleet of long-lived assets and the continued scaling of LodgeLink. On a forward-looking basis, management is optimistic about the sizable growth opportunities expected over the coming years.

¹Adjusted EBITDA, Gross Bookings and Net Debt are non-GAAP financial measures. Net Revenue Margin 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.

Second Quarter 2025 Financial Highlights

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