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Highlights

  • BDT’s construction revenue increased by 27.3% to CAD 873.5 million in Q2 2024
  • Net income for Q2 2024 rose by 55.5% to CAD 21.3 million
  • The company’s board has declared dividends of CAD 0.0467 per common share

Bird Construction Inc (TSX: BDT) has a market cap of CAD 1.33bn. It is a construction firm. It provides services to all of Canada's major markets.

In Q2 2024, the company’s construction revenue rose by 27.3% to CAD 873.5 million compared to CAD 686.4 million in Q2 2023. This increase can be attributed to healthy industrial construction activity, a strong mining work program, and institutional building projects. The company's income from operations also saw a remarkable boost, climbing 64.9% to CAD 32.0 million, driven by a higher gross profit resulting from an improved project mix and margin profiles on newer work.

Moreover, the positive trend continued with income before income taxes reaching CAD 28.5 million, reflecting a 60.1% increase from CAD 17.8 million in the previous corresponding period. Net income for the period also demonstrated a substantial growth of 55.5%, amounting to CAD 21.3 million compared to CAD 13.7 million in pcp.

Recent Business Update

In Q2 FY24, the company had bagged five projects. These projects are valued at over CAD 625 million. These include an institutional project, long-term care projects, and mine infrastructure work in Eastern Canada.

Additionally, the company’s board has declared eligible dividends of CAD 0.0467 per common share for August, September, and October 2024.

Company Outlook

As per the company, a balanced risk profile and a diversified backlog with higher embedded margins offer strong visibility for revenue growth in 2024 and potential margin improvement. The combination of these higher margins and greater leverage on the company's cost structure is expected to lead to adjusted EBITDA and earnings per share growth that surpasses revenue growth in 2024.

Top 10 Shareholders:

BDT's top ten shareholders collectively own approximately 21.47% of the total shares. Maximum stakes are held by Canso Investment Counsel Ltd. at around 9.59% and Fidelity Investments Canada ULC at approximately 2.69%.

Price Performance

BDT's stock price has surged by approximately 5.45% over the past week and about 5.32% over the last month. Additionally, the stock is currently trading above the average of its 52-week high of CAD 27.30 and its 52-week low of CAD 9.95.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 30, 2024. The reference data in this report has been partly sourced from EODHD/Others.