Badger Announces Pricing of C$300 Million Senior Unsecured Notes

• Most Recent Event (May 7, 2026): Badger priced C$300 million in senior unsecured notes due 2031 at a 5.375% interest rate. Proceeds are designated to repay existing indebtedness under credit facilities and term facilities. Closing expected May 14, 2026.
• Q1 2026 Earnings (April 30, 2026): Reported revenue of $203.2 million (+18% YoY) and record Adjusted EBITDA of $38.1 million (+13% YoY). Management increased fleet growth guidance to the high end of 7-10% (270-310 new units).
• FY 2025 Results & Outlook (March 5, 2026): Full-year revenue $831.7 million (+12% YoY) and Adjusted EBITDA $198.2 million (+13% YoY). Capital expenditure guidance for 2026 set at $198-$230 million to support fleet expansion and new service lines.
• Q3 2025 Results (November 5, 2025): Revenue $237.3 million (+13% YoY) with Adjusted EBITDA of $66.8 million. Leverage ratio improved to 1.3x Debt/Compliance EBITDA at September 30, 2025.
• Transcript Context: Management confirmed "extraordinary demand" across end markets (power, water, data centers). Key risks identified include potential tariff costs ($18-$30 million) and execution risk on accelerated hiring and fleet build.

• Financing Execution: The C$300 million note issuance is a material capital structure move that validates the company's ability to fund its aggressive growth plan without equity dilution. It extends debt maturity (2031) compared to existing facilities, reducing near-term refinancing risk.
• Debt Servicing Capacity: With Adjusted EBITDA of ~$198 million for FY 2025 and Q1 2026 showing strong growth, the company has sufficient cash flow coverage for the new interest obligations (approx. $16M annual interest), keeping leverage within the stated target range of 1.0x-2.0x.
• Growth Validation: The financing directly supports the previously announced CapEx guidance ($198-$230 million). It confirms management's commitment to the fleet expansion strategy (7-10% growth) and new service line launches without compromising liquidity.
• Market Sentiment: While positive, this is largely priced in following the March and April earnings releases which outlined the capital needs. The lack of equity dilution is a key positive differentiator for shareholders compared to alternative financing methods.
• Risk Mitigation: Refinancing existing debt at 5.375% locks in rates for five years, protecting against potential interest rate volatility during the fleet build-out period.

• Company: Badger Infrastructure Solutions Ltd. provides non-destructive excavation services primarily using hydrovac trucks.
• Flagship Project: Fleet expansion program targeting 7-10% net growth in 2026, supported by vertical integration (own manufacturing) to control costs and supply chain.
• Service Lines: Core revenue comes from Non-Destructive Excavation ($194M in Q1 2026). New complementary lines include Industrial Cleaning and Trench Safety.
• End Markets: Power, Water, Data Centers, Transportation, and Reshoring projects showing "extraordinary demand."