Badger Infrastructure Solutions Ltd. Delivers Double Digit Growth in 2025 Second Quarter Revenue, Adjusted EBITDA and Adjusted Net Earnings

Executive Summary

• Badger Infrastructure Solutions Ltd. reported strong second-quarter 2025 financial results, with revenue increasing 11% year-over-year to $208.2 million and adjusted EBITDA rising 18% to $52.7 million.
• The company announced a quarterly cash dividend of CAD$0.1875 per common share for Q3 2025 and provided an outlook for 2025 capital spend between $95 million and $115 million.
• Operational highlights include a 33% increase in adjusted earnings per share to $0.60 and a 4% to 7% planned growth in the hydrovac fleet for 2025.

Key Details

• Q2 2025 Financial Performance:
  • Total Revenue: $208.2 million (up 11% from $186.8 million in Q2 2024).
  • Gross Profit Margin: 30.5% (up from 29.2% in Q2 2024).
  • Adjusted EBITDA: $52.7 million (up 18% from $44.6 million in Q2 2024).
  • Adjusted EBITDA Margin: 25.3% (up from 23.9% in Q2 2024).
  • Adjusted Net Earnings: $20.3 million (up from $15.5 million in Q2 2024).
  • Adjusted Earnings Per Share (Basic and Diluted): $0.60 (up 33% from $0.45 in Q2 2024).
  • Net Earnings: $18.5 million (up from $11.9 million in Q2 2024).
  • Net Earnings Per Share (Basic and Diluted): $0.55 (up from $0.35 in Q2 2024).
• Operational Metrics:
  • Revenue Per Truck (RPT): $41,867 (up from $40,837 in Q2 2024).
  • Hydrovac Truck Count: 1,682 units (up from 1,584 in Q2 2024).
  • Total Debt to Compliance EBITDA: 1.4x (down from 1.5x in Q2 2024).
  • Capital Expenditures: $29.6 million (down from $29.1 million in Q2 2024; note: table shows $29,626 for Q2 2025 vs $29,121 for Q2 2024).
• Shareholder Returns and Capital Management:
  • Dividend Declared: CAD$0.1875 per common share for Q3 2025, payable on or after October 15, 2025, to shareholders of record on September 30, 2025.
  • Share Repurchases (NCIB): Purchased 191,800 shares in Q2 2025 at a weighted average price of CAD $36.94 per share.
  • Year-to-Date Repurchases: Purchased 492,800 shares at a weighted average price of CAD $37.78 per share.
  • Cash paid to repurchase shares under NCIB: $5.0 million in Q2 2025.
• 2025 Business Outlook:
  • Planned Hydrovac Fleet Growth: 4% to 7%.
  • New Builds: 180 to 210 units.
  • Retirements: 90 to 130 units.
  • Refurbishments: 50 to 60 units.
  • Total Capital Spend: $95 million to $115 million.
  • Strategic Focus: Continued growth in the U.S., leveraging customer relationships, improving operating efficiency, and maintaining financial leverage capacity for organic growth.

Notable Quotes

• Rob Blackadar, President & Chief Executive Officer: “In the second quarter, we built on the strong momentum from Q1, delivering revenue growth of 11% to $208.2 million. Adjusted EBITDA increased 18% year-over-year, reflecting our continued attention on margin expansion and profitability. These results underscore the successful execution of our business strategies focused on supporting our customers' growing demand across our diverse range of end markets.”
• Rob Blackadar, President & Chief Executive Officer: “With the busy construction season well underway, we are maximizing revenue and fleet utilization through disciplined pricing and targeted sales efforts. Year-to-date, we’ve grown revenue by 9%, Adjusted EBITDA by 17%, and Adjusted net earnings per share by 32%. This performance is a testament to the strength of our field team's ability to deliver safe, efficient and reliable services. Badger remains well positioned as North America's leading provider of non-destructive excavation services, supporting long-term growth.”