Bird Announces 2025 Second Quarter Results; Delivers Strong Margin Accretion and Record Backlog

Executive Summary

• Bird Construction reported its financial results for the second quarter and first half of 2025, highlighting improved margin profiles despite temporary project delays caused by market uncertainty.
• The company secured nearly $1.2 billion in new work during Q2, bringing its total record backlog to $4.6 billion, with an additional $3.8 billion in pending backlog.
• Adjusted EBITDA increased significantly year-over-year, rising 18% in Q2 and 26% year-to-date, driven by better gross profit percentages and operational efficiency.

Key Details

• Q2 2025 Financial Performance (vs Q2 2024):
  • Construction Revenue: $850.8 million (down 2.6% from $873.5 million).
  • Net Income: $20.3 million (down from $21.4 million).
  • Adjusted Earnings: $27.6 million (up 18% from $23.4 million).
  • Adjusted EBITDA: $54.9 million (up 18% from $46.6 million).
  • Adjusted EBITDA Margin: 6.5% (up from 5.3%).
  • Gross Profit Percentage: 10.6% (up from 8.6%).
  • Adjusted EPS: $0.50 (up 15% from $0.43).
• Year-to-Date 2025 Performance (vs YTD 2024):
  • Construction Revenue: $1,568.3 million (up from $1,561.7 million).
  • Net Income: $29.7 million (down from $31.4 million).
  • Adjusted Earnings: $40.5 million (up 17% from $34.7 million).
  • Adjusted EBITDA: $89.0 million (up 26% from $70.7 million).
  • Adjusted EBITDA Margin: 5.7% (up from 4.5%).
  • Adjusted EPS: $0.73 (up 13% from $0.64).
• Backlog and Securitization:
  • Q2 Securements: Nearly $1.2 billion added, including new awards and conversions of pending backlog.
  • Total Backlog: Reached a record $4.6 billion at quarter-end.
  • Pending Backlog: $3.8 billion at quarter-end, including over $800 million in master service agreements (MSA) and recurring revenue.
  • YTD Securements: $2.5 billion, which is approximately $1.0 billion higher than the prior year.
• Operational Metrics:
  • Operational Cash Flow (Q2): $54.5 million before changes in non-cash working capital (up 14.8% from Q2 2024).
  • Liquidity Position: $142.6 million in cash and cash equivalents, plus $231.7 million available under the Syndicated Credit Facility.
• New Project Awards (Q2 2025):
  • Five projects totaling over $650 million, including:
    • Design and construction of 200 residential housing units for Defence Construction Canada in Ontario.
    • Multi-phase expansion and renovation of a long-term care facility in British Columbia.
    • Additional awards with Ontario Power Generation for nuclear operations.
    • Expanded scope on Dow's Path2Zero project in Alberta.
    • Contract extension for early site development on the Woodfibre LNG project in British Columbia.
  • Three projects totaling over $525 million, including:
    • Transportation Safety and Technology Science (TSTS) Hub in Ottawa, Ontario.
    • Beverly Heights Seniors Housing project in Edmonton, Alberta.
    • 4-year program to upgrade mining infrastructure with an existing client.
• Dividends:
  • Board declared eligible dividends of $0.07 per common share for August, September, and October 2025.

Notable Quotes

• “Bird continues to execute on its 2025-2027 Strategic Plan, focusing on sectors that have long-term demand drivers, and maintaining a risk balanced and highly collaborative work program that will drive growth and continued margin accretion.” — Teri McKibbon, President and CEO
• “While Bird’s third quarter is expected to be impacted by similar delays, the Company is well positioned to capitalize on our record $4.6 billion Backlog once near-term market uncertainty resolves.” — Teri McKibbon, President and CEO