Badger Infrastructure Delivers Another Quarter of Double Digit Growth in Revenue, Adjusted EBITDA and Adjusted Net Earnings

Core Insights - Badger Infrastructure Solutions Ltd. reported strong third-quarter results, with revenue growth of 13% year-over-year to $237.3 million and Adjusted EBITDA increasing by 15% to $66.8 million, indicating effective execution of business strategies and investments in fleet capacity [3][4][6]. Operational Highlights - The company experienced a 13% increase in revenue compared to the same quarter in 2024, with non-destructive excavation services contributing significantly to this growth [5][6]. - Year-to-date revenue growth stands at 11%, with Adjusted EBITDA up 16% and Adjusted net earnings per share rising by 40%, showcasing the effectiveness of the company's customer-centric service approach [4][6]. Financial Highlights - Total revenue for the third quarter was $237.3 million, up from $209.4 million in 2024, with a gross profit margin of 32.6% [5][6]. - Adjusted EBITDA for the quarter was $66.8 million, reflecting a 15% increase from $58.3 million in the previous year, with an Adjusted EBITDA margin of 28.2% [5][6]. - Adjusted net earnings per share reached $0.91, a 25% increase from $0.73 in 2024 [6]. Business Outlook - The company anticipates continued growth opportunities in various end markets, particularly in the U.S. and metropolitan areas, as the market recovers from previous uncertainties [10]. - Badger plans to increase its hydrovac production to meet rising demand, with expectations of producing between 180 to 210 units in 2025 [11]. - Capital expenditures for 2025 are projected to rise to between $115 million and $130 million, reflecting increased manufacturing and fleet expansion efforts [12][13]. Strategic Initiatives - The company has successfully converted its Denver franchise to a corporate branch, which is expected to enhance growth in that region [11]. - Badger is developing its own refurbishment facility in the central U.S. to improve control over refurbishment processes and costs, expected to be operational in 2026 [11]. Financial Management - As of September 30, 2025, the company's total debt to compliance EBITDA ratio improved to 1.3x, down from 1.5x a year earlier, indicating better financial leverage management [15]. - The company renewed its Normal Course Issuer Bid (NCIB) program, allowing for opportunistic share repurchases while continuing to return capital to shareholders through dividends [15].