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Introduction & Market Context
Bird Construction Inc. (TSX:BDT) presented its second-quarter 2025 earnings results on August 14, 2025, highlighting continued margin expansion and record backlog despite modest revenue growth. The construction firm, which focuses on infrastructure, buildings, and industrial sectors across Canada, has been executing a strategic diversification plan aimed at enhancing profitability while maintaining a disciplined approach to project selection.
The company’s stock closed at $30.08 on August 13, 2025, down 0.79% ahead of the earnings presentation, but has shown strong performance over the past year with the stock trading significantly above its 52-week low of $17.52.
Quarterly Performance Highlights
Bird Construction reported Q2 2025 revenue of $850.8 million, representing a 2.6% year-over-year growth. More notably, the company achieved substantial margin improvements, with adjusted EBITDA reaching $54.9 million (6.5% of revenue), a 17.9% increase compared to the same period last year.
As shown in the following financial highlights chart:
Adjusted earnings increased to $27.6 million in Q2 2025 from $23 million in Q2 2024, resulting in adjusted earnings per share of $0.50, up 17.7% year-over-year. Net income for the quarter was $20.3 million ($0.37 per share), representing a 5.3% increase from the previous year.
A more detailed breakdown of the company’s financial performance reveals consistent improvement across key metrics for both the three-month and six-month periods:
Margin Expansion Strategy
Bird Construction’s margin expansion strategy appears to be gaining traction, with adjusted EBITDA margin increasing from 5.3% in Q2 2024 to 6.5% in Q2 2025. This continues a multi-year trend of margin improvement, as illustrated in the company’s EBITDA momentum chart:
The company attributes this margin expansion to its growing infrastructure business and diversification efforts. Management highlighted that over 90% of projects are now in lower-risk delivery models, with a robust pipeline of work on large capital projects and significant self-perform work. Bird Construction has set an ambitious target to achieve an 8.0% adjusted EBITDA margin by 2027.
Backlog and Future Growth Outlook
One of the most significant achievements highlighted in the presentation is Bird Construction’s record backlog of $4.64 billion as of Q2 2025, representing a substantial 36.3% increase from the same period last year. The company secured $1.2 billion in new contracts during the quarter and $2.5 billion year-to-date, resulting in a book-to-bill ratio of 137% for Q2 and 159% year-to-date.
The following chart illustrates the company’s backlog growth and composition:
Bird Construction is strategically targeting economically resilient sectors with long-term demand drivers, including infrastructure projects such as rail, airports, and mining; buildings projects in healthcare, defense, and data centers; and industrial projects in nuclear, clean power generation, and minerals processing.
Cash Flow and Capital Allocation
The presentation highlighted Bird Construction’s improving cash flow generation capabilities, with trailing twelve-month free cash flow reaching $55 million in Q2 2025, compared to negative $28 million in the same period last year. This represents a 50% compound annual growth rate in free cash flow.
The following chart demonstrates this trend:
The company maintains a disciplined capital allocation strategy, distributing its capital across acquisitions (39%), dividends (27%), and internal investments (34%) between 2022 and 2024. Bird Construction has increased its monthly dividend by 215% during this period, with a current dividend yield of approximately 2.9% and a target dividend payout ratio of 33% of net income.
Forward-Looking Statements
Looking ahead, Bird Construction anticipates positive revenue growth in the second half of 2025, though at a restrained pace until economic uncertainty resolves. The company’s record combined backlog, with its high proportion of collaborative contract structures and favorable margins, provides strong visibility for future growth.
Management acknowledged that economic uncertainty delays and a slower industrial maintenance work program may lead to a more measured margin progression than initially anticipated. However, the company remains confident in its ability to leverage nation-building initiatives, develop export markets, and capitalize on increased defense spending, healthcare demand, and power generation opportunities to support long-term growth.
Bird Construction reaffirmed its strategic targets for 2025-2027, including 10% (±2%) revenue organic growth CAGR and an adjusted EBITDA margin target of 8.0% by 2027. The company’s strong balance sheet, robust operating cash flow generation, and significant liquidity position it well to pursue both organic growth and strategic acquisitions in the coming years.
Full presentation:
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