Canada's Badger Infrastructure Solutions Q3 revenue beats estimates on pricing initiatives

Overview

• North America excavation services provider's Q3 revenue rose 21% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 grew 25% and beat analyst expectations

Outlook

• Company expects strong end-market growth and customer demand to continue into 2027

• Company expects 2026 fleet growth at high end of 7% to 10% range

• Company sees 2026 capital spend of $203 mln to $222 mln

Result Drivers

• FLEET INVESTMENT AND PRICING - Co said revenue and profit growth were supported by continued investment in its fleet and pricing initiatives

• VERTICALLY INTEGRATED MODEL - Co attributed margin improvement to its vertically integrated manufacturing and service model

• END MARKET DEMAND - Co said growth was aided by demand from utility and infrastructure network expansion and large projects

Company press release: ID:nNFC94d8pM

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Badger Infrastructure Solutions Ltd is C$114.00, about 35.7% above its November 4 closing price of C$84.01

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Nov 4 - Canada's North American Construction Q3 revenue rises; tightens FY outlook

• Nov 4 - Construction firm Tutor Perini's Q3 revenue beats estimates

• Nov 3 - Everus Construction Q3 revenue beats on data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)