Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 5 Sep, 25 | BDT | Buy | CAD 26.01 | CAD 27.3 | CAD 27.9 | 6 days | Closed |
7.46%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, building, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also involved in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, the company constructs and retrofits institutional facilities, include healthcare, long term care, post-secondary education, transportation, public safety and defence facilities, as well as K-12 schools, public spaces, and government buildings; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. Bird Construction Inc. was founded in 1920 and is based in Mississauga, Canada.
Adjusted Earnings Per Share (EPS): Rose 15% to CAD 0.50 in Q2 2025 from CAD 0.43 in Q2 2024
Adjusted EBITDA Growth: Increased 18% to CAD 54.9 million in Q2 2025 from CAD 46.6 million in Q2 2024
Net Income Decline: Fell 5.2% to CAD 20.3 million in Q2 2025 from CAD 21.4 million in Q2 2024
Revenue Decline: Decreased by 2.6% to CAD 850.8 million in Q2 2025 from CAD 873.5 million in Q2 2024
Persistent project delays and ongoing economic uncertainty could weigh on near-term revenue growth, despite Bird’s strong backlog and margin improvements
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 26.01 | 24.5 | 27.3 | 27.9 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Positioning and Outlook: Bird Construction reaffirmed its progress on the 2025–2027 Strategic Plan, emphasizing its focus on long-term demand-driven sectors and maintaining a risk-balanced portfolio. Despite temporary project delays caused by clients adjusting to shifting economic conditions, the company remains confident in future growth. Clients have already awarded Bird additional scopes of work, reinforcing confidence that delayed programs will proceed once cost and economic conditions stabilize. The management anticipates similar delays in the third quarter but highlights the company’s ability to capitalize on its record backlog of CAD 4.6 billion.
Margin Expansion and Operational Performance: The company delivered notable improvements in profitability during the second quarter of 2025. Gross Profit Percentage rose to 10.6% from 8.6% in the prior-year quarter, while Adjusted EBITDA Margin strengthened to 6.5% from 5.3%. Adjusted EBITDA increased 18% year-over-year to CAD 54.9 million, demonstrating Bird’s ability to enhance its margin profile despite a softer top line.
Revenue and Net Income Trends: Construction revenue for Q2 2025 was CAD 850.8 million, representing a 2.6% decline compared to CAD 873.5 million in Q2 2024. Net income also declined slightly to CAD 20.3 million from CAD 21.4 million in the prior-year quarter, resulting in earnings per share of CAD 0.37 versus CAD 0.40 in the same period last year. However, Adjusted Earnings improved to CAD 27.6 million compared to CAD 23.4 million in Q2 2024, reflecting an 18% increase and signaling resilience in core operating performance.
Year-to-Date Financial Highlights: For the first half of 2025, Bird reported construction revenue of CAD 1.57 billion, marginally higher than the CAD 1.56 billion recorded in the same period last year. Net income for the period declined to CAD 29.7 million from CAD 31.4 million, while Adjusted Earnings rose by 17% to CAD 40.5 million. Adjusted EBITDA increased significantly by 26% to CAD 89.0 million, or 5.7% of revenues, highlighting strong year-to-date operational efficiency.
Record Backlog and Securements: Bird’s backlog reached a historic CAD 4.6 billion at the end of Q2 2025, supported by almost CAD 1.2 billion in quarterly securements. Year-to-date securements totaled CAD 2.5 billion, approximately CAD 1.0 billion higher than the same period in 2024. The company’s pending backlog stood at CAD 3.8 billion, including over CAD 800 million of recurring master service agreements expected to generate revenue over the next five years, ensuring visibility and stability in future operations.
Cash Flow, Liquidity, and Project Awards: Operational cash flow before changes in working capital increased 14.8% year-over-year to CAD 54.5 million in Q2 2025. Liquidity remained strong, with CAD 142.6 million in cash and equivalents and CAD 231.7 million available under the Syndicated Credit Facility. During the quarter, Bird secured major contracts exceeding CAD 1.1 billion across infrastructure, industrial, and building projects, including residential housing, nuclear operations support, long-term care facilities, and significant infrastructure upgrades.
Dividend Declaration: The Board of Directors declared eligible dividends of CAD 0.07 per common share for each of August, September, and October 2025, reflecting the company’s continued commitment to shareholder returns despite near-term revenue headwinds.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Bird Construction Inc. (TSXC: BDT) at the closing market price of CAD 26.01, as on September 04, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Engineering & Construction
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BDT Bird Construction Inc. |
0.95 3.37% | 29.14 | 17.11 | 10.31 | 0.50 | 3.84 | 0.60 | 8.88 |
| WSP WSP Global Inc |
-0.73 0.30% | 244.72 | 44.38 | 24.94 | 2.02 | 4.26 | 2.31 | 19.16 |
| STN Stantec Inc |
-2.89 2.22% | 127.28 | 41.22 | 25.06 | 2.92 | 5.78 | 2.49 | 19.48 |
| ATRL AtkinsRealis Group Inc |
-1.23 1.42% | 85.09 | 6.99 | 25.19 | 1.64 | 3.19 | 1.62 | 4.97 |
| BDGI Badger Infrastructure Solutions Ltd |
-3.42 4.48% | 72.91 | 31.89 | 17.27 | 3.16 | 5.52 | 2.23 | 9.86 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 04,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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