Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 20 Nov, 25 | BDT | Buy | CAD 25.98 | CAD 27.3 | CAD 27.6 | 15 days | Closed |
6.31%
|
*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.
Improved Year-to-Date EBITDA Performance: Adjusted EBITDA for the nine months ended increased to CAD 155.9 million in 2025, up from CAD 140.9 million in 2024, representing an improvement in margin contribution from 5.7% to 6.2%, despite macroeconomic pressures
Revenue Growth Despite Delays: Construction revenue increased to CAD 951.4 million in Q3 2025, compared to CAD 898.9 million in Q3 2024, reflecting a 5.8% year-over-year increase, driven largely by organic project expansion
Lower Adjusted Operating Performance: Adjusted Earnings decreased to CAD 35.4 million in Q3 2025, compared to CAD 39.3 million in Q3 2024, accompanied by a reduction in Adjusted EBITDA margin from 7.8% to 7.0%, demonstrating pressure on margin performance during the period
Decline in Quarterly Profitability: Net income declined to CAD 31.7 million in Q3 2025 from CAD 36.2 million in Q3 2024, while earnings per share fell from CAD 0.66 to CAD 0.57, reflecting the impact of delayed project starts and revenue mix
Bird faces heightened risk from potential customer non-payment, particularly the unresolved credit exposure of over CAD 60 million, which could result in material impairment and adversely impact short-term financial performance
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 25.98 | 24.69 | 27.3 | 27.6 |
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.
Strong Backlog Growth and Market Demand: Bird Construction reported solid demand across its core end markets during the third quarter of 2025, securing over CAD 1.3 billion in additional contracted work. This achievement expanded the Company’s Backlog to more than CAD 5.0 billion, marking the highest level in its history. Complementing this momentum, the Company’s Pending Backlog also rose significantly, surpassing CAD 5.0 billion, supported by over CAD 1.2 billion in new collaborative awards and recurring maintenance program extensions.
Modest Revenue Growth Amid Economic Uncertainty: While demand remained healthy, macroeconomic uncertainty continued to affect near-term execution, with delays in the self-perform Industrial work program and slower starts to certain contracted projects. As a result, construction revenue grew by a modest 5.8% year-over-year to CAD 951.4 million in Q3 2025. Despite these headwinds, more than 60% of the growth was driven organically, underscoring the Company’s underlying operational resilience.
Earnings Moderated by Project Timing: Profitability was impacted by timing delays and revenue mix dynamics. Net income declined to CAD 31.7 million in Q3 2025 from CAD 36.2 million in Q3 2024, and earnings per share similarly decreased from CAD 0.66 to CAD 0.57. Adjusted earnings also softened to CAD 35.4 million, compared to CAD 39.3 million in the prior-year period, while Adjusted EBITDA declined to CAD 66.9 million, representing 7.0% of revenue versus 7.8% last year.
Healthy Cash Flow Generation and Strong Liquidity: Bird generated CAD 69.8 million in operating cash flow before changes in non-cash working capital during the quarter, reflective of disciplined execution. Seasonal working capital investments—linked to project ramp-ups and growth in self-perform work—are expected to reverse in the fourth quarter, consistent with historical patterns. The balance sheet remained robust, with CAD 113.9 million in cash and an additional CAD 281.7 million in available credit capacity, providing ample flexibility to support ongoing operational investments and acquisition opportunities.
Strategic Expansion Through Acquisition: In line with its strategy to broaden self-perform capabilities and diversify service offerings, Bird announced the acquisition of Fraser River Pile & Dredge for an estimated CAD 82.3 million. FRPD, Canada’s largest marine infrastructure and dredging company, brings a highly specialized construction portfolio, experienced workforce, and fleet assets that strategically position Bird for upcoming national infrastructure initiatives. The acquisition successfully closed on October 10, 2025.
Project Wins and Emerging Credit Risk: During the quarter, Bird was named the Preferred Proponent by Infrastructure Ontario for the Peel Memorial Hospital Phase 2 Redevelopment project, to be advanced through a collaborative contracting framework. However, the Company also disclosed emerging credit concerns related to a customer after quarter-end. Accounts receivable and contract assets associated with this customer totaled CAD 32.8 million and CAD 29.4 million, respectively, and the Company is currently assessing the potential need for impairment in Q4 2025.
Continued Shareholder Returns: The Board declared eligible dividends of CAD 0.07 per common share for November 2025 through February 2026, reinforcing management’s confidence in the Company’s long-term financial stability despite near-term economic uncertainty and project timing challenges.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Bird Construction Inc (TSX: BDT) at the closing market price of CAD 25.98, as on Nov 19, 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. |
0.69 2.25% | 31.36 | 17.59 | 11.42 | 0.48 | 3.62 | 0.58 | 8.78 |
| WSP WSP Global Inc |
-2.09 0.77% | 268.37 | 40.81 | 23.75 | 2.03 | 4.18 | 2.26 | 18.23 |
| ATRL AtkinsRealis Group Inc |
6.91 7.06% | 104.78 | 6.38 | 22.78 | 1.49 | 2.83 | 1.45 | 4.57 |
| STN Stantec Inc |
-3.18 2.30% | 134.85 | 32.83 | 23.04 | 2.51 | 4.87 | 2.26 | 16.95 |
| BDGI Badger Infrastructure Solutions Ltd |
0.38 0.52% | 74.13 | 32.34 | 22.83 | 3.43 | 6.79 | 2.78 | 12.15 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
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 as on November 20, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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.
Disclaimer :
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