MISSISSAUGA, Ontario, March 12, 2025 (GLOBE NEWSWIRE) -- “Bird’s exceptional revenue and profitability growth in 2024, delivering almost $600 million of additional revenue while increasing our Adjusted EBITDA Margin by 1.3% to 6.3%, is the direct result of strategic changes we’ve made over the past several years to diversify our business, expand our capabilities and geographical reach, and risk-balance our work program with more collaborative contracting structures. These changes have created an economically resilient foundation that is prepared to achieve the Company's 2025-2027 growth and profitability targets," stated Teri McKibbon, President and CEO of Bird Construction. "Bird's focus on key Canadian market sectors, our dedicated and experienced One Bird team, and our collaborative client approach position the Company well to manage potential impacts from near-term economic and geopolitical uncertainty, and to continue to deliver long-term shareholder value."
FINANCIAL HIGHLIGHTS
Bird's fourth quarter results capped off a strong 2024 fiscal year that saw revenue grow by 21% over 2023, while achieving continued margin accretion and delivering earnings and operating cash flow improvements that significantly outpaced revenue growth. With these results, Bird has surpassed its 2022-2024 Strategic Plan targets, and in October 2024 the Company unveiled its 2025-2027 Strategic Plan and associated targets for future organic growth and profitability. During 2024, the Company continued to pursue accretive acquisitions that expanded its self-perform capabilities and further diversified the Company's operations across Canada with the addition of NorCan and Jacob Bros to the One Bird team. Bird enters 2025 with a strong balance sheet and record liquidity, and remains committed to a balanced capital allocation strategy that targets a dividend payout ratio of net income of 33%, while retaining approximately two-thirds of net income to support organic growth and strategic M&A, as well as capital investments in technology and equipment to support further productivity and growth.
Full-Year 2024 compared to Full-Year 2023
Construction revenue of $3,397.3 million was earned in 2024, compared to $2,798.8 million earned in 2023, representing a 21% increase year-over-year.
Net income and earnings per share for the year ended December 31, 2024 were $100.1 million and $1.84, compared to $71.5 million and $1.33 in 2023, representing increases of 40% and 38%, respectively.
Adjusted Earnings1,2 and Adjusted Earnings Per Share2 were $111.3 million and $2.04 for full-year 2024, compared to $77.3 million and $1.44 in the prior year, representing increases of 44% and 42%, respectively.
Adjusted EBITDA1 for full-year 2024 was $212.8 million, or 6.3% of revenues, compared to $138.7 million, or 5.0% of revenues in 2023, representing an increase of 53%. Adjusted EBITDA Margin for 2024 was impacted by $5.8 million additional share-based compensation costs driven by significant appreciation of Bird's common share price and total shareholder return during the quarter.
Fourth Quarter 2024 compared to Fourth Quarter 2023
Construction revenue of $936.7 million was earned in Q4 2024 compared to $792.1 million earned in the prior year quarter, representing an 18% increase year-over-year.
Net income and earnings per share were $32.5 million and $0.59 in Q4 2024, compared to $23.9 million and $0.44 in Q4 2023, representing increases of 36% and 32%, respectively.
Adjusted Earnings1,2 and Adjusted Earnings Per Share2 were $37.3 million and $0.67 in Q4 2024, compared to $24.9 million and $0.46 in Q4 2023, representing increases of 50% and 45%, respectively.
Adjusted EBITDA1 of $71.9 million, or 7.7% of revenues in Q4 2024, compared to $43.9 million, or 5.5% of revenues in Q4 2023, representing an increase of 64%. Adjusted EBITDA Margin for Q4 2024 was impacted by $2.9 million additional share-based compensation costs driven by significant appreciation of Bird's common share price and total shareholder return during the quarter.
Financial Results
(in thousands of Canadian dollars, except per share amounts)
Three months ended December 31,
Twelve months ended December 31,
2024
2023
2024
2023
Construction revenue
$
936,666
$
792,068
$
3,397,346
$
2,798,785
Net income
32,505
23,881
100,099
71,539
Basic and diluted earnings per share
0.59
0.44
1.84
1.33
Adjusted Earnings Per Share
0.67
0.46
2.04
1.44
Adjusted EBITDA1
71,942
43,868
212,793
138,749
Cash flows from operations before changes in non-cash working capital
$
77,503
$
47,553
$
228,501
$
144,407
(1) Adjusted EBITDA is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.”
HIGHLIGHTS
Bird continued to deliver significant revenue growth in the fourth quarter of 2024, with almost half of the 18% growth from organic sources. The remainder of revenue growth was driven by Jacob Bros, acquired on August 1, 2024, and NorCan, acquired on January 18, 2024.
The Company's margin profiles in the fourth quarter of 2024 continued to improve compared to the prior year, with Gross Profit Percentage increasing to 10.3% compared to 9.2%, and Adjusted EBITDA Margin increasing to 7.7% from 5.5%. On a full-year basis, Gross Profit Percentage was 9.7%, 110 basis points higher than in 2023, and Adjusted EBITDA Margin was 6.3%, 130 basis points higher than in the prior year.
Bird's Backlog was $3.7 billion at December 31, 2024, with $862.4 million of securements in the fourth quarter ($3.7 billion year-to-date). Pending Backlog, which is work awarded but not yet contracted, was $3.9 billion at year-end and continues to include almost $900 million of master service agreement (“MSA”) and other recurring revenue to be earned over the next six years.
At December 31, 2024, Bird had $177.4 million of cash and cash equivalents, with operating cash flows of $77.5 million in the fourth quarter before changes in non-cash working capital, a $30.0 million improvement over amounts generated in the prior year quarter. Seasonal unwinding of non-cash working capital balances in the quarter contributed and additional $60.3 million of operational cash flow.
In December 2024, Bird amended the terms of its Syndicated Credit Facility to increase amounts available under the committed revolving facility by $100 million, raising the overall facility limit to $400 million. Amounts available under this revolving facility totalled $377.3 million at year-end, and the Syndicated Credit Facility continues to include a $100 million uncommitted accordion feature allowing the Company to increase the capacity of the term or revolving facilities with approval of the lenders.
In December 2024, Bird paid a dividend of $0.07 per common share to shareholders on record at the end of November, reflecting the 50% dividend increase announced at the Company's Investor Day on October 9, 2024. With this dividend increase, the Company has increased its dividend in three consecutive years by a total of 215%, and continues to target a dividend payout ratio of 33% of net income for its 2025-2027 Strategic Plan period.
Subsequent to the quarter end, the Company announced that it was awarded the following projects and contracts:
Bird was awarded five projects with a combined value of approximately $470 million. These projects include Bird’s first project to be delivered through an Integrated Project Delivery (IPD) model in Atlantic Canada, two new buildings that support Ontario Power Generation’s nuclear program, civil infrastructure work with the Government of B.C., two significant multi-year agreements in the industrial maintenance sector, and a recreation centre redevelopment project in B.C.
Bird, as part of its 50/50 joint venture Rail Connect Partners, had finalized and signed a Project Alliance Agreement with Metrolinx to deliver the East Harbour Transit Hub, that will strengthen transit options for the City of Toronto. The project includes completion of the rail corridor and bridge widening over an important thoroughfare, and the commencement of the station works and associated infrastructure.
The Board has declared eligible dividends of $0.07 per common share for each of March 2025 and April 2025.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly results on Thursday, March 13, 2025 at 10:00 a.m. ET, to discuss the Company’s results. Analysts and investors may connect to the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=MeDaZA1R. They may also dial 1-844-763-8274 for audio only or to enter the question queue; attendees are asked to be on the line 10 minutes prior to the start of the call. The presentation can also be found on our website at https://www.bird.ca/investors.
The Company’s Financial Statements and Management’s Discussion & Analysis (“MD&A”) will be filed and available on the System for Electronic Document Analysis and Retrieval (“SEDAR+”) at www.sedarplus.ca and on the Company’s website at www.bird.ca.
TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES
Throughout this News Release, certain terminology and financial measures are used that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP financial ratios, and supplementary financial measures. These measures may not be comparable with similar measures presented by other companies. Further information on these financial measures can be found in the “Terminology and Non-GAAP & Other Financial Measures” section in Bird’s most recently filed Management’s Discussion & Analysis for the period ended December 31, 2024, prepared as of March 12, 2025. This document is available on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the Company’s website at www.bird.ca.
“Backlog” is the total value of all contracts awarded to the Company, less the total value of work completed on these contracts as of the date of the most recently completed quarter. The Company’s Backlog equates to the Company’s remaining performance obligations as at December 31, 2024 and December 31, 2023.
“Adjusted Earnings” and “Adjusted EBITDA” are non-GAAP financial measures. “Adjusted Earnings Per Share” and “Adjusted EBITDA Margin” are non-GAAP financial ratios. “Pending Backlog” is a supplementary financial measure. In 2024, the Company changed the composition of Adjusted Earnings to exclude the amortization of acquisition-related intangible assets, other than software. Examples of acquisition-related intangibles include customer relationships, brand names and backlog. Prior period amounts for Adjusted Earnings have been adjusted to align with the revised composition.
Adjusted Earnings and Adjusted EBITDA are reconciled as follows:
Adjusted Earnings:
Three months ended December 31,
Twelve months ended December 31,
(in thousands of Canadian dollars, except per share amounts)
2024
2023
2024
2023
Net income
$
32,505
$
23,881
$
100,099
$
71,539
Add: Acquisition and integration costs
861
561
5,332
2,132
Add: Impairment of assets
—
—
—
1,430
Add: Acquisition intangible amortization
5,531
774
9,532
4,042
Income tax effect of the above costs
(1,639
)
(347
)
(3,712
)
(1,859
)
Adjusted Earnings
$
37,258
$
24,869
$
111,251
$
77,284
Adjusted Earnings Per Share (1)
$
0.67
$
0.46
$
2.04
$
1.44
Notes:
(1) Calculated as Adjusted Earnings divided by basic weighted average shares outstanding.
Adjusted EBITDA:
Three months ended December 31,
Twelve months ended December 31,
(in thousands of Canadian dollars, except percentage amounts)
2024
2023
2024
2023
Net income
$
32,505
$
23,881
$
100,099
$
71,539
Add: Income tax expense
11,562
7,385
33,314
21,692
Add: Depreciation and amortization
22,755
10,404
62,902
36,137
Add: Finance and other costs
6,240
4,247
21,097
13,158
Less: Finance and other income
(1,965
)
(1,206
)
(7,949
)
(5,216
)
Add: (Gain)/loss on sale of property and equipment
(16
)
(1,404
)
(2,002
)
(2,123
)
Add: Acquisition and integration costs
861
561
5,332
2,132
Add: Impairment of assets
—
—
—
1,430
Adjusted EBITDA
$
71,942
$
43,868
$
212,793
$
138,749
Adjusted EBITDA Margin (1)
7.7
%
5.5
%
6.3
%
5.0
%
(1) Calculated as Adjusted EBITDA divided by revenue.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this news release are based on the expectations, estimates and projections of management of Bird as of the date of this news release unless otherwise stated. The use of any of the words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “outlook”, "potential", "estimated", “intends”, “continue”, “may”, “will”, “should”, "poised" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this MD&A contains forward-looking statements concerning: anticipated financial performance; the outlook for 2025; expectations for Adjusted EBITDA Margins in 2025 and beyond, including the Company's ability to further leverage its cost structure; expected dividend payout ratios; expectations with respect to anticipated revenue growth and seasonality, growth in earnings, cash flow, earnings per share and Adjusted EBITDA in 2025 and beyond, and margin improvements; the Company’s ability to capitalize on opportunities, and grow profitably; the Company's ability to successfully expand into target markets, their long-term demand, and their profitability; the Company's ability to successfully expand scopes of work in targeted LCIP's; the Company's ability to manage the impacts of tariff and non-tariff measures; future opportunities related to the acquisition of Jacob Bros; expectations regarding the Jacob Bros acquisition impact to Bird’s business, anticipated financial performance of Jacob Bros and its impact to the Company’s operations and financial performance, including the anticipated accretive value to Bird, the sufficiency of working capital and liquidity to support growth, contract security needs, and finance future capital expenditures; and with respect to Bird’s ability to convert Pending Backlog to Backlog and the timing of conversions.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which the Company operates in general such as: estimating costs and schedules/assessing contract risks, ability to hire and retain qualified and capable personnel, availability and performance of subcontractors, design risks, quality assurance and quality control, economy and cyclicality, competitive factors, maintaining safe work sites, ability to secure work, adjustments and cancellations of backlog, joint arrangement risk, acquisition and integration risk, accuracy of cost to complete estimates, completion and performance guarantees, information systems and cyber-security risk, climate change risks and opportunities, litigation/potential litigation, ethics and reputational risk, global pandemics, potential for non-payment, access to capital, access to surety support and other contract security, work stoppages, strikes and lockouts, compliance with environmental laws, insurance risk, and internal and disclosure controls.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of the parties, and the combined company are included in reports on file with applicable securities regulatory authorities, including but not limited to; Bird's Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2024, each of which may be accessed on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the Company’s website at www.bird.ca.
The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as, and to the extent required by applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
T.L. McKibbon, President & CEO or W.R. Gingrich, CFO Bird Construction Inc. 5700 Explorer Drive, Suite 400 Mississauga, ON L4W 0C6 Phone: (905) 602-4122
ABOUT BIRD CONSTRUCTION
Bird (TSX: BDT) is a leading Canadian construction and maintenance company operating from coast-to-coast-to-coast. Servicing all of Canada's major markets through a collaborative, safety-first approach, Bird provides a comprehensive range of construction services, self-perform capabilities, and innovative solutions to the industrial, buildings, and infrastructure markets. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders. www.bird.ca
1 Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. See “Terminology and Non-GAAP & Other Financial Measures.” 2 The Company's definition of the non-GAAP financial measure Adjusted Earnings was revised in 2024. Prior year amounts for Adjusted Earnings and Adjusted Earnings Per Share have been restated to align with the current year's definition. See "Terminology and Non-GAAP & Other Financial Measures." for additional information.
