Slides
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Q1 2025 Earnings Call Presentation Q1 2025 Earnings Call Presentation May 14, 2025 Bird Construction Inc. (TSX:BDT)
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Q1 2025 Earnings Call Presentation Disclaimer This presentation contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this presentation are based on the expectations, estimates and projections of management of Bird Construction Inc. (“Bird” or “The Company”) as of the date of this presentation unless otherwise stated. The use of any of the words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “outlook”, “potential”, “estimated”, “intend”, “consensus”, ‘future”, “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 Bird 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 presentation 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, unless so required by applicable securities laws. Terminology and non-GAAP & other financial measures Throughout this presentation, management uses certain terminology and financial measures 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 March 31, 2025, prepared as of May 14, 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 a term representing 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 disclosed in the Company’s most recent notes to the financial statements filed on SEDAR+. Additions to remaining performance obligations are also referred to by the Company as “Securements”. “Pending Backlog” is a supplementary financial measure representing the total potential revenue of awarded but not contracted projects including where the Company has been named preferred proponent, where a contract has not been executed and where the letter of intent or agreement received is non- binding. It may also include amounts for agency relationship construction management projects, pre-construction activities and estimated future work orders to be performed as part of multi-year MSA, maintenance, task order, and similar contractual arrangements. “Gross Profit Percentage” is a supplementary financial measure representing the percentage derived by dividing gross profit by construction revenue. “Adjusted Earnings” is a non-GAAP financial measure defined as IFRS net income excluding asset impairments, acquisition, integration and restructuring (as defined in accordance with IFRS) costs and the income tax effect of these costs. The composition of Adjusted Earnings was revised in 2024 to exclude amortization of acquired intangible assets, other than software. “Adjusted Earnings Per Share” is a non-GAAP financial ratio calculated by dividing Adjusted Earnings by the basic weighted average number of shares. “Adjusted EBITDA” is a non-GAAP financial measure representing earnings before taxes, interest, depreciation and amortization, finance and other costs, finance income, asset impairment charges, gain or loss on sale of property and equipment, restructuring and severance costs outside of normal course, and acquisition, integration and restructuring (as defined in accordance with IFRS) costs. “Adjusted EBITDA Margin” or “Adjusted EBITDA Percentage” is a non-GAAP financial ratio representing the percentage derived by dividing Adjusted EBITDA by construction revenue. “Current Ratio” is a supplementary financial measure representing the percentage derived by dividing total current assets by total current liabilities. “Adjusted Net Debt” is a non-GAAP financial measure defined as current and long-term loans and borrowings as disclosed in the Company’s statement of financial position, less accessible cash, as disclosed in the Company’s notes to the financial statements. Management uses this as a measure of financial leverage and is part of its assessment of the Company’s capital structure. At March 31, 2025, Adjusted Net Debt of $159,187 is calculated as: Loans and borrowings (non-current) $132,763 plus Current portion of loans and borrowings $56,341 minus Accessible cash $29,917. “Adjusted Net Debt to TTM Adjusted EBITDA” is a non-GAAP financial ratio calculated by dividing Adjusted Net Debt by the Company’s trailing twelve- month Adjusted EBITDA. Management uses this as a measure of financial leverage and is part of its assessment of the Company’s capital structure. “LT Loans & Borrowings to Equity” is a supplementary financial measure calculated as non-current loans and borrowings divided by total shareholders’ equity, as disclosed in the Company’s consolidated statement of financial position. "Free Cash Flow" or "FCF" is a non-GAAP financial measure defined as net cash from (used in) operating activities less additions to property and equipment and intangible assets, both as disclosed in the Company’s cash flow statement. Management uses this measure for of cash available to repay debt or pay dividends and interest to investors. At March 31, 2025, Free Cash Flow of $62,593 is calculated as: Net cash from (used in) operating activities of $95,359 minus Additions to property and equipment and intangible assets of $ 32,766. "Free Cash Flow per Share" or "FCF/Share" is a non-GAAP financial ratio calculated by dividing the non-GAAP measure FCF by the weighted average number of common shares as disclosed in the Company’s notes to the financial statements. "FCF Conversion of Net Income" is a non-GAAP financial ratio calculated by dividing the non-GAAP measure FCF by Net income disclosed on the Company’s consolidated statement of income. “Return on Equity” or “ROE” is a non-GAAP ratio measured as adjusted earnings during the one-year performance period as a percentage of opening total shareholders equity for the performance period, as defined in the Company’s Management Information Circular.
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. 2 2 Financial Highlights $688 $718 $- $500 2024 2025 $24 $34 3.5% 4.8% 0.0% 3.0% $- 2024 2025 $11 $13 $0.21 $0.23 $-$- 2024 202 4.0% y/y Revenue 40.9% y/y Adj. EBITDA1 & Adj. EBITDA Margin2 14.5% y/y Adj. Earnings1 & Adj. EPS2 • Continued Growth & Margin Expansion – Driven by diversification in high-demand sectors, industrial and infrastructure growth, and increased self-perform work. • Record Backlog & Pipeline – Built a highly collaborative, lower-risk backlog with $1.3B in securements in Q1, strong tailwinds driving future opportunities. • Financial Resilience – Maintained a healthy balance sheet, supported by strong operating cash flow and significant liquidity to support balanced capital allocation strategy. • Shareholder Value - Committed to dividend payout ratio of net income of 33% over the Company's 2025-2027 Strategic Plan period. Q1 2025 1. Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. Refer to the Disclaimer slides for more information on Terminology and Non-GAAP & Other Financial Measures. 2. Refer to the Disclaimer slides for more information on Terminology and Non-GAAP & Other Financial Measures. in millions of Canadian dollars 2024 2025 16.4% y/y Backlog $3,458 $4,328 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. Sustained EBITDA Momentum ▪ Q1 margin expansion driven by broad based margin improvements across all business units. ▪ Diverse, highly collaborative work program with >90% of projects in lower-risk delivery models. ▪ Robust pipeline of work on large capital projects, significant self- perform work, leveraging One Bird and continued focus on diversification fuel long-term outlook. ▪ Continued improvements in combined backlog margins when compared to Q1'25 and year end 2024. 3 $16 $24 $34 QUARTERLY Adj. EBITDA ($M) Q1 2025 Q1 2024 Q1 2023 $99 $147 $223 4.1% 5.0% 6.5%Q1 2025 Q1 2024 Q1 2023 TTM Adj. EBITDA ($M) 3.0% 3.5% 4.8% Margin growth trajectory supported by strategic mix in economically resilient sectors. +150 bps To achieve 8.0% target in 2027
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. Robust Backlog, Fueled by Accretive Margins and Multi-year Recurring Revenue MSAs, Supports Future Performance Visibility 44 BACKGROUND Backlog Characterizations $2,637 $3,448 $3,719 $3,458 $4,328 $1,590 $1,907 $3,039 $2,407 $3,056 $900 $1,100 $900 $1,000 $950 2022 2023 2024 Q1 2024 Q1 2025 Sustained, Diversified, and Risk-Balanced Highly collaborative Securements across our business units with growth in-line or above market growth Additional work packages on large capital investment projects Disciplined project selection Focus on accretive-margin sectors BACKLOG BREAKDOWN Expect Significant Conversions of Pending Backlog to Backlog in Q2 Scope Expansion on LCIPs and Projects Successfully Reaching Construction Phase Book to Bill Ratio1 180% Q1 Securements ~$1.3B 1. Book to Bill is a supplementary financial measure representing the ratio of total bookings in the period to total revenue forthe period. 2. 3 Year CAGR measured from 2021-2024 figures. ■ Recurring Revenue ■ Pending Backlog ■ Backlog Robust recurring revenue streams 18% CAGR2 in millions of Canadian dollars +21% y/y
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. 5 Well-positioned to Benefit from Significant Long-term Demand 1. All figures are estimated annual addressable market based on Bird’s market assessment. Strategic focus on economically resilient sectors supported by longer-term drivers, such as: defence spending; transportation infrastructure; power infrastructure, including nuclear and hydro generation and refurbishment; cogeneration; healthcare; long term care; industrial maintenance; and oil and gas. Infrastructure Buildings Industrial Rail ~$20B1 Airport ~$3B Roads & Structures ~$35B Mining ~$19B Commercial Systems & Utilities ~$20B Healthcare & Education ~$10B Critical Housing / LTC ~$13B Defence ~$2B Modular ~$5B Data Centres ~$15B Manufacturing ~$38B Nuclear ~$9B Clean Power Generation ~$3B Oil & Gas, Chemicals ~$49B Industrial Maintenance ~$10B Minerals Processing ~$18B $1.6B Announced May YTD: ▪ Defence ▪ Transportation infrastructure ▪ Nuclear ▪ Long-term care ▪ Industrial maintenanceHigh demand and substantial annual addressable markets across our businesses. Key Strategic Sectors
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. Woodfibre LNG Project Key construction subcontractor on $5.1B project for world’s first net-zero LNG export facility; notably, completed over $1B in work at the Kitimat LNG Project. Spotlight Projects Bruce and Darlington Nuclear Facilities Provider of site infrastructure and electrical capabilities at two of Canada’s largest clean- energy projects; Bruce Power’s $13B and OPG’s $12.8B investments will extend reactor lifespans, ensuring reliable, emissions-free power for decades. BHP Jansen Phase I Provider of large-scale industrial services, which reinforces Bird’s expertise in heavy civil and industrial construction and supports developing one of the world’s largest potash projects – total investment for Phase I and II to exceed $14B. Dow’s Fort Saskatchewan Path2Zero Project Provider of civil and concrete package for Dow’s $6.5B Path2Zero Project, world’s first net-zero petrochemical facility, involving a brownfield expansion and retrofit of its Fort Saskatchewan, Alberta manufacturing site. East Harbour Transit Hub (EHTH) Project Delivering critical transit infrastructure through 50/50 JV, the alliance team was recently awarded the project construction contract for EHTH which will deliver faster and more convenient transit for people across the Greater Toronto and Hamilton Area. Operational Excellence Driving Growth on Large Capital Investment Projects Background: client-driven investments ($1B+) split into multiple scopes with successive wins driving business-wide growth and target achievement. 6
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. 7 Q1 2025 Financial Highlights Three Months Ended March 31, 2025 Y/Y Change Revenue $717.6 4.3% Gross Profit $67.5 22.4% Adjusted EBITDA $34.1 40.9% Net Income $9.4 -6.0% Adjusted Earnings $12.9 14.5% Cash Flows from Operating Activities $(48.9) -63.0% 1. Refer to the Disclaimer slides for more information on Terminology and Non-GAAP & Other Financial Measures. Revenue growth, continued margin accretion and delivering earnings and operating cash flow improvements that significantly outpaced revenue growth. 9.4% of Revenue1 4.8% of Revenue1 $0.17EPS $0.23 Adj. EPS
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. 8 Strong Cash Flow Generator Solid, sustained financial foundation with flexibility for continued growth in millions of Canadian dollars $16 $45 $80 $51 $63 2022 2023 2024 Q1'24 TTM Q1'25 TTM Free Cash Flow2,3 1. 3-Year Compound Annual Growth Rate from 2021-2024. 2. Refer to the Disclaimer slides for more information on Terminology and Non-GAAP & Other Financial Measures. 3. Free Cash Flow is a non-GAAP financial measure. Cash Flows from Operating Activities $43 $76 $114 $83 $95 2022 2023 2024 Q1'24 TTM Q1'25 TTM 47% CAGR1 1.27 Current Ratio2 31% LT Loans & Borrowings to Equity2 0.71x Adj. Net Debt/ TTM Adj. EBITDA2 62.9% TTM FCF Conversion % of Net Income2 $1.13 TTM FCF/Share2 50% CAGR1 Expanding Free Cash Flow Generation Robust liquidity and capital efficiency metrics +14% q/q +24% q/q
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. Disciplined Capital Allocation Strategy Driving significant value creation through clear priorities, and opportunistic acquisitions that build shareholder value. 9 Uses of capital (2022-2024) Capital Expenditures1 ~$300M Internal Investments Acquisitions Dividends 215% increase to monthly dividend Smart capital investments to support further productivity and growth Completed 3 acquisitions - 2022-2024 34% 39% 27% $0.07 per month, per share Dividends 1. Capital expenditures (“Capex”) – Refer to the consolidated statement of cash flows – “Additions to property and equipment and intangible assets”. $21 $23 $30 $6 $12 $- $5 $10 $15 $20 $25 $30 2022 2023 2024 Q1'24 YTD Q1'25 YTD $28 $31 $34 $8 $7 $- $10 $20 $30 2022 2023 2024 Q1'24 YTD Q1'25 YTD in millions of Canadian Dollars in millions of Canadian Dollars
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Q1 2025 Earnings Call Presentation BIRD CONSTRUCTION INC. 10 Majority of 2025 revenue growth expected in 2H, lower growth expected to continue into Q2 2025. Record combined backlog, significant conversions of Pending Backlog to Backlog in Q2 expected. Earnings and Adjusted EBITDA growth in 2025 expected to outpace revenue growth for the year. Visibility and confidence supported by record combined backlog of primarily lower risk and collaborative contract structures, minimal exposure to fixed- price contracts, and our diversification in economically resilient market sectors. Growing in strategic key market sectors with longer-term demand drivers that are less-sensitive to near- term economic uncertainty and increasing scopes of work in targeted large capital investment projects. Continued y/y margin accretion driven by higher embedded margins in record combined backlog, revenue mix between the Company’s infrastructure, buildings and industrial businesses, and structural cost efficiencies. Outlook Committed to Our Strategic Plan – Bird’s strategic focus on diversifying its work programs geographically and across industrial, building and infrastructure markets, as well as the Company’s strategic focus on key sectors with long-term demand drivers, position Bird to manage current market uncertainty and continue to drive revenue and margin growth. Target long term dividend payout ratio of net income of 33% over 2025- 2027 Strategic Plan period. Solid foundation for growth - healthy balance sheet, strong operating cash flow generation and significant liquidity. Expect full year organic revenue growth in line with strategic targets, and continued margin accretion.
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Appendix
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Q1 2025 Earnings Call Presentation 12 Capital Markets Overview Share Price(1) $24.48 Dividend Yield ~3.4% Market Capitalization (1) ~$1.4B 52 Week Low / High(1) $17.52/$32.67 Shares Outstanding (1) 55,382,831 Firm Analyst Contact ATB Capital Chris Murray 647.776.8246 cmurray@atb.com BMO Capital Markets John Gibson 403.515.1527 johng.gibson@bmo.com Canaccord Genuity Yuri Lynk 514.844.3708 ylynk@cgf.com CIBC Capital Markets Krista Friesen 416.956.6807 krista.friesen@cibc.com National Bank Financial Maxim Sytchev 416.869.5617 maxim.sytchev@nbc.ca Raymond James Frederic Bastien 604.659.8232 frederic.bastien@raymondjames.ca Stifel GMP Ian Gillies 416.943.6108 ibgillies@stifel.com TD Securities Michael Tupholme 416.307.9389 michael.tupholme@tdsecurities.com Long-term Shareholder Value Organic and M&A Revenue Growth Strong Cash Flow, Balanced Capital Allocation Disciplined Risk and Financial Management Experienced & Dedicated Team Operating Safely Sustainable Margin Accretion (1)Figures as of close of market May 9, 2025.
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Q1 2025 Earnings Call Presentation Building on the foundation of operational excellence and safe execution, considerable growth and sustained momentum from the Company's 2022- 2024 Strategic Plan.
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Q1 2025 Earnings Call Presentation 14 2025-2027 Strategic Plan Targets DividendsRevenue Adj. EBITDA Organic revenue growth CAGR (with 2025 receiving an additional 5% growth from the full year of Jacob Bros. revenue, when compared to 2024) Dividend payout ratio of Net Income Adjusted EBITDA Margin for full- year 2027 10% +/- 2% 8.0% 33% Adj. EBITDA Margin Jacob Bros Margin Accretion Disciplined Capital Allocation Strategy Clear & Strategic Approach to M&A 1. 2024F is Bird Management estimate. $- $1,000 $2,000 $3,000 $4,000 $5,000 2024 2027F $4.6-$5.1B $3.4B ~$1.2- $1.7B 1 Jacob Bros (5%) Target Organic Growth (10%) +/- 2% Revenue 8.0% 6.3% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 2024 2027F ~170 1 bps 14
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Q1 2025 Earnings Call Presentation 15 Q1 2025 Earnings Call Presentation Bird Construction Inc. (TSX:BDT)