Bird Construction (TSE:BDT) executives said the company exited 2025 with a record backlog, improved margins and growing multi-year visibility, even as project timing shifts and deferrals muted near-term revenue in several markets. Management emphasized that demand in core sectors remains strong and that the work delayed in 2025 is “firmly embedded” in backlog, pending backlog and recurring revenue programs that extend beyond 2026.
Backlog hits record levels as demand remains resilient
President and CEO Teri McKibbon said Bird ended 2025 with more than CAD 11 billion in combined backlog, up 45% from 2024, with “accretive embedded margins.” She added that about 54% of backlog is expected to be recognized over the next 12 months.
Industrial maintenance was described as a key differentiator due to its recurring revenue profile. Bird said it has a record CAD 1.5 billion of recurring revenue contracts, with industrial maintenance and other recurring revenue expected to contribute over CAD 500 million per year, alongside conversion of pending backlog. McKibbon added that new MRO awards and MSAs secured in 2025 increased pending backlog to over CAD 1.5 billion, including a large award tied to the company’s NorCan acquisition.
2025 financial results: flat revenue, higher margins, Q4 impairment drives net loss
Chief Financial Officer Wayne Gingrich said full-year revenue was CAD 3.4 billion, essentially flat compared with 2024. Growth from a full-year contribution from Jacob Bros. Construction, the addition of FRPD, and organic infrastructure growth was offset by lower industrial and buildings revenue. Gingrich attributed the slower activity to factors including less favorable weather early in the year, maintenance work deferred into 2026, and client decisions that delayed project starts amid economic uncertainty.
Despite flat revenue, Bird reported improved profitability metrics. Full-year gross profit increased to CAD 356.9 million, and gross margin rose to 10.5% from 9.7% in 2024. Adjusted EBITDA increased to CAD 222.1 million from CAD 212.8 million, with an adjusted EBITDA margin of 6.5%. McKibbon noted the company expanded adjusted EBITDA margins by 200 basis points from 2022 to 2024 and said Bird remained confident it can achieve its remaining margin improvement toward its strategic plan target.
Fourth-quarter results reflected both margin strength and a major non-recurring item. Q4 revenue was CAD 877 million, down year-over-year due to project timing delays. Gross profit margin in the quarter was 11.1%, up about one percentage point from 2024, supported by a higher mix of infrastructure work and disciplined execution. Adjusted EBITDA in Q4 was CAD 66.2 million versus CAD 71.9 million a year earlier, with an adjusted EBITDA margin of 7.5% compared with 7.7%.
Bird posted a net loss of CAD 14 million in Q4, compared with net income of CAD 32.5 million in the prior-year period, driven primarily by a CAD 62.2 million impairment on accounts receivable and contract assets related to creditworthiness concerns for a single customer that management said had been previously disclosed. Gingrich said the project for that customer is substantially complete and no further costs are expected. The impairment was partially offset by a CAD 7.6 million bargain purchase gain tied to the FRPD acquisition. Adjusted earnings, which excluded both items, were CAD 31.8 million (CAD 0.57 per share) versus CAD 37.3 million (CAD 0.67 per share) a year earlier.
Management said Bird took a conservative approach to the impairment. In response to analyst questions, Gingrich said the company took a full impairment and is not carrying a recovery on the books, though it intends to pursue recovery through normal processes and expects any potential recovery to take time.
Cash flow and balance sheet position
Gingrich said operating cash flow in Q4 was CAD 192.6 million, up CAD 55 million year-over-year, and would have been “materially higher” absent the one-time impairment. For the full year, operating cash flow was CAD 113.1 million, and free cash flow totaled CAD 71.8 million (CAD 1.30 per share).
Bird ended the year with what management described as a strong balance sheet, including CAD 167 million of cash and cash equivalents and CAD 399 million available under its syndicated credit facility. Gingrich reported adjusted net debt to adjusted EBITDA of 0.22x and a current ratio of 1.26. He said liquidity supports working capital needs, project-driven capital expenditures and potential acquisitions.
On capital allocation, Gingrich reiterated priorities including investment in equipment, technology and execution capabilities, disciplined tuck-in M&A, and returning capital to shareholders through a monthly dividend, with a long-term payout ratio target of 33% of net income (noting the ratio can fluctuate year-to-year).
2026 outlook: ramp expected from Q2, double-digit growth forecast
On the outlook, management said 2026 is expected to begin with a softer first quarter, followed by a ramp later in the second quarter and “very robust growth” in the second half. In Q&A, Bird said it expects double-digit revenue growth in 2026 and indicated growth could reach the low teens depending on how certain sectors develop. The company also said its book-to-bill ratio was consistently above one, reaching 1.4x in 2025.
Management reaffirmed its expectations for 2027 revenue within the range presented at its October 2024 investor day, citing CAD 4.6 billion to CAD 5.1 billion (midpoint CAD 4.85 billion). Executives also said embedded margins in combined backlog are higher than a year ago, supporting continued margin improvement through 2026 and 2027 toward the company’s 2027 adjusted EBITDA margin target of 8%.
Sector commentary: maintenance, FRPD, nuclear, data centers and digital tools
Bird offered additional color on several end markets during Q&A:
- Oil sands maintenance/turnarounds: Management said it is “highly confident” in 2026 fall turnaround programs, noting regulatory compliance requirements and indicating it does not expect additional deferrals.
- FRPD acquisition: McKibbon called the deal unusually timely, pointing to opportunities tied to port expansions, marine work capacity constraints in Canada, and potential mining-related dredging work. She also referenced Bird being on one of three qualified teams for the Roberts Bank terminal opportunity and mentioned a dredging contract with the Vancouver Fraser Port Authority starting in July.
- Nuclear: Management said nuclear represents about 10% of current revenue and expects that exposure to grow over time. Executives cited ongoing programs with Bruce and OPG, including building five facilities at the Pickering Nuclear site, and said Bird has obtained certifications and licenses that enable broader participation, though it did not disclose nuclear backlog figures due to client confidentiality. Management also said it is not actively pursuing nuclear-focused M&A due to limited scale opportunities in Canada.
- Data centers: Bird said it is tracking more than CAD 20 billion in data center opportunities and described the market as approaching a “tipping point” in Canada after years of planning. Management highlighted its electrical workforce as a key differentiator, noting that electrical scope is often the critical path and that Bird can deliver end-to-end capabilities.
- Technology and execution: Bird said it completed a major ERP rollout in 2025 and is advancing predictive analytics tools to identify project risks earlier, improve planning and productivity, and enhance safety. McKibbon said these tools can flag issues earlier in the project lifecycle and support proactive decision-making.
In closing remarks, management said Bird enters 2026 with greater visibility and a significant multi-year opportunity set, while emphasizing continued focus on safety, people and disciplined execution.
About Bird Construction (TSE:BDT)
Bird Construction Inc operates as a general contractor in the Canadian construction market. The company focuses primarily on projects in the industrial, commercial and institutional sectors of the general contracting industry. It provides construction services such as new construction for industrial, commercial, and institutional markets; industrial maintenance, repair and operations (MRO) services, heavy civil construction and contract surface mining; as well as vertical infrastructure including, electrical, mechanical, and specialty trades.
