Bird Construction Reports Strong Q2 Results and Acquisition

Bird Construction Inc. Reports Strong Second Quarter Results for 2024

Bird Construction Inc. has announced impressive financial outcomes for the second quarter of 2024, showcasing robust growth in both revenue and adjusted EBITDA.

The company experienced a 27% rise in revenue, reaching $874 million, while adjusted EBITDA surged by 58% to $47 million. The recently acquired Jacob Bros is projected to contribute around $300 million in revenue and $37 million in adjusted EBITDA, supporting the firm’s margin growth and enhancing shareholder value.

With a diversified backlog that has reached a record $3.4 billion and a strategic focus on high-margin sectors, Bird Construction remains optimistic about its medium to long-term growth prospects, especially in the evolving energy transition market.

Key Highlights

• Revenue for Q2 increased by 27% to $874 million.
• Adjusted EBITDA grew by 58%, reaching $47 million.
• The Jacob Bros acquisition is anticipated to add approximately $300 million in revenue and $37 million in adjusted EBITDA.
• The company’s backlog stands at a record $3.4 billion, with over 75% of contracted work classified as collaborative.
• Bird Construction is poised for a positive medium to long-term outlook, primarily by focusing on higher-margin sectors.

Company Outlook

• Bird Construction expects combined revenue to approach $3.5 billion for the year, largely due to the recent acquisition.
• The company is set to host its 2024 Investor Day on October 9, where it will present its strategic plan for 2025-2027.
• Anticipated strong growth in earnings, revenue, and operating cash flows for the full year.

Additional Insights

Bearish Factors:

• General and administrative expenses were reported at $43.6 million, constituting 5% of revenue, which includes costs associated with the Jacob Bros acquisition.

Bullish Factors:

• The gross profit margin improved to 8.6%, up from 7.9% in the previous year.
• The Jacob Bros acquisition is expected to accelerate EBITDA margin growth.
• Bird Construction is strategically positioned in the energy transition sector.

Q&A Highlights

• Executives voiced confidence in ongoing demand for the company’s services and its ability to achieve operational efficiency.
• Strategic hires and specialized skill additions are being made to support growth.
• The company is advancing with a new enterprise resource planning (ERP) system, expected to enhance financial and operational oversight.
• Demand is increasing in sectors such as nuclear, LNG, and chemical production, particularly in the US.

Bird Construction is focused on leveraging its strategic acquisitions and specialized services to sustain growth. The company’s emphasis on technological investments and a diverse project portfolio positions it well to meet the rising demand in targeted sectors. Investors await the unveiling of the 2025-2027 strategic plan and financial projections during the upcoming Investor Day in October.