- BDI.TO
- BDIMF
This article first appeared on GuruFocus.
Release Date: October 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue reached an all-time quarterly record of $159.9 million, up 52% year-over-year.
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Adjusted EBITDA increased 33% to $42.3 million, with adjusted EPS rising to $0.19 from $0.16.
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Record rental revenue of $48.9 million, up 18% from the comparative quarter.
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Dividend increased 22% to $0.055 per share, the sixth increase since reinstating the dividend in 2021.
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Strong bid pipeline in Canada with over $2.3 billion of formal bids outstanding, more than twice the capacity of the current fleet.
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LodgeLink achieved record total trade value of $51.5 million, up 44%, and net revenue increased 51% to $6.5 million.
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Free cash flow increased 47% to $33.8 million, and funds from operations grew 32% to $43.6 million.
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Net debt to trailing 12 months adjusted EBITDA was 2.4 times, within the target range of 2 to 3 times.
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Utilization in MSS remains healthy at 77.1%, with average monthly rental rates up 3% year-over-year.
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Value-added services revenue in MSS increased 25% to $3.5 million, representing 12.7% of rental revenue.
Negative Points
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Adjusted EBITDA margin declined to 26.5% from 30.2% in the comparative quarter, due to revenue mix and higher costs.
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Contracted future rental revenue decreased 4% to $152.3 million compared to the prior year.
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WFS utilization improved only modestly to 58% from 55% in Q2 2026, leaving significant spare capacity.
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MSS sales revenue declined 18% to $13 million due to permitting delays shifting project deployment timing.
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MSS adjusted EBITDA decreased 7% to $21.2 million, impacted by lower sales revenue and higher repair and maintenance costs.
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Average contract duration in MSS decreased to 44 weeks from the typical 50-week range, due to softer education vertical demand.
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Elevated repair and maintenance and transportation costs in MSS negatively impacted margins.
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LodgeLink’s new platform (LaunchLink 3.0) is not yet contributing to growth; rollout expected to accelerate in Q1 2027.
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Capital commitments increased to $49.7 million, up 26%, indicating rising capital expenditure requirements.
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WFS fleet expansion in Canada is not expected near-term, limiting growth potential from existing spare capacity.
Q & A Highlights
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