Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 21 Apr, 26 | BDT | Buy | CAD 46.15 | CAD 49.1 | CAD 51.0 | 5 days | Closed |
6.39%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, building, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also involved in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, the company constructs and retrofits institutional facilities, include healthcare, long term care, post-secondary education, transportation, public safety and defence facilities, as well as K-12 schools, public spaces, and government buildings; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. Bird Construction Inc. was founded in 1920 and is based in Mississauga, Canada.
Higher Operating Cash Flow: CAD 230.2 Mn in FY25 vs CAD 228.5 Mn in FY24
Expansion in Gross Profit Margin: 10.5% in FY25 vs 9.7% in FY24
Lower Q4 Revenue: CAD 877.0 Mn in Q4FY25 vs CAD 936.7 Mn in Q4FY24
Decline in Net Income: CAD 47.4 Mn in FY25 vs CAD 100.1 Mn in FY24
The company’s performance remains exposed to project execution delays, customer credit risks, and cyclicality in large-scale infrastructure and energy investments
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 46.15 | 42.0 | 49.1 | 51.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Resilient Backlog Growth Supports Long-Term Visibility: Bird Construction delivered a strategically resilient performance in FY25, underpinned by strong demand across key sectors such as infrastructure, industrial, and energy. The company reported a record backlog of CAD 5.1 billion and a pending backlog exceeding CAD 6.0 billion, reflecting robust order inflows and multi-year contract wins. This elevated backlog, combined with improved embedded margins, provides strong forward visibility into revenue and earnings growth over the next few years.
Stable Revenue Amid Project Timing Delays: The company reported construction revenue of CAD 3,396.8 million in FY25, largely flat compared to CAD 3,397.3 million in FY24. This stability was achieved despite delays in the commencement of certain industrial projects, which impacted near-term revenue recognition. Growth in infrastructure activities, supported by mining programs and transit hub construction, partially offset these delays, highlighting diversified revenue streams.
Profitability Impacted by One-Time Charges: Net income declined significantly to CAD 47.4 million in FY25 from CAD 100.1 million in FY24, primarily due to a CAD 62.2 million impairment related to a customer receivable. This one-off charge materially impacted reported earnings, although underlying operations remained stable. On a quarterly basis, the company reported a net loss of CAD 14.0 million in Q4FY25 compared to a profit of CAD 32.5 million in Q4FY24, reflecting the same impairment impact.
Margin Expansion Reflects Operational Discipline: Despite earnings pressure, Bird demonstrated strong operational discipline with improvements in margin profile. Gross profit margin increased to 10.5% in FY25 from 9.7% in FY24, while adjusted EBITDA margin improved to 6.5% from 6.3%. This reflects disciplined project selection and a focus on higher-margin sectors, even as adjusted earnings slightly declined to CAD 107.7 million from CAD 111.3 million year-over-year.
Strategic Acquisition Enhances Capabilities: The acquisition of Fraser River Pile & Dredge (FRPD) for CAD 84.6 million strengthened Bird’s self-perform capabilities, particularly in marine infrastructure and foundation services. This strategic move enhances the company’s ability to participate in complex, large-scale infrastructure projects and improves vertical integration, positioning Bird for future nation-building initiatives and long-duration capital investments.
Strong Liquidity and Cash Flow Position: Bird maintained a robust liquidity position, ending FY25 with CAD 167.0 million in cash and access to CAD 399.5 million in credit facilities. Operating cash flow remained healthy, with CAD 230.2 million generated before working capital changes during the year. This financial strength provides flexibility for capital investments, acquisitions, and managing project-related working capital requirements.
Positive Outlook Driven by Infrastructure Investments: Looking ahead, Bird is well-positioned to benefit from Canada’s long-term infrastructure and energy investment cycle, including LNG, nuclear, and public infrastructure projects. Continued contract awards, including CAD 1.2 billion in Q4FY25, and strong bidding activity across sectors reinforce confidence in sustained growth and margin expansion over FY26–FY27.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Bird Construction Inc. (TSX: BDT) at the current market price of CAD 46.15, as on 21 April,2026 at 8:16 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Engineering & Construction
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BDT Bird Construction Inc. |
1.77 2.36% | 76.86 | 53.20 | 17.15 | 0.75 | 5.81 | 0.82 | 16.91 |
| WSP WSP Global Inc |
-0.94 0.53% | 177.23 | 31.04 | 20.12 | 1.69 | 3.15 | 1.87 | 14.51 |
| ATRL AtkinsRealis Group Inc |
0.81 0.91% | 89.65 | 5.80 | 23.58 | 1.34 | 2.76 | 1.38 | 4.43 |
| STN Stantec Inc |
-0.78 0.80% | 96.47 | 29.41 | 20.41 | 2.17 | 4.43 | 2.02 | 15.02 |
| ARE Aecon Group Inc. |
1.21 2.40% | 51.60 | 198.96 | 30.58 | 0.58 | 3.43 | 0.57 | 18.19 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 21, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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