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1. Company Snapshot

1.a. Company Description

Badger Infrastructure Solutions Ltd.provides non-destructive excavating and related services in Canada and the United States.Its Badger Hydrovac technology uses a pressurized water stream to liquefy the soil cover, which is then removed with a vacuum system and deposited into a storage tank.


The company offers daylighting services for visual confirmation of buried lines, directional drilling test holes, sacrificial anode installation, pipeline and utility crossings, and subsurface utility engineering test holes applications; slot trenching services; and service repair pits for gas service tie-in, electric cable fault repair, water main and service repair, and telecom splice applications.It also provides pole and piling holes services for utility, traffic signal, and transmission pole holes, as well as light standard and sign post holes; pole removals; end-bearing, pilot holes for friction, and spread footing piles; and well monitor installations applications.In addition, the company offers debris removal services for frac tank clean-outs, road and box culvert clean-outs, pipe-rammed casing clean-outs, ballast and filter media removal, and inside structures and buildings material removal; pipeline excavation services for pipeline crossing and tie-in, hydro probing, utility conflict, and oil and fuel spill applications; and anode installation, emergency response, and potholing services, as well as designs, engineers, and supplies excavation shoring systems.


It serves the aggregate, construction, engineering, industrial, mining, oil and gas, power generation, transportation, and utility industries, as well as railway hydrovac services.As of December 31, 2021, it had a fleet of 1,371 Badger hydrovacs.The company was formerly known as Badger Daylighting Ltd.


and changed its name to Badger Infrastructure Solutions Ltd.in May 2021.Badger Infrastructure Solutions Ltd.


was founded in 1992 and is headquartered in Calgary, Canada.

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1.b. Last Insights on BDGI

Badger Infrastructure Solutions Ltd.'s recent performance was driven by solid growth in revenue and adjusted EBITDA, with a 9% year-over-year increase in full-year revenue. The company also reported a 29.5% gross profit margin improvement, indicating strong operational efficiency. Additionally, Badger announced a 4.2% dividend increase, demonstrating its commitment to returning value to shareholders. Strong institutional backing, with 61% ownership, further supports the company's financial stability.

1.c. Company Highlights

2. Badger Infrastructure Solutions Shines with Record Revenue and Margin Expansion

Badger Infrastructure Solutions reported a stellar third quarter of 2025, with revenue hitting a record $237.3 million, marking a 13% year-over-year increase. The company's adjusted EBITDA grew 15% to $66.9 million, resulting in an adjusted EBITDA margin of 28.2%, a 40-basis-point increase. The revenue per truck per month (RPT) was $47,921, an 8% rise from the previous year. Adjusted earnings per share came in at $0.91, a 25% increase compared to last year, exceeding analyst estimates of $0.75. The actual EPS was reported at $1.2.

Publication Date: Nov -29

📋 Highlights
  • Record Revenue and EBITDA Growth: Revenue hit $237.3M (+13% YoY), adjusted EBITDA reached $66.9M (+15% YoY) with a 28.2% margin.
  • Hydrovac Production Expansion: Red Deer plant delivered 57 hydrovacs (vs. 48 in Q3 2024), guiding full-year production to upper end of 180-210 range.
  • Fleet Efficiency and Growth: Fleet grew 5% to 1,703 units; RPT rose 8% to $47,921, outpacing revenue/fleet growth rates.
  • Debt Reduction and EPS Growth: Debt/EBITDA fell to 1.3x (from 1.5x), adjusted EPS surged 25% to $0.91.
  • Refurbishment Program Adjusted: 23 units refurbished YTD 2025 (vs. target), new in-house facility planned for 2026 to address delays.

Operational Highlights Drive Growth

The company's fleet utilization and pricing efforts were the key drivers behind the positive results. The Red Deer manufacturing plant delivered 57 hydrovacs in the quarter, up from 48 units in Q3 of last year. Badger updated its guidance for the full-year fleet plan, expecting 2025 hydrovac production to be at the upper end of the original 180 to 210 unit range. The company ended the quarter with 1,703 hydrovacs in its fleet, a 5% increase since Q3 of last year.

Favorable Market Conditions and Strategic Initiatives

Badger is benefiting from significant and sustained growth in infrastructure and construction spending in its major markets. The company is seeing growth in various sectors, including data centers, which account for around 6-8% of its direct work and 10-11% including ancillary support. The company's refurbishment program has seen success, with 5 units refurbished in the third quarter and 23 so far in 2025. Badger plans to develop its own refurbishment facility in the Central U.S. to better control the pace and cost of this program, expected to be online in 2026.

Valuation and Outlook

With a P/E Ratio of 31.48 and an EV/EBITDA of 12.67, the market is pricing in a certain level of growth for Badger Infrastructure Solutions. Analysts estimate next year's revenue growth at 9.4%. The company's commitment to disciplined execution of its strategy and delivering sustainable value for its shareholders is evident. As the company continues to benefit from favorable tailwinds, its capital spend is expected to increase to between $115 million and $130 million, driven by the growth in revenue and business volumes.

3. NewsRoom

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Badger Infrastructure Solutions initiated with an Outperform at National Bank

Nov -28

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TSX Value Picks Featuring Badger Infrastructure Solutions And Two More Stocks With Estimated Discounts

Nov -26

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Badger Infrastructure Solutions (TSE:BDGI) Has Announced A Dividend Of $0.1875

Nov -10

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Badger Infrastructure Delivers Another Quarter of Double Digit Growth in Revenue, Adjusted EBITDA and Adjusted Net Earnings

Nov -05

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Undervalued Small Caps With Insider Buying In Global October 2025

Oct -28

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Is Now The Time To Look At Buying Badger Infrastructure Solutions Ltd. (TSE:BDGI)?

Oct -24

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TSX Value Stocks Including Badger Infrastructure Solutions That May Be Trading At A Discount

Oct -10

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Badger Infrastructure Solutions Ltd. Confirms Release Date For Q3 2025 Results

Oct -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.90%)

6. Segments

Non-destructive Excavating Service

Expected Growth: 10%

Badger Infrastructure Solutions Ltd.'s non-destructive excavating service growth is driven by increasing demand for underground infrastructure projects, government investments in infrastructure development, and adoption of trenchless technologies. Additionally, the service's ability to reduce project timelines, costs, and environmental impact resonates with environmentally conscious clients, contributing to its 10% growth.

Other Service

Expected Growth: 8%

Badger Infrastructure Solutions Ltd.'s Other Service segment growth is driven by increasing demand for non-destructive excavation services, expansion into new markets, and strategic acquisitions. Additionally, government investments in infrastructure development and rising adoption of trenchless technologies are contributing to the segment's growth.

7. Detailed Products

Hydro Excavation

A non-destructive excavation method using high-pressure water to break up soil and vacuum to remove debris.

Daylighting

A process of exposing underground utilities by excavating a trench or pit to locate and identify subsurface infrastructure.

Vacuum Excavation

A safe and efficient method of excavating soil and debris using a vacuum system.

CCTV Inspection

A non-invasive method of inspecting underground pipes and sewers using closed-circuit television cameras.

Pipe Cleaning

A service that uses specialized equipment to clean and clear blockages in pipes and sewers.

Manhole Inspection

A thorough inspection of manholes to identify defects, damage, or other issues.

8. Badger Infrastructure Solutions Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Badger Infrastructure Solutions Ltd. is moderate due to the availability of alternative infrastructure solutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Badger Infrastructure Solutions Ltd.'s services, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Badger Infrastructure Solutions Ltd.'s large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the infrastructure solutions industry, and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive pricing environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.19%
Debt Cost 9.85%
Equity Weight 57.81%
Equity Cost 9.85%
WACC 9.85%
Leverage 72.97%

11. Quality Control: Badger Infrastructure Solutions Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Badger Infrastructure Solutions

A-Score: 5.6/10

Value: 2.8

Growth: 6.4

Quality: 5.3

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Aecon

A-Score: 5.4/10

Value: 6.8

Growth: 2.6

Quality: 4.7

Yield: 7.0

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Argan

A-Score: 5.3/10

Value: 1.2

Growth: 8.7

Quality: 7.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Bird Construction

A-Score: 5.3/10

Value: 5.2

Growth: 7.6

Quality: 4.7

Yield: 5.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Willdan

A-Score: 4.8/10

Value: 2.1

Growth: 7.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Limbach Holdings

A-Score: 4.2/10

Value: 1.7

Growth: 8.0

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.5$

Current Price

76.5$

Potential

-0.00%

Expected Cash-Flows