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Canada's Black Diamond Q3 revenue up 52% on resource development, infrastructure demand

By Reuters News


Overview

  • Canada space rental and workforce accommodation firm's Q3 revenue rose 52%, beating analyst expectations

  • Adjusted EPS for Q3 rose 19% and beat analyst expectations

  • Company announced a 22% increase to its quarterly dividend after quarter end


Outlook

  • Company expects operating momentum to strengthen into 2027 with favourable demand in all geographies

  • Elevated activity in North America and Australia seen driving demand for workforce accommodations

  • Company sees continued growth opportunities in LodgeLink and stable rental revenue in Modular Space Solutions


Result Drivers

  • ROYAL CAMP CONTRIBUTION - Co said acquisition of Royal Camp drove growth in lodge services, rental and non-rental revenue within Workforce Solutions

  • LODGE LINK GROWTH - Co said record LodgeLink results were driven by increased customer acquisition and retention, with US market growth outpacing Canada

  • RESOURCE AND INFRASTRUCTURE DEMAND - Co said increased activity in resource development and infrastructure projects in western Canada and North America boosted demand for workforce accommodations


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

C$159.90 mln

C$144.77 mln (6 Analysts)

Q3 Adjusted EPS

Beat

C$0.19

C$0.17 (3 Analysts)

Q3 Adjusted EBITDA

Beat

C$42.30 mln

C$39.59 mln (6 Analysts)

Q3 FFO

C$43.60 mln

Q3 Adjusted EBIT

Beat

C$23.60 mln

C$17.56 mln (2 Analysts)

Q3 Basic EPS

C$0.16

Q3 Capex

C$26.80 mln

Q3 Gross Profit

C$65.60 mln

Q3 Pretax Profit

C$13.80 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

  • Wall Street's median 12-month price target for Black Diamond Group Ltd is C$22.50, about 14.4% above its October 29 closing price of C$19.66

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago


Reuters Recommended Reads

  • Oct 28 - Canadian oil firm Whitecap Resources' Q3 revenue rises on strong production, higher prices

  • Oct 28 - Canada's GFL Environmental Q3 revenue jumps 27% on acquisitions, lifts 2026 outlook

  • Oct 28 - Sterling Infrastructure Q3 revenue, profit more than doubles, driven by E-Infrastructure growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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