Black Diamond Reports Strong Fourth Quarter and Year-End Results and Declares Dividend
Press Release
February 26 2026
CALGARY, Alberta,– Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months (the “Quarter”) and twelve months (“2025” or the “Year”) ended December 31, 2025 compared with the three months (the “Comparative Quarter”) and twelve months (“2024” or the “Prior Year”) ended December 31, 2024. All financial figures are expressed in Canadian dollars.
Key Highlights from 2025
- Consolidated revenue of $456.9 million and Adjusted EBITDA1 of $126.4 million increased 13% and 12%, respectively, from the Prior Year.
- Consolidated rental revenue of $162.2 million increased 10% from the Prior Year, showcasing continued, steady compounding growth of the core rental business.
- Profit of $34.8 million increased 35% from the Prior Year and basic earnings per share of $0.55 increased 31% from the Prior Year.
- The Company’s consolidated contracted future rental revenue remains robust at $149.3 million, despite being down 6% from the Prior Year.
- Total capital expenditures of $105.0 million were generally consistent with the Prior Year and the majority of capital allocated was for contract-backed assets and strategic growth initiatives contributing to the Company’s compounding consolidated rental revenue.
- Modular Space Solutions (“MSS”) generated record rental revenue of $107.0 million, up 14% from the Prior Year contributing to Adjusted EBITDA1 of $82.9 million, up 7% from the Prior Year. Utilization for the Year remains within the optimal range at 79.9% despite a decrease of 140 basis points from the Prior Year.
- Workforce Solutions (“WFS”) total revenue of $233.1 million increased 30% from the Prior Year, contributing to Adjusted EBITDA1 of $67.4 million, up 16%. Non-rental, lodge services, sales and rental revenue increased from the Prior Year by 52%, 56%, 14% and 5%, respectively, due to variable project activity and the Royal Camp Services Ltd. (“Royal Camp”) acquisition.
- LodgeLink continued to scale as Total Trade Value1 of $114.9 million increased 21% from the Prior Year, generating record net revenue of $14.2 million, up 25% from the Prior Year. Total Travel Segments sold increased by 8% from the Prior Year to 605,718.
- The Company’s top-decile safety performance strengthened with Total Recordable Injury Frequency (“TRIF”) improving to 0.47 from 0.99 the Prior Year and maintained Lost Time Case (“LTC”) of zero.
- On February 20, 2025 the Company expanded and extended its secured asset-based revolving credit facility (“ABL Facility”) to $425.0 million with maturity to 2030. Net Debt1 increased to $328.0 million at the end of the Year, while Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA1 of 2.0x remains at the low end of the Company’s target range of 2.0x to 3.0x. Available liquidity was $95.9 million at the end of the Year.
- On July 15, 2025, with an effective date of July 1, 2025, the Company closed a tuck-in acquisition of Spencer Group of Companies Pty Ltd. (“Spencer Group of Companies”), a corporate travel management business in Australia, accelerating operations in the Asia-Pacific region.
- On July 16, 2025, the Company completed a bought deal public offering of Common Shares for aggregate gross proceeds of $42.4 million, including the exercise in full of the over-allotment option granted to underwriters of $5.5 million.
- On November 12, 2025, the Company successfully closed the acquisition of Royal Camp for an aggregate purchase price of approximately $183.2 million, comprised of approximately $148.4 million in cash and 1,377,911 Common Shares, expanding its integrated workforce solutions offering across Canada.
- Since re-instating the dividend in 2021, the Company has increased the quarterly dividend five times, including in 2025 by 29%. The Company returned $8.7 million to shareholders in the form of dividends and repurchased an aggregate of $8.1 million of Common Shares.
Key Highlights from the Quarter
- Consolidated revenue of $144.0 million and Adjusted EBITDA1 of $38.9 million increased 9% and 5%, respectively, from the Comparative Quarter.
- Consolidated rental revenue of $44.5 million increased 16% from the Comparative Quarter.
- MSS rental revenue of $27.0 million increased 4% from the Comparative Quarter driven by the number of units on rent and a 3% increase in average monthly rental rate per unit to $900 from the Comparative Quarter.
- MSS value-added products and services (“VAPS”) revenue of $2.6 million was up substantially by 30% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 to 10.3%.
- WFS revenue of $90.3 million increased 51% from the Comparative Quarter, driven by increases in non-rental, lodge services and rental revenue of 122%, 108% and 39%, respectively, from the Comparative Quarter due to variable project activity and the Royal Camp acquisition.
- LodgeLink Total Trade Value1 of $32.0 million increased 47% from the Comparative Quarter, driving net revenue up 56% from the Comparative Quarter. Total Travel Segments sold of 151,047 increased 10% from the Comparative Quarter.
- Subsequent to the end of the Quarter, the Company declared a first quarter dividend of $0.045 payable on or about April 15, 2026 to shareholders of record on March 31, 2026.
Outlook
2025 was another strong year for Black Diamond, with the Company successfully executing its operational and growth strategies, closing two strategic acquisitions and ultimately generating a double-digit percentage increase in consolidated rental revenue showcasing the compounding characteristics of the core rental business. This foundation supports momentum entering 2026 with steady operating conditions and supportive macro tailwinds anticipated in core end-market verticals across North America and Australia. Correlating stable demand is expected across the platform in the first half of the year.
The MSS portfolio demonstrates inherent stability due to its diversified end markets and broad geographic coverage. Rental and VAPS revenue continue to increase, while utilization of the fleet remains within the optimal range. Over the coming months, incremental rental revenue growth is anticipated to be driven by fleet additions and average rental rate growth generally correlating with inflation. Project driven variability of the sales and non-rental revenue streams is expected to persist. Given changes in U.S. economic policy, and shifts in public sector funding, we are seeing a transition within the market with delays in the U.S. education sales pipeline, offset by increased demand related to onshoring and the build out of major infrastructure projects. Overall, the fundamentals of the business remain healthy, and current demand supports further disciplined capital allocation to expand the fleet in line with customer activity.
Recent strong performance of WFS highlights the somewhat episodic nature of this area of the business, given several one-time occurrences within the Quarter including rental revenue from an early contract-termination for a U.S. project and high sales revenue. In the near term, performance of WFS is expected to be steady, although the aforementioned contract termination will impact rental run rate and utilization in the region as assets are gradually redeployed on new projects. Revenue associated with elevated bid activity tied to major nation-building projects is not expected to materially affect results until late in 2026 and leading into 2027, given long lead times for these types of large-scale projects. Nonetheless, bidding activity has increased and we see significant catalysts on the horizon, which we are well-positioned to respond to with the combination of Black Diamond and Royal Camp fleet capacity, our integrated hospitality service offering and eminent Indigenous Partnerships.
Following last year’s accelerated investment in LodgeLink’s product development to enhance the platform and service-offering, this area of the business is poised for accelerating growth over the coming months. The total addressable workforce travel market is significant and the business is working to secure new customers, expand our wallet share of the current customer base and drive travel segment volumes, particularly in the U.S. and Asia-Pacific regions. As part of LodgeLink’s ongoing evolution, we’ll continue to advance software functionality to complement existing capabilities to provide customers increased efficiencies, further differentiating our offering in the market.
Our focus remains on growing high margin, recurring rental revenue, coupled with a broad menu of complementary products and services, while reinvesting generated free cash flow to scale the business and further compound shareholder returns. The potential for major resource and infrastructure development in Canada over the mid-to-long-term remains at the forefront and presents significant upside for the Company, with weighting towards the WFS segment given the magnitude of operating leverage yet to be unlocked. Within the current operating market, the Company is poised to continue delivering results with good visibility on consolidated contracted future rental revenue, an active and diverse sales pipeline, best-in-class operational excellence practices and ample financial flexibility to pursue continued organic and inorganic growth opportunities.
1Adjusted EBITDA, Total Trade Value and Net Debt are non-GAAP financial measures. Net Debt to TTM Adjusted Leverage EBITDA and VAPS as a % of Rental Revenue are non-GAAP ratios. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio.
Fourth Quarter 2025 Financial Highlights
| Three months ended December 31, |
Twelve months ended December 31, |
|||||
| ($ millions, except as noted) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Financial Highlights | $ | $ | % | $ | $ | % |
| Total revenue | 144.0 | 132.7 | 9% | 456.9 | 403.0 | 13% |
| Gross profit | 60.3 | 55.3 | 9% | 202.6 | 183.8 | 10% |
| Administrative expenses | 22.9 | 19.4 | 18% | 82.9 | 74.4 | 11% |
| Adjusted EBITDA(1) | 38.9 | 37.2 | 5% | 126.4 | 113.3 | 12% |
| Adjusted EBIT(1) | 23.1 | 22.6 | 2% | 73.8 | 64.3 | 15% |
| Funds from Operations(1) | 38.1 | 44.1 | (14)% | 127.4 | 124.6 | 2% |
| Per share ($) | 0.57 | 0.72 | (21)% | 2.00 | 2.04 | (2)% |
| Profit before income taxes | 14.8 | 16.2 | (9)% | 51.5 | 38.8 | 33% |
| Profit | 7.6 | 9.3 | (18)% | 34.8 | 25.7 | 35% |
| Earnings per share – Basic ($) | 0.11 | 0.16 | (31)% | 0.55 | 0.42 | 31% |
| Earnings per share – Diluted ($) | 0.11 | 0.15 | (27)% | 0.54 | 0.41 | 32% |
| Capital expenditures | 35.7 | 14.7 | 143% | 105.0 | 109.2 | (4)% |
| Property and equipment | 763.6 | 576.4 | 32% | 763.6 | 576.4 | 32% |
| Total assets | 1,021.5 | 748.6 | 36% | 1,021.5 | 748.6 | 36% |
| Long-term debt | 351.8 | 235.7 | 49% | 351.8 | 235.7 | 49% |
| Cash and cash equivalents | 24.7 | 13.3 | 86% | 24.7 | 13.3 | 86% |
| Return on Assets (%)(1) | 21.0% | 25.2% | (420) bps | 18.8% | 20.1% | (130) bps |
| Free Cashflow(1) | 28.9 | 32.7 | (12)% | 88.0 | 79.9 | 10% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio. | ||||||
Additional Information
A copy of the Company’s audited consolidated financial statements for the years ended December 31, 2025 and 2024 and related management’s discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is an industrial services and asset management company with two operating business units – MSS and WFS. We operate in Canada, the United States and Australia.
MSS through its principal brands, BOXX Modular, CLM and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS, through its principal brands Black Diamond Lodging and Accommodations, Royal Camp and Summit Camps and Primco Dene Royal Camp Services Limited Partnership, owns a large rental fleet of modular accommodation assets of various types and offers a full range of catering and hospitality services both in concert with and independent of the provision of modular accommodation facilities. WFS rents, sells, services and provides ancillary products and services including turn-key operated camps with premium integrated catering and hospitality services to a wide array of customers in the resource, infrastructure, construction, disaster recovery and education sectors.
In addition, the WFS business unit also includes the Corporation’s wholly owned subsidiary, LodgeLink, which operates through a proprietary software platform, offering sophisticated solutions for workforce travel and logistics across North America, Australia and the Asia-Pacific region, enabling customers to efficiently manage the full travel cycle through a rapidly growing network of hotels, remote lodges, and travel partners. LodgeLink solves the unique challenges associated with workforce crew travel and is complemented by Spencer Group of Companies’ high-touch boutique corporate travel management service.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Emma Covenden at 403-718-5062
or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, February 27, 2026. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-800-715-9871. International callers should use 1-647-932-3411. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/14593
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
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