Bird Construction (TSE:BDT) reported higher first-quarter revenue and adjusted earnings as management said a record backlog and new strategic partnerships are improving visibility into growth through 2027.
On the company’s first-quarter 2026 conference call, President and Chief Executive Officer Teri McKibbon said Bird is benefiting from long-cycle investment programs across Canada, including defense, nuclear and renewable energy, oil and gas, LNG, healthcare, education, land and marine infrastructure, mining, community development and data centers.
“Bird delivered a solid start in 2026 with strong revenue growth, stable margins, and improved year-over-year adjusted earnings,” McKibbon said. He added that the company still expects revenue growth and margin accretion to accelerate in the second quarter and second half of the year.
Revenue rises as backlog reaches record level
Chief Financial Officer Wayne Gingrich said construction revenue was CAD 783.4 million in the quarter, up 9.2% from the prior year. Gross profit was CAD 72.3 million, representing a gross margin of 9.2%, compared with 9.4% in the prior-year quarter.
Adjusted EBITDA was CAD 37.1 million, up from CAD 34.1 million a year earlier, while adjusted EBITDA margin was 4.7%, compared with 4.8%. Net income was CAD 11.4 million, or CAD 0.21 per share. Adjusted earnings were CAD 13.9 million, or CAD 0.25 per share.
Management said buildings delivered strong organic growth, infrastructure grew through both organic activity and the contribution from FRPD, and industrial revenue was modestly lower as expected ahead of an anticipated ramp-up later in the year.
Bird ended the quarter with CAD 195 million in cash and cash equivalents and CAD 341.5 million available under its syndicated credit facility. Gingrich said trailing 12-month free cash flow conversion was approximately 259% of net income, with CAD 2.31 of free cash flow per share. The company reported 12-month adjusted return on equity of 25% and net debt to adjusted EBITDA of 1.01 times.
The company secured and converted CAD 1.1 billion of backlog during the quarter. Contracted backlog reached a record CAD 5.4 billion, up 23.8% year-over-year. Pending backlog totaled CAD 5.6 billion, including about CAD 1.5 billion of master service agreement and other recurring revenue expected to be earned over the next five years through industrial maintenance and environmental remediation operations.
Bell AI Fabric partnership adds data center pipeline
A major focus of the call was Bird’s newly announced long-term strategic partnership with Bell AI Fabric, Bell Canada’s national AI infrastructure platform. McKibbon said the agreement establishes a framework for Bird and Bell to collaborate on future AI data center projects.
The first project under the partnership is a 300-megawatt data center in the rural municipality of Sherwood, Saskatchewan, which McKibbon said will be Canada’s largest purpose-built AI data center. The first phase is expected to come online in the first half of 2027. Bird has been selected as lead construction manager for the facility.
McKibbon said Bird had been working on the project for nearly two months and expected to mobilize quickly. Site development is already contracted and underway, while Bird is preparing for various aspects of the job and evaluating ways to accelerate the project, including modularization.
During the question-and-answer session, McKibbon said the strategic plan developed in 2024 included data centers, but only as a smaller revenue target because the AI data center market was still in earlier stages. He described the Bell AI Fabric partnership as “transformational” for the company, while noting that management was not yet providing specific guidance tied to the opportunity.
Bird will grant Bell warrants to acquire common shares tied to delivery milestones. McKibbon said the company will issue 2.625 million warrants, with the first 750,000 vesting as the Saskatchewan project comes online. Future tranches will vest with additional projects awarded to Bird over a five-year period, and the warrants have a seven-year life.
Gingrich said the Sherwood project was not reflected in Bird’s first-quarter combined backlog and is expected to be reflected in the second quarter, likely in booked backlog in full, though the company is still working through the mechanics with Bell.
Marten Falls partnership targets Ring of Fire infrastructure
Bird also discussed its majority Indigenous-owned strategic partnership with Marten Falls First Nation through Piinahzii LP. McKibbon said the partnership is focused on collaborative delivery of community infrastructure, with initial opportunities including local airport improvements, a solar facility with battery storage and a training center.
Marten Falls’ traditional territory includes large areas within Northern Ontario’s Ring of Fire region, which McKibbon described as a significant priority under Canada’s critical minerals strategy. He said development in the region has historically been constrained by the absence of permanent all-season infrastructure, including access roads to remote First Nation communities and potential industrial sites.
McKibbon said Bird expects progress over the next three to six months on planning and design for access roads within Marten Falls First Nation, with construction anticipated to begin in 2027. He said additional enabling infrastructure, including transmission, telecommunications and digital networks, will also be required over time.
Management reaffirms 2027 targets
Bird reaffirmed its 2027 strategic plan objectives, including an 8% adjusted EBITDA margin. Gingrich said the company remains committed to its previously announced 2027 revenue range of CAD 4.6 billion to CAD 5.1 billion, with a midpoint of CAD 4.8 billion.
In response to a question from ATB Cormark analyst Chris Murray, Gingrich said Bird’s CAD 11 billion of combined backlog provides strong visibility, and that the Ring of Fire and Bell AI Fabric opportunities contribute very little to that total so far. He said less than CAD 100 million of the combined backlog relates to the two newly announced opportunities.
McKibbon said Bird has organized its business around specialized vertical teams and is managing growth with discipline. He cited prior acquisitions, including Stuart Olson, as having expanded Bird’s electrical and self-perform capabilities, and said the company has assembled teams able to scale while remaining selective about opportunities.
Defense, LNG and industrial opportunities remain in focus
Analysts also asked about other potential growth areas. McKibbon said oil and gas turnaround work remains planned for the fall, with the company expecting a busy period across assignments in different parts of Canada.
On Western Canada, McKibbon said Bird remains confident in a second LNG phase and continues work on Woodfibre. He also cited procurement activity for Roberts Bank Phase II and said industrial activity is “picking up nicely” as the year evolves.
In defense, McKibbon pointed to planned northern operating locations and support hubs, including public plans for facilities in Inuvik, Yellowknife, Iqaluit and an expansion at Goose Bay. He said Bird is already working in northern communities and has assembled a team, including an engineering partner, to pursue opportunities tied to Arctic defense and community infrastructure.
McKibbon closed the call by noting that Bird had released its 2025 sustainability overview, which he said reflects progress in embedding ESG priorities across operations and risk management.
About Bird Construction (TSE:BDT)
Bird Construction Inc operates as a general contractor in the Canadian construction market. The company focuses primarily on projects in the industrial, commercial and institutional sectors of the general contracting industry. It provides construction services such as new construction for industrial, commercial, and institutional markets; industrial maintenance, repair and operations (MRO) services, heavy civil construction and contract surface mining; as well as vertical infrastructure including, electrical, mechanical, and specialty trades.
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