Black Diamond (BDI) finished up 7% on record Q3 results, which beat big on the back of 52% Y/Y revenue growth…

… driven mainly by Workforce Solutions, which more than doubled thanks to last year’s $165M Royal Camp acquisition as well as gains in sales and non-rental revenue.

That flowed through to EBITDA, which also hit a new record despite some near-term margin pressure due to sales mix and higher MSS costs ahead of new deployments…

… which should rebound along with WFS utilization rates, as demand converts to revenue through 2027…

… to support the huge Canadian project pipeline that has driven a multiple re-rate in workforce accommodation names over the past two years.

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…