Badger Infrastructure Solutions Ltd.

Badger reported second-quarter revenue of $257 million, up 23% year over year. Adjusted EBITDA was $66.1 million, up 25% year over year, and adjusted EBITDA margin was 25.7%, up 40 basis points. Adjusted EPS was $0.69, up 15% year over year. Gross profit margins were reduced by approximately 50 to 70 basis points from ongoing investments. For fleet strategy, management said it is growing the fleet at the high end of the 7% to 10% range for full-year 2026, with plans to refurbish 30 to 50 hydrovacs and retire 130 to 150 units. The company also said it raised C$300 million through an inaugural unsecured bond issue at 5.375% and used the proceeds to pay down its credit facility; leverage was 1.5x EBITDA, at the midpoint of the 1x to 2x target range.

CEO Robert G. Blackadar emphasized that demand remains broad-based across many end markets, from LNG and semiconductor projects to hospitals, airports, utilities, and data centers. He said the company’s analytics, fleet expansion, and operational execution are helping it capture more utilization and pricing, and he described the quarter as another record period of double-digit organic growth in revenue and adjusted EBITDA. He struck an upbeat tone but also stressed discipline, saying Badger intends to keep pushing pricing while still delivering strong value through safety, efficiency, and reliability.

CFO Robert Dawson framed the quarter as a result of stronger demand, operating leverage, and fleet investments. He cited adjusted EBITDA of $66.1 million, a 25.7% margin, and adjusted EPS of $0.69, while noting that gross profit margins were pressured by about 50 to 70 basis points from investments in operational excellence, hiring, training, and two new service lines. He also highlighted balance-sheet flexibility: the company raised C$300 million of five-year senior notes at 5.375%, paid down its credit facility, and ended with leverage at 1.5x EBITDA, while continuing NCIB repurchases of 80.7 thousand shares year to date at a weighted average price of $63.18.

Analysts focused on whether RPT can stay above prior Investor Day expectations, and management said it does not expect a major downturn on a trailing basis and sees room for further utilization and pricing gains. Questions also centered on pricing, with management saying the environment was pressured late last year and into Q1, but pricing improved through Q2 and they believe they were a bit slow early in the quarter. Other key topics were the new industrial cleaning service lines and the planned U.S. manufacturing plant; management said industrial cleaning is already showing sticky customer adoption, and the U.S. plant is being evaluated mainly for growth, logistics, risk management, and also tariff relief.