Black Diamond Group Q2 Earnings Call Highlights

Black Diamond Group TSE: BDI reported second-quarter 2026 revenue growth driven by recurring rental and lodging services, while adjusted EBITDA rose at a slower pace as the company’s revenue mix shifted following its acquisition of Royal Camp Services. Consolidated revenue increased 23% year over year to CAD 129.2 million, while adjusted EBITDA rose 4% to CAD 30.4 million. Chief Executive Officer Trevor Haynes said the lower margin reflected a greater contribution from Lodge Services revenue, including catering and hospitality operations, which carries lower margins than the company’s core rental businesses. “Nonetheless, this area of the business is performing well, further diversifies our service offering, and provides a growing source of meaningful revenue and cash flow,” Haynes said. Consolidated rental revenue rose 17% to CAD 45 million. Contracted future rental revenue stood at CAD 136.5 million at quarter-end, which management said illustrated the resilience of its recurring revenue base. Workforce Solutions expands with Royal contribution Revenue in the Workforce Solutions segment increased 55% from a year earlier to CAD 72.2 million, while adjusted EBITDA increased 3% to CAD 15.6 million. The results were primarily driven by the contribution from Royal Camp Services, acquired late last year. Lodge Services revenue increased 174%, while rental revenue rose 35% and non-rental revenue increased 34%. Sales revenue, however, declined 70% as the company elected to retain fleet capacity rather than sell used assets. “With fleet rationalization largely complete and demand visibility continuing to strengthen, we believe this approach better positions the business to capitalize on future opportunities,” Chief Financial Officer Toby LaBrie said. Workforce Solutions utilization was 55.2% in the quarter. Management said the segment has more than CAD 2 billion in formal bids outstanding across more than 20 active Canadian projects, representing more than twice its current available fleet capacity. The pipeline includes energy, mining, infrastructure, data center, defense and military-related projects. Haynes said the company has approximately 5,300 to 5,500 beds of available capacity and expects to use that capacity before making significant new investments in camp assets. He said smaller projects are beginning to move forward and could gradually lift utilization, while larger projects could create more substantial increases over a two- or three-quarter period if they proceed. Management described the typical term assumed in its bid pipeline as roughly three years, although some larger mining developments could include multi-year construction periods followed by much longer operating lives. Jon Warren, president of Royal Camp Services, said some customers have begun seeking to secure assets in advance because of concerns about future availability. Haynes also said Workforce Solutions bid rates have increased about 50% from their trough more than two years ago, though he said rates would likely need to approximately double from current levels to justify capital spending on newly built camp equipment. Modular Space Solutions posts rental and VAPS growth Modular Space Solutions generated rental revenue of CAD 28.6 million, up 8% from the prior-year quarter. Adjusted EBITDA rose 3% to CAD 20.9 million. Utilization was 77.9%, and average monthly rental rates increased 3%. Sales revenue in the segment fell 18%, primarily because of lower custom sales activity and funding uncertainty in the U.S. education market. Ted Redmond, chief operating officer of Modular Space Solutions, said the quarter was compared against a strong sales period a year earlier and that the company’s second-quarter sales performance was in the middle of its range over the past s...