Bird Construction Inc. Reports Strong Q3 2023 Financial Results
Bird Construction Inc. has released its financial results for the third quarter of 2023, exceeding expectations. The company achieved double-digit revenue growth and margin accretion, setting the stage for a strong finish to 2023 and a foundation for even stronger performance in 2024. With almost $800 million of work completed in the quarter and a combined backlog growth of $40 million, up nearly 20% year to date, Bird Construction is positioned as a leading collaborative construction and maintenance company in the industrial, institutional, and infrastructure markets. The company remains focused on disciplined project selection and improving its margin profile to drive further improvement in results through 2024.
Financial Highlights
Bird Construction continued its strong business momentum in the third quarter, achieving approximately 16% organic revenue growth and sustained margin accretion. The company's gross profit and adjusted EBITDA saw notable increases, with a 35% rise in adjusted EBITDA for the first nine months of 2023. Bird Construction is experiencing significant growth across various markets, including institutional buildings, infrastructure, and industrial construction and services. The company's backlog and pending backlog provide visibility into future performance, characterized by enhanced margins and significant multi-year recurring revenue from Master Service Agreements (MSA).
Q3 2023 Results
In the third quarter of 2023, Bird Construction reported construction revenue of $783.8 million, representing a 17.3% increase compared to the same period in 2022. Net income and earnings per share also showed significant growth, reaching $28.8 million and $0.54, respectively, compared to $14.5 million and $0.27 in Q3 2022. Adjusted earnings and adjusted earnings per share were $29.0 million and $0.54, respectively, compared to $15.5 million and $0.29 in the previous year. The company's adjusted EBITDA for Q3 2023 was $49.3 million, or 6.3% of revenues, compared to $31.2 million, or 4.7% of revenues in Q3 2022.
Year-to-date 2023 Results
For the first nine months of 2023, Bird Construction reported construction revenue of $2,006.7 million, a 16.6% increase compared to the same period in 2022. Net income and earnings per share for the year-to-date period were $47.7 million and $0.89, respectively, compared to $34.9 million and $0.65 in 2022. Adjusted earnings and adjusted earnings per share reached $49.9 million and $0.93, respectively, in 2023, compared to $30.5 million and $0.57 in the prior year. The company's adjusted EBITDA for the first nine months of 2023 was $94.9 million, or 4.7% of revenues, compared to $70.5 million, or 4.1% of revenues in 2022.
Future Outlook and Projects
Bird Construction maintains a strong backlog and pending backlog, adding significant secured contracts during the quarter. The company has been awarded multiple contracts in various sectors, including industrial and civil work in the energy and mining sectors, long-term care facilities, infrastructure projects, and contracts in the nuclear sector. Bird Construction's strong liquidity position, with cash and cash equivalents of $104.1 million and additional availability under its Syndicated Credit Facility, positions the company well to support its significant growth.
In conclusion, Bird Construction Inc. has reported strong Q3 2023 financial results, exceeding expectations and demonstrating growth across multiple markets. The company's disciplined approach to project selection and focus on improving margins contribute to its positive outlook for the future. With a strong backlog and pending backlog, Bird Construction is well-positioned to capitalize on opportunities and continue its profitable growth in the construction industry.
Implications for New Businesses
The robust Q3 2023 financial results of Bird Construction Inc. offer valuable insights for new businesses in the construction industry. The company's success, marked by double-digit revenue growth and margin accretion, is a testament to the potential of disciplined project selection and margin improvement strategies. For new businesses, this underlines the importance of strategic planning and financial discipline in driving growth and profitability.
Bird Construction's diverse market presence, spanning institutional buildings, infrastructure, and industrial construction and services, highlights the value of market diversification. New businesses can take a leaf out of Bird Construction's book and explore opportunities in various markets to spread risk and increase revenue streams.
The company's strong backlog and pending backlog, characterized by enhanced margins and significant multi-year recurring revenue, demonstrate the potential of long-term contracts in ensuring business continuity and financial stability. This is a strategy that new businesses can adopt to secure their future performance.
In a nutshell, Bird Construction's Q3 2023 financial results provide a roadmap for new businesses in the construction industry. By adopting strategic planning, financial discipline, market diversification, and long-term contract acquisition, new businesses can position themselves for strong growth and profitability in the industry.
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