Bird Construction Inc.

Good day and thank you for standing by. Welcome to the Bird Construction third quarter results conference call and webcast. We will begin with Terry McKibben, President and Chief Executive Officer's presentation, which will be followed by a question and answer session. To ask a question during this session, analysts will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded and at this time all participants are in a listen only mode. Before commencing with the conference call, the company reminds those present that certain statements which are made express management's expectations or estimates of future performance and thereby constitute forward-looking information. Forward-looking information is necessarily based on a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic, and competitive uncertainties and contingencies Management's formal comments and responses to any questions you might ask may include forward-looking information. Therefore, the company cautions today's participants that such forward-looking information involves known and unknown risks, uncertainties, and other factors that may cause the actual financial results, performance, or achievements of the company to be materially different from the company's estimated future results, performance, or achievements expressed or implied by the forward-looking information. Forward-looking information does not guarantee future performance. The company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events, or otherwise. In addition, the presentation today includes references to a number of financial measures which do not have standardized meanings under IFRS and may not be comparable with similar measures presented by other companies and are therefore considered non-GAAP measures. I would like to turn the call over to Terry McKibbin, President and CEO of Byrd Construction. You may begin.

Thank you, Operator. Good morning, everyone. Thank you for joining our third quarter 2025 conference call. With me today is Wayne Gingrich, Byrd's Chief Financial Officer. Before we begin, I'm proud to note that in the third quarter, Byrd was once again recognized by the Toronto Stock Exchange, ranking 17th on the 2025 TSX-30. This fall is our seventh place ranking in 2024, and we are among only 10 companies that earned a place on the list year over year. Being recognized among the top 30 performing companies on the TSX underscores the success of our strategic focus, strong execution, and disciplined, balanced approach to capital allocation that positions Bird for continued profitable growth in today's active market. It continues to be an exceptional time for our industry, with strong demand across key strategic sectors. Burr's comprehensive self-performed capabilities further expanded through the recent FRPD acquisition and strong cross-selling opportunities from prior acquisitions continue to differentiate Burr. Combined with our long track record of delivering complex industrial buildings and infrastructure projects, these strengths have positioned Burr to bid on and secure significant new awards, including the recently announced Peel Memorial Hospital Phase II redevelopment. With record securements driving our historic combined backlog, our outlook is further strengthened by the federal government's focus on infrastructure investment and nation-building across the country, setting the stage for sustained growth and long-term value creation. Revenue in the quarter was $951 million, representing a 5.8% increase from 2024, with organic growth representing over 60% of the growth. We saw continuous strength in our work programs from our mining clients and the ongoing ramp-up of the East Harbor Transit Hub driving infrastructure growth along with higher institutional construction activity, supporting buildings growth, and a full quarter contribution from Jacob Brothers. Margins remained strong relative to historic levels through slightly lower year-over-year. Gross profit percentage for the third quarter was 10.7%, and the adjusted EBITDA margin was 7%. The margin profile this quarter was influenced by the higher relative proportion of buildings work, which typically has lower self-performed content than industrial and infrastructure work, and by project start delays, Robert continued to carry personnel and equipment costs in anticipation of mobilization. Our trailing 12-month adjusted EBITDA margin was 90 basis points higher year-over-year and within 140 basis points of our 2027 strategic plan targets. For its record combined backlog of over 10 billion with favorable margins to a year ago, continues to provide solid visibility in the 2026 and 2027 revenue and margins, and supports our path to achieving the objectives set out in our 2027 strategic plan. Year-to-date securements exceeded 3.8 billion, surpassing both full-year 2024 securements and revenue. Our backlog remains diversified, risk-balanced, and heavily weighted towards collaborative delivery models providing a clear path to growth and margin accretion as market conditions stabilize. Finally, BERT's healthy balance sheet continues to provide flexibility to navigate near-term uncertainty while supporting a disciplined balance capital allegation strategy. As we turn to backlog, our record $10 billion combined backlog with stronger embedded margins than a year ago clearly demonstrates the underlying momentum of the business and why we remain confident of our long-term trajectory despite recent bumps in the road due to market uncertainty. Our strong line of sight to record levels of future work is supported by contracted backlog, surpassing $5 billion for the first time in the company's history. Additionally, significant collaborative awards grew our pending backlog by over $1.2 billion in the quarter to $5 billion. During the quarter, we added more than $1.3 billion in new securements to our backlog, bringing year-to-date securements to $3.8 billion. This figure already surpasses both total securements and revenue achieved in the full year of 2024. Bird's combined backlog continues to reflect a high proportion of collaborative contract types and favorable embedded margins compared to a year ago. Combined backlog growth reflects the active bidding environment and continues to run demand across Bird's core markets. We see meaningful new opportunities emerging for our MRO team, supported by cross-selling, geographic expansion, and continued strength across our nuclear defense, power generation, large capital investment projects, transportation, and institutional buildings markets. Byrd is exceptionally well-positioned to capitalize on the growing wave of nation-building initiatives across Canada and the significant infrastructure investments outlined in the budget 2025. Looking ahead, the opportunity set for our business in the next strategic plan period is even stronger than we had anticipated. The work is there, and it's a matter of discipline, execution, and patience to fully capture it. While quarterly margins were down year over year, reflecting the higher relative proportion of buildings work, and the carrying costs associated with personnel and equipment in anticipation of project mobilization, we remain in a very solid position and confident in our continued margin progression through 2027. Our trailing 12-month adjusted EBITDA margin of 6.6% continues to demonstrate the progress we've made, supported by discipline, project execution, strong self-reform capabilities, and highly collaborative lower-risk delivery models. Margin accretion, like revenue in our industry, Rarely linear and recent client decisions to delay certain projects along with a slower-to-develop industrial maintenance program may moderate the pace of improvement in the fourth quarter. As with revenue impacts, we expect margins to build momentum during the second half of 2026 as the company's record backlog with higher embedded margins converts to revenue. Large capital investment projects, or LCIPs, continue to be a key pillar of BERT's strategy, offering long-term visibility and scalable growth. These complex, multi-phased initiatives often begin with targeted scopes, allowing to demonstrate the value early and expand our role over time. While timelines for some projects have shifted, their strategic importance remains unchanged. We continue to win work, and they represent meaningful opportunities for margin accretion and business growth. In industrial, we're seeing continued strength in large capital investment programs across nuclear, LNG, petrochemicals, and potash. demonstrating resilient demand despite near-term project delays. Our industrial maintenance portfolio provides a strong recurring revenue base and meaningful upside supported by cross-selling and geographic expansion. The nuclear sector remains particularly active both in Canada and globally, currently representing roughly 10% of revenue. We remain focused on growth and we've recently achieved new credentials enabling broader participation across the sector. In buildings, our backlog remains robust across healthcare, defense, education, and long-term care. We recently reached the development phase agreement for the Peel Memorial Hospital Phase II redevelopment, a significant achievement for the team, and continue to expand our defense backlog, which is at historic levels. Our experience is strongly aligned with a $19 billion defense and security infrastructure program and ongoing commitments to healthcare, education, and community facilities outlined in the federal budget. In infrastructure, the acquisition of FRPD has expanded birds' self-performing capabilities in marine construction, dredging, and land foundations, creating new cross-selling opportunities with Jacob Brothers and across our business. Secular tailwinds are powerful, with nation-building and federal infrastructure focused set to drive sustained demand for transportation, trade infrastructure, and critical minerals development. Across all sectors, the combination of current demand, strong federal and nation-building investments, and birds' proven execution capabilities, positions of company for sustained long-term growth and value creation. Turning to the broader macro environment, the federal government's 2025 budget provides a powerful backdrop for long-term growth across our core markets, as well as encouragement for the overall economy. The level of commitment to infrastructure and the nation-building programs is significant, reinforcing longer-term visibility across both key strategic sectors. Investment outlined in Outlines span critical areas in transportation, defense, mining, power generation, and institutional buildings, all strongly aligned with their capabilities and growth strategy. The programs designed to streamline regulatory process and accelerate project delivery are positive for PERC, as those that strengthen Canada's supply chain resilience and attracts business investment. When combined with a record backlog, strong client relationships, meaningful Indigenous partnerships, and balanced exposure across sectors, BERT is exceptionally well positioned to capture this next wave of opportunity and continue driving disciplined profitable growth through 2027 and beyond. BERT's acquisition of FRPD closed in the third quarter, representing a highly strategic addition to our operations and capabilities. Headquartered in BC, FRPD is Canada's largest privately owned marine construction, land foundation, and dredging contractor. with a strong safety culture and a team of over 300 experienced employees. The company's versatile fleet, technical expertise, and longstanding indigenous partnerships have earned it a leading position in complex marine and infrastructure projects. Notably, FRPD has maintained an exclusive multi-year contract for dredging the Fraser River for over 35 years and recently renewed for an additional 12 years with an option for eight more, providing a stable recurring work program aligned with BIRD's disciplined, low-risk approach. This highly strategic and complementary acquisition advances BIRD's long-term strategic plan and aligns directly with our discipline M&A criteria. The acquisition expands BIRD's national infrastructure presence, adding marine construction, dredging, and land foundation capabilities to our full-service civil platform. It also creates meaningful cross-selling opportunities across our businesses, including with Jacob Brothers, and our industrial and building divisions, positioning BIRD to pursue new scopes of work across the country and broaden our self-reform strength in high demand markets. BIRD supports margin expansion through improved infrastructure mix with a focus of complex, specialized self-reform work while introducing new recurring work programs through FRPD strategy contract. The acquisition maintains BIRD's strong balance sheet and financial flexibility, allowing us to continue to invest in both organic and inter-organic growth initiatives. And I'll turn the call over to Wayne to cover our third quarter financial performance in more detail.

Thank you, Terry.