Bird Construction Inc.

Thank you for standing by. Welcome to the Burt Construction second quarter conference call and webcast. We will begin with Terry McKibbon, President and Chief Executive Officer's presentation, which will be followed by a question and answer session. To ask a question during the session, analysts will need to press star 1-1 on your telephone. You will then hear an automated message advising 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 McKibbon, President and CEO of Bird Construction.

Good morning, everyone, and thank you for joining Byrd Construction's second quarter 2026 conference call. With me today is Wayne Gingrich, Byrd's chief financial officer. Byrd delivered a strong second quarter, converting a strong bid pipeline into backlog growth, revenue growth, margin improvement, cash generation under our 2027 strategic plan. Revenue exceeded $1 billion for the first time in our history, adjusted even a margin, expanded to 7.1%, and backlog and pending backlog achieved record or near record levels. The significance of the quarter is not only the scale of the growth, but the fact that revenue, EBITDA margin backlog, and cash flow are all improving together. Our work program is distributed across multiple sectors and regions, supported by BIRD's self-reformed depth, labor access, technical expertise, and national reach. These attributes are central to how we are differentiated and reinforced BIRD's position as a specialty contractor with national scale. BIRD combines specialized execution capability with broad access across industrial buildings and infrastructure. This gives us resilience today and multiple paths to capture the long-term growth opportunities across strategic end markets. A significant share of our work is tied to longer duration investments, recurring revenue streams and collaborative Project Delivery Models Improving Visibility into Future Performance Byrd recorded revenue of $1 billion in the second quarter, up almost 23% year-over-year. More than 80% of the year-over-year growth was organic, with all businesses contributing to the growth as work programs ramped up, as expected during the second quarter. Infrastructure also benefited from contributions from FRPD, which was acquired in October 2025. Revenue growth flowed through to improved earnings with the second quarter adjusted even margin expanding to 7.1%. Margin improvement in the quarter reflected better project mix, continued execution discipline, and the operating leverage from investments we have made in people, systems, and capabilities. The first half of 2026 gives us a solid base for the remainder of the year with record backlog Top line growth and improving margins providing further line of sight towards the 2027 targets. Backlog continues to provide line of sight to future revenue and margin growth. During the second quarter, securements totaled almost $1.8 billion and exceeded work executed by $707 million. Contracted backlog increased to $6.1 billion at quarter end, up 30.6% from a year ago. pending backlog increased to $6 billion, up 57.5% from a year ago. Combined backlog of approximately $12 billion continues to reflect a high proportion of collaborative contract structures with a favorable margin profile compared with a year ago. It also includes more than $1.4 billion in MSA and other recurring revenue expected to be earned over the next four years. These programs support workforce continuity, and more predictable cash flow alongside the balance of our projects. Backlog quality is as important as backlog size. Our combined backlog includes over 80% in collaborative contract structures, recurring revenue programs and work in high demand sectors where BERT can apply its technical expertise and self-reform capabilities. This improves line of sight to future revenue while supporting the margin and cash flow profile we are targeting under the 2027 plan. We continue to be selective in the work we pursue with a focus on scope, partners, and contract structures that support margin cash flow and risk objectives. BIRD is not simply exposed to attractive markets. We have intentionally built a platform where work is distributed across in-markets, geographies, customers, programs, and funding sources. This reduces resilience on any single in-market or region while positioning birds to participate across Canada's priority investment themes. What stands out is the depth of opportunities ahead. Each of our target markets offers substantial long-term demand that is aligned with their capabilities, creating multiple pathways for future growth beyond the current planned period. Over the past few years, Byrd has expanded our labor platform capabilities and delivery capacity needed to support a larger, more diversified work program. This has strengthened Byrd's position as a specialty contractor with national scale, pairing self-perform execution and the broader market access of an integrated contractor. Few firms can provide this combination at scale, and our continued securements reflect the value clients place on this operating model. In industrial, BIRD's opportunity set is aligned with investment across oil, gas, and LNG, chemicals, and power, including renewables and nuclear. In buildings, BIRD is organized around data centers, defense, Arctic, and remote and social infrastructure. In infrastructure, BIRD's target end markets include mining, critical minerals, transportation infrastructure, utilities, transmission and distribution. Subsequent to quarter end, we announced approximately $1 billion in project awards and agreements across nuclear, civil, marine, and mine infrastructure, industrial facilities, industrial maintenance, and buildings. The diversity of these awards reinforces the distributed load across birds and markets and shows how our teams continue to win work in areas where client investment remains active. The load is distributed today, the opportunity is distributed ahead, and Bird is built for both. Turning to execution, our major work programs progress as expected during the quarter. Large capital investment projects are an important point of BIRD's strategy. Projects highlighted here demonstrate how BIRD creates value earlier in the project lifecycle through early contractor involvement and then expands its role as work moves in execution through our self-performed capabilities. This strengthens client relationships, creates opportunities, expands scope, and improves line of sight to future revenue. These projects are also important from a risk management perspective. Early involvement gives BIRD insight into future scope, constructability, sequencing, and resource requirements before execution ramps up, which supports better outcomes and more disciplined participation in complex work. We remain confident in our progress against our 2027 strategic plan, including our target of an 8% adjusted evener margin. Second quarter demonstrated progress with revenue increasing 22.6% year-over-year and trailing 12-month adjusted EBITDA margin reaching 6.7% up from 6.5% in the prior period. The path toward our 8% adjusted EBITDA margin target is supported by drivers already embedded in the business today. Margins have moved higher over recent quarters as the business benefits from improving buildings performance, infrastructure growth, and increased self-perform participation operating leverage, and the return of industrial work programs to fuller utilization. These improvements reflect the same priorities we've been executing against. Discipline project selection, higher quality backlog, greater exposure to higher margin sectors, one bird collaboration, and continued investment in data-driven operational intelligence. Together, these drivers support further margin expansion and strengthen our visibility into future earnings and cash flow. All three businesses are focused on margin expansion, but I'll highlight buildings. Margins have improved steadily, supported by our strategic market sectors and continued cross-selling across Byrd, which helps increase self-performed content and retain more margin within the business. Buildings is a much different business today and is an important source of One Byrd opportunities. Our primary commitment remains execution of the 2027 plan. However, as we begin the 2028-2030 strategic planning process, the work we are winning, the partnerships we are forming, and the sectors we are pursuing give us greater visibility to Byrd's growth runway beyond 2027. With that, I'll pass it over to Wayne to discuss the quarter's results in more detail.

Thanks, Terry, and good morning, everyone. Revenue was $1 billion, $43 million in the quarter, up 22.6% year-over-year. More than 80% of the year-over-year growth was organic, led by continued strength in buildings, with all three businesses contributing to organic growth in the quarter. Infrastructure also benefited from the contribution of FRPD acquired in October 2025. Revenue growth accelerated faster than originally expected, supported by seasonal activity in buildings and the ramp up of industrial work programs that had been delayed through much of 2025 and into early 2026. As these programs return to their fuller capacity, we expect them to contribute more meaningfully to second half revenue. Growth profit increased to 109.8 million and growth profit percentage was 10.5%. The margin reflects disciplined project selection Improving project mix and increasing self-performed participation across the business, with further support expected as industrial work programs return to full capacity through the second half. Together, these elements reinforce the margin progression embedded in Byrd's specialty contractor positioning. Adjusted EBITDA increased 34.6% to $73.9 million, and adjusted EBITDA margin expanded to 7.1%, up 60 basis points from the prior year. We also realized operating leverage in the business with G&A declining to 5.4% of revenue compared to 6.4% in the prior year period. Adjusted earnings increased 40% to $38.6 million or $0.70 per share. Net income was $30.3 million or $0.55 per share. As noted in our disclosure, net income includes non-cash warrant related impacts from a strategic customer arrangement as well as a non-cash expense related to shares issued to another strategic partner. Finally, cash flows from operating activities were $58.4 million in the quarter, an improvement of $133.8 million compared with the prior year period. Through the first six months of 2026, revenue increased 16.5% to $1.83 billion and adjusted EBITDA increased 24.8% to $111 million with margin improving to 6.1%. Net income increased 40.5% to $41.7 million. Adjusted earnings increased 29.8% to $52.5 million. And cash flows from operating activities improved by $188.8 million year-over-year to $64.5 million. These results demonstrate continued progress toward Byrd's 2027 targets. Cash generation and financial flexibility continue to be important strengths for Byrd. Our performance through the first half of 2026 shows how the financial profile of the business is maturing alongside the operating platform. On a trailing 12-month basis, Berg generated $262 million in free cash flow, or $4.73 of free cash flow per share. These metrics demonstrate the business's ability to convert earnings into cash and support a larger work program. We ended the quarter with substantial liquidity, including $264.3 million of cash and $446.5 million available under our syndicated credit facility. During the quarter, BERT achieved an important milestone by achieving an investment-grade Triple D Low rating from DBRS and the completion of our inaugural $250 million seniors unsecured notes offering. Together with the amended credit facility, these actions do more than diversify our funding sources. They strengthen Byrd's financial position with clients, partners, lenders and charity providers, reflecting how far the business has progressed in recent years. They also provide Byrd with direct access to the debt capital market as needed in the future, supporting our ability to pursue and execute our growing work program without compromising balance sheet discipline. Additional capacity was added to support growth while preserving a conservative balance sheet. Adjusted net debt to TTM adjusted EBITDA was 0.96 times and the current ratio was 1.32 times. These metrics reflect financial flexibility to execute a record work program, support growth, and pursue selective strategic opportunities while maintaining balance sheet strength. Combined with our investment grade credit rating, Inaugural Senior Notes Offering and Expanded Credit Facilities, BIRD enters the second half of 2026 with broader access to capital, substantial liquidity, and the flexibility to support working capital needs, equipment needs, and selective growth opportunities. Our capital allocation approach remains focused and disciplined as demonstrated by how we have deployed capital since 2022 across the priorities that support BIRD's strategy. We continue to allocate capital to equipment, technology, and productivity initiatives that improve project execution and support margin growth while providing direct returns to shareholders through our dividend and preserving flexibility. Strategic M&A remains selective and aligned with opportunities that expand self-reform capability, deepen technical expertise, or broaden our geographic and service offerings. FRPD is a good example of the type of acquisition that strengthens Byrd's ability to deliver complex infrastructure work. Overall, our capital allocation approach is consistent with Byrd's broader strategy. Deploying capital where it strengthens execution, expands capability, supports margin progression, and generates cash flow while preserving financial discipline and creating long-term value for shareholders. With that, I'll turn the call back to Terry. Thanks, Wayne.