Bird Construction's 50% Dividend Hike and 2025-2027 Financial Targets

Bird Construction Inc. (TSX: BDT) has announced a significant 50% increase in its monthly dividend, reflecting the company's robust financial health and positive outlook for the future. The dividend increase, effective for the March 29, 2024 dividend, will be $0.0467 per share, corresponding to an annual dividend rate of $0.56 per share. This move comes on the heels of the company's 2024 annual business plan, which anticipates continued accretion in earnings per share and EBITDA.


The dividend increase is a testament to Bird Construction's strong financial performance and its confidence in its future prospects. Teri McKibbon, President and CEO of Bird, stated, "The dividend increase approved by the Board reflects the Company’s outlook for significant further improvements in earnings and cash flow in 2024 over 2023." The company's record combined backlog and attractive opportunities in the pipeline have bolstered its confidence in its ability to deliver on its financial targets.

Bird Construction's tuck-in M&A strategy plays a crucial role in supporting its dividend increase and long-term growth. By strategically acquiring complementary businesses, the company aims to facilitate continued business growth with increasing profitability. This approach helps Bird Construction maximize total shareholder returns over the long term.


The expansion of Bird Construction's revolving credit facility to $250 million from $220 million, along with the renewal of its three-year credit agreement with favorable terms, has further strengthened the company's liquidity position. This expansion, effective December 1, 2023, provides Bird Construction with ample liquidity to support its strategic growth initiatives and dividend payout.

Bird Construction's increased dividend and strong financial outlook have a positive impact on its stock valuation and potential for future capital appreciation. The company's commitment to balancing investment in profitable long-term growth with sustainable distributions to shareholders is a testament to its commitment to creating value for stakeholders.

As Bird Construction looks to the future, it has set specific financial targets for 2025-2027. The company aims to achieve continued accretion in earnings per share and EBITDA, with seasonal patterns favoring the second half of the year. Bird Construction remains focused on balancing investment in profitable long-term growth with sustainable distributions to shareholders, ensuring that it continues to create value for all stakeholders.

In conclusion, Bird Construction's 50% dividend increase and 2025-2027 financial targets reflect the company's strong financial health and positive outlook for the future. By balancing investment in profitable long-term growth with sustainable distributions to shareholders, Bird Construction is well-positioned to create value for stakeholders and achieve its strategic objectives.