Key Highlights from the Quarter
Consolidated rental revenue for the Quarter of $41.3 million increased 9% from the Comparative Quarter.
Profit for the Quarter of $12.2 million increased 65% from the Comparative Quarter and basic earnings per share of $0.19 increased 58% from the Comparative Quarter, both impacted by the receipt of further insurance proceeds related to assets lost from wildfires earlier in the year.
Consolidated Adjusted EBITDA1 for the Quarter of $31.8 million was up 10% from the Comparative Quarter.
The Company's consolidated contracted future rental revenue at the end of the Quarter remains healthy at $159.0 million, though down modestly by 3% from the Comparative Quarter.
Consolidated utilization for the Quarter was 75.8%, with Modular Space Solutions ("MSS") at 80.3% and Workforce Solutions ("WFS") at 62.2%, compared to 75.8%, 80.3% and 63.5%, respectively, in the Comparative Quarter.
MSS again generated record quarterly rental revenue of $28.1 million in the Quarter, an increase of 15% from $24.5 million in the Comparative Quarter, due to growth in average monthly rental rates and the number of units on rent. The average monthly rental rate per unit of $896 for the Quarter increased 6% from the Comparative Quarter.
WFS revenue for the Quarter of $43.2 million increased 12% from the Comparative Quarter. The increase was driven by higher non-rental and lodge services revenue that increased 28% and 2%, respectively.
LodgeLink Gross Bookings1 for the Quarter of $35.7 million and net revenue of $4.3 million increased by 31% and 26%, respectively, from the Comparative Quarter. Total room nights sold for the Quarter of 148,435 increased by 1% from the Comparative Quarter reaching a new quarterly record.
Capital expenditures were $19.6 million for the Quarter, including maintenance capital of $2.9 million. Total capital commitments of $39.5 million at the end of the Quarter were up 124% from the end of the Comparative Quarter, with the majority of growth capital being allocated to contracted project specific fleet units.
Net Debt1 of $197.1 million at the end of the Quarter was down 12% from December 31, 2024. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA1 of 1.6x is below the target of 2.0x to 3.0x, while available liquidity was $227.3 million at the end of the Quarter, leaving sufficient liquidity to grow and operate the business after the announced acquisition of Royal Camp Services Ltd. closes.
On July 15, 2025, with an effective date of July 1, 2025, the Company closed a tuck-in acquisition of Spencer Group of Companies Pty Ltd. ("Spencer Group of Companies"), a corporate travel management business headquartered in Australia, accelerating operations in the Asia-Pacific region.
On July 16, 2025, the Company completed a bought deal public offering of common shares for aggregate gross proceeds of $42.4 million, including the exercise in full of the over-allotment option granted to underwriters of $5.5 million.
On September 22, 2025, the Company announced a strategic acquisition and entered into a definitive share purchase agreement to acquire all of the issued and outstanding shares of Royal Camp Services Ltd. The Company anticipates completing the acquisition prior to the end of 2025.
Subsequent to the Quarter, the Company announced a 29% increase to its quarterly dividend from $0.035 to $0.045 per quarter, marking the fifth dividend increase since its reinstatement in 2021. The fourth quarter dividend of $0.045 is payable on or about January 15, 2026 to shareholders of record on December 31, 2025.
Outlook
Following another solid quarter, the Company's stability is expected to carry through the remainder of the year with further growth opportunities on the horizon. While market tailwinds, particularly in Canada, present significant future upside for Black Diamond's expanding rental platform, the base business within the current operating environment continues to deliver compounding growth and meaningful shareholder value. With steady contracted future rental revenue and continued investment in growing the fleet, Black Diamond is positioned for sustained results.
The MSS business remains strong with customer demand supporting continued growth. In the near term, rental revenue stability is expected, while variability of the sales and non-rental revenue streams is likely to persist. Education new sales are lower in 2025 due to our customers' uncertainty with the public funding environment in the United States, but indications are that this trend resolves in the future. Overall, utilization of the fleet is healthy, and customer rental demand growth continues across key end-market verticals including construction, major infrastructure, and education, which supports asset deployment and future investment.
WFS results have stabilized in recent quarters and, over the next several quarters, management anticipates results to be range-bound in a continuation of the recent demand environment. Meaningful growth directly associated with elevated bid-activity tied to potential major nation-building infrastructure projects is not anticipated to impact revenue before the second half of 2026. WFS continues to have substantial operating leverage, which can be unlocked as utilization increases. Further, the announced acquisition of Royal Camp Services Ltd. is expected to close by the end of 2025 pending clearance under the Competition Act (Canada), effectively doubling the size of Black Diamond's Canadian workforce accommodations fleet, and improving our capabilities to service our customers and large-scale projects.
LodgeLink's accelerated investment in product development to support ongoing demand and enhance the value proposition within the workforce travel market progresses ahead of plan, laying a strong foundation for the platform's exponential growth trajectory. The recently closed tuck-in acquisition in Australia is performing well, underscoring the quality of the business and spurring LodgeLink's growth in the country.
Black Diamond's track record of delivering results, driving profitable growth and compounding the Company's high-margin, recurring rental revenue streams in both North America and Australia is strong. With ample liquidity, and Net Debt to TTM Adjusted Leverage EBITDA1 below the target range, the Company is set to fund continued organic and inorganic growth as demand and opportunities arise. With several forward-looking catalysts, the Company is poised to exit the year with momentum leading into 2026 and onward.
1Adjusted EBITDA, Gross Bookings and Net Debt are non-GAAP financial measures. Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio.
Third Quarter 2025 Financial Highlights
Three months ended September 30,
Nine months ended September 30,
($ millions, except as noted)
2025
2024
Change
2025
2024
Change
Financial Highlights
$
$
%
$
$
%
Total revenue
105.3
101.2
4%
312.9
270.3
16%
Gross profit
50.2
46.7
7%
142.3
128.5
11%
Administrative expenses
20.1
18.2
10%
59.9
55.0
9%
Adjusted EBITDA(1)
31.8
28.8
10%
87.5
76.2
15%
Adjusted EBIT(1)
19.4
16.2
20%
50.7
41.7
22%
Funds from Operations(1)
33.0
31.2
6%
89.4
80.5
11%
Per share ($)
0.51
0.51
—%
1.43
1.32
8%
Profit before income taxes
16.6
10.3
61%
36.7
22.6
62%
Profit
12.2
7.4
65%
27.2
16.3
67%
Earnings per share - Basic ($)
0.19
0.12
58%
0.44
0.27
63%
Earnings per share - Diluted ($)
0.18
0.12
50%
0.43
0.26
65%
Capital expenditures
19.6
23.8
(18)%
69.3
94.5
(27)%
Property and equipment
597.4
571.1
5%
597.4
571.1
5%
Total assets
784.2
745.5
5%
784.2
745.5
5%
Long-term debt
205.8
243.2
(15)%
205.8
243.2
(15)%
Cash and cash equivalents
9.8
15.1
(35)%
9.8
15.1
(35)%
Return on Assets (%)(1)
20.4%
19.3%
110 bps
18.5%
17.5%
100 bps
Free Cashflow(1)
23.0
19.6
17%
59.3
47.2
26%
(1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio.
Additional Information
A copy of the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 and related management's discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units - MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors.
In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America and Australia. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Emma Covenden at
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, October 31, 2025. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond's financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-833-821-2994. International callers should use 1-647-846-2491. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at: https://www.gowebcasting.com/14364
Following the conference call, a replay will be available on the Investor Centre section of the Company's website at www.blackdiamondgroup.com, under Presentations & Events.
Reader Advisory
Forward-Looking StatementsCertain information set forth in this news release contains forward-looking statements including, but not limited to, expectations for and opportunities in different geographic areas, opportunities for organic investment, the Company's ability to fund organic and inorganic growth, management's goals and business objectives, the sales and opportunity pipeline, the closing of the acquisition of Royal Camp Services Ltd., timing, payment and increase of the Company's quarterly dividends, macro-economic uncertainty, the effects of tariffs and trade-war related impacts, utilization levels, contract renewals, management's assessment of Black Diamond's future operations and what may have an impact on them, expectations regarding the rental rate environment, opportunities and effect of deploying investment capital, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company's operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, anticipated debt levels, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, working capital and other requirements, sources and use of funds, economic life of the Company's assets, and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future interest rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, the effects of tariffs and trade-war related measures, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: the volatility of industry conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, workforce availability, market price of common shares, safety performance, expansion into new activities, government regulation, failure to realize anticipated benefits of acquisitions and dispositions, inflationary price pressure, environmental liability, environmental regulation of the Company's customers, environmental disasters, Indigenous relationships, dilution, disease outbreaks, variations in foreign exchange rates and interest rates, foreign operations, dependence on operating permits, maturity of credit ...
