Black Diamond Reports Second Quarter 2025 Results and Declares Dividend

CALGARY, Alberta, Aug. 07, 2025 (GLOBE NEWSWIRE) — Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI, OTCQX:BDIMF), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three and six months ended June 30, 2025 (the “Quarter”) compared with the three and six months ended June 30, 2024 (the “Comparative Quarter”). All financial figures are expressed in Canadian dollars.

Key Highlights from the Quarter

• Consolidated rental revenue of $38.6 million increased 9% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue at the end of the Quarter was $152.6 million, up $13.0 million or 9% from the end of the Comparative Quarter.
• Profit for the Quarter of $9.2 million increased 23% from the Comparative Quarter. Basic earnings per share of $0.15 increased 25% from the Comparative Quarter.
• Consolidated Adjusted EBITDA¹ of $29.2 million was up 5% from the Comparative Quarter.
• Consolidated utilization for the Quarter was 76.7%, with Modular Space Solutions (“MSS”) at 81.2% and Workforce Solutions (“WFS”) at 63.4%, compared to 75.5%, 80.7% and 62.4%, respectively, in the Comparative Quarter.
• MSS generated record quarterly rental revenue of $26.4 million, an increase of 19% from $22.2 million in the Comparative Quarter, due to growth in average monthly rental rates and number of units on rent. Average monthly rental rate per unit of $881 increased 8% from the Comparative Quarter.
• WFS revenue of $46.7 million increased 6% from the Comparative Quarter. The increase was driven by higher lodge services and non-rental revenue that increased 32% and 11%, respectively.
• LodgeLink generated a strong second quarter with total room nights sold of 135,815, an increase of 5% from the Comparative Quarter, driving Gross Bookings¹ to $25.7 million, an increase of 5% from $24.4 million in the Comparative Quarter. Net revenue of $3.3 million increased 14% from the Comparative Quarter with Net Revenue Margin¹ of 12.8%.
• Capital expenditures were $32.5 million for the Quarter, down from $53.5 million in the Comparative Quarter, which included $20.5 million for the acquisition of a fleet of 329 space rental units in British Columbia. The majority of growth capital was allocated to contracted project specific fleet units.
• Net Debt¹ of $232.0 million as at June 30, 2025 was up 4% from December 31, 2024. Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA¹ of 1.9x is below the target of 2.0x to 3.0x, while available liquidity was $192.9 million at the end of the Quarter.
• Subsequent to the Quarter, 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.
• Subsequent to the Quarter, the Company declared a third quarter dividend of $0.035 payable on or about October 15, 2025 to shareholders of record on September 30, 2025.

Outlook

The Company’s outlook for the balance of the year remains stable, with increasing opportunities anticipated as we look into 2026 and beyond. Performance of the core rental business is strong with consolidated future contracted rental revenue of $152.6 million at the end of the Quarter, up 9% from the Comparative Quarter. Further, capital commitments of $27.5 million at the end of the Quarter signify the breadth of opportunities across the platform to continue investing shareholder capital and compounding growth.

Carrying momentum from the first quarter, MSS generated record rental revenue of $26.4 million, up 19% from the Comparative Quarter driven primarily by higher average monthly rental rates and increased assets on rent as a result of ongoing organic fleet investments. Continued normal course contract renewals are expected throughout the remainder of the year, resulting in moderate average monthly rental rate growth. Utilization of MSS remains steady as does the demand across key operating geographies and industry verticals, namely education and construction. Sales revenue increased 13% from the Comparative Quarter to $14.9 million. Although this revenue stream has a degree of variability, it generally correlates with economic activity in the countries in which the Company operates.

Performance of the WFS segment is primarily driven by the core rental business, which is a representation of both rental revenue and lodge services revenue. Combined, these revenue streams grew to $24.2 million, up by 9% from the Comparative Quarter with a robust increase of 32% in lodge services revenue offset by a modest decrease of 7% in rental revenue. Sales revenue of $7.0 million was down 10% from the Comparative Quarter and is indicative of the intentional pivot from right-sizing the fleet over the past several years to maintaining units in favor of expected rental opportunities on the horizon. This approach and trend is likely to continue through the balance of 2025. Consolidated WFS revenue increased by 6% to $46.7 million, showcasing a stabilization that is expected to continue through the second half of the year. Management then anticipates more meaningful growth in the mid-to-long-term correlating with major infrastructure opportunities in Canada from expedited nation building projects. This would be a catalyst for improved utilization and increased rental rates thereby leading to the prospective characteristics required for new capital investment in Canadian large format fleet assets.

LodgeLink produced a strong quarter with total room nights sold of 135,815, rising 5% from the Comparative Quarter. Gross Bookings¹ also increased 5% to $25.7 million driving net revenue up 14% to $3.3 million with a 90 basis point improvement in Net Revenue Margin¹ of 12.8%. The platform is already beginning to realize the positive effects of the ongoing technology transition and accelerated investment in product development that has further differentiated its value proposition within the large total addressable global workforce travel market. As the platform scales, with an expanding service offering, and the supplier and customer ecosystems compound, revenue growth is expected to accelerate from current levels. Subsequent to the Quarter, the Company closed a tuck-in acquisition of Spencer Group of Companies, a corporate travel management business headquartered in Australia, offering an opportunity for accelerated growth in the market.

Black Diamond is well positioned to fund continued organic and inorganic growth opportunities with available liquidity of $192.9 million, and Net Debt to TTM Adjusted Leverage EBITDA¹ of 1.9x at the end of the Quarter, which is slightly below the Company’s targeted range of 2.0x to 3.0x. Further, the recent successful completion of the bought deal public offering of common shares subsequent to the Quarter increases the previously stated liquidity by $42.4 million, providing ample flexibility for the Company to take advantage of organic and inorganic growth opportunities.

Management reaffirms that the Company’s diversified rental platform can continue to compound shareholder returns despite potential macro-economic uncertainty from ever-changing trade and tariff policies. As Black Diamond operates locally within its geographic regions, and does not typically move assets across borders, management does not expect any first-order tariff and trade-war related measures to have a material effect on the Company. While there have been no material effects to date, the Company continues to monitor the effects of tariffs on the macro-economic environment as it relates to its customer base.

Overall, the Company remains focused on driving profitable growth through its stable, recurring, high-margin rental revenue streams across all three operating countries. The second half of 2025 is expected to be steady, underpinned by anticipated strong secular tailwinds, and supported by healthy future contracted rental revenue, a growing fleet of long-lived assets and the continued scaling of LodgeLink. On a forward-looking basis, management is optimistic about the sizable growth opportunities expected over the coming years.

¹Adjusted EBITDA, Gross Bookings and Net Debt are non-GAAP financial measures. Net Revenue Margin and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio.

Second Quarter 2025 Financial Highlights

Additional Information

A copy of the Company’s unaudited interim condensed consolidated financial statements for the three and six months ended June 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 403-718-5062.
or investor@blackdiamondgroup.com.

Conference Call

Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, August 8, 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/14097

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 Statements
Certain 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, timing and payment of the Company’s quarterly dividend, 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, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, the effect of the completion of the bought deal public offering of common shares on the Company’s ability to pursue growth initiatives, sources and use of funds, economic life of the Company’s assets, expected length of existing contracts 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 facility, management of growth, seasonality in certain customer markets, litigation, potential replacement or reduced use of products and services, income taxes, conflicts of interest, restrictive covenants and leverage, the effects of tariffs and trade-war related measures and forward-looking information may prove inaccurate. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect Black Diamond’s operations and financial results are included in Black Diamond’s annual information form for the year ended December 31, 2024 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond’s profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.

Non-GAAP Financial Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Return on Assets, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Gross Bookings and Net Revenue Margin. These non-GAAP financial measures and ratios do not have any standardized meaning prescribed under International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar measures presented by other entities. Readers are cautioned that the non-GAAP financial measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond’s performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP financial measures should only be used in conjunction with the consolidated financial statements of Black Diamond.

Adjusted EBITDA is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. Adjusted EBITDA refers to consolidated earnings before finance costs, tax expense, depreciation and amortization, accretion, foreign exchange, share-based compensation, non-controlling interests, write-down of property and equipment, impairment, gain on disposal of assets and non-recurring costs.

Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company’s operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company’s results as reported under IFRS. Some of the limitations of Adjusted EBITDA are:

• Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company;
• Adjusted EBITDA does not reflect the Company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
• Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
• Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company’s debt;
• Depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
• Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company’s business. The Company compensates for these limitations by relying primarily on the Company’s IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.

Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company’s definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.

Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.

Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with the Company’s profit and property and equipment, two GAAP financial measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond’s ongoing operations and management of assets from period-to-period.

Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets:

Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA:
Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio which is calculated as Net Debt divided by TTM Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP financial measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company’s debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company’s leverage position.

Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP financial measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivable and non-cash working capital items have been excluded as such changes are financed using the operating line of Black Diamond’s credit facilities. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.

Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interests and dividends paid on common shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.

Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow:

Gross Profit Margin is a non-GAAP financial measure which is calculated by dividing gross profit, a GAAP financial measure calculated as total revenue less direct costs, by total revenue for the period. Management believes this ratio is an important supplemental measure of the Company’s performance and believes this ratio is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.

Reconciliation of Gross Profit to Gross Profit Margin:

Gross Bookings is a non-GAAP financial measure and is calculated as the total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP financial measure, is Gross Bookings less costs paid to suppliers. Revenue from bookings at third-party lodges and hotels through LodgeLink is recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this non-GAAP financial measure is an important supplemental measure of LodgeLink’s performance and cash generation and believes this non-GAAP financial measure is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation.

Net Revenue Margin is calculated by dividing net revenue by Gross Bookings for the period. Management believes this ratio is an important supplemental measure of LodgeLink’s performance and profitability and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation where companies act as agents in transactions.

Reconciliation of Net Revenue to Gross Bookings and Net Revenue Margin: