https://www.blackdiamondgroup.com/news/3336512/black-diamond-reports-second-quarter-results-and-declares-dividend/

Black Diamond Reports Second Quarter Results and Declares Dividend

July 30 2026

CALGARY, Alberta, July 30, 2026 (GLOBE NEWSWIRE) -- lack Diamond Group Limited ("Black Diamond", the "Company" or "we"), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months ended June 30, 2026 (the "Quarter") compared with the three months ended June 30, 2025 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.

Key Highlights from the Quarter

  • Consolidated revenue for the Quarter of $129.2 million increased 23% from the Comparative Quarter contributing to adjusted EBITDA1 of $30.4 million, which increased 4% from the Comparative Quarter.
  • Consolidated rental revenue for the Quarter of $45.0 million increased 17% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue for the Quarter remains healthy at $136.5 million despite a decrease of 11% from the Comparative Quarter.
  • Total capital expenditures for the Quarter of $24.9 million decreased 23% from the Comparative Quarter. Total capital commitments at the end of the Quarter of $34.2 million increased 24% from the Comparative Quarter and reflect the breadth of opportunities across the business.
  • Workforce Solutions ("WFS") revenue of $72.2 million for the Quarter increased 55% from the Comparative Quarter, contributing to Adjusted EBITDA¹ of $15.6 million, up 3% from the Comparative Quarter. The increase was driven by contributions from Royal Camp Services Ltd. ("Royal Camp"), which supported growth in lodge services revenue of 174%, rental revenue of 35% and non-rental revenue of 34% from the Comparative Quarter.
  • WFS currently has over $2 billion of formal bids outstanding, which represent more than double the Company's current fleet capacity.
  • Modular Space Solutions ("MSS") rental revenue of $28.6 million for the Quarter, increased 8% from the Comparative Quarter, contributing to Adjusted EBITDA1 of $20.9 million, up 3% from the Comparative Quarter. Utilization remained within the optimal range at 77.9% and average monthly rates increased 3% on a constant currency basis to $910 per unit.
  • MSS value-added products and services ("VAPS") revenue of $3.1 million for the Quarter increased 35% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 up 240 basis points from the Comparative Quarter to 11.7%.
  • LodgeLink generated record Total Trade Value1 of $43.5 million for the Quarter, an increase of 69% from the Comparative Quarter, driving net revenue up 64% to a record $5.4 million from the Comparative Quarter. Total Travel Segments sold of 215,644 increased 44% from the Comparative Quarter, which is also an all time record.
  • Successfully implemented the new ERP system for MSS and Corporate within the Quarter, on time and on budget, positioning the Company to realize operational efficiency and manage scalable future growth during a time of accelerating opportunity across the platform.
  • The Company realized earnings per share of $0.01 in the Quarter, down from $0.15 in the Comparative Quarter, due primarily to a $3.6 million provision for BC PST assessments that are being appealed and challenged by the Company. Basic Adjusted EPS¹ of $0.09 per share decreased by $0.09 from the Comparative Quarter, reflecting lower margins, higher depreciation and financing costs, and increased shares outstanding.
  • Net Debt1 of $351.0 million at the end of the Quarter increased 7% since December 31, 2025. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA1 of 2.4x is within the target range of 2.0x to 3.0x. During the Quarter, the Company expanded its secured asset-based revolving credit facility (the "ABL Facility") to $550.0 million from $425.0 million with no material amendments to the terms, increasing available liquidity to approximately $196.8 million.
  • Subsequent to the end of the Quarter, the Company declared a third quarter dividend of $0.045 payable on or about October 15, 2026 to shareholders of record on September 30, 2026.

1Adjusted EBITDA, Adjusted EPS, Total Trade Value, Adjusted Profit and Net Debt are non-GAAP financial measures. VAPS as a % of Rental Revenue 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.

Outlook

Black Diamond enters the second half of the year with a strong balance sheet, resilient recurring rental and lodging revenue streams and a diversified platform that continues to generate stable results despite fewer episodic projects and typical sales activity variability within the quarter.

Within WFS, customer engagement and bidding activity continues to build in a very prospective manner across all three countries with a diverse pipeline linked to energy, natural resources, mining, related infrastructure, data centres and defence and military projects. In Canada alone, WFS currently has over $2 billion in formal bids for over 20 active projects, exceeding total available fleet capacity by more than two-times with many other preliminary bids in progress for additional projects. Although the advancement and timing of large-scale Canadian resource, infrastructure and nation-building projects is now expected to emerge over a longer period into 2027 and beyond, management continues to view them as important forward-looking demand drivers. With considerable available room capacity, the business is well-positioned to respond to customer requirements, unlocking the substantial operating leverage of WFS with minimal capital investment.

Beyond the significant opportunity for WFS, the build-out of major infrastructure, resource and nation-building projects is also expected to create meaningful demand for modular space, which will contribute to further compounding in this area of the business. Meanwhile, MSS remains a consistent driver of performance, supported by disciplined fleet investment, stable pricing and utilization levels that continue to reflect healthy customer activity. Key end-markets remains favourable, particularly in Canada where infrastructure and construction activity continues to increase. Growth in the education sector, particularly in the United States, remains subdued as funding uncertainty and evolving immigration policy impacts student enrollment trends, influencing customer decisions and project timing. While these conditions result in a more cautious demand environment within the education vertical, activity across other end-markets such as data center construction remains steady and it is expected that rental and sales demand accelerates in the latter half of 2026.

LodgeLink continues to progress on its exponential growth trajectory and produce favourable results. Booking activity, customer retention, new customer adoption and platform engagement remain strong, reinforcing confidence in our value proposition within the large total addressable market. As the 3.0 platform advances toward General Availability (GA) later this year, management sees a significant opportunity to increase market penetration, deepen customer relationships and expand LodgeLink’s reputation as a leading provider of an agentic workforce travel management tool – underscoring how this area of the business is anticipated to be an increasingly important contributor to Black Diamond's future growth and value creation profile.

The Company's financial position remains a key competitive advantage. While working capital was impacted by the successful ERP implementation, this was anticipated and is expected to normalize throughout the remainder of the year. Strong liquidity and leverage levels at the mid-point of the target range provide considerable flexibility to pursue growth initiatives, invest in fleet expansion and refurbishment, evaluate strategic acquisition opportunities and continue returning capital to shareholders. Given the opportunities ahead, the Company anticipates increased organic capital investment across Canada and the United States for the balance of 2026 and into 2027.

Black Diamond's positive outlook is supported by stability of the base rental platform, recurring catering business, strong LodgeLink momentum and the set-up of its remote accommodations business with unprecedented and growing activity within the bid pipeline. Supported by strong fundamentals and a disciplined approach to execution, the Company is well positioned to capitalize on future demand, while delivering steady performance in the near-term.

Second Quarter 2026 Financial Highlights

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change20262025Change
Financial Highlights$$%$$%
Total revenue129.2105.423%259.2207.625%
Gross profit52.247.89%106.292.115%
Administrative expenses24.220.419%47.639.820%
Adjusted EBITDA(1)30.429.24%62.455.712%
Adjusted EBIT(1)12.617.2(27)%26.931.3(14)%
Funds from Operations(1)28.629.8(4)%59.856.36%
Per share ($)0.420.49(14)%0.870.92(5)%
Profit before income taxes1.212.6(90)%5.920.1(71)%
Profit0.99.2(90)%3.615.0(76)%
Adjusted EPS - Basic ($)(1)0.090.18(50)%0.170.30(42)%
Adjusted EPS - Diluted ($)(1)0.090.18(50)%0.170.29(44)%
Earnings per share - Basic ($)0.010.15(93)%0.050.25(79)%
Earnings per share - Diluted ($)0.010.15(93)%0.050.24(79)%
Capital expenditures24.932.5(23)%41.849.8(16)%
Property and equipment786.6587.934%786.6587.934%
Total assets1,077.9761.542%1,077.9761.542%
Long-term debt377.8238.858%377.8238.858%
Cash and cash equivalents27.08.6214%27.08.6214%
Return on Assets (%)(1)14.3%19.0%(470) bps7.4%18.2%(1,080) bps
Free Cashflow(1)14.619.5(25)%33.536.3(8)%
(1) Adjusted EBITDA, Adjusted EBIT, Adjusted EPS, 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 six months ended June 30, 2026 and 2025 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 an industrial services and asset management 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 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, through its principal brands Black Diamond Lodging and Accommodations, Royal Camp, Summit Camps and Primco Dene Royal Camp Services Limited Partnership, owns a large rental fleet of modular accommodation assets of various types and offers a full range of catering and hospitality services both in concert with and independent of the provision of modular accommodation facilities. WFS rents, sells, services and provides ancillary products and services including turn-key operated camps with premium integrated catering and hospitality services to a wide array of customers in the resource, infrastructure, construction, disaster recovery and education sectors.

In addition, the WFS business unit also includes the Corporation’s wholly owned subsidiary, LodgeLink, which operates through a proprietary software platform, offering sophisticated solutions for workforce travel and logistics across North America, Australia and the Asia-Pacific region, enabling customers to efficiently manage the full travel cycle through a rapidly growing network of hotels, remote lodges and travel partners. LodgeLink solves the unique challenges associated with workforce crew travel and is complemented by Spencer Group of Companies’ high-touch boutique corporate travel management service.

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 July 31, 2026. 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 1-800-715-9871. International callers should use 1-647-932-3411. 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:
www.gowebcasting.com/14742

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, the Company's outlook for 2026, expectations for and opportunities in different geographic areas, opportunities for organic investment, expectations regarding nation-building projects. reinvesting operating cash flows, capital commitments, targeted completion of LodgeLink's new 3.0 product, 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 dividends, the effect of the Enterprise Resource Planning ("ERP") system upgrade on the Company's business, macro-economic uncertainty, 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, management's expectations regarding the ability to raise equity, sources and use of funds, economic life of the Company's assets, expected length of existing contracts, plans for completion of the assessment of the controls, policies and procedures of the acquired companies 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, effectiveness of the new ERP system, 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, 2025 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, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Return on Assets, VAPS as a % of Rental Revenue, Total Trade Value, Net Revenue Margin, Adjusted Profit and Net Capital Expenditures. These non-GAAP financial measures 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 a standardized meaning 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 and intangible assets. 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:

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change
%		20262025Change
%
Profit(1)0.99.2(90)%3.615.0(76)%
Add:      
Depreciation and amortization(1)17.812.048%35.524.445%
Finance costs(1)5.23.644%10.17.436%
Share-based compensation(1)2.41.926%4.23.135%
Non-controlling interests(1)0.70.3133%2.10.7200%
Current income taxes(1)(0.1)0.5(120)%1.20.933%
Deferred income taxes(1)0.62.6(77)%1.03.5(71)%
Non-recurring costs      
ERP implementation and related costs(2)2.31.828%3.93.415%
Acquisition costs(1)0.10.1—%0.30.1200%
Gain on disposal of assets(1)(3.1)(2.8)(11)%(3.1)(2.8)(11)%
Provision for sales tax assessments(1)3.6—100%3.6—100%
Adjusted EBITDA30.429.24%62.455.712%
Less:      
Depreciation and amortization(1)17.812.048%35.524.445%
Adjusted EBIT12.617.2(27)%26.931.3(14)%
       
Total revenue(1)129.2105.423%259.2207.625%
Adjusted EBITDA as a % of Revenue23.5%27.7%(420) bps24.1%26.8%(270) bps
       
Annualized multiplier44 22 
Annualized adjusted EBITDA121.6116.84%124.8111.412%
Average net book value of property and equipment852.3615.339%846.9612.638%
Return on Assets14.3%19.0%(470) bps7.4%18.2%(1,080) bps
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.
(2) This relates to the costs incurred for implementation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024.
 

Reconciliation of Consolidated Profit to Adjusted Profit, and Adjusted Earnings Per Share (EPS):

Adjusted Profit represents profit from continuing operations excluding the amortization of intangibles acquired through acquisitions, acquisition costs, ERP implementation and related costs, and adjustments for other specific items that are significant but are not reflective of Black Diamonds underlying operations, all on an after-tax basis. Specific items are subjective, although Black Diamond uses judgment when identifying items to be excluded in calculating adjusted measures. Adjusted profit is a measure of overall profitability and the most comparable IFRS measure for adjusted profit is Profit. Management presents Adjusted Profit because it considers it to be a reflection of ongoing operations.

Adjusted Earnings Per Share (EPS) is a non-GAAP ratio calculated by dividing adjusted profit (defined above) by the basic and diluted weighted average number of shares outstanding. Management presents Adjusted EPS because it considers it to be a reflection of ongoing operations.

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change 20262025Change
Profit(1)0.99.2(90)%3.615.0(76)%
Add back net of tax:      
Amortization of intangibles related to acquisitions(2)1.20.3300%2.50.6317%
ERP implementation and related costs(3)1.71.421%2.92.612%
Acquisition costs(4)0.10.1—%0.20.1100%
Provision for sales tax assessments(5)2.6—100%2.6—100%
Adjusted Profit6.511.0(41)%11.818.3(36)%
Weighted average common shares outstanding - basic68.461.312%68.661.312%
Weighted average common shares outstanding - diluted70.262.213%70.562.114%
Adjusted EPS      
Basic ($)0.090.18(50)%0.170.30(43)%
Diluted ($)0.090.18(50)%0.170.29(41)%
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.
(2) The add back of intangible amortization relates only to the amortization from intangible assets acquired through acquisitions and excludes the amortization of internally generated intangibles. For the three and six months ended June 30, 2026, this amount is net of tax of $0.4 and $0.9 (2025 - $0.1 and $0.2)
(3) For the three and six months ended June 30, 2026, this amount is net of tax of $0.6 and $1.1 (2025 - $0.4 and $0.8)
(4) The add back of certain administrative and marketing costs and depreciation primarily related to acquisition expenses associated with our acquisitions and restructuring costs. For the three and six months ended June 30, 2026, this amount is net of tax of $0.1 (2025 - $nil)
(5) For the three and six months ended June 30, 2026, the Provision for sales tax assessments amount is net of tax of $1.0 and $1.0 (2025 - $nil)
 

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.

($ millions, except as noted)
20262026202520252025202520242024Change
 Q2Q1Q4Q3Q2Q1Q4Q3 
Profit(1)0.92.77.612.29.25.89.37.4 
Add:         
Depreciation and amortization(1)17.817.615.812.412.012.414.612.6 
Finance costs(1)5.24.94.03.23.63.83.84.3 
Share-based compensation(1)2.41.92.12.31.91.21.31.2 
Non-controlling interests(1)0.71.31.60.20.30.40.50.4 
Current income taxes(1)(0.1)1.31.40.40.50.40.9— 
Deferred income taxes(1)0.60.44.23.92.60.95.42.6 
Non-recurring costs         
ERP implementation and related costs(2)2.31.61.41.71.81.61.40.3 
Acquisition costs(1)0.10.31.21.50.1——— 
Gain on disposal of assets(1)(3.1)—(0.4)(6.0)(2.8)——— 
Provision for sales tax assessments3.6——————— 
Adjusted EBITDA30.432.038.931.829.226.537.228.8 
Acquisition pro-forma adjustments(3)——6.47.315.511.8—— 
Adjusted Leverage EBITDA30.432.045.339.144.738.337.228.8 
          
TTM Adjusted Leverage EBITDA146.8   121.7   21%
          
Long-term debt(1)377.8   238.8   58%
Cash and cash equivalents(1)27.0   8.6   214%
Current portion of long-term debt(4)0.2   1.8   (89)%
Net Debt351.0   232.0   51%
Net Debt to TTM Adjusted Leverage EBITDA2.4   1.9   26%
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.
(2) This relates to the costs incurred for the implementation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024.
(3) Includes pre-acquisition Adjusted EBITDA estimates as if the acquisition occurred on January 1, 2025. Pre-acquisition Adjusted EBITDA is not recognized measure under IFRS. The Company's method of calculating may differ from other entities and accordingly, may not be comparable to measures used by other entities.
(4) Current portion of long-term debt relating to the payments due within one year on the bank term loans assumed as part of the acquisition in the fourth quarter of 2022.
 

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:

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change20262025Change
       
Cash Flow from Operating Activities(1)21.428.5(25)%42.964.4(33)%
Add (deduct):      
Change in other long-term assets(1)(0.6)1.4(143)%(1.5)2.0(175)%
Changes in non-cash operating working capital(1)7.8(0.1)7,900%18.4(10.1)282%
Funds from Operations28.629.8(4)%59.856.36%
Add (deduct):      
Maintenance capital(2.2)(2.2)—%(4.9)(3.9)(26)%
Payment for lease liabilities(1)(2.3)(2.0)(15)%(4.6)(4.7)2%
Interest paid (including lease interest)(1)(5.0)(3.4)(47)%(9.7)(7.0)(39)%
Net current income tax expense(1)(0.1)0.5(120)%1.20.933%
Dividends paid on Common Shares(1)(3.1)(2.2)(41)%(6.1)(4.3)(42)%
Distributions paid to non-controlling interests(1)(1.3)(1.0)(30)%(2.2)(1.0)(120)%
Free Cashflow14.619.5(25)%33.536.3(8)%
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.
 

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:

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change20262025Change
Total revenue(1)129.2105.423%259.2207.625%
Direct costs(1)77.057.634%153.0115.532%
Gross profit(1)52.247.89%106.292.115%
Gross Profit Margin40.4%45.4%(500) bps41.0%44.4%(340) bps
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.
 

Total Trade Value, previously referred to as Gross Bookings, has been renamed to ensure alignment with terminology commonly used across the industry. Total Trade Value 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 Total Trade Value 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 Total Trade Value 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 Total Trade Value and Net Revenue Margin:

 Three months ended June 30,Six months ended June 30,
($ millions, except as noted)20262025Change20262025Change
Net revenue(1)5.43.364%9.16.052%
Costs paid to suppliers(1)38.122.470%67.141.263%
Total Trade Value(1)43.525.769%76.247.261%
Net Revenue Margin12.4%12.8%(40) bps11.9%12.7%(80) bps
(1) Includes intercompany transactions.
 

VAPS as a % of Rental Revenue is a non-GAAP ratio which is calculated as VAPS revenue divided by rental revenue excluding VAPS revenue. A reconciliation to rental revenue, the most comparable GAAP financial measure, is provided below. Black Diamond uses this ratio as a measure of operating performance. Management believes this ratio is an important supplemental measure to appraise the growth of ancillary products and services in proportion to the growth of rental revenue.

Reconciliation of Rental Revenue to VAPS as a % of Rental Revenue:

 Three months ended June 30,Six months ended June 30,
Value Added Products & Services
($ millions, except as noted)		20262025Change20262025Change
Rental revenue(1)28.626.48%55.051.96%
Less:      
VAPS revenue within rental revenue2.21.638%4.03.033%
Rental revenue excluding VAPS revenue26.424.86%51.048.94%
VAPS revenue3.12.335%5.84.335%
VAPS as a % of Rental Revenue11.7%9.3%240 bps11.4%8.8%260 bps
(1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.

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