CALGARY, Alberta, July 30, 2026 (GLOBE NEWSWIRE) -- Black 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 was $129.2 million, up 23% from the Comparative Quarter, contributing to adjusted EBITDA¹ of $30.4 million, an increase of 4% from the Comparative Quarter.

Consolidated rental revenue for the Quarter was $45.0 million, up 17% from the Comparative Quarter. The Company's consolidated contracted future rental revenue remained healthy at $136.5 million, despite an 11% decrease from the Comparative Quarter.

Total capital expenditures for the Quarter were $24.9 million, down 23% from the Comparative Quarter. Total capital commitments at the end of the Quarter were $34.2 million, up 24% from the Comparative Quarter, reflecting the breadth of opportunities across the business.

Workforce Solutions ("WFS") revenue of $72.2 million 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. Royal Camp, acquired by Black Diamond in 2024, expanded the Company's presence in large-scale remote accommodation and catering, and its full-period contribution this Quarter is a primary factor behind the year-over-year revenue step-up.

WFS currently has more than $2 billion of formal bids outstanding, representing more than double the Company's current fleet capacity. This bid pipeline reflects broader demand for remote workforce lodging tied to resource extraction, LNG infrastructure, mining development, and data centre construction across North America and Australia.

Modular Space Solutions ("MSS") rental revenue was $28.6 million, up 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 was $3.1 million, up 35% from the Comparative Quarter, driving VAPS as a % of Rental Revenue¹ up 240 basis points to 11.7%.

LodgeLink generated record Total Trade Value¹ of $43.5 million, an increase of 69% from the Comparative Quarter, driving net revenue up 64% to a record $5.4 million. Total Travel Segments sold reached 215,644, up 44% from the Comparative Quarter and also an all-time record.

During the Quarter, the Company successfully implemented the new ERP system for MSS and Corporate, on time and on budget, positioning the Company to realize operational efficiency and manage scalable future growth during a period of accelerating opportunity across the platform. The ERP upgrade replaces legacy systems that had constrained real-time visibility across the modular fleet and corporate functions.

The Company reported earnings per share of $0.01 for 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 at the end of the Quarter was $351.0 million, up 7% since December 31, 2025. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA¹ was 2.4x, 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.

¹ Adjusted 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 said it 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 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 more than $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. The bid pipeline aligns with a wave of planned Canadian infrastructure investment, including LNG export terminals, critical minerals mining, and transmission line construction, all of which require remote workforce housing at scale. 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 positioned to respond to customer requirements and to unlock the operating leverage of WFS with minimal capital investment.

Black Diamond said the build-out of major infrastructure, resource and nation-building projects is also expected to create meaningful demand for modular space, which it expects will contribute to further growth in that business. 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 remain 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 affect student enrollment trends, influencing customer decisions and project timing. While these conditions create a more cautious demand environment within the education vertical, activity across other end markets such as data center construction remains steady, and the Company expects rental and sales demand to accelerate in the latter half of 2026.

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

The Company said its financial position remains a key competitive advantage. While working capital was affected by the successful ERP implementation, this was anticipated and is expected to normalize throughout the remainder of the year. Strong liquidity and leverage at the midpoint of the target range provide 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 said its outlook is supported by the stability of its base rental platform, recurring catering business, strong LodgeLink momentum and the setup of its remote accommodations business, with unprecedented and growing activity within the bid pipeline. The Company said it is well positioned to capitalize on future demand while delivering steady performance in the near term.

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. The Company operates 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 rents, sells, services and provides 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 customers in the resource, infrastructure, construction, disaster recovery and education sectors.

In addition, the WFS business unit includes the Corporation's wholly owned subsidiary, LodgeLink, which operates through a proprietary software platform offering solutions for workforce travel and logistics across North America, Australia and the Asia-Pacific region. The platform enables customers to manage the full travel cycle through a growing network of hotels, remote lodges and travel partners. LodgeLink addresses the 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 [email protected].

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 the Company'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. Participants are asked to connect approximately 10 minutes before the start of the call.

To access the webcast, log in 10 minutes before the start time at: www.gowebcasting.com/14742

A replay will be available after the conference call in the Investor Centre section of the Company's website at www.blackdiamondgroup.com, under Presentations & Events.

Reader Advisory and Forward-Looking Statements

Certain information 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 affect them; expectations regarding the rental rate environment; opportunities and effects of deploying investment capital; financial performance; business prospects and opportunities; changing operating conditions, 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 uses 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 these forward-looking statements, 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 effectiveness of the new ERP system; the effects of tariffs and trade-war related measures; that counterparties to contracts will perform 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, and the assumptions on which they are based, are reasonable, there can be no assurance that they will prove correct. 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 Company's control. These risks include, but are not limited to, volatility in industry conditions; dependence on agreements and contracts; competition; credit risk; information technology systems and cybersecurity; 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 the 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 the possibility that 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 is included in the Company'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. The forward-looking statements in this news release are made as of the date of this release, and Black Diamond does not undertake any obligation to update or revise them, except as required by applicable securities laws.

Non-GAAP Financial Measures

This news release discloses several specified financial measures and ratios, including 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 standardized meanings under International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other entities.

Readers are cautioned that these non-GAAP measures are not alternatives to IFRS measures and should not, on their own, be construed as indicators of Black Diamond's performance or cash flows, measures of liquidity, or measures of actual return on the Company's shares. They should be used only together with Black Diamond's consolidated financial statements.

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.

Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance.

Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period.

Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment and intangible assets.

Adjusted Profit represents profit from continuing operations excluding the amortization of intangibles acquired through acquisitions, acquisition costs, ERP implementation and related costs, and other specific items that are significant but are not reflective of Black Diamond's underlying operations, all on an after-tax basis. Adjusted EPS is calculated by dividing adjusted profit by the basic and diluted weighted average number of shares outstanding.

Net Debt is calculated as long-term debt minus cash and cash equivalents. Net Debt to TTM Adjusted Leverage EBITDA is calculated as Net Debt divided by TTM Adjusted Leverage EBITDA.

Funds from Operations is calculated as cash flow from operating activities, excluding changes in non-cash working capital. Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid, payment of lease liabilities, net current income tax expense or recovery, distributions declared to non-controlling interests and dividends paid on common shares, plus net current income taxes received or paid.

Gross Profit Margin is calculated by dividing gross profit by total revenue for the period. Total Trade Value, previously referred to as Gross Bookings, has been renamed to align with terminology commonly used across the industry. It is calculated as the total revenue billed to the customer, including all fees and charges. Net revenue 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 because LodgeLink acts as an agent in the transaction.

Net Revenue Margin is calculated by dividing net revenue by Total Trade Value for the period.

VAPS as a % of Rental Revenue is calculated as VAPS revenue divided by rental revenue excluding VAPS revenue.