Overview

* Black Diamond's Q3 revenue grows 4% yr/yr but misses analysts' expectations

* Adjusted EBITDA for Q3 also misses estimates

* The real estate rental group announces strategic acquisitions and increases quarterly dividend by 29%

Outlook

* Black Diamond expects rental revenue stability in the near term, but variability of sales and non-rental revenue streams is likely to persist

* Acquisition of Royal Camp Services Ltd. expected to close by end of 2025

Result Drivers

* INSURANCE PROCEEDS - Profit was impacted by the receipt of insurance proceeds related to wildfire asset losses

* MSS REVENUE GROWTH - Record MSS rental revenue driven by higher rental rates and increased units on rent

* LODGE SERVICES REVENUE - WFS revenue increase driven by higher non-rental and lodge services revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$105.3 C$108.2

Revenue mln mln (4

Analysts

)

Q3 Miss C$31.8 C$32.2

Adjusted mln mln (4

EBITDA Analysts

)

Q3 FFO C$33 mln

Q3 Basic C$0.19

EPS

Q3 Capex C$19.6

mln

Q3 Gross C$50.2

Profit mln

Q3 C$16.6

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

* Wall Street's median 12-month price target for Black Diamond Group Ltd ( BDIMF ) is C$16.00, about 6.3% above its October 30 closing price of C$15.00

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)