11:12 AM EDT, 10/09/2024 (MT Newswires) -- (Updates with analyst comment.)

Bird Construction (BDT.TO) was up 14% to a record high after the company on Wednesday raised its dividend by 50% following approval of the company's 2025-2027 strategic plan.

The board approved a $0.0233 increase in its monthly dividend to $0.07 per share, an annual dividend rate of $0.84 per share. The higher dividend is effective Nov. 29 and payable on Dec. 20.

The company's strategic plan outlined targets including an organic revenue growth compound annual growth rate range of 10% +/- 2%, with 2025 receiving an additional 5% growth from the full year of Jacob Bros. revenue when compared to 2024.

Bird is also aiming for an adjusted EBITDA margin of 8% for full-year 2027 as well as a dividend payout ratio of net income target of 33%.

"The strategic changes we've made over the past several years have diversified our business, expanded our capabilities and geographical reach, and risk-balanced our work program with more collaborative contracting structures. This has allowed Bird to participate in larger portions of multi-year large capital investment projects," Bird chief executive Teri McKibbon said.

"Looking ahead, the business has considerable momentum and is expected to benefit from significant tailwinds stemming from our strategic focus on higher margin and economically resilient sectors. Our 2025-2027 financial targets reflect our continued focus on margin accretion, disciplined project selection, and safe, collaborative operational excellence," McKibbon added.

National Bank of Canada maintained its sector-perform rating and $23.00 price target on Bird's shares following the news.

The bank said Bird's targets reinforce its view around the company being a more balanced entity with a greater margin overlay and a de-risked approach around project execution.

Bird's shares were last seen up $3.62 to $30.31 on the Toronto Stock Exchange, their highest ever.

Price: 29.97, Change: +3.28, Percent Change: +12.29