When investors think about the best long-term Canadian stocks, the usual names often come up: banks, utilities, and energy giants. But one lesser-known company is quickly proving it deserves to be in the same conversation. That company is Bird Construction (TSX: BDT). With a track record of resilience, impressive growth, and a commitment to monthly dividends, Bird could very well be one of the best investments of the decade for Canadian investors.
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The stock
Bird Construction is a leading construction and maintenance firm that has operated in Canada since 1920. It focuses on large-scale industrial, commercial, and institutional projects, ranging from schools and hospitals to infrastructure and energy facilities. While construction may not sound like the most glamorous industry, Bird’s recent results tell a compelling story of growth, diversification, and long-term promise.
In its most recent earnings report, Bird posted first-quarter 2025 revenue of $717.6 million, a 4% increase over the same period in 2024. Despite a small drop in net income to $9.4 million, down from $10 million, the company’s earnings per share (EPS) actually increased from $0.21 to $0.23 thanks to margin expansion and cost efficiencies. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 41% year-over-year to $34.1 million. This margin growth shows Bird is managing its costs effectively while taking on larger and more complex projects.
Bird’s biggest strength might be its growing backlog. The company ended Q1 2025 with a record backlog of $4.3 billion. Even more impressive is its pending backlog, projects that have been awarded but are not yet under contract, sitting at an additional $4 billion. This means the company has visibility into future revenues well beyond the next few quarters.
More to come
What’s driving the growth? For starters, Bird has successfully diversified across multiple sectors. In recent years, it has added high-margin service work and renewable energy contracts to its portfolio, helping to offset some of the seasonality of traditional construction projects. Key projects include the East Harbour Transit Hub in Toronto, critical infrastructure upgrades in Alberta, and work supporting Ontario Power Generation’s nuclear refurbishment initiatives. It’s also a major player in federal and provincial infrastructure programs tied to green and public transit investment.
Another key differentiator for Bird is its financial health. As of March 31, 2025, the company held $137.8 million in cash and cash equivalents, with an undrawn $336.7 million credit facility. That gives Bird ample liquidity to fund new projects, explore acquisitions, and maintain its dividend even during economic slowdowns. For a mid-cap company in a traditionally capital-heavy sector, this kind of financial strength is a major plus.
Speaking of dividends, Bird is one of the few Canadian industrial companies that pays shareholders monthly. It offers $0.07 per share per month, for an annual yield around 3.3% at recent prices. The dividend has been consistent, and with the company’s backlog and earnings stability, it looks well supported going forward.
Foolish takeaway
Looking forward, Bird Construction is in a sweet spot. With infrastructure investment still high across Canada, a record backlog, a strong financial position, and a shareholder-friendly dividend policy, it checks all the boxes for long-term investors. It might not have the name recognition of a big bank or utility, but its performance and potential say otherwise.
This is a stock that flies under the radar, until it doesn’t. For Canadians thinking about where to park their money for the long term, Bird Construction may just be the best investment of the decade. It is stable, is growing, pays you monthly, and still looks undervalued. That’s a rare combination in any market.
