Badger Infrastructure Solutions

The business

Badger Infrastructure Solutions operates the largest fleet of hydrovac (hydro-vacuum) excavation trucks in North America. Hydrovac uses pressurized water and a vacuum to expose buried utilities and infrastructure safely, without the risk of striking pipes and cables that comes with mechanical digging — a service in growing demand as utilities, telecom and construction crews work around ever-denser underground networks.

The company earns revenue on a per-job basis across a broad base of customers in the United States and Canada, spanning utilities, energy, industrial, telecom and municipal work. Its fleet scale, standardized truck design and national footprint let it serve large customers consistently across regions.

Recent results have shown roughly 20%+ revenue growth with adjusted EBITDA rising in step, reflecting both fleet expansion and improving utilization and pricing.

The moat

The largest hydrovac fleet in North America gives density and coverage advantages that let Badger serve national accounts and respond quickly — hard for fragmented local operators to match.

In-house truck manufacturing and standardized equipment lower unit costs and support disciplined fleet growth.

A safety-critical service with regulatory tailwinds (rules discouraging mechanical digging near utilities) supports durable, recurring demand.

Financial snapshot

Most recent reported period : Q2 2026. Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

Free cash flow yield : ≈2.7% (est.)Mid-to-high-30s trailing P/E (~2.7% earnings yield); heavy fleet reinvestment means reported FCF yield is lower, but growth is strong.

Revenue and adjusted EBITDA have both been growing at roughly 20%+ in recent quarters, driven by fleet growth, utilization and pricing. Because the business reinvests heavily in new trucks, reported free cash flow depends on how aggressively it expands the fleet in any given period.

The growth runway — steady share gains in a still-fragmented, structurally growing hydrovac market — is the core of the bull case, provided fleet additions continue to earn attractive returns.

See the full free-cash-flow yield ranking →

Valuation & what to watch

Badger trades at a premium mid-to-high-30s trailing earnings multiple, with a considerably lower forward multiple as earnings are expected to keep growing. The premium reflects the company's category leadership, structural demand growth and strong recent double-digit revenue and EBITDA gains.

For a capital-intensive fleet business, the valuation is best judged against sustained EBITDA growth and returns on the trucks it deploys; at current multiples the market is pricing in continued strong expansion.

Dividend

Pays a small dividend yielding under 1%.

Risks & the bear case

• Capital-intensive fleet model ties cash flow to reinvestment pace and truck utilization.
• Demand is tied to construction, utility and energy activity, which is cyclical.
• A premium valuation leaves little room for a growth or margin disappointment.
• Labour availability (skilled operators) and fuel costs can pressure margins.

Recent developments

As of 2026-08-05, this profile reflects Badger Infrastructure Solutions's Q2 2026; consult the company's latest filings and the linked sources for any developments since.

Verdict

A category-leading, structurally-growing niche services business with strong recent momentum, but priced for continued high growth. High-quality franchise, moderate-to-high conviction on the business, valuation-sensitive on entry.