Review of Badger Infrastructure Solutions

APR 16, 2026 - The company’s business model is highly sustainable and durable, given the fact that BDGI has managed to compound shareholder capital at around 16% per year on average over the last twenty years despite operating in an industry that is widely considered cyclical and “commodity-like” with little differentiation. The company’s business is expected to benefit from the long-term tailwind of sustained demand from infrastructure investments (such as Artificial Intelligence infrastructure), though in the short term, growth could be lumpy due to macro factors. BDGI has consistently reinvested capital back into the business to expand its fleet and network branches, as well as add adjacent services to leverage its fixed-cost business model. BDGI did experience some tariff uncertainty, which temporarily increased capital spending, but it is still manageable. We think BDGI is trading at a fair valuation and would be willing to upgrade if the company continues to sustain solid execution and the macro picture improves. For now, we are maintaining our rating at ‘B’.