Key Takeaways
- Railworks Corp (RWK.V) provides rail construction, maintenance, and inspection services across Western Canada.
- Revenue grew 40% over two years to C$82M (FY2025); EBITDA margin holds above 14%.
- The company trades at 6x FY2025 EBITDA a discount to US rail services peers at 10–12x.
- CN Rail and CP Rail are both multi-year clients; contract backlog stands at C$94M.
Rail infrastructure maintenance is not a glamorous business, but it is a remarkably durable one. Canada’s grain export system moving approximately 30 million tonnes of prairie grain to port each year depends on a rail network that requires constant maintenance, inspection, and periodic reconstruction. Railworks Corp has built a niche business servicing this need for Canada’s Class 1 railroads, agricultural co-ops, and industrial clients.
The Business Model
Railworks provides: rail replacement and tie-laying services, ballast work and track geometry correction, weld repair and inspection services, and industrial siding construction for new facilities connecting to the main rail network. The company operates primarily in Alberta, Saskatchewan, Manitoba, and BC, with limited exposure to eastern Canadian rail.
| Metric | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenue (C$M) | 82.4 | 72.1 | 58.8 |
| EBITDA (C$M) | 11.5 | 9.8 | 7.6 |
| EBITDA Margin | 14.0% | 13.6% | 12.9% |
| Contract Backlog (C$M) | 94 | 78 | 52 |
| Net Debt (C$M) | 18.4 | 22.1 | 28.4 |