Core Viewpoint - North American Construction (NOA) has shown a significant price increase of 11.1% over the past four weeks, with a mean price target of $25.70 indicating a potential upside of 51.1% from its current price of $17.01 [1] Price Targets and Analyst Consensus - The average price target for NOA ranges from a low of $19.46 to a high of $31.68, with a standard deviation of $3.99, suggesting a variability in analyst estimates [2] - The lowest estimate indicates a 14.4% increase, while the highest suggests an 86.2% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about NOA's earnings prospects, as indicated by a trend of upward revisions in earnings estimates [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 1.3%, with one estimate moving higher and no negative revisions [12] - NOA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [10]

I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to ...

Group 1 - North American Construction Group Ltd. (NACG) held its Annual Meeting of Shareholders on May 14, 2025, where shareholders elected directors and approved KPMG LLP as independent auditors [1] - The election results showed strong support for the directors, with Martin R. Ferron receiving 93.39% of votes in favor, and Joseph C. Lambert receiving 99.78% [1] - A non-binding advisory vote on the company's approach to executive compensation was approved with 79.59% of votes in favor [1] Group 2 - NACG is a leading provider of heavy civil construction and mining services in Australia, Canada, and the U.S., with over 70 years of experience in the mining, resource, and infrastructure construction markets [2]

Company Performance - North American Construction reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $0.58 per share a year ago [1] - The earnings surprise was -30.77%, and the company has surpassed consensus EPS estimates only once in the last four quarters [2] - The company posted revenues of $237.41 million for the quarter, exceeding the Zacks Consensus Estimate by 11.60%, compared to $220.33 million in the same quarter last year [3] Stock Movement and Outlook - North American Construction shares have declined approximately 23.9% since the beginning of the year, while the S&P 500 has gained 0.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $212.52 million, and for the current fiscal year, it is $2.74 on revenues of $892 million [8] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which North American Construction belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges ahead [9] - Another company in the same industry, National Energy Services Reunited, is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 33.3% [10]

ACHESON, Alberta, May 14, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX:NOA/NYSE:NOA) today announced results for the first quarter ended March 31, 2025. Unless otherwise indicated, financial figures are expressed in Canadian dollars, and comparisons are to the prior period ended March 31, 2024. First Quarter 2025 Highlights: Combined revenue of $391.5 million, the second-highest quarter in company history, compared favorably to $345.7 million in the same period last year and ...

Wall Street expects a year-over-year decline in earnings on lower revenues when North American Construction (NOA) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

ACHESON, Alberta, May 01, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX: NOA / NYSE: NOA) announced today that it has successfully closed its previously announced private placement offering (the “Offering”) of $225 million aggregate principal amount of 7.75% Senior Unsecured Notes due May 1, 2030 (the “Notes”). As previously stated, NACG will utilize the proceeds of the Offering to repay indebtedness under its existing Credit Agreement, and for general corporate purposes. The ...

ACHESON, Alberta, April 25, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX: NOA / NYSE: NOA) announced today that it has entered into an underwriting agreement to sell, pursuant to a private placement offering (the “Offering”), $225 million aggregate principal amount of 7.75% Senior Unsecured Notes due May 1, 2030 (the “Notes”). The Notes will be issued at a price of $1,000 per $1,000 of Notes. The Notes will accrue interest at the rate of 7.75% per annum, payable in cash in e ...

Core Viewpoint - North American Construction (NOA) reported quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.73 per share, but showing an increase from $0.64 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was -2.74%, with the company previously expected to post earnings of $0.84 per share but actually reporting $0.85 per share in the prior quarter, resulting in a positive surprise of 1.19% [2] - Over the last four quarters, North American Construction has surpassed consensus EPS estimates only once [2] Revenue Performance - The company posted revenues of $218.42 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.93%, but down from $239.7 million in the same quarter last year [3] - North American Construction has topped consensus revenue estimates two times over the last four quarters [3] Stock Performance and Outlook - Shares of North American Construction have declined approximately 21.6% since the beginning of the year, compared to a decline of 4.5% for the S&P 500 [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] Earnings Estimates and Revisions - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $226.82 million, and for the current fiscal year, it is $3 on revenues of $903.49 million [8] - The trend for estimate revisions ahead of the earnings release has been unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Building Products - Heavy Construction industry, to which North American Construction belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a relatively strong position [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Core Viewpoint - North American Construction Group Ltd. (NACG) reported its financial results for Q4 and the year ended December 31, 2024, highlighting a decrease in revenue and net income compared to the previous year, while also emphasizing operational improvements and strategic contract wins in the heavy civil infrastructure and mining sectors [1][3][5]. Financial Performance - Q4 2024 revenue was $305.6 million, down from $328.3 million in Q4 2023, primarily due to lower demand for Canadian heavy equipment [4][5]. - The company achieved a total revenue of $1.165 billion for the year 2024, an increase from $964.7 million in 2023 [4][45]. - Adjusted EBITDA for Q4 2024 was $103.7 million, with a margin of 27.8%, compared to $101.1 million and 24.9% in the prior year [5][6]. - Net income for Q4 2024 was $4.8 million, a decrease from $17.6 million in Q4 2023, attributed to lower gross profit [6][13]. Operational Highlights - The company reported a gross profit of $42.0 million for Q4 2024, representing a gross margin of 13.7%, down from 20.0% in the same period last year [10][13]. - Equipment utilization in the Heavy Equipment - Canada segment decreased to 54% from 65% in Q4 2023, while the Heavy Equipment - Australia segment saw improved performance with revenue of $160.3 million [9][10]. - Cash flows from operating activities were $97.0 million in Q4 2024, down from $168.6 million in the prior period, primarily due to changes in working capital [5][8]. Strategic Developments - NACG secured several significant contracts, including a $125 million heavy civil construction project and a $500 million regional services contract in December 2024 [5][9]. - The company surpassed the 60% completion mark on the Fargo-Moorhead flood diversion project by year-end [5]. - The implementation of an ERP system in Australia was completed during the quarter, aimed at optimizing business processes [5]. Outlook for 2025 - The company projects combined revenue for 2025 to be between $1.4 billion and $1.6 billion, with adjusted EBITDA expected to range from $415 million to $445 million [17][18]. - Free cash flow is anticipated to be between $130 million and $150 million for 2025 [17][19]. - The company aims to maintain a net debt leverage target of 1.7x [19]. Liquidity Position - As of December 31, 2024, NACG reported total available capital liquidity of $275.3 million, including $170.6 million in cash and unused finance lease borrowing availability [14].