Core Viewpoint - North American Construction Group Ltd. (NACG) has secured an extended and amended regional services contract in the Canadian oil sands region, which is expected to enhance its operational capabilities and financial outlook for 2025 [1][2]. Contract Details - The amended contract will commence on January 1, 2025, and will now expire on January 31, 2029, extending the original term by two years [2]. - The contract includes a committed spend of $500 million, primarily for heavy equipment rentals and bulk unit rate earthwork scopes, representing about one-third of the total expected work across various mine sites [3]. Management Commentary - NACG's President and CEO emphasized the importance of this multi-year commitment, highlighting the company's focus on efficiency and cost-effectiveness in delivering services [4]. - The Interim CEO of Mikisew Group noted that the contract extension strengthens their partnership and commitment to economic development for the Mikisew Cree First Nation [4]. Financial Outlook - For Q4 2024, NACG estimates combined revenue between $350 million and $375 million, with adjusted EBITDA projected at $100 million to $110 million [7]. - For the full year 2025, combined revenue is expected to range from $1.4 billion to $1.6 billion, with adjusted EBITDA between $415 million and $445 million [7]. - The company anticipates sustaining capital expenditures of $55 million to $65 million for Q4 2024 and $180 million to $200 million for the full year 2025 [7]. Capital Allocation - Growth spending is projected to be $30 million to $40 million in early 2025, with a target of $45 million to $55 million for the full year [9]. - The company aims to achieve a net debt leverage of 1.8x by the end of 2025, excluding potential debenture conversion [9]. Operational Context - NACG has a proforma contractual backlog of $3.6 billion, which positions the company well for executing projects across Canada, Australia, and the United States [5][9].

Core Viewpoint - North American Construction Group Ltd. (NOA) has secured a significant heavy civil construction contract in partnership with Mikisew North American Limited Partnership, which is expected to generate approximately $125 million in revenue over a two-year period [1][4]. Company Overview - North American Construction provides a range of services including equipment maintenance, mining, and heavy construction across Canada, the United States, and Australia [5]. - The company recently acquired MacKellar Group for an expected total consideration of $395 million, which is anticipated to enhance its growth prospects [5]. Contract Details - The awarded project is located at a leading mine in the Fort McMurray region and involves constructing large diversion ditches to manage water flow away from mining areas [3]. - The project is set to commence in January 2025 and conclude in October 2026 [4]. Financial Performance - The contract win contributes to NOA's pro forma backlog, which has increased to $3.1 billion, reflecting a $300 million rise from the previous quarter [7]. - The company expects its year-end backlog to exceed $3 billion, indicating a trend of increasing geographic and resource diversification [7]. Market Opportunities - There is a growing demand for heavy equipment in Australia, particularly in Queensland and New South Wales, with opportunities in various mining sectors including copper, gold, silver, and iron ore [6]. - Despite a 3.3% increase in NOA's shares over the past three months, the company has underperformed compared to the Zacks Building Products - Heavy Construction industry's 29.7% growth [9].

Core Points - North American Construction Group Ltd. (NACG) has been awarded a heavy civil construction contract by Mikisew North American Limited Partnership (MNALP) for a project in the oil sands region, which involves building diversion ditches to manage water flow [1][2] - The two-year project is expected to generate approximately $125 million in revenue for NACG, starting in January 2025 and concluding in October 2026 [2] - This project reinforces NACG's long-term strategic partnership with the client and leverages existing infrastructure and mine support activities [2][3] Company Overview - NACG is one of the largest providers of heavy construction and mining services in Canada and Australia, with over 70 years of experience in the mining, resource, and infrastructure construction markets [5] - Mikisew Group, which holds a 51% interest in MNALP, is the Independent Economic Development arm of the Mikisew Cree First Nation, providing various services in the Canadian oil sands [4]

North American Construction (NOA) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.19%. A quarter ago, it was expected that this heavy construction and mining services company would post earnings of $0.65 per share when it actually produced earnings of $0.57, delivering a surprise o ...

ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG" or "the Company") (TSX:NOA/NYSE:NOA) today announced that it intends to commence a normal course issuer bid (the "NCIB") to purchase, for cancellation, up to 2,087,577 common shares in the capital of the Company ("Common Shares"), which represents approximately 10% of the public float (as defined in the TSX Company Manual) and approximately 7.5% of the issued and outstanding Common Shares as of October 24, 202 ...

ACHESON, Alberta, Oct. 25, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced it has finalized an extension and amendment of its senior secured credit facility (the “Credit Facility”). The maturity date has been extended by one year to October 3, 2027. In addition to the extension, the capacity has been increased to provide greater flexibility in operating the Company’s Australian and Canadian businesses. “We would like to take thi ...

ACHESON, Alberta, Oct. 21, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) announced today that it will release its financial results for the third quarter ended September 30, 2024 on Wednesday, October 30, 2024 after markets close. Following the release of its financial results, NACG will hold a conference call and webcast on Thursday, October 31, 2024, at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time). The call can be accessed by dialing:To ...

ACHESON, Alberta, July 31, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA.TO/NYSE:NOA) today announced results for the second quarter ended June 30, 2024. Unless otherwise indicated, financial figures are expressed in Canadian dollars, and comparisons are to the prior period ended June 30, 2023. Second Quarter 2024 Highlights: Combined revenue of $329.7 million compared favorably to $278.6 million in the same period last year, is a second quarter record and reflected best ...

ACHESON, Alberta, July 31, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA, NYSE:NOA) today announced results for the second quarter ended June 30, 2024. Unless otherwise indicated, financial figures are expressed in Canadian dollars, and comparisons are to the prior period ended June 30, 2023. Second Quarter 2024 Highlights: Combined revenue of $329.7 million compared favorably to $278.6 million in the same period last year, is a second quarter record and reflected best op ...

The call can be accessed by dialing: Toll free: 1-800-717-1738 Conference ID: 50329 A slide deck for the webcast will be available for download the evening prior to the call and will be found on the company's website at www.nacg.ca/presentations/ A replay will be available until September 2, 2024, using the link provided. North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For over 70 years, NACG has provided service ...