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]

Core Insights - North American Construction Group Ltd. (NACG) reported strong financial results for Q1 2025, with combined revenue of $391.5 million, marking a 13% increase from the previous year, driven by higher equipment utilization in Canada and increased fleet capacity in Australia [5][12][15] - The company faced operational challenges due to severe weather conditions, particularly excessive rainfall in Australia and cold weather in Canada, which impacted overall performance and margins [3][16][17] Financial Performance - Revenue for Q1 2025 was $340.8 million, a 15% increase from $297.0 million in Q1 2024, with heavy equipment segments in Australia and Canada growing by 18% and 13% respectively [12][23] - Adjusted EBITDA increased slightly to $99.9 million, a 3% rise from $97.4 million in the same quarter last year, despite weather-related operational challenges [5][16] - Net income decreased to $6.2 million from $11.5 million in Q1 2024, reflecting higher depreciation and interest expenses [6][23] Operational Highlights - The Fargo-Moorhead flood diversion project surpassed 65% completion, and early development work commenced at a copper mine in New South Wales [5] - The company successfully converted $73 million of debentures into common shares, enhancing its equity position [5] - A new $225 million senior unsecured financing was completed to bolster liquidity for ongoing infrastructure and mining projects [5][31] Strategic Focus - NACG aims to leverage its strong reputation in heavy civil infrastructure and mining sectors in Australia and North America, with a focus on securing new contracts and expanding existing scopes [3][29] - The company is committed to maintaining high safety standards, operational excellence, and sustainability in its projects [29] Liquidity and Capital Structure - As of March 31, 2025, NACG reported net debt of $867.5 million, reflecting an increase due to cash flow usage and growth spending [5][28] - Total available capital liquidity stood at $198.5 million, providing a solid foundation for funding organic growth and working capital investments [28][30] Future Outlook - NACG projects combined revenue for 2025 to be between $1.4 billion and $1.6 billion, with adjusted EBITDA expected to reach $445 million [32] - The company plans to focus on organic growth, diversification of customers, and strategic partnerships to enhance its market position [29][32]

Core Viewpoint - North American Construction (NOA) is expected to report a year-over-year decline in earnings and revenues for the quarter ended March 2025, with the actual results being crucial for stock price movement [1][3]. Earnings Expectations - The consensus estimate for NOA's quarterly earnings is $0.52 per share, reflecting a year-over-year decrease of 10.3% [3]. - Expected revenues are projected at $212.74 million, down 3.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.23% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. - However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.03%, suggesting a bearish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - North American Construction currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, NOA was expected to post earnings of $0.73 per share but delivered $0.71, resulting in a surprise of -2.74% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - North American Construction does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].

Core Viewpoint - North American Construction Group Ltd. (NACG) has successfully closed a private placement offering of $225 million in Senior Unsecured Notes with a 7.75% interest rate, maturing on May 1, 2030, to repay existing debt and for general corporate purposes [1][2]. Group 1: Offering Details - The offering consists of $225 million aggregate principal amount of 7.75% Senior Unsecured Notes due May 1, 2030 [1]. - The Notes were sold in Canada under private placement exemptions and were not registered under the U.S. Securities Act, being offered only to qualified institutional buyers [2]. - The offering was underwritten by several financial institutions, including National Bank Financial Inc. and its U.S. affiliates [3]. Group 2: Company Overview - North American Construction Group Ltd. 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 [4].

Core Points - North American Construction Group Ltd. (NACG) announced a private placement offering of $225 million aggregate principal amount of 7.75% Senior Unsecured Notes due May 1, 2030 [1] - The Notes will accrue interest at a rate of 7.75% per annum, with semi-annual payments starting November 1, 2025 [1] - The net proceeds from the Offering will be used to repay existing indebtedness and for general corporate purposes [2] Offering Details - The Notes are being conditionally offered for sale in Canada and are not registered under the U.S. Securities Act [3] - The Offering is led by National Bank Financial Inc. and several other financial institutions, with expected closing on or about May 1, 2025 [4] Company Overview - NACG is a premier 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 [6]

Core Viewpoint - North American Construction Group Ltd. (NACG) is set to release its financial results for Q1 2025 on May 14, 2025, with a subsequent conference call scheduled for May 15, 2025 [1] Group 1: Financial Results Announcement - NACG will announce its financial results for the first quarter ended March 31, 2025, after market close on May 14, 2025 [1] - A conference call and webcast will take place on May 15, 2025, at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time) [1] Group 2: Access Information - The conference call can be accessed by dialing 1-800-717-1738 with Conference ID 42703 [2] - A replay of the call will be available until June 12, 2025, by dialing 1-888-660-6264 with the same Conference ID [2] - A slide deck for the webcast will be available for download on the company's website the evening prior to the call [2] Group 3: Company Overview - 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 [3]

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].

ACHESON, Alberta, March 10, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) announced today that due to the unforeseen impacts of Cyclone Alfred in the Queensland region, it is required to reschedule the release of its financial results and conference call for the fourth quarter ended December 31, 2024. The Company intends to release its financial results for the fourth quarter ended December 31, 2024 on Wednesday, March 19, 2025 after markets ...