Group 1 - North American Construction Group Ltd. (NYSE: NOA) has seen increased activity in Australia and diversified resources in Canada, contributing to its growth [1] - The company has been previously discussed in an article published on July 4, 2024, indicating ongoing interest and analysis in its performance [1] Group 2 - The analyst has over 14 years of experience in stock analysis, with a focus on the energy sectors, particularly oilfield equipment services and industrial supply [1]

Group 1 - North American Construction Group Ltd.'s subsidiary, MacKellar Group, has secured a new contract from a major copper producer in New South Wales, Australia [1] - The contract involves early works and development activities at a long-life copper mine, focusing on site infrastructure, overburden removal, and reclamation facility closure [2] - Project work is set to commence in Q1 2025 and conclude by Q2 2026, aligning with the company's strategic goals of diversification in customers, commodities, and geography [3] Group 2 - North American Construction's growth strategy includes joint ventures and acquisitions, particularly with First Nation alliances, to enhance service delivery in construction and mining [4] - The company acquired MacKellar Group for an expected total of $395 million, contributing to a 75% year-over-year increase in Q3 2024 EBITDA [5] - Significant benefits are derived from joint ventures with Nuna Logistics and Mikisew Group, enhancing equipment access and service offerings [6] Group 3 - Shares of North American Construction have increased by 5.8% over the past month, outperforming the Zacks Building Products - Heavy Construction industry's decline of 3.9% [8] - The company is expected to continue benefiting from rising demand for equipment and services in Australia [8]

Core Viewpoint - North American Construction Group Ltd. (NACG) has secured an early works and development contract from a major copper producer in New South Wales, Australia, which is expected to generate approximately $100 million in revenue [2][3]. Group 1: Project Details - The project involves establishing site infrastructure, initial overburden removal, and closing a previously used reclamation facility [1]. - Work is set to commence in the first quarter of 2025 and is scheduled for completion in the second quarter of 2026 [2]. - The project will utilize existing owned and leased equipment, primarily sourced from Canada [2]. Group 2: Strategic Importance - This contract reflects NACG's objective of geographic and customer diversification, marking MacKellar's entry into the New South Wales region [2][3]. - The project is critical for both the customer's mine production ramp-up and NACG's success as a contractor in the region [3]. Group 3: Financial Outlook - The awarded project contributes to over 90% visibility of NACG's combined revenue midpoint for 2025, although it does not alter the estimated revenue ranges for the year [4]. Group 4: Company Background - MacKellar Group, a wholly owned subsidiary of NACG since 2023, has been operating since 1966 and is known for its performance and reliability in heavy earthmoving equipment solutions [5]. - 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 [6].

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 ...