North American Construction (NOA) came out with quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.45%. A quarter ago, it was expected that this heavy construction and mining services company would post earnings of $0.70 per share when it actually produced earnings of $0.64, delivering a surprise o ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are unde ...

The latest trading session saw North American Construction (NOA) ending at $22.07, denoting a +1.28% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 2.03%.The heavy construction and mining services company's shares have seen a decrease of 2.2% over the last month, surpassing the Construction sector's loss of 6.08% and the S&P 500's loss of 3.15%.The upcomi ...

Financial Performance - Combined revenue for 2023 reached $1,273.6 million, a 20.8% increase from $1,054.3 million in 2022[7] - Adjusted EBITDA for 2023 was $296.9 million, up from $245.3 million in 2022, reflecting a 21.1% growth[7] - Adjusted EPS increased to $2.83 in 2023, compared to $2.41 in 2022, marking a 17.5% rise[7] - Net debt increased to $720.9 million in 2023, up from $355.8 million in 2022[7] Project Revenue and Growth - The Australian business generated approximately $150 million in revenue in 2023, with expectations to increase to ~$575 million in 2024[14] - The Fargo flood diversion project achieved ~$120 million in revenue in 2023, with projections of over $175 million for 2024[12] - The company is currently bidding on projects worth $9 billion, indicating strong demand in the market[17] - The company plans to allocate $55 to $70 million for growth capital in the Australian fleet for 2024[18] Safety and Environmental Goals - The Total Recordable Injury Rate (TRIR) for 2023 was 0.29, significantly below the industry target of 0.50[10] - NACG aims to achieve a 10% reduction in scope 1 emissions intensity by 2025 and a 20% reduction by 2028[36] - The company targets a Total Recordable Injury Rate (TRIR) of 0.5 or less, emphasizing that all workplace incidents are preventable[37] - NACG's commitment to health, safety, and environmental protection aims for zero incidents in its operations[32] Sustainability and Diversity Initiatives - NACG is committed to achieving 30% gender diversity on both the Board of Directors and among senior leadership[35] - The 2023 Sustainability Report has been released, with plans for the 2024 report to be issued in the first half of the year[34] - The company emphasizes a culture of sustainability that balances environmental, social, and economic performance as key to long-term success[33] - NACG is focused on advancing sustainability goals through tangible projects and formal systems that align with its values[33] Operational Strategies - Operational priorities for 2024 include achieving equipment utilization targets and implementing best practices at the MacKellar Group[40] - NACG will leverage telematics to improve operational performance and mechanical availability of ultra-class and 240-tonne haul truck fleets[40] - NACG plans to enhance its reputation for operational excellence by improving site conditions and fleet maintenance strategies[38] Challenges and Responses - The Nuna joint venture faced challenges, resulting in an EBITDA shortfall of approximately $7.5 million, prompting a turnaround plan[15]

[Letter to Shareholders](index=5&type=section&id=Letter%20to%20Shareholders) The CEO's letter reviews mixed Q3 results, highlighting safety, Nuna challenges, and the MacKellar acquisition, forecasting strong 2024 growth - Third quarter results were mixed, with excellent safety performance (**64% reduction in incident rate YoY**) but operational challenges for the Nuna Group of Companies due to project permitting delays and the effects of wildfires in Yellowknife, NWT[7](index=7&type=chunk) - The acquisition of the MacKellar Group in Australia, effective October 1, is a major milestone, with strong performance leading to increased expectations for 2024 due to high demand for heavy equipment[9](index=9&type=chunk) - The company is targeting a full-year earnings potential of **$4.50 per share** and a 2024 free cash flow range of **$160 to $185 million**, representing a potential over **50% increase** from the record-setting 2023[9](index=9&type=chunk) [Management's Discussion and Analysis](index=6&type=section&id=Management%27s%20Discussion%20and%20Analysis) This section analyzes the company's Q3 and YTD 2023 financial condition, operations, MacKellar acquisition, financial highlights, liquidity, accounting, and outlook [Overall Performance](index=7&type=section&id=OVERALL%20PERFORMANCE) Q3 2023 performance showed modest revenue growth and stable Adjusted EBITDA, but net income and adjusted EPS declined due to project delays Q3 2023 Financial Highlights vs. Q3 2022 | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $194.7M | $191.4M | +$3.4M | | Total combined revenue | $272.6M | $269.6M | +$3.0M | | Gross profit | $26.3M | $24.6M | +$1.7M | | Adjusted EBITDA | $59.4M | $60.1M | -$0.7M | | Adjusted EBITDA margin | 21.8% | 22.3% | -0.5% | | Net income | $11.4M | $20.2M | -$8.8M | | Adjusted net earnings | $14.3M | $17.6M | -$3.3M | | Adjusted EPS | $0.54 | $0.65 | -$0.11 | | Free cash flow | $10.0M | $3.4M | +$6.6M | - Equipment utilization was **56%**, negatively impacted by the relocation of heavy equipment to the Fort Hills mine and wet weather, partially offset by contributions from the ML Northern fuel and lube fleet acquisition[15](index=15&type=chunk) - Combined revenue was affected by project permitting delays and wildfire-related disruptions impacting the Nuna Group of Companies, offset by the Fargo-Moorhead flood diversion project's largest operational quarter to date[16](index=16&type=chunk) [Significant Business Events](index=8&type=section&id=SIGNIFICANT%20BUSINESS%20EVENTS) The company completed the MacKellar Group acquisition for $395 million, expanding its credit facility to $470 million lending capacity and $820 million total borrowing limit - Closed the acquisition of MacKellar Group in Australia, effective October 1, 2023, for a total expected consideration of **$395 million**[24](index=24&type=chunk) - Entered into an amended and restated senior revolving credit facility, increasing total lending capacity to **$470 million** (comprising a **$280M CAD tranche** and a **$220M AUD tranche**)[26](index=26&type=chunk) - The new Credit Facility permits an additional **$350 million** in secured equipment financing, bringing the total borrowing limit to **$820 million**[26](index=26&type=chunk) [Financial Highlights](index=9&type=section&id=FINANCIAL%20HIGHLIGHTS) This section details Q3 and YTD 2023 financial performance, including GAAP to non-GAAP reconciliations, revenue, gross profit, operating income, and decreased equity earnings from joint ventures [Liquidity and Capital Resources](index=15&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of September 30, 2023, the company maintained **$108.4 million** in liquidity, with net debt increasing to **$395.3 million**, detailing capital additions, cash flow, and credit facility amendments [Accounting Estimates, Pronouncements, and Measures](index=21&type=section&id=ACCOUNTING%20ESTIMATES%2C%20PRONOUNCEMENTS%20AND%20MEASURES) This section details the accounting framework, recent presentation changes like combining project costs into 'cost of sales', and defines non-GAAP financial measures - The company updated its presentation to combine project and equipment costs into 'cost of sales' in the income statement and to include finance lease obligations within 'long-term debt' on the balance sheet, with comparative periods restated[96](index=96&type=chunk)[97](index=97&type=chunk) - A new accounting standard update (ASU 2023-05) regarding joint venture formations will be effective January 1, 2025, and the company is currently assessing its impact[98](index=98&type=chunk) - The report defines numerous non-GAAP financial measures used for performance analysis, including Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Combined Revenue, and Net Debt[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[112](index=112&type=chunk)[117](index=117&type=chunk)[114](index=114&type=chunk) [Outlook](index=25&type=section&id=OUTLOOK) The company provides a robust 2023 and 2024 financial outlook, projecting significant growth in combined revenue, Adjusted EBITDA, and free cash flow, with deleveraging targets 2023 & 2024 Financial Outlook | Key measures | 2023 | 2024 | | :--- | :--- | :--- | | Combined revenue | $1.2 - $1.3B | $1.5 - $1.7B | | Adjusted EBITDA | $295 - $310M | $430 - $470M | | Adjusted EPS | $2.80 - $3.00 | $4.25 - $4.75 | | Free cash flow | $90 - $110M | $160 - $185M | | Net debt leverage | Less than 1.8x | Less than 1.4x | - The 2023 free cash flow projection was updated to a range of **$90 to $110 million** to reflect the MacKellar acquisition and the timing of cash receipts from joint ventures[129](index=129&type=chunk) [Interim Consolidated Financial Statements](index=28&type=section&id=Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for Q3 and YTD 2023, including Balance Sheets, Operations, Equity, and Cash Flows, with accompanying notes [Interim Consolidated Balance Sheets](index=28&type=section&id=Interim%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased to **$1.009 billion**, driven by PPE, with stable liabilities and shareholders' equity growing to **$339.6 million** Consolidated Balance Sheet Summary (in thousands) | Account | Sept 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$197,662** | **$230,359** | | Property, plant and equipment, net | $695,176 | $645,810 | | **Total Assets** | **$1,009,065** | **$979,513** | | **Total Current Liabilities** | **$158,383** | **$192,303** | | Long-term debt | $392,648 | $378,452 | | **Total Liabilities** | **$669,429** | **$673,594** | | **Total Shareholders' Equity** | **$339,636** | **$305,919** | | **Total Liabilities & Equity** | **$1,009,065** | **$979,513** | [Interim Consolidated Statements of Operations and Comprehensive Income](index=29&type=section&id=Interim%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q3 2023 revenue was **$194.7 million** with net income of **$11.4 million** (**$0.43 basic EPS**), a decrease from Q3 2022, while YTD net income increased to **$45.5 million** Statement of Operations Summary (in thousands, except per share) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $194,744 | $191,383 | $630,922 | $536,122 | | Gross Profit | $26,312 | $24,567 | $88,762 | $58,958 | | Operating Income | $14,138 | $17,649 | $49,935 | $39,592 | | Net Income | $11,387 | $20,220 | $45,495 | $41,291 | | Basic EPS | $0.43 | $0.75 | $1.72 | $1.49 | | Diluted EPS | $0.39 | $0.65 | $1.51 | $1.33 | [Interim Consolidated Statements of Cash Flows](index=31&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows) In Q3 2023, operating activities generated **$37.5 million** cash, investing used **$27.0 million**, and financing generated **$9.3 million**, resulting in a **$19.8 million** net cash increase, while YTD cash decreased by **$27.2 million** Cash Flow Summary (in thousands) | Activity | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating | $37,512 | $31,432 | $109,521 | $91,102 | | Net Cash used in Investing | ($26,970) | ($28,042) | ($107,123) | ($79,945) | | Net Cash from (used in) Financing | $9,250 | $7,698 | ($29,639) | ($4,969) | | **Increase (Decrease) in Cash** | **$19,792** | **$11,088** | **($27,241)** | **$6,188** | [Notes to Interim Consolidated Financial Statements](index=32&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) The notes provide essential context to the financial statements, detailing accounting policies, revenue, joint ventures, debt, share capital, and subsequent events, including the MacKellar acquisition

Revenue Performance - Revenue for Q2 2023 was CAD 193.6 million, a CAD 25.5 million (or 15%) increase from Q2 2022[12] - Total combined revenue reached CAD 277.0 million, representing a CAD 49.0 million (or 21%) increase from Q2 2022[13] - For the three months ended June 30, 2023, revenue was $193.6 million, an increase of 15.3% from $168.0 million in the same period last year[29] - For the six months ended June 30, 2023, revenue was $436.2 million, up 27% from $344.7 million in the same period last year[30] - The company reported a combined revenue of $276.9 million for the three months ended June 30, 2023, up from $228.0 million in the same period last year[23] - Revenue generated from backlog for the six months ended June 30, 2023, was $364.8 million, with an estimated $222.2 million expected to be performed over the remainder of 2023[88] - The Company reported revenues of $158,485 million and $347,970 million for the three and six months ended June 30, 2023, respectively, compared to $125,774 million and $251,204 million for the same periods in 2022, reflecting a year-over-year increase of 26% and 38%[192] Profitability Metrics - Adjusted EBITDA for Q2 2023 was CAD 51.8 million, an increase of CAD 10.2 million (or 24%) from Q2 2022[14] - Adjusted EPS was CAD 0.47, up 176% from the prior year figure of CAD 0.17[18] - Gross profit margin for Q2 2023 was 11.1%, an increase of 3.8% from Q2 2022[12] - Gross profit for the three months ended June 30, 2023, was $21.5 million, with a gross profit margin of 11.1%, compared to $12.4 million and 7.4% in the same period last year[31] - Adjusted EBITDA for the three months ended June 30, 2023, was $51.8 million, representing an adjusted EBITDA margin of 18.7%[25] - Operating income for the three months ended June 30, 2023, was $10.3 million, an increase of $4.0 million from $6.3 million in the same period last year[36] - Net income for the three months ended June 30, 2023, was $12.3 million, compared to $7.5 million in the same period last year[25] - Net income for the six months ended June 30, 2023, was CAD 34,108 thousand, compared to CAD 21,071 thousand for the same period in 2022, representing a 62% increase[140] Cash Flow and Capital Expenditures - Free cash flow was a use of cash of CAD 4.3 million, impacted by sustaining capital additions of CAD 38.3 million[19] - Cash provided by operating activities was CAD 40.2 million, up CAD 4.7 million from CAD 35.5 million in Q2 2022[12] - Cash provided by operating activities for Q2 2023 was $40.2 million, an increase of 13.5% compared to $35.5 million in Q2 2022[58] - Cash used in investing activities for Q2 2023 was $39.2 million, compared to $25.1 million in Q2 2022, primarily for the purchase of property, plant, and equipment[61] - Capital expenditures for Q2 2023 were $41.1 million, significantly higher than $22.3 million in Q2 2022[53] - Cash used in investing activities for the six months ended June 30, 2023, was $80.2 million, an increase from $51.9 million in the same period of 2022[62] Debt and Financial Obligations - Total debt as of June 30, 2023, was $416.0 million, down from $424.9 million at the end of 2022, a decrease of 2.1%[50] - The company has $98.7 million in unused borrowing availability under its Credit Facility as of June 30, 2023, compared to $88.0 million at the end of 2022[165] - The company has entered into a commitment letter to amend its Credit Facility to a maximum amount of $450.0 million[76] - Total contractual obligations as of June 30, 2023, were $514.1 million, down from $537.5 million as of December 31, 2022[70] - Long-term debt decreased to $369.74 million as of June 30, 2023, from $378.45 million at the end of 2022[163] Market and Operational Insights - The company signed a definitive share purchase agreement to acquire MacKellar Group for an estimated consideration of CAD 395 million, expected to close in Q4 2023[20] - The company maintained a strong backlog, with expectations that demand for heavy construction services will exceed contractually committed demand[127] - The company anticipates stable commodity prices for the remainder of 2023, which is crucial for its operational performance[127] - The company has experienced no material change in market risk as of the quarter ended June 30, 2023[130] - The company is exposed to concentration risk, with Customer A accounting for 31% of revenue for the three months ended June 30, 2023[193] Employee and Workforce Metrics - The company had 208 salaried employees and 1,617 hourly employees as of June 30, 2023, compared to 195 salaried and 1,576 hourly employees a year earlier, reflecting growth in workforce[120] - Approximately 83% of the hourly employees are union members, maintaining the same percentage as in June 2022[120] Stock and Shareholder Information - The TSX closing price of the shares as of June 30, 2023, was $25.35, up from $18.08 at the end of 2022, indicating a positive market trend[85] - The company declared dividends of $0.10 per share for Q1 and Q2 2023, totaling $2.64 million paid or payable to shareholders[183]

And what would the return profile look like for that type of investment? It passes our normal hurdle rates, Tim. 20% IRR, three to four-year payback sort of timeframe with -- these are longer life assets, but yes, very strong economics. Great. So like the $5 million to $10 million of investment, is that basically to build the fleet so that you have enough equipment to service the contract? Is that with an existing client? Okay, very interesting. All right. I appreciate all the details, guys. Nice quarter. I ...

Forward-looking statements & non-GAAP financial measures This presentation contains forward-looking information which reflects the current plans and expectations of North American Construction Group Ltd. (the "Company") with respect to future events and financial performance. Examples of such forward-looking information in this document include, but are not limited to, statements with respect to the Company's targets for percentage of Adjusted EBIT to be generated outside Canadian oil sands; the Company's 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 For the month of April 2023 Commission File Number 001-33161 NORTH AMERICAN CONSTRUCTION GROUP LTD. 27287 - 100 Avenue Acheson, Alberta T7X 6H8 (780) 960-7171 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. For ...

Financial Performance & Outlook - The company's Adjusted EBITDA (TTM) is $245 million[13] - The company's Adjusted EPS (TTM) is $2.41[13] - The company aims to improve equipment utilization and project wins to achieve projected revenue growth[4] - The company's bid pipeline is approximately $4.5 billion[97] - The company targets a backlog exceeding $2 billion for 2023[104] Operational Highlights - The company's combined revenue was $1.1 billion[13] - The company operates in 3 countries and across 30 operational sites[38] - The company has a diversified business with 50% of revenue from Canadian Oil Sands customers, 30% from Canadian Mining, 10% from Civil Construction, and 5% each from Mine Management and External Maintenance[39, 40] - The company is focused on increasing maintenance headcount, with a net increase of 50 in 2H 2022[89] Competitive Advantages & Strategies - The company emphasizes its position as the largest heavy construction and mining contractor with a significant equipment fleet in North America[20] - The company focuses on being a low-cost operator through in-house maintenance and global sourcing of components[64, 65] - The company aims to reduce emissions intensity by 10% by 2025, 20% by 2028, and achieve net zero by 2050[78]