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].
North American Construction Group Ltd. Announces Results for the Fourth Quarter and Year Ended December 31, 2024