Welcome to our dedicated page for North American Construction Group Ltd. news (Ticker: NOA), a resource for investors and traders seeking the latest updates and insights on North American Construction Group Ltd. stock.
North American Construction Group Ltd. (NACG) is a leading provider of heavy civil construction and mining services, operating primarily in the Canadian oil sands. With over 60 years of industry experience, NACG has developed an extensive skill set and resource base capable of supporting both mining and 'in situ' oil sands projects. The company also boasts one of the largest equipment fleets in the oil sands, ensuring it can meet the diverse needs of its clients.
Operating across Canada, the United States, and Australia, NACG's business segments include Heavy Equipment - Canada, Heavy Equipment - Australia, and Other services like mine management and external maintenance programs. The company's recent achievements include the successful acquisition of MacKellar Group, an Australian company specializing in heavy earthmoving equipment, significantly expanding NACG's geographical footprint and operational capabilities.
Core Business and Services:
- Mining Services: Comprehensive support for resource development projects, including both open-pit and underground mining.
- Heavy Civil Construction: Infrastructure development for industrial construction sectors.
- Equipment Maintenance and Rebuild Programs: Ensuring optimal performance and longevity of heavy machinery.
In the latest financial quarter (ending September 30, 2023), NACG reported revenues of $194.7 million, a slight increase from the previous year. The company's heavy equipment fleet and projects like the Fargo-Moorhead flood diversion contributed significantly to these figures. Adjusted EBITDA stood at $59.4 million, reflecting consistent operational efficiency despite challenges from wildfires in Northern Canada and other external factors.
NACG's outlook for 2024 remains positive, bolstered by the successful integration of MacKellar's operations. The company expects free cash flows between $160 to $185 million, driven by its diversified portfolio and robust contract pipeline. Financial stability is further supported by a strong liquidity position, with $154.2 million in available capital liquidity as of September 30, 2023.
Overall, NACG continues to demonstrate resilience and growth, leveraging its extensive experience, diverse service offerings, and strategic acquisitions to maintain its position as a premier provider in the heavy civil and mining sectors.
North American Construction Group (NOA) announced that its MacKellar Group subsidiary has secured a contract worth approximately $100 million from a major copper producer in New South Wales, Australia. The project involves site infrastructure establishment, initial overburden removal, and closure of a reclamation facility at an operational 24/7 copper mine. Starting in Q1 2025 and scheduled for completion in Q2 2026, the project will utilize existing owned and leased fleet, primarily equipment transported from Canada. This contract represents MacKellar's entry into the New South Wales region and aligns with the company's geographic and customer diversification strategy. The project was already included in the company's 2025 outlook as unsecured work, bringing the combined revenue visibility to over 90% of the midpoint for 2025.
North American Construction Group (NOA) has secured an extended regional services contract with a major oil sands producer, effective January 2025 through January 2029. The contract includes $500 million in committed spending, primarily for heavy equipment rentals and earthwork scopes.
The company provided outlook for 2025, projecting combined revenue of $1.4-1.6 billion and adjusted EBITDA of $415-445 million. For Q4 2024, NOA estimates revenue of $350-375 million and adjusted EBITDA of $100-110 million. The company aims to achieve a net debt leverage target of 1.8x by end of 2025, with projected free cash flow of $130-150 million for 2025.
North American Construction Group (NOA) announced that Mikisew North American Partnership has been awarded a $125 million heavy civil construction contract in the oil sands region. The two-year project involves building large diversion ditches to redirect water from upstream catchments away from active mining areas. The project will begin in January 2025 with completion expected in October 2026. Located at one of the leading mines in the Fort McMurray region, this infrastructure project reinforces NACG's strategic partnership with the client and leverages existing infrastructure synergies on site.
North American Construction Group (NOA) has announced plans to initiate a normal course issuer bid (NCIB) to repurchase and cancel up to 2,087,577 common shares, representing 10% of the public float and 7.5% of outstanding shares. The company will purchase a maximum of 1,391,364 shares through NYSE and alternative trading systems. The NCIB is scheduled to run from November 4, 2024, to November 3, 2025. NOA believes its shares are undervalued and views the repurchase as an effective use of cash resources that would enhance shareholder liquidity and increase proportionate interests of remaining shareholders.
North American Construction Group (NOA) reported strong Q3 2024 results with combined revenue of $367.2 million, up from $274.8 million year-over-year. The company achieved an Adjusted EBITDA of $106.4 million with a 29.0% margin, significantly improving from $59.4 million and 21.6% in Q3 2023. The Australian operations through MacKellar Group showed strong performance with 84% equipment utilization. The Board declared a quarterly dividend increase of 20% to $0.12 per share. Notable achievements include signing a $375 million five-year contract in Queensland and surpassing 50% completion of the Fargo-Moorhead flood diversion project.
North American Construction Group (NOA) has extended and amended its senior secured credit facility to October 3, 2027. The facility's capacity has been increased to $525 million from $475 million, with additional secured equipment financing of $400 million available from third-party providers (up from $350 million). The credit facility includes Canadian and Australian dollar tranches, features a revolver with no scheduled repayments, and is not governed by a borrowing base. Financial covenants, tested quarterly, remain largely consistent with the previous agreement, except for replacing the fixed charge ratio with an interest coverage ratio.
North American Construction Group (TSX:NOA.TO/NYSE:NOA) has announced the release of its third quarter 2024 financial results on Wednesday, October 30, 2024 after markets close. The company 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) to discuss the results.
Investors can access the call by dialing 1-800-717-1738 (toll-free) with the Conference ID: 86919. A replay will be available until November 29, 2024, by dialing 1-888-660-6264 (toll-free) with the same Conference ID and Playback Passcode: 86919.
A slide deck for the webcast will be available for download the evening before the call on the company's website. The live presentation and webcast can be accessed through a provided registration link.
North American Construction Group (TSX:NOA.TO/NYSE:NOA) has announced that its subsidiary, MacKellar Group, has secured a five-year contract with a leading metallurgical coal producer in Queensland, Australia. The contract, valued at approximately $375 million, involves transitioning hired fleet from dry rental to a fully maintained fleet. Set to expire on September 30, 2029, the agreement includes minimum hour commitments and is expected to be fully operational by mid-2025.
To fulfill the expanded scope, MacKellar will invest $50-$55 million in growth capital, primarily in Q4 2024, for an on-site maintenance facility and twenty additional units. This contract significantly boosts NACG's total contractual backlog to over $3.0 billion, marking the second major long-term mining contract awarded in Australia in 2024.
North American Construction Group (TSX:NOA.TO/NYSE:NOA) announced Q2 2024 results with combined revenue of $329.7 million, a 18% increase from Q2 2023. Adjusted EBITDA was $86.9 million with a 26.3% margin. The company reported net income of $14 million and adjusted EPS of $0.78. Strong performance in Australia offset lower equipment utilization in Canada due to adverse weather. The company updated its full-year 2024 outlook, projecting adjusted EPS of $3.95 to $4.15. Key focus areas include safety, execution, operational excellence, integration of MacKellar Group, diversification, and sustainability. NACG declared a quarterly dividend of $0.10 per share.
North American Construction Group (TSX:NOA.TO/NYSE:NOA) has announced the release of its second quarter 2024 financial results on July 31, 2024, after market close. The company will host a conference call and webcast on August 1, 2024, at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time) to discuss the results.
Investors can access the call by dialing 1-800-717-1738 (toll-free) with Conference ID: 50329. A replay will be available until September 2, 2024, by dialing 1-888-660-6264 (toll-free) with Conference ID: 50329 and Playback Passcode: 50329. The webcast and slide deck will be accessible on the company's website at www.nacg.ca/presentations/.
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