North American Construction Group Ltd. Announces Results for the First Quarter Ended March 31, 2026
Rhea-AI Summary
North American Construction Group (TSX/NYSE:NOA) reported Q1 2026 combined revenue of $422.5M, up 8% year-over-year, and reported revenue of $319.2M, down 6%. Adjusted EBITDA was $99.5M (23.5% margin) and net income $5.6M. Free cash flow turned to a $3.7M inflow. The company closed the Iron Mine Contracting acquisition, raised combined gross margin to 13.7%, and declared a $0.12 quarterly dividend. 2026 guidance targets $1.5–$1.7B combined revenue, $380–$420M adjusted EBITDA, and $110–$130M free cash flow, supported by $3.9B in proforma backlog and about $1.5B of revenue already secured.
Positive
- Combined Q1 2026 revenue up 8% year-over-year to $422.5M
- Combined gross profit margin improved to 13.7% from 12.1%
- Free cash flow swung to $3.7M from a $41.6M outflow
- Iron Mine Contracting acquisition added $64.7M revenue and $10M gross profit
- Approximately $1.5B of 2026 revenue secured, over 90% of midpoint guidance
- 2026 guidance targets $380–$420M adjusted EBITDA and $110–$130M free cash flow
Negative
- Reported Q1 2026 revenue declined 6% year-over-year to $319.2M
- Adjusted EBITDA margin decreased 200 bps year-over-year to 23.5%
- Net income fell 10% year-over-year to $5.6M
- Heavy Equipment Canada revenue declined 26% year-over-year to $131.6M
- Joint venture and affiliate revenue decreased 24% year-over-year to $38.6M
- Interest expense increased to $16.7M from $13.5M year-over-year
News Market Reaction – NOA
In the May 14 session, NOA gained 9.90%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.9% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | Q4 2025 earnings | Negative | -27.8% | Q4 2025 showed revenue decline and sharp adjusted EPS drop versus prior year. |
| Nov 12 | Q3 2025 earnings | Negative | -7.6% | Q3 2025 combined revenue grew but adjusted EPS and EBITDA declined materially. |
| Aug 13 | Q2 2025 earnings | Negative | -23.1% | Q2 2025 saw revenue growth but a 98% drop in adjusted EPS and lower EBITDA. |
| May 14 | Q1 2025 earnings | Neutral | +2.8% | Q1 2025 delivered record combined revenue but weaker gross margins amid weather impacts. |
| Mar 19 | Q4 2024 earnings | Neutral | -4.8% | Q4 2024 combined revenue dipped while adjusted EBITDA margin improved versus prior year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often coincided with negative price reactions, with an average move of about -12.09% across the last five earnings events, typically reflecting pressure on profitability metrics despite solid revenue.
Over the past year, NACG’s earnings reports have shown steady combined revenue growth but pressured margins and earnings. Prior quarters featured higher combined revenue, such as $391.5M in Q1 2025 and $372.7M in Q4 2024, alongside declining adjusted EPS and EBITDA margins. The Q4 2025 release on Mar 11, 2026 highlighted a sharp earnings drop and triggered a -27.76% move. Today’s Q1 2026 update fits this sequence, with revenue resilience, IMC-driven growth, but softer year-over-year EPS.
Key Terms
adjusted ebitda financial
free cash flow financial
gross profit margin financial
combined revenue financial
adjusted eps financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Adjusted EBITDA of
ACHESON, Alberta, May 13, 2026 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the first quarter ended March 31, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended March 31, 2025.
First Quarter 2026 Financial Highlights
Combined Revenue:
$422.5 million , up8% year-over-year and up23% sequentially from Q4 2025- Reported revenue:
$319.2 million , down6% year-over-year and up4% sequentially from Q4 2025
Adjusted EBITDA:
$99.5 million , flat year-over-year and up28% sequentially from Q4 2025- Net income:
$5.6 million , down10% year-over-year and up from$0.1 million in Q4 2025
Free Cash Flow:
$3.7 million inflow, up$45.2 million year-over-year
First Quarter 2026 Operational & Corporate Highlights
NACG delivered improved margins and profitability through operational discipline, and sequential quarter improvements in absolute and margin performance.
- Our Australian operations delivered robust first-quarter revenue of
$185.2 million , representing a17% increase year-over-year. This growth was driven by higher volumes from growth assets, recent contract awards, and strong site performance, including improved equipment utilization. In addition, disciplined project execution contributed to a notable improvement in gross margin performance. - On April 7, 2026, we completed the acquisition of Iron Mine Contracting (“IMC”), a leading mining services contractor in Western Australia. This strategic transaction advances our Australian growth strategy, positions us as a national Tier 1 contractor and expands our regional client base and operational capabilities. Under the acquisition agreement, we are entitled to IMC’s economic benefit from January 1, 2026, which will be reflected in the purchase price allocation but is not included in our reported Q1 results. For reference, IMC’s economic benefit for the quarter is included in our combined revenue, gross profit, adjusted net earnings, adjusted EBIT, and adjusted EBITDA.
- Margin performance improved in the oil sands region, reflecting the positive financial impact of our ongoing fleet right-sizing and enhanced focus on mechanical availability. These initiatives strengthened margins and contributed to improved revenue and profitability compared to Q4 2025, highlighting the effectiveness of our operational optimization efforts.
- We saw stabilization of equity earnings with a solid quarter of steady progress and project execution from the Fargo-Moorhead flood diversion project teams. Project to date, our earthmoving scopes continue to be completed on time and on budget.
"Our operations teams on both sides of the Pacific performed ahead of the expectations we had set entering the year. I am encouraged by their performance as the quarter reflected disciplined execution, improved operating focus, and, with that, early progress against the priorities we established for 2026 – in both our core regions of Australia and Canada," commented Barry Palmer, President and Chief Executive Officer.
"Due to the seasonal spring break-up in the oil sands region, historically generating a
Financial Results for the First Quarter 2026
Combined revenue and reported revenue were generated during the quarter by the following primary segments:
- Heavy Equipment - Australia revenue increased
17% to$185.2 million , driven by strong project execution and utilization of growth assets. Sequential revenue rose$9.4 million over Q4 2025. - Heavy Equipment - Canada revenue decreased
26% to$131.6 million , primarily due to the Q4 2025 sale of 797 haul trucks under our fleet optimization strategy, and reduced activity at key sites, partially offset by increased winter work and the ramp-up of the Kearl project. Sequential revenue improved by$3.7 million , consistent with seasonal activity and ongoing project ramp-ups. - Revenue from joint ventures and affiliates declined
24% to$38.6 million , mainly due to lower volumes from MNALP, Nuna, and Fargo. The Fargo project reached91% completion, maintaining operational momentum. Revenue was stable compared to Q4 2025. - IMC generated
$64.7 million in revenue, primarily from mining projects in Western Australia. This is a new addition, driving combined revenue growth and an expanded Australian platform.
Gross profit for the quarter increased to
Combined gross profit reached
Adjusted EBITDA was
Adjusted earnings per share (“EPS”) for the first quarter of 2026 was
Basic net income per share for Q1 2026 was
Free cash flow for the quarter was
Declaration of Quarterly Dividend
On May 11, 2026, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents (
Outlook for 2026
Our operational priorities for 2026 are:
- Safety - safety-first mentality across all global operations - ensuring EVERYONE GETS HOME SAFE;
- Australian workforce mix - optimize heavy equipment maintenance workforce mix in Australia, following the improvements implemented in the second half of 2025;
- Cost reduction - following two years of major growth in Queensland, review and reduce discretionary operating costs while fully maintaining customer requirements;
- Integration - with the Iron Mine Contracting transaction complete, continued commissioning of expanded fleet in Western Australia to support growth and operational scale;
- Civil execution - deliver the successful completion of the Fargo-Moorhead flood diversion project, reinforcing our large-scale civil execution capabilities; and
- Mechanical availability - continue to improve mechanical availability and reliability of a right-sized heavy equipment fleet in the oil sands region.
Our growth drivers for 2026 and beyond are the strategic building blocks of our success:
- Scaling into a Tier 1 Contractor in Australia - provides ability to secure larger scopes in the much sought-after mining regions of Western Australia and Queensland;
- Securing infrastructure awards across North America - targeting nation-building projects in Canada and mass civil earthwork scopes in the United States for which we have deep experience and expertise; and
- Expanding mining services in Canada and the United States - leveraging our over 70 years of experience, ensuring we are front and center as ever increasing mine scopes in both countries are issued and awarded.
The following table provides projected key measures for 2026, inclusive of IMC, and is supported by our commissioned capital fleets and the proforma contractual backlog of
| Key measures | 2026 | |
| Combined revenue(i) | ||
| Adjusted EBITDA(i) | ||
| Free cash flow(i) |
(i)See "Non-GAAP Financial Measures".
“Our 2026 outlook is bolstered by strong visibility with approximately
Results for the three months ended March 31, 2026
Consolidated Financial Highlights
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2025 | Change | |||||||||
| Revenue | $ | 319,219 | $ | 340,833 | $ | (21,614 | ) | |||||
| Cost of sales | 220,397 | 242,228 | (21,831 | ) | ||||||||
| Depreciation | 56,009 | 60,714 | (4,705 | ) | ||||||||
| Gross profit | $ | 42,813 | $ | 37,891 | $ | 4,922 | ||||||
| Gross profit margin(i) | 13.4 | % | 11.1 | % | 2.3 | % | ||||||
| Total combined revenue(i) | 422,523 | 391,504 | 31,019 | |||||||||
| Combined gross profit(i) | $ | 57,680 | $ | 47,263 | $ | 10,417 | ||||||
| Combined gross profit margin(i) | 13.7 | % | 12.1 | % | 1.6 | % | ||||||
| General and administrative expenses (excluding stock-based compensation)(i) | 17,801 | 11,090 | 6,711 | |||||||||
| Stock-based compensation expense (benefit) | 2,638 | (3,408 | ) | 6,046 | ||||||||
| Operating income | 21,885 | 30,582 | (8,697 | ) | ||||||||
| Interest expense, net | 16,690 | 13,516 | 3,174 | |||||||||
| Net income | 5,554 | 6,163 | (609 | ) | ||||||||
| Comprehensive income | 30,290 | 6,641 | 23,649 | |||||||||
| Adjusted EBITDA(i) | 99,472 | 99,932 | (460 | ) | ||||||||
| Adjusted EBITDA margin(i)(ii) | 23.5 | % | 25.5 | % | (2.0 | )% | ||||||
| Free cash flow(i) | 3,659 | (41,575 | ) | 45,234 | ||||||||
| Per share information | ||||||||||||
| Basic net income per share | $ | 0.20 | $ | 0.22 | $ | (0.02 | ) | |||||
| Diluted net income per share | $ | 0.19 | $ | 0.21 | $ | (0.02 | ) | |||||
| Adjusted EPS(i) | $ | 0.37 | $ | 0.52 | $ | (0.15 | ) | |||||
(i)See "Non-GAAP Financial Measures".
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Conference Call and Webcast
Management will hold a conference call and webcast to discuss our financial results for the three months ended March 31, 2026, tomorrow, Thursday, May 14, 2026, at 9:00 am Eastern Time (7:00 am Mountain Time).
The call can be accessed by dialing:
Toll free: 1-800-717-1738
Conference ID: 96416
A replay will be available through June 12, 2026, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 96416
Playback Passcode: 96416
A slide deck for the webcast will be available for download the evening prior to the call and will be found on the company’s website at www.nacg.ca/presentations/
The live presentation and webcast can be accessed at:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=F5010CB7-DF4F-46FD-9027-D06461C97614
A replay will be available until June 12, 2026, using the link provided.
About the Company
North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.
For further information contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 960.7171
ir@nacg.ca
www.nacg.ca
Basis of Presentation
We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States ("US GAAP"). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis ("MD&A") for the quarter ended March 31, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q1 Results Presentation for more information on our results and projections which can be found on our website under Investors - Presentations.
Forward-Looking Information
The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "anticipate", "believe", "expect", "should" or similar expressions and include guidance with respect to financial metrics provided in our outlook for 2026.
The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three months ended March 31, 2026. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca.
Non-GAAP Financial Measures
This press release presents certain non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures that may be useful to investors in analyzing our business performance, leverage, and liquidity. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer's historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. A "non-GAAP ratio" is a ratio, fraction, percentage or similar expression that has a non-GAAP financial measure as one or more of its components. Non-GAAP financial measures and ratios do not have standardized meanings under GAAP and therefore may not be comparable to similar measures presented by other issuers. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A "supplementary financial measure" is a financial measure disclosed, or intended to be disclosed, on a periodic basis to depict historical or future financial performance, financial position or cash flows that does not fall within the definition of a non-GAAP financial measure or non-GAAP ratio. The non-GAAP financial measures and ratios we present include, "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin" "adjusted EPS", "adjusted net earnings", "backlog", "capital additions", "capital expenditures, net", "capital inventory", "capital work in progress", "cash liquidity", "cash related interest expense", "cash provided by operating activities prior to change in working capital", "combined backlog", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "equity method investment backlog", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "growth capital", "growth spending", "invested capital", "margin", "net debt", "net debt leverage", "senior-secured debt", "share of affiliate and joint venture capital additions", "sustaining capital", "total capital liquidity", "total combined revenue", and "total debt". We also use supplementary financial measures such as "gross profit margin" and "total net working capital (excluding cash and current portion of long-term debt)" in our MD&A. Each non-GAAP financial measure used in this press release is defined under "Financial Measures" in our Management's Discussion and Analysis filed on EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca.
Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA
| Three months ended | ||||||||
| March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Net income | $ | 5,554 | $ | 6,163 | ||||
| Adjustments: | ||||||||
| Stock-based compensation expense (benefit) | 2,638 | (3,408 | ) | |||||
| Loss on disposal of property, plant and equipment | (70 | ) | (974 | ) | ||||
| Unrealized foreign exchange (gain) loss | (805 | ) | — | |||||
| Change in FV of contingent obligations - estimate adjustments | (4,254 | ) | (1,317 | ) | ||||
| Loss on derivative financial instruments | 825 | 6,912 | ||||||
| Equity investment loss on derivative financial instruments | 458 | 1,019 | ||||||
| IMC economic benefit - net income | 2,204 | — | ||||||
| Acquisition costs | 1,334 | — | ||||||
| Canadian organizational realignment costs | 2,679 | — | ||||||
| Depreciation expense relating to early component failures | — | 4,274 | ||||||
| Post-acquisition asset relocation and integration costs | — | 1,640 | ||||||
| Tax effect of the above items | (317 | ) | 208 | |||||
| Adjusted net earnings(i) | $ | 10,246 | $ | 14,517 | ||||
| Adjustments: | ||||||||
| Tax effect of the above items | 317 | (208 | ) | |||||
| Income tax expense | 4,243 | 4,244 | ||||||
| Equity Investment EBIT(i) | 3,173 | 3,310 | ||||||
| Equity earnings in affiliates and joint ventures | (2,776 | ) | (3,283 | ) | ||||
| Change in FV of contingent obligations - interest accretion | 1,603 | 4,347 | ||||||
| IMC economic benefit - interest and tax expense | 1,649 | — | ||||||
| Interest expense, net | 16,690 | 13,516 | ||||||
| Adjusted EBIT(i) | $ | 35,145 | $ | 36,443 | ||||
| Adjustments: | ||||||||
| Depreciation | 56,009 | 60,714 | ||||||
| Amortization of intangible assets | 559 | 601 | ||||||
| Equity investment depreciation and amortization | 3,393 | 6,448 | ||||||
| IMC economic benefit - depreciation and amortization | 4,366 | — | ||||||
| Depreciation expense relating to early component failures | — | (4,274 | ) | |||||
| Adjusted EBITDA(i) | $ | 99,472 | $ | 99,932 | ||||
| Adjusted EBITDA margin(i)(ii) | 23.5 | % | 25.5 | % | ||||
(i)See "Non-GAAP Financial Measures".
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT
| Three months ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Equity earnings in affiliates and joint ventures | $ | 2,776 | $ | 3,283 | ||||
| Adjustments: | ||||||||
| Loss on disposal of property, plant and equipment | 41 | 2 | ||||||
| Income tax (benefit) expense | (79 | ) | 54 | |||||
| Interest expense (income), net | 435 | (29 | ) | |||||
| Equity investment EBIT(i) | $ | 3,173 | $ | 3,310 | ||||
(i) See "Non-GAAP Financial Measures"
Reconciliation of total reported revenue to total combined revenue
| Three months ended | ||||||||
| March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Revenue from wholly-owned entities per financial statements | $ | 319,219 | $ | 340,833 | ||||
| Share of revenue from investments in affiliates and joint ventures | 103,177 | 136,237 | ||||||
| IMC economic benefit - revenue | 64,683 | — | ||||||
| Elimination of joint venture subcontract revenue | (64,556 | ) | (85,566 | ) | ||||
| Total combined revenue(i) | $ | 422,523 | $ | 391,504 | ||||
(i) See "Non-GAAP Financial Measures".
Reconciliation of reported gross profit to combined gross profit
| Three months ended | ||||||||
| March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Gross profit from wholly-owned entities per financial statements | $ | 42,813 | $ | 37,891 | ||||
| Share of gross profit from investments in affiliates and joint ventures | 4,874 | 9,372 | ||||||
| IMC economic benefit - gross profit | 9,993 | — | ||||||
| Combined gross profit(i)(ii) | $ | 57,680 | $ | 47,263 | ||||
| Combined gross profit margin(i)(ii) | 13.7 | % | 12.1 | % | ||||
(i)See "Non-GAAP Financial Measures".
(ii) Certain prior period costs within the Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification has no impact on revenue, income before taxes, or net income.
Reconciliation of basic net income per share to adjusted EPS
| Three months ended | ||||||||
| March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Net income | $ | 5,554 | $ | 6,163 | ||||
| Adjusted net earnings | $ | 10,246 | $ | 14,517 | ||||
| Weighted-average number of common shares | 27,629,059 | 27,859,886 | ||||||
| Weighted-average number of diluted shares | 28,504,380 | 28,863,668 | ||||||
| Basic net income per share | $ | 0.20 | $ | 0.22 | ||||
| Diluted net income per share | $ | 0.19 | $ | 0.21 | ||||
| Adjusted EPS(i) | $ | 0.37 | $ | 0.52 | ||||
(i)See "Non-GAAP Financial Measures".
Net Debt
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||
| Credit Facility(i) | $ | 242,811 | $ | 174,156 | ||||
| Equipment financing(i) | 334,230 | 309,238 | ||||||
| Mortgage(i) | 26,523 | 26,742 | ||||||
| Senior-secured debt(ii) | 603,564 | 510,136 | ||||||
| Senior unsecured notes | 350,000 | 350,000 | ||||||
| Contingent obligations(i) | 63,872 | 63,453 | ||||||
| Convertible debentures(i) | — | 55,000 | ||||||
| Cash | (121,129 | ) | (100,128 | ) | ||||
| Net debt(ii) | $ | 896,307 | $ | 878,461 | ||||
(i)Includes current portion.
(ii)See "Non-GAAP Financial Measures".
Free Cash Flow
| Three months ended | ||||||||
| March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Consolidated Statements of Cash Flows | ||||||||
| Cash provided by operating activities | $ | 29,805 | $ | 51,418 | ||||
| Cash used in investing activities | (46,169 | ) | (93,781 | ) | ||||
| Effect of exchange rate on changes in cash | 7,098 | (1,075 | ) | |||||
| Add back of growth and non-cash items included in the above figures: | ||||||||
| Growth capital additions(i) | 12,925 | 28,066 | ||||||
| Capital additions financed by leases(i) | — | (26,203 | ) | |||||
| Free cash flow(i) | $ | 3,659 | $ | (41,575 | ) | |||
(i)See "Non-GAAP Financial Measures".
Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)
(Unaudited)
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 121,129 | $ | 100,128 | ||||
| Accounts receivable | 161,804 | 148,928 | ||||||
| Contract assets | 20,176 | 30,472 | ||||||
| Inventories | 74,573 | 75,660 | ||||||
| Prepaid expenses and deposits | 6,322 | 6,925 | ||||||
| Assets held for sale | 551 | 107 | ||||||
| 384,555 | 362,220 | |||||||
| Property, plant and equipment, net of accumulated depreciation of | 1,384,014 | 1,358,852 | ||||||
| Operating lease right-of-use assets | 10,250 | 10,734 | ||||||
| Investments in affiliates and joint ventures | 74,812 | 70,416 | ||||||
| Intangible assets | 12,706 | 12,333 | ||||||
| Other assets | 10,540 | 5,198 | ||||||
| Total assets | $ | 1,876,877 | $ | 1,819,753 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 103,386 | $ | 102,054 | ||||
| Accrued liabilities | 92,862 | 89,308 | ||||||
| Contract liabilities | 15,110 | 22,848 | ||||||
| Current portion of long-term debt | 96,401 | 160,557 | ||||||
| Current portion of contingent obligations | 36,108 | 34,597 | ||||||
| Current portion of operating lease liabilities | 1,233 | 1,495 | ||||||
| 345,100 | 410,859 | |||||||
| Long-term debt | 852,625 | 749,829 | ||||||
| Contingent obligations | 27,764 | 28,856 | ||||||
| Operating lease liabilities | 9,457 | 9,698 | ||||||
| Other long-term obligations | 21,893 | 22,607 | ||||||
| Deferred tax liabilities | 146,069 | 141,283 | ||||||
| 1,402,908 | 1,363,132 | |||||||
| Shareholders' equity | ||||||||
| Common shares (authorized – unlimited number of voting common shares; issued and outstanding – March 31, 2026 - 28,240,120 (December 31, 2025 – 28,821,481)) | 277,757 | 282,957 | ||||||
| Treasury shares (March 31, 2026 - 876,010 (December 31, 2025 - 871,244)) | (15,097 | ) | (14,993 | ) | ||||
| Additional paid-in capital | — | 2,807 | ||||||
| Retained earnings | 177,186 | 176,463 | ||||||
| Accumulated other comprehensive income | 34,123 | 9,387 | ||||||
| Shareholders' equity | 473,969 | 456,621 | ||||||
| Total liabilities and shareholders' equity | $ | 1,876,877 | $ | 1,819,753 | ||||
Consolidated Statements of Operations and Comprehensive Income
(Expressed in thousands of Canadian Dollars, except per share amounts)
(Unaudited)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 319,219 | $ | 340,833 | ||||
| Cost of sales | 220,397 | 242,228 | ||||||
| Depreciation | 56,009 | 60,714 | ||||||
| Gross profit | 42,813 | 37,891 | ||||||
| General and administrative expenses | 20,439 | 7,682 | ||||||
| Amortization of intangible assets | 559 | 601 | ||||||
| Gain on disposal of property, plant and equipment | (70 | ) | (974 | ) | ||||
| Operating income | 21,885 | 30,582 | ||||||
| Interest expense, net | 16,690 | 13,516 | ||||||
| Equity earnings in affiliates and joint ventures | (2,776 | ) | (3,283 | ) | ||||
| Loss on derivative financial instruments | 825 | 6,912 | ||||||
| Change in fair value of contingent obligations | (2,651 | ) | 3,030 | |||||
| Income before income taxes | 9,797 | 10,407 | ||||||
| Current income tax expense | 2,389 | 1,777 | ||||||
| Deferred income tax expense | 1,854 | 2,467 | ||||||
| Net income | 5,554 | 6,163 | ||||||
| Other comprehensive income | ||||||||
| Unrealized foreign currency translation gain | (24,736 | ) | (478 | ) | ||||
| Comprehensive income | $ | 30,290 | $ | 6,641 | ||||
| Per share information | ||||||||
| Basic net income per share | $ | 0.20 | $ | 0.22 | ||||
| Diluted net income per share | $ | 0.19 | $ | 0.21 | ||||
