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 Ltd. (NOA) announced an extension of its senior secured credit facility, now maturing on October 8, 2024. The facility retains a borrowing capacity of $325 million, with an option to increase it by $50 million. The extension includes favorable terms allowing more flexibility for joint ventures, especially in public-private partnerships. CFO Jason Veenstra expressed gratitude toward financial partners for their support, which is crucial for implementing the company's diversification strategy and growing its project backlog.
North American Construction Group Ltd. (NOA) announced a significant contract award to Mikisew North American Limited Partnership by a major oil sands producer. This contract extends their existing agreement to December 2023 and is expected to generate approximately $275 million in revenue. NACG's backlog has now reached a record $1.9 billion, demonstrating growth in its oil sands business and Indigenous partnerships. The company aims to enhance equipment utilization and diversify its customer base across various regions and commodities.
North American Construction Group Ltd. (NOA) reported Q2 2021 results showing revenue of $140.2 million, a significant rise from $70.8 million in Q2 2020, driven by recovering demand post-COVID-19. Adjusted EBITDA increased to $42.4 million, up 33% year-over-year. However, gross profit margin fell to 10.9% due to increased equipment maintenance and labor shortages. The company announced the acquisition of DGI Trading for $23.5 million and secured a $650 million Fargo-Moorhead flood diversion contract. A quarterly dividend of CAD $0.04 per share was declared, payable on October 8, 2021.
North American Construction Group Ltd. (NOA) announced a contract amendment with Mikisew North American Limited Partnership, expected to generate approximately $175 million in additional revenue through December 2023. This amendment reflects the company's strong relationship with a key customer in the oil sands sector. President Joe Lambert highlighted the importance of safe operations and a low-cost culture in securing this contract, indicating ongoing trust from industry partners.
North American Construction Group Ltd. (NOA) will release its Q2 financial results on July 28, 2021, after market close.
A conference call is scheduled for July 29, 2021, at 7:00 a.m. MT (9:00 a.m. ET) to discuss the results.
Investors can access the call by dialing 1-844-248-9143 (toll-free) or 1-216-539-8612 (international).
A replay will be available until August 26, 2021. Additional presentation materials will be accessible on the company’s website.
North American Construction Group has been awarded a US$2.75 billion flood mitigation project in the U.S., marking its largest infrastructure initiative to date. The project involves a 30-mile river diversion channel to protect the Fargo-Moorhead area from flooding. NACG predicts a revenue share of approximately C$600 million over the contract's duration, which spans 29 years. This undertaking aligns with NACG's strategy for diversification and climate-resilient infrastructure, aiming to safeguard over 235,000 residents against catastrophic floods.
North American Construction Group Ltd. (NOA) announced an agreement to acquire DGI Trading Pty Limited for approximately $23.5 million. DGI, located in Australia, supplies essential components to the mining sector. The acquisition aims to enhance vertical integration and diversify NACG's service offerings. The purchase price correlates to DGI's net tangible assets and includes earn-out payments based on DGI's future earnings. The transaction is expected to close on July 1, 2021, and will be funded through existing debt facilities.
North American Construction Group Ltd. (NOA) has successfully closed the underwriters' over-allotment option, raising an additional $9.75 million from the sale of 5.50% convertible unsecured subordinated debentures. This follows their recent offering, bringing total gross proceeds to $74.75 million. The funds will primarily be used to repay senior indebtedness under their revolving credit facility. The debentures will not be registered under U.S. Securities Act and cannot be sold in the U.S. without an exemption.
North American Construction Group Ltd. (NOA) has announced that underwriters fully exercised an over-allotment option, leading to an additional purchase of $9.75 million of its 5.50% convertible unsecured subordinated debentures. This brings the total gross proceeds from the offering to $74.75 million. The proceeds will primarily be used to repay senior debt under its revolving credit facility.
North American Construction Group Ltd. (NOA) has successfully closed an offering of 5.50% convertible unsecured subordinated debentures, raising gross proceeds of $65 million. Led by National Bank Financial, the syndicate of underwriters includes notable firms such as Canaccord Genuity and CIBC World Markets. An over-allotment option allows for an additional $9.75 million within 30 days. Proceeds will primarily be used to repay senior debt under the revolving credit facility. The debentures will trade on the TSX under symbol NOA.DB.B.
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