NOA · North American Construction Group Ltd.

North American Construction Group Ltd. delivered Q1 2026 results with combined revenue of $422.5 million, up 8% year-over-year, primarily driven by robust 17% growth in Australian heavy equipment operations to $185.2 million from higher volumes, contract awards, and improved equipment utilization. Reported GAAP revenue was $319.2 million, down 6% YoY due to fleet optimization including the Q4 2025 sale of 797 haul trucks and reduced oil sands activity, though sequential improvements occurred via winter work and Kearl project ramp-up. Gross profit margins expanded to 13.4% (GAAP) and 13.7% (combined) from 11.1% and 12.1% YoY, reflecting operational discipline, fleet right-sizing, and a $10.0 million contribution from IMC at 15.4% margin. Adjusted EBITDA held flat at $99.5 million YoY with a 23.5% margin on combined revenue, but rose 28% sequentially from Q4 2025's $77.6 million, underscoring efficiency gains and IMC integration benefits despite its lower margins. Net income dipped to $5.6 million from $6.2 million YoY, with basic EPS at $0.20, pressured by higher interest from IMC-related debt, elevated G&A including acquisition costs, offset by favorable contingent obligation adjustments. Free cash flow swung to a $3.7 million inflow from a $41.6 million outflow YoY, absorbing $33.5 million seasonal working capital use. The April 7 completion of the IMC acquisition advances Australian Tier 1 contractor positioning, with IMC's Q1 revenue of $64.7 million included in combined figures. Management highlighted operational outperformance, Fargo project progress at 91% completion on time/budget, and maintained 2026 outlook of $1.5-1.7B combined revenue, $380-420M adjusted EBITDA, and $110-130M free cash flow, supported by $3.9B contractual backlog and $1.5B secured revenue. A C$0.12 quarterly dividend was declared, payable July 3. CEO Barry Palmer emphasized disciplined execution and strong H2 visibility post oil sands spring break-up.