N.A. Construction signs $800-million contract extension

Mr. Joe Lambert reports NORTH AMERICAN CONSTRUCTION GROUP LTD. ANNOUNCES $2.0 BILLION, FIVE-YEAR CONTRACT IN QUEENSLAND, AUSTRALIA The MacKellar Group, a wholly owned subsidiary of North American Construction Group Ltd., has been awarded an amended and extended five-year contract by an existing client, a leading coal producer in the state of Queensland, Australia. The extended mine service contract has an expiry date of April 30, 2030, provides total backlog of approximately $2.0-billion and is the largest contract signed in the company's history. The extension results in an $800-million increase to backlog in relation to the original contract. The amendments introduce certain risk and reward mechanisms that contractually align North American Construction with the producer to consistently operate effectively. The contract does not contemplate growth capital with backlog values generally based on the existing run rate of the mine. This incremental value results in total contractual backlog for the company of $4.0-billion as of March 31, 2025, on a pro forma basis, compared with the $3.2-billion reported in the first quarter 2025 management's discussion and analysis. This level of backlog sets another company record, surpassing the previous record of $3.5-billion reported on Dec. 31, 2024. The contractual backlog in place for the Australian operations, $3.0-billion as at March 31, 2025, on a pro forma basis, now provides full top-line visibility to 2029 at current levels. "Signing the largest contract in our history is a testament to the consistent execution and trusted partnerships we've built," stated Joe Lambert, president and chief executive officer of North American Construction. "With record-high backlog, including over $3.0-billion from Australia alone, we have exceptional revenue visibility through the decade and a rock-solid foundation for long-term growth." "This is an exciting extension for the MacKellar Group with it being a tangible demonstration of the successful and productive relationship we've had with this customer since inception in 2022," stated Barry Palmer, chief operating officer of North American Construction. "We are devoted to and aligned with this customer's continued success, and look forward to delivering tangible results on site." About North American Construction Group Ltd. North American Construction is one of Australia and Canada's largest providers of heavy construction and mining services. For over 70 years, North American Construction has provided services to mining, resource and infrastructure construction markets. We seek Safe Harbor.