North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30, 2025

ACHESON, Alberta, Nov. 12, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX:NOA/NYSE:NOA) today announced results for the third quarter ended September 30, 2025. Unless otherwise indicated, financial figures are expressed in Canadian dollars, and comparisons are to the prior third quarter ended September 30, 2024. Third Quarter 2025 Financial Highlights: Combined revenue was $390.8 million and increased 6% (reported revenue of $317.2 million, increased 11%) Combined gross profit was $57.1 million (15.7%) and decreased 23% (reported gross profit of $49.7 million (15.7%), decreased 25%) Adjusted EPS was $0.67 and decreased 44% (basic earnings per share of $0.59, increased 9%) Adjusted EBITDA was $99.0 million and decreased 12% (net income of $17.3 million, increased 19%) Free cash flow was an inflow of cash of $45.7 million and increased $56.3 million Net debt was $904.0 million and increased $7.1 million during the quarter Third Quarter 2025 Operational Highlights: Revenue and combined revenue for the third quarter increased, driven primarily by incremental contract wins and commissioned growth assets in the Heavy Equipment - Australia Segment. Heavy Equipment - Australia revenue increased 26% to $188.5 million from $149.5 million, driven by a 20% expansion in fleet size, strong operational performance under favourable weather, and higher volumes from three major Australian contracts secured over the past year. Heavy Equipment - Canada revenue decreased 5% to $125.7 million from $132.7 million, primarily due to reduced scopes at the Syncrude mines and lower overburden and reclamation activity in the oil sands. Revenue generated by joint ventures and affiliates decreased 8% to $73.5 million from $80.3 million, largely related to decreased volumes generated from the Nuna Group of Companies. Our portion of revenue generated by the civil-infrastructure Fargo project remained strong this year, comparable to the prior year, as the project continued strong production momentum and progressed towards 80% complete. Compared to 2025 Q2, 2025 Q3 results demonstrated solid sequential improvement with a 5% increase in combined revenue but was highlighted by significantly improved gross profit margins. In Australia, strong operational execution, favourable weather, lower third-party maintenance and scale efficiencies gained from fleet expansion supported gross profit margin gains of 4.5%. In Canada, gross margin improved by 4.8% as steady operations replaced the temporary shutdowns experienced in the prior quarter. Overall combined gross margin improved 5.7%, from 8.9%1 to 14.6%, reflecting operational consistency, improved cost control across the business and enhanced heavy equipment productivities. 1 Certain prior period costs within our Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification changed combined gross profit and combined gross profit margin, but has no impact on revenue, income before taxes, or net income. Gross profit for the current quarter came in lower than the prior year. Heavy Equipment - Australia experienced higher operating costs relating primarily to the mix of contract and mine site work, offset by cost savings on parts spend relating to favourable dry weather conditions. Heavy Equipment - Canada margins were impacted by demobilization costs and investment in equipment maintenance. Adjusted EPS of $0.67 compared to $1.19 in the prior year Q3 reflects our earnings and the impact of a higher average share count of 29.2 million (up from 26.8 million in 2024 Q3), driven by the issuance of 3.0 million shares from convertible debentures in February 2025, partially offset by share repurchases. Interest expense of $18.5 million, including contingent liability accretion, reduced EPS by approximately $0.50. The Q3 adjusted EBITDA was lower year-over-year due to the same factors that impacted gross profit; however, we experienced a 3.7% improvement to our EBITDA margin compared to 2025 Q2, primarily due to consistent operation in the oil sands region, increased productive maintenance headcount in Australia, and steady operations within the Fargo joint ventures. Free cash flow for the quarter was $45.7 million and was primarily based on adjusted EBITDA of $99.0 million offset by sustaining capital additions ($47.0 million) and cash interest expense ($14.5 million). Our net debt increased $7.1 million in the quarter as free cash flow was more than offset by growth capital of $23.3 million, share purchases of $13.8 million and the unrealized impact of the higher foreign exchange rate on Australian-denominated debt (impact of approximately $10 million).  Joe Lambert, President and CEO stated "With our encouraging third quarter in the books, we are locked and loaded looking to deliver on our second half commitments and finishing the year strong. I appreciate your continued support and look forward to sharing our 2026 outlook with you in December." Declaration of Quarterly Dividend On November 10, 2025, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 26, 2025. The Dividend will be paid on January 9, 2026, and is an eligible dividend for Canadian income tax purposes. NACG’s outlook for 2025 The following table provides projected key measures for the remainder of 2025. Actual results for the six months ended   Outlook for the six months ended     December 31, 2024   June 30, 2025   December 31, 2025       Current   Previous Key measures                 Combined revenue(i)   $740M   $762M   $700 - $750M   No Change Adjusted EBITDA(i)   $202M   $180M   $190 - $210M   No Change Adjusted EPS(i)   $2.15   $0.54   $1.40 - $1.60   No Change Sustaining capital(i)   $69M   $158M   $60 - $70M   No Change Free cash flow(i)   $68M   ($42M)   $95 - $105M   No Change                   Capital allocation                 Growth spending(i)   $45M   $53M   Approx. $25M   No Change Net debt leverage(i)   2.2x   2.2x   Targeting 2.2x   Targeting 2.1x (i)See “Non-GAAP Financial Measures”. Results for the three and nine months ended September 30, 2025 Consolidated Financial Highlights     Three months ended   Nine months ended     September 30,   September 30, (dollars in thousands, except per share amounts)   2025   2024   2025   2024 Revenue   $ 317,248     $ 286,857     $ 978,715     $ 860,197   Cost of sales(i)     218,033       177,041       690,554       555,515   Depreciation(i)     49,492       43,902       164,717       134,915   Gross profit(i)   $ 49,723     $ 65,914     $ 123,444     $ 169,767   Gross profit margin(i)(ii)     15.7 %     23.0 %     12.6 %     19.7 % General and administrative expenses (excluding stock-based compensation)(ii)     13,026       9,291       35,814       32,609   Stock-based compensation (benefit) expense     (156 )     1,332       (2,600 )     3,081   Operating income(i)     35,747       54,621       89,118       132,496   Interest expense, net     15,265       15,003       42,904       44,939   Net income(i)     17,296       14,489       33,709       40,503   Comprehensive income(i)     28,449       15,604       44,781       42,256                     Adjusted EBITDA(i)(ii)     99,039       112,876       278,928       301,246   Adjusted EBITDA margin(i)(ii)(iii)     25.3 %     30.7 %     24.2 %     28.9 %                   Per share information                 Basic net income per share   $ 0.59     $ 0.54     $ 1.17     $ 1.51   Diluted net income per share   $ 0.56     $ 0.48     $ 1.11     $ 1.36   Adjusted EPS(ii)   $ 0.67     $ 1.19     $ 1.20     $ 2.77   (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". (ii)See "Non-GAAP Financial Measures". (iii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue. Free cash flow     Three months ended   Nine months ended     September 30,   September 30, (dollars in thousands)   2025   2024   2025   2024 Consolidated Statements of Cash Flows                 Cash provided by operating activities(i)   $ 91,824     $ 55,278     $ 207,916     $ 140,668   Cash used in investing activities(i)     (65,862 )     (65,857 )     (231,466 )     (218,969 ) Effect of exchange rate on changes in cash     2,278       (73 )     2,118       (1,047 ) Add back of growth and non-cash items included in the above figures:                 Growth capital additions(ii)     23,275       8,985       75,804       60,987   Capital additions financed by leases(ii)     (5,845 )     (8,985 )     (50,653 )     (30,054 ) Free cash flow(i)   $ 45,670     $ (10,652 )   $ 3,719     $ (48,415 ) (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". (ii)See "Non-GAAP Financial Measures". Net debt (dollars in thousands)   September 30, 2025   June 30, 2025   December 31, 2024 Credit Facility(i)   $ 264,519     $ 257,536     $ 395,844   Equipment financing(i)     334,057       314,414       253,639   Mortgage(i)     26,959       27,175       27,600   Senior-secured debt(ii)     625,535       599,125       677,083   Senior unsecured notes     225,000       225,000       —   Contingent obligations(i)     100,090       96,837       127,866   Convertible debentures(i)     55,000       55,000       129,106   Cash     (101,637 )     (79,025 )     (77,875 ) Net debt(ii)   $ 903,988     $ 896,937     $ 856,180   (i)Includes current portion. (ii)See "Non-GAAP Financial Measures". Conference Call and Webcast Management will hold a conference call and webcast to discuss our financial results for the quarter ended September 30, 2025, tomorrow, Thursday, November 13, 2025, at 7:00 am Mountain Time (9:00 am Eastern Time). The call can be accessed by dialing: Toll Free: 1-800-717-1738 Conference ID: 98296 A replay will be available through December 13, 2025, by dialing: Toll Free: 1-888-660-6264 Conference ID: 98296 Playback Passcode: 98296 The 2025 Q3 earnings presentation for the webcast will be available for download 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=1232A1F2-254A-427C-99C4-C518946DF7BB A replay will be available until December 13, 2025, 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 [email protected] 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 September 30, 2025, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2025 Q3 Results Presentation for more information on our results and projections which can be found on our website under Investors - Presentations. Change in significant accounting policy - Classification of heavy equipment tires Effective in the first quarter of 2025, we have changed our accounting policy for the classification of heavy equipment tires. These tires are now recognized as property, plant, and equipment on the Consolidated Balance Sheets and are amortized through depreciation on the Consolidated Statements of Operations and Comprehensive Income. Previously, all tires were classified as inventories and expensed through cost of sales when placed into service. This change in accounting policy provides a more accurate reflection of the role of tires as components of the heavy equipment in which they are utilized, aligning the accounting treatment with the economic substance of their use. We have applied this change retrospectively in accordance with Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections, by restating the comparative period. For further details regarding the retrospective adjustments, refer to Note 16 in the consolidated financial statements for the period ended September 30, 2025. 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. 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 and nine months ended September 30, 2025. 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. Non-GAAP Financial Measures This press release presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted EPS", "adjusted net earnings", "capital additions", "capital work in progress", "cash liquidity", "cash provided by operating activities prior to change in working capital", "cash related interest expense", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "gross profit margin", "growth capital", "margin", "net debt", "net debt leverage", "senior-secured debt", "sustaining capital", "total capital liquidity", and "total combined revenue". 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. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each non-GAAP financial measure used in this press release is defined and reconciled to its most directly comparable GAAP measure in the "Non-GAAP Financial Measures" section of our Management’s Discussion and Analysis filed concurrently with this press release. Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA     Three months ended   Nine months ended     September 30,   September 30, (dollars in thousands)   2025   2024   2025   2024 Net income(i)   $ 17,296     $ 14,489     $ 33,709     $ 40,503   Adjustments:                 Stock-based compensation (benefit) expense     (156 )     1,332       (2,600 )     3,081   Loss (gain) on disposal of property, plant and equipment     740       348       (344 )     641   Unrealized foreign exchange loss     845       114       689       9   Change in FV of contingent obligations - estimate adjustments     (2,771 )     17,727       (21,573 )     26,585   Loss on derivative financial instruments     1,684       572       9,346       845   Equity investment loss on derivative financial instruments     855       1,836       2,766       2,806   Equity investment restructuring costs     —       —       —       4,517   Depreciation expense relating to early component failures     —       —       4,274       —   Post-acquisition asset relocation and integration costs     —       —       1,640       —   Write-down on assets held for sale     —       —       —       4,181   Tax effect of the above items     988       (4,489 )     6,761       (8,974 ) Adjusted net earnings(i)(ii)     19,481       31,929       34,668       74,194   Adjustments:                 Tax effect of the above items     (988 )     4,489       (6,761 )     8,974   Income tax expense     6,229       6,996       16,244       16,809   Equity investment EBIT(ii)     5,690       4,365       3,943       7,152   Equity loss (earnings) in affiliates and joint ventures     (5,232 )     (4,428 )     (3,382 )     (9,545 ) Change in FV of contingent obligations - interest accretion     3,276       4,262       11,870       12,360   Interest expense, net     15,265       15,003       42,904       44,939   Adjusted EBIT(i)(ii)     43,721       62,616       99,486       154,883   Adjustments:                 Depreciation(i)     49,492       43,902       164,717       134,915   Amortization of intangible assets     366       322       1,456       940   Depreciation expense relating to early component failures     —       —       (4,274 )     —   Write-down on assets held for sale     —       —       —       (4,181 ) Equity investment depreciation and amortization(ii)     5,460       6,036       17,543       14,689   Adjusted EBITDA(i)(ii)   $ 99,039     $ 112,876     $ 278,928     $ 301,246   Adjusted EBITDA margin(i)(ii)(iii)     25.3 %     30.7 %     24.2 %     28.9 % (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". (ii)See "Non-GAAP Financial Measures". (iii)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   Nine months ended     September 30,   September 30, (dollars in thousands)     2025   2024     2025     2024 Equity (loss) earnings in affiliates and joint ventures   $ 5,232     $ 4,428     $ 3,382   $ 9,545   Adjustments:                 (Gain) loss on disposal of property, plant and equipment     (44 )     (183 )     113     (358 ) Income tax expense (benefit)     431       738       223     (698 ) Interest expense (income)     71       (618 )     225     (1,337 ) Equity investment EBIT(i)   $ 5,690     $ 4,365     $ 3,943   $ 7,152   (i)See "Non-GAAP Financial Measures". Reconciliation of total reported revenue to total combined revenue     Three months ended   Nine months ended     September 30,   September 30, (dollars in thousands)     2025     2024     2025     2024 Revenue from wholly-owned entities per financial statements   $ 317,248     $ 286,857     $ 978,715     $ 860,197   Share of revenue from investments in affiliates and joint ventures     134,946       144,574       392,686       382,789   Elimination of joint venture subcontract revenue     (61,417 )     (64,276 )     (218,832 )     (200,395 ) Total combined revenue(i)   $ 390,777     $ 367,155     $ 1,152,569     $ 1,042,591   (i)See "Non-GAAP Financial Measures". Reconciliation of reported gross profit to combined gross profit     Three months ended   Nine months ended     September 30,   September 30, (dollars in thousands)     2025     2024     2025     2024 Gross profit from wholly-owned entities per financial statements   $ 49,723     $ 65,914     $ 123,444     $ 169,767   Share of gross (loss) profit from investments in affiliates and joint ventures     7,423       7,860       10,783       18,624   Combined gross profit(i)(ii)(iii)   $ 57,146     $ 73,774     $ 134,227     $ 188,391   Combined gross profit margin(i)(ii)(iii)     14.6 %     20.1 %     11.6 %     18.1 % (i)See "Non-GAAP Financial Measures". (ii)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". (iii) 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   Nine months ended     September 30,   September 30, (dollars in thousands)     2025     2024     2025     2024 Net income(i)   $ 17,296   $ 14,489   $ 33,709   $ 40,503 Interest from convertible debentures (after tax)     624     1,509     2,352     4,490 Diluted net income available to common shareholders(i)   $ 17,920   $ 15,998   $ 36,061   $ 44,993                   Adjusted net earnings(i)(ii)   $ 19,481   $ 31,929   $ 34,668   $ 74,194                   Weighted-average number of common shares     29,166,135     26,823,124     28,798,450     26,762,439 Weighted-average number of diluted common shares     32,283,751     33,087,074     32,588,696     33,087,074                   Basic net income per share   $ 0.59   $ 0.54   $ 1.17   $ 1.51 Diluted net income per share   $ 0.56   $ 0.48   $ 1.11   $ 1.36 Adjusted EPS(ii)   $ 0.67   $ 1.19   $ 1.20   $ 2.77 (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". (ii)See "Non-GAAP Financial Measures". Interim Consolidated Balance Sheets (Expressed in thousands of Canadian Dollars) (Unaudited)     September 30, 2025   December 31, 2024(i) Assets         Current assets         Cash   $ 101,637     $ 77,875   Accounts receivable     175,933       166,070   Contract assets     12,168       4,135   Inventories     74,229       69,027   Prepaid expenses and deposits     8,674       7,676   Assets held for sale     112       683         372,753       325,466   Property, plant and equipment, net of accumulated depreciation of $576,366 (December 31, 2024 – $500,303)     1,386,512       1,251,874   Operating lease right-of-use assets     11,051       12,722   Investments in affiliates and joint ventures     85,365       84,692   Intangible assets     10,657       9,901   Other assets     5,509       9,845   Total assets   $ 1,871,847     $ 1,694,500   Liabilities and shareholders’ equity         Current liabilities         Accounts payable   $ 122,699     $ 110,750   Accrued liabilities     77,434       78,010   Contract liabilities     22,878       1,944   Current portion of long-term debt     152,439       84,194   Current portion of contingent obligations     31,424       39,290   Current portion of operating lease liabilities     1,576       1,771         408,450       315,959   Long-term debt     746,894       719,399   Contingent obligations     68,666       88,576   Operating lease liabilities     9,923       11,441   Other long-term obligations     27,759       44,711   Deferred tax liabilities     139,067       125,378         1,400,759       1,305,464   Shareholders' equity         Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2025 - 29,449,960 (December 31, 2024 – 27,704,450))     288,524       228,961   Treasury shares (September 30, 2025 - 873,970 (December 31, 2024 - 1,000,328))     (14,743 )     (15,913 ) Additional paid-in capital     7,727       20,819   Retained earnings     179,610       156,271   Accumulated other comprehensive income (loss)     9,970       (1,102 ) Shareholders' equity     471,088       389,036   Total liabilities and shareholders’ equity   $ 1,871,847     $ 1,694,500   (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy". Interim Consolidated Statements of Operations and Comprehensive Income (Expressed in thousands of Canadian Dollars, except per share amounts) (Unaudited)      Three months ended   Nine months ended     September 30,   September 30,       2025   2024(i)     2025   2024(i) Revenue   $ 317,248     $ 286,857     $ 978,715     $ 860,197   Cost of sales     218,033       177,041       690,554       555,515   Depreciation     49,492       43,902       164,717       134,915   Gross profit     49,723       65,914       123,444       169,767   General and administrative expenses     12,870       10,623       33,214       35,690   Amortization of intangible assets     366       322       1,456       940   Loss (gain) on disposal of property, plant and equipment     740       348       (344 )     641   Operating income     35,747       54,621       89,118       132,496   Interest expense, net     15,265       15,003       42,904       44,939   Equity earnings in affiliates and joint ventures     (5,232 )     (4,428 )     (3,382 )     (9,545 ) Loss on derivative financial instruments     1,684       572       9,346       845   Change in fair value of contingent obligations     505       21,989       (9,703 )     38,945   Income before income taxes     23,525       21,485       49,953       57,312   Current income tax expense     206       2,466       2,781       5,487   Deferred income tax expense     6,023       4,530       13,463       11,322   Net income   $ 17,296     $ 14,489     $ 33,709     $ 40,503   Other comprehensive income                 Unrealized foreign currency translation gain     (11,153 )     (1,115 )     (11,072 )     (1,753 ) Comprehensive income   $ 28,449     $ 15,604     $ 44,781     $ 42,256   Per share information                 Basic net income per share   $ 0.59     $ 0.54     $ 1.17     $ 1.51   Diluted net income per share   $ 0.56     $ 0.48     $ 1.11     $ 1.36   (i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".