North American Construction Group Ltd. Announces Results for the Fourth Quarter and Year Ended December 31, 2025
Executive Summary
- North American Construction Group Ltd. reported Q4 2025 combined revenue of C$344.0 M (‑7.7% YoY) and adjusted EBITDA of C$77.6 M (‑28.7% YoY), with a net loss of C$0.14 per share.
- The company announced the acquisition of Iron Mine Contracting (IMC) in Western Australia, positioning NACG as a Tier 1 contractor in that market and adding a pro‑forma backlog of $3.9 B.
- Management projected 2026 combined revenue of $1.5–$1.7 B, adjusted EBITDA of $380–$420 M and free cash flow of $110–$130 M, supported by a secured $1.2 B of contracted revenue.
Key Details
- Financial Highlights (Q4 2025)
- Combined revenue: C$344.0 M (‑7.7% YoY).
- Reported revenue: C$305.6 M (flat YoY).
- Adjusted EBITDA: C$77.6 M (‑28.7% YoY).
- Adjusted EPS: $(0.14) vs. $1.01 prior year.
- Free cash flow: +C$57.4 M (up C$7.0 M QoQ).
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Net debt: C$878.5 M (‑C$25.5 M YoY).
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Segment Performance
- Heavy Equipment – Australia revenue up 10% to C$175.9 M; gross margin 15.5%.
- Heavy Equipment – Canada revenue down 10% to C$127.9 M; margins pressured by mechanical availability.
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Joint ventures/affiliates net of eliminations fell 43% to C$38.4 M, driven by a $12.9 M cost‑to‑complete adjustment on the Fargo project and lower JV activity.
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Operational Highlights
- Fargo‑Moorhead flood diversion project ~85% complete; $50 M cost increase for structures/railroads/aqueducts, with NACG’s share of $13 M (one‑time catch‑up).
- Australian operations posted record Q4 revenue (+10% YoY) despite wet weather impacts in Queensland.
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Oil sands operations stable; minor mechanical availability issues noted.
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Acquisition
- Share purchase agreement signed on 18 Dec 2025 to acquire Iron Mine Contracting (IMC), a Western Australian mining services contractor.
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Transaction expected to create a national Tier 1 contractor in Australia, broaden client base and support long‑term capital‑intensive mining programs.
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2026 Outlook & Guidance
- Pro‑forma contractual backlog: $3.9 B (incl. $1.2 B for 2026).
- Projected 2026 combined revenue: $1.5–$1.7 B.
- Adjusted EBITDA guidance: $380–$420 M.
- Free cash flow guidance: $110–$130 M.
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Key priorities: safety, Australian workforce optimization, cost reduction, IMC integration, completion of Fargo project, and mechanical availability improvements in oil sands.
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Dividend
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Board declared a quarterly dividend of C$0.12 per share (record date 26 Mar 2026; payable 9 Apr 2026).
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Conference Call
- Management call scheduled for 12 Mar 2026, 9:00 am ET (7:00 am MT); replay available until 10 Apr 2026.
Notable Quotes
“We are entering 2026 with a very different, significantly more positive and stable outlook based on clear operational priorities and strong demand across our markets,” – Barry Palmer, President & CEO.
“Our 2026 outlook is supported by strong visibility, with approximately $1.2 B of revenue already secured, representing roughly 75% of our midpoint revenue guidance,” – Jason Veenstra, CFO.