North American Construction ( (NOA) ) has released its Q3 earnings. Here is a breakdown of the information North American Construction presented to its investors.
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North American Construction Group Ltd. is a leading provider of heavy civil construction and mining services across Australia, Canada, and the U.S., known for its extensive experience in the mining, resource, and infrastructure construction sectors.
In its third quarter earnings report for 2025, North American Construction Group Ltd. reported a 6% increase in combined revenue, reaching $390.8 million, despite facing a 23% decline in gross profit. The company also declared a quarterly dividend of twelve Canadian cents per common share, showcasing its commitment to returning value to shareholders.
Key financial metrics highlighted a mixed performance, with adjusted EPS dropping 44% to $0.67, while net income rose by 19% to $17.3 million. The company’s adjusted EBITDA decreased by 12% to $99.0 million, yet free cash flow saw a significant improvement, increasing by $56.3 million to $45.7 million. The Heavy Equipment – Australia segment was a standout performer, with a 26% increase in revenue driven by fleet expansion and favorable weather conditions.
Operationally, the company benefited from strong execution in Australia, which led to a 4.5% improvement in gross profit margins. In Canada, the gross margin improved by 4.8% due to steady operations, despite a decline in revenue from reduced activity in the oil sands. The company’s joint ventures and affiliates saw an 8% decrease in revenue, primarily due to decreased volumes from the Nuna Group of Companies.
Looking ahead, North American Construction Group Ltd. remains focused on delivering its commitments for the second half of the year, with management expressing confidence in finishing 2025 on a strong note. The company continues to target a net debt leverage of 2.1x, maintaining a stable financial position as it navigates the evolving market landscape.