North American Construction ( (NOA) ) has released its Q4 earnings. Here is a breakdown of the information North American Construction presented to its investors.
North American Construction Group Ltd. (NACG) is a leading provider of heavy civil construction and mining services, operating primarily in the mining, resource, and infrastructure construction markets across Australia, Canada, and the U.S. With over 70 years of experience, NACG is recognized for its expertise in these sectors.
The company recently announced its financial results for the fourth quarter and year ended December 31, 2024. Despite facing challenges in the Canadian market, NACG reported a strong performance in Australia, which helped offset some of the declines. The company also highlighted several strategic contract wins and operational achievements during the period.
NACG’s fourth-quarter revenue was $372.7 million, down from $405.4 million in the same period last year. The decline was primarily due to reduced demand for its Canadian heavy equipment fleet. However, the company achieved an adjusted EBITDA of $103.7 million, with a margin improvement to 27.8%, driven by operational excellence in both Australia and Canada. The net income for the quarter was $4.8 million, a decrease from $17.6 million in the previous year, largely due to lower gross profit and increased interest expenses.
The company secured several significant contracts, including a $125 million heavy civil construction project and a $500 million regional services contract in the oil sands region. Additionally, NACG was awarded a $100 million early works contract in Australia, and it surpassed 60% completion of the Fargo-Moorhead flood diversion project. These contracts are expected to contribute positively to future revenues.
Looking ahead, NACG remains optimistic about its growth prospects in the heavy civil infrastructure and mining industries in Australia and North America. The company is focused on maintaining operational excellence, enhancing equipment availability, and pursuing strategic partnerships to drive diversification and sustainability goals.