Strong Buy Rating for North American Construction Group Driven by Stable Financial Performance and Strategic Growth Initiatives

John Gibson CFA, an analyst from BMO Capital, maintained the Buy rating on North American Construction Group (NOA – Research Report). The associated price target was lowered to $34.00.

John Gibson CFA’s rating is based on several compelling factors. Firstly, North American Construction Group’s (NOA) Q4/24 results met expectations, and the company maintained its 2025 guidance, which suggests stability and reliability in its financial performance. The company’s valuation is considered attractive, and recent contract extensions and wins are expected to enhance visibility for 2025 results, adding to investor confidence.
Additionally, NOA’s operations in both Canada and Australia have shown promising growth. In Canada, heavy equipment revenue increased as utilization improved, while in Australia, the MacKellar Group’s performance remained strong despite adverse weather conditions. The company’s strategic moves, such as the acquisition of the MacKellar Group, are expected to bolster its mining-related work, supporting a robust outlook for 2025. These factors collectively underpin John Gibson CFA’s Buy rating for NOA.

NOA’s price has also changed slightly for the past six months – from $18.680 to $17.400, which is a -6.85% drop .