North American Construction Group (NOA) AI Stock Analysis

• Market Cap: $575.81M
• Dividend Yield: 2.38%
• Average Volume (3M): 146.37K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.46
• Revenue Growth: 8.24%
• EPS Growth: -36.88%
• Country: CA
• Employees: 1,825
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.56
• Shares Outstanding: 28,575,990
• 10 Day Avg. Volume: 196,993
• 30 Day Avg. Volume: 146,371
• PEG Ratio: -0.52
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.71
• P/FCF Ratio: -12.45
• Enterprise Value/Market Cap: 2.51
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 8.75
• Enterprise Value/Ebitda: 4.55
• 1Y Price Target: $24.54
• Price Target Upside: 21.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.83
• Revenue Forecast (FY): $1.30B

• Rating: 66 Neutral
• Price Target: C$21.50 ▲(6.70% Upside)

North American Construction Group's overall stock score reflects steady revenue growth and operational efficiency, tempered by declining profit margins and high leverage. The earnings call provided optimism with strong contract wins, but technical indicators suggest limited upward momentum. Valuation remains reasonable, offering moderate attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution of contracts, supporting long-term business expansion.

Contract Wins

Securing major contracts and a high renewal rate enhances revenue visibility and strengthens competitive positioning.

Safety Performance

Strong safety performance underscores operational efficiency and can lead to cost savings and client trust, benefiting long-term operations.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests challenges in covering operational expenses and funding growth, which could strain financial resources.

Operational Challenges

Operational disruptions can lead to increased costs and impact profitability, posing risks to sustained financial performance.

North American Construction Group Business Overview & Revenue Model

Company Description

North American Construction Group Ltd. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia. The company's Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services. Its Equipment Maintenance Services division provides fuel and lube servicing, portable steaming, equipment inspections, parts and component supply, major overhauls and equipment refurbishment, onsite haul truck brake testing, onsite maintenance support, under carriage rebuild, machining, hose manufacturing, and technical support services, as well as welding, fabrication/repairs, weld certification, and inspection services. As of December 31, 2021, the company operated a heavy equipment fleet of 632 units. It serves resource development and industrial construction sectors. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was founded in 1953 and is headquartered in Acheson, Canada.

How the Company Makes Money

North American Construction Group generates revenue through several key streams, primarily by securing contracts for large-scale construction and mining projects. The company earns money by providing comprehensive services that encompass project management, equipment leasing, and labor services to clients in the oil sands industry. Additionally, NOA often engages in long-term contracts, which provide a stable revenue base. Significant partnerships with major oil and gas companies enhance its market position and lead to consistent project opportunities. Furthermore, the company's focus on efficiency and cost management helps optimize profit margins on its contracts.

North American Construction Group Financial Statement Overview

Summary

North American Construction Group demonstrates solid revenue growth and operational efficiency. However, high leverage and negative free cash flow pose potential risks. The company should focus on improving cash flow management and reducing debt to enhance financial stability.

Income Statement

The company has shown consistent revenue growth with a TTM increase of 3.66%. However, the gross profit margin has slightly decreased to 16.09% from 18.02% in the previous year. Net profit margin is stable at 3.21%, but lower than historical figures. EBIT and EBITDA margins are healthy at 9.02% and 24.68% respectively, indicating efficient operations.

Balance Sheet

The debt-to-equity ratio has improved to 1.79 from 2.12, reflecting better leverage management. However, it remains relatively high, indicating potential risk. Return on equity is moderate at 9.59%, showing decent profitability. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains strong, but free cash flow is negative, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.65, suggesting adequate cash generation relative to net income. However, the negative free cash flow growth rate of -12.13% is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.17B	957.22M	769.54M	654.14M	500.37M
Gross Profit	165.44M	210.05M	154.22M	101.55M	90.42M	94.38M
EBITDA	318.43M	283.06M	252.59M	227.18M	186.74M	160.35M
Net Income	38.52M	44.09M	63.14M	67.37M	51.41M	49.21M
Balance Sheet
Total Assets	1.34B	1.69B	1.55B	979.51M	869.28M	838.93M
Cash, Cash Equivalents and Short-Term Investments	72.98M	77.88M	88.61M	69.14M	16.60M	43.91M
Total Debt	653.98M	825.10M	717.05M	435.39M	395.23M	446.18M
Total Liabilities	1.01B	1.31B	1.19B	673.59M	590.82M	590.49M
Stockholders Equity	338.24M	388.90M	356.65M	305.92M	278.46M	248.44M
Cash Flow
Free Cash Flow	-6.04M	-66.74M	66.90M	53.94M	51.39M	29.70M
Operating Cash Flow	306.46M	217.61M	270.39M	169.20M	165.18M	147.27M
Investing Cash Flow	-307.23M	-274.68M	-244.88M	-97.47M	-99.27M	-113.57M
Financing Cash Flow	22.77M	45.98M	-7.75M	-19.49M	-92.76M	4.67M

North American Construction Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOA, the sentiment is Positive. The current price of 20.15 is above the 20-day moving average (MA) of 19.42, above the 50-day MA of 19.93, and below the 200-day MA of 21.27, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 84.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NOA.

North American Construction Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFX	80 Outperform	C$2.17B	12.25	12.48%	0.79%	5.92%	―
TCW	80 Outperform	$1.22B	10.06	18.06%	3.80%	9.24%	6.35%
PSI	77 Outperform	C$925.34M	12.76	12.74%	4.26%	4.60%	-44.63%
NOA	66 Neutral	$575.81M	15.01	8.81%	2.38%	8.24%	-36.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	61 Neutral	C$269.69M	27.35	3.20%	―	-8.13%	-28.00%
SFD	39 Underperform	C$43.70M	-6.64	-51.99%	―	418.77%	56.71%

North American Construction Group Corporate Events

North American Construction Group Reports Mixed Q3 2025 Results

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.

North American Construction Group Reports Q3 2025 Financial Results

North American Construction Group Ltd. announced its financial results for the third quarter ended September 30, 2025, reporting a 6% increase in combined revenue to $390.8 million, driven by contract wins and growth in its Heavy Equipment – Australia segment. Despite a decrease in gross profit and adjusted EPS compared to the previous year, the company saw improvements in free cash flow and maintained strong operational performance, particularly in Australia. The company is strategically reallocating assets to meet demand in Australia and exploring new opportunities in Canada and the US, while also focusing on cost reductions and fleet optimization in its Canadian operations.

The most recent analyst rating on (TSE:NOA) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.

North American Construction Group Secures $125 Million in Additional Notes

North American Construction Group Ltd. has closed a private placement offering of an additional $125 million in Senior Unsecured Notes, bringing the total to $350 million. The proceeds will be used to repay existing debt and for general corporate purposes, potentially enhancing the company’s financial flexibility and market position.

The most recent analyst rating on (TSE:NOA) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.

North American Construction Group Announces Q3 2025 Financial Results Release and Conference Call

North American Construction Group Ltd. announced that it will release its financial results for the third quarter ended September 30, 2025, on November 12, 2025, after markets close. Following the release, a conference call and webcast will be held on November 13, 2025, to discuss the results, providing stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:NOA) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.

North American Construction Group to Announce Q3 2025 Financial Results

North American Construction Group Ltd. announced it will release its third-quarter financial results for 2025 on November 12, followed by a conference call and webcast on November 13. This announcement may impact stakeholders by providing insights into the company’s financial health and operational performance, potentially influencing market perceptions and investment decisions.

The most recent analyst rating on (TSE:NOA) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.

North American Construction Group Expands Debt Offering with $125 Million Notes

North American Construction Group Ltd. announced a private placement offering of an additional $125 million in senior unsecured notes, adding to the $225 million issued earlier this year. The proceeds will be used to repay existing debt and for general corporate purposes, potentially strengthening the company’s financial position and operational flexibility.

The most recent analyst rating on (TSE:NOA) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.

North American Construction’s Mixed Q2: Growth Amid Challenges

The recent earnings call for North American Construction presented a mixed sentiment, highlighting both achievements and challenges. The company reported strong growth and significant contract wins in Australia, alongside a steadfast commitment to safety and operational efficiency. However, the quarter was marred by increased maintenance costs, operational disruptions, and project margin adjustments. Despite these hurdles, the company remains optimistic about its prospects for the latter half of 2025 and beyond.

North American Construction Reports Mixed Q2 2025 Results

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 markets. In its latest earnings report for the second quarter of 2025, NACG reported a 12% increase in combined revenue to $370.6 million, although gross profit declined by 37% to $39.8 million. The company faced challenges that impacted its adjusted EPS, which dropped by 98% to $0.02, and adjusted EBITDA, which decreased by 12% to $80.1 million. Key operational highlights include a 14% revenue increase in the Heavy Equipment – Australia segment and a 20% rise in the Heavy Equipment – Canada segment, driven by expanded fleet and project ramp-ups. However, the company faced cost pressures due to subcontractor reliance and project disruptions. Despite these challenges, NACG remains optimistic about the second half of 2025, expecting consistent revenue in the oil sands sector and projecting long-term growth through ongoing Australian expansion and new infrastructure projects.