North American Construction Group Q2 Earnings Call Highlights

North American Construction Group Q2 Earnings Call Highlights 2026 revenue guidance was raised to C$1.6 billion–C$1.8 billion, while adjusted EBITDA guidance remained C$380 million–C$420 million and free cash flow guidance stayed at C$110 million–C$130 million. Second-quarter revenue rose to C$456 million, including C$91 million from the IMC acquisition, while EBITDA reached C$93 million and adjusted EPS was C$0.32. Australia remained the primary growth driver, with organic revenue up 15% excluding IMC. The company reported record contractual backlog of about C$3.8 billion and a total bid pipeline exceeding C$12 billion, but net debt increased to C$1.1 billion following the IMC acquisition and equipment investments. Management also expects to announce a new CEO in the coming weeks. North American Construction Group NYSE: NOA raised its 2026 combined revenue outlook after reporting stronger-than-expected first-half performance, supported by growth in Australia, the contribution from its IMC acquisition and improved operating activity across its markets. The company said second-quarter combined revenue reached C$456 million, an increase of C$86 million from the prior-year period. IMC, which was acquired during the year, contributed C$91 million in quarterly revenue. Excluding IMC, Australian revenue grew organically by 15%, driven by commissioned growth assets and execution, Chief Financial Officer Jason Veenstra said. North American Construction Group reported C$93 million of EBITDA for the quarter and adjusted earnings per share of C$0.32. EBITDA and EBIT rose meaningfully from the prior-year quarter, reflecting the IMC acquisition and what Veenstra described as a more typical quarter from the Fargo joint ventures. “Our first half performance was stronger than expected entering the year and gives us the confidence to raise our full year revenue outlook,” President and CEO Barry Palmer said. Revenue Outlook Raised, EBITDA Guidance Maintained The company increased its 2026 combined revenue guidance to a range of C$1.6 billion to C$1.8 billion, with a midpoint of C$1.7 billion. That midpoint is C$100 million above the prior outlook midpoint and would represent approximately 14% growth from the company’s 2025 result, according to management. North American Construction Group maintained its adjusted EBITDA outlook of C$380 million to C$420 million and its free-cash-flow outlook of C$110 million to C$130 million. At the midpoints, the guidance calls for C$400 million in adjusted EBITDA and C$120 million in free cash flow. During the question-and-answer session, Palmer said the higher revenue forecast primarily reflects the strength of first-half revenue, while EBITDA was consistent with management’s prior expectations. He also said diesel-cost changes are largely passed through in most of the company’s operations and are not expected to affect either revenue or EBITDA guidance. The company reported C$78 million in operating cash flow before working capital during the quarter and C$23 million in free cash flow after a C$13 million positive working-capital change. Net debt rose by C$191 million to C$1.1 billion, reflecting the IMC acquisition and growth capital equipment purchases. Reported trailing-12-month net-debt leverage was 2.9 times, while Veenstra said the business was operating at a second-half run-rate leverage ratio of 2.6 times. Palmer said Australia remains the company’s primary growth engine. Revenue in the region increased at an approximately 31% compound annual rate from the first half of 2024 th.