North American Construction Group Ltd. Announces Results for the Second Quarter Ended June 30, 2025
North American Construction Group (NYSE:NOA) reported mixed Q2 2025 financial results with increased revenue but decreased profitability. Combined revenue grew 12% to $370.6 million, driven by strong performance in both Australian and Canadian heavy equipment segments, maintaining a 74% global equipment utilization rate.
However, profitability metrics declined significantly, with adjusted EPS falling 98% to $0.02 and adjusted EBITDA decreasing 12% to $80.1 million. The company faced challenges including subcontractor labor issues in Australia and operational disruptions in Canada. Net debt increased by $29.5 million to $896.9 million.
NACG declared a quarterly dividend of C$0.12 per share and maintained its revenue guidance while adjusting EBITDA and EPS expectations downward for H2 2025 due to increased costs related to demand volatility and maintenance requirements.
North American Construction Group (NYSE:NOA) ha riportato risultati finanziari misti per il secondo trimestre 2025: ricavi in aumento ma redditività in calo. I ricavi complessivi sono cresciuti del 12% a $370.6 million, trainati dalle solide performance nei segmenti di macchinari pesanti in Australia e Canada, con un tasso di utilizzo globale delle attrezzature del 74%.
Tuttavia, gli indicatori di redditività sono diminuiti sensibilmente: l'EPS rettificato è sceso del 98% a $0.02 e l'EBITDA rettificato è diminuito del 12% a $80.1 million. La società ha affrontato problemi come difficoltà di manodopera dei subappaltatori in Australia e interruzioni operative in Canada. L'indebitamento netto è aumentato di $29.5 million, raggiungendo $896.9 million.
NACG ha dichiarato un dividendo trimestrale di C$0.12 per azione e ha mantenuto le previsioni sui ricavi, ma ha rivisto al ribasso le stime su EBITDA e EPS per la seconda metà del 2025 a causa dei maggiori costi legati alla volatilità della domanda e alle esigenze di manutenzione.
North American Construction Group (NYSE:NOA) presentó resultados financieros mixtos en el segundo trimestre de 2025: ingresos en aumento pero rentabilidad a la baja. Los ingresos combinados crecieron un 12% hasta $370.6 million, impulsados por el sólido desempeño de los segmentos de equipos pesados en Australia y Canadá, manteniendo una tasa de utilización global del equipo del 74%.
No obstante, las métricas de rentabilidad empeoraron notablemente: el EPS ajustado cayó un 98% hasta $0.02 y el EBITDA ajustado disminuyó un 12% hasta $80.1 million. La compañía afrontó desafíos como problemas laborales con subcontratistas en Australia y disrupciones operativas en Canadá. La deuda neta aumentó en $29.5 million, hasta $896.9 million.
NACG declaró un dividendo trimestral de C$0.12 por acción y mantuvo su guía de ingresos, aunque revisó a la baja las expectativas de EBITDA y EPS para la segunda mitad de 2025 debido al aumento de costes relacionados con la volatilidad de la demanda y las necesidades de mantenimiento.
North American Construction Group (NYSE:NOA)는 2025년 2분기 실적에서 혼합된 결과를 발표했습니다. 매출은 증가했지만 수익성은 하락했습니다. 합산 매출은 12% 증가한 $370.6 million으로, 호주와 캐나다의 중장비 부문 호조에 힘입어 글로벌 장비 가동률 74%를 유지했습니다.
그러나 수익성 지표는 크게 악화되었습니다. 조정 EPS는 98% 감소한 $0.02를 기록했고, 조정 EBITDA는 12% 감소한 $80.1 million을 기록했습니다. 회사는 호주 하도급업체 인력 문제와 캐나다의 운영 차질 등 어려움에 직면했습니다. 순부채는 $29.5 million 증가하여 $896.9 million이 되었습니다.
NACG는 주당 C$0.12의 분기 배당을 선언했으며 매출 가이던스는 유지했지만 수요 변동성과 유지보수 비용 증가로 인해 2025년 하반기 EBITDA와 EPS 전망은 하향 조정했습니다.
North American Construction Group (NYSE:NOA) a publié des résultats financiers mitigés pour le deuxième trimestre 2025 : des revenus en hausse mais une rentabilité en retrait. Les revenus combinés ont augmenté de 12% pour atteindre $370.6 million, portés par la bonne performance des segments d'équipements lourds en Australie et au Canada, avec un taux d'utilisation global des équipements de 74%.
Cependant, les indicateurs de rentabilité ont nettement diminué : le BPA ajusté a chuté de 98% à $0.02 et l'EBITDA ajusté a reculé de 12% à $80.1 million. La société a rencontré des difficultés, notamment des problèmes de main-d'œuvre chez des sous-traitants en Australie et des perturbations opérationnelles au Canada. La dette nette a augmenté de $29.5 million pour atteindre $896.9 million.
NACG a déclaré un dividende trimestriel de C$0.12 par action et a maintenu ses prévisions de revenus, tout en révisant à la baisse ses attentes concernant l'EBITDA et le BPA pour le second semestre 2025 en raison de l'augmentation des coûts liée à la volatilité de la demande et aux besoins de maintenance.
North American Construction Group (NYSE:NOA) meldete gemischte Finanzergebnisse für das 2. Quartal 2025: Umsatzanstieg bei rückläufiger Profitabilität. Der kombinierte Umsatz stieg um 12% auf $370.6 million, getragen von starken Leistungen in den schweren Gerätebereichen in Australien und Kanada, wobei die globale Auslastung der Ausrüstung bei 74% lag.
Die Rentabilitätskennzahlen verschlechterten sich jedoch deutlich: das bereinigte Ergebnis je Aktie (EPS) fiel um 98% auf $0.02 und das bereinigte EBITDA sank um 12% auf $80.1 million. Das Unternehmen hatte mit Problemen wie Arbeitskräften bei Subunternehmern in Australien und betrieblichen Störungen in Kanada zu kämpfen. Die Nettoverschuldung stieg um $29.5 million auf $896.9 million.
NACG erklärte eine Quartalsdividende von C$0.12 je Aktie und beließ seine Umsatzprognose, passte jedoch die Erwartungen für EBITDA und EPS für das zweite Halbjahr 2025 nach unten an, da die Kosten durch Nachfrageschwankungen und höhere Wartungsanforderungen gestiegen sind.
- Combined revenue increased 12% to $370.6 million
- Heavy Equipment - Australia revenue grew 14% to $168.1 million
- Heavy Equipment - Canada revenue increased 20% to $147.4 million
- Maintained strong 74% global equipment utilization rate
- Long-term growth targets of 5-10% annual organic revenue growth remain intact
- Adjusted EPS decreased 98% to $0.02
- Adjusted EBITDA declined 12% to $80.1 million
- Gross profit margin decreased to 11.2% from 18.2%
- Net debt increased by $29.5 million to $896.9 million
- Downward revision of H2 2025 EBITDA and EPS guidance due to increased costs
Insights
NACG posted mixed Q2 results with higher revenue but significant margin pressure, forcing downward guidance revisions due to temporary operational challenges.
North American Construction Group (NACG) delivered a 12% increase in combined revenue to
The performance deterioration stems from several operational disruptions that management characterizes as temporary. In Australia, over-reliance on more expensive subcontractor labor significantly compressed margins. Meanwhile, in Canada, an abrupt customer-requested work stoppage followed by a subsequent ramp-up created operational inefficiencies. Additionally, a
Segment performance was mixed but generally showed growth. Heavy Equipment - Australia posted 14% revenue growth to
Cash flow metrics have deteriorated, with free cash flow showing a
Management has maintained its full-year revenue guidance but revised downward its EBITDA and EPS projections for the second half of 2025, citing ongoing cost pressures in its oil sands business. H2 2025 Adjusted EPS is now expected to be
ACHESON, Alberta, Aug. 13, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX:NOA/NYSE:NOA) today announced results for the second quarter ended June 30, 2025. Unless otherwise indicated, financial figures are expressed in Canadian dollars, and comparisons are to the prior second quarter ended June 30, 2024.
Second Quarter 2025 Financial Highlights:
- Combined revenue was
$370.6 million and increased12% (reported revenue of$320.6 million , increased16% ) - Combined gross profit was
$39.8 million (11% ) and decreased37% (reported gross profit of$35.8 million (11% ), decreased29% ) - Adjusted EPS was
$0.02 and decreased98% (basic earnings per share of$0.35 , decreased35% ) - Adjusted EBITDA was
$80.1 million and decreased12% (net income of$10.3 million , decreased29% ) - Free cash flow was a use of cash of
$0.4 million and increased$10.2 million - Net debt was
$896.9 million and increased$29.5 million
Second Quarter 2025 Operational Highlights:
Revenue and combined revenue for the second quarter increased, driven by global equipment utilization of
- Heavy Equipment - Australia revenue increased
14% to$168.1 million from$147.2 million due to their expanded heavy equipment fleet and ongoing production at a new copper mine project. - Heavy Equipment - Canada revenue increased
20% to$147.4 million from$122.8 million due to increased reclamation activities and the ramp-up of the stream diversion project. - Revenue generated by joint ventures and affiliates decreased
6% to$50.0 million from$53.4 million primarily due to lower revenue contributions by the Nuna joint venture. - Our portion of revenue generated by the civil-infrastructure Fargo project remained strong this year, comparable to the prior year, as the project continued strong production momentum through the quarter.
Gross profit for the quarter was negatively impacted by one-time or infrequent disruptions. We have taken targeted actions to mitigate certain issues, and we do not expect them to affect future performance.
- A temporary over-reliance on subcontractor labour in Australia increased costs and impacted margins. We are now focused on hiring and training internal labour to minimize this going forward.
- An abrupt, customer-requested shut-down of work, followed by a ramp back up later in the quarter, impacted margin efficiency for the Heavy Equipment - Canada segment.
Adjusted EPS for the second quarter fell short of expectations largely due to the same issues impacting gross profit, along with a
The Q2 adjusted EBITDA was lower year-over-year due to the same factors that impacted gross profit.
Free cash flow for the quarter was a use of cash of
Our net debt increase in the current quarter was primarily driven by growth capital of
Joe Lambert, President and CEO stated "Our outlook for the second half remains positive. We remain confident in delivering second half year results consistent with our original expectations aside from our oil sands business. While we expect revenue in the remainder of 2025 in the oil sands consistent with original expectations, we now expect increased costs due to demand volatility and near-term costs on our largest truck fleets. Beyond 2025, our long-term growth targets remain intact, with anticipated organic revenue growth of
Declaration of Quarterly Dividend
On August 12th, 2025, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents (
NACG’s outlook for 2025
The following table provides projected key measures for 2025. While our revenue guidance remains unchanged, supported by our backlog, our EBITDA and EPS guidance for the second half of 2025 have been adjusted to reflect increased near-term costs related to demand volatility and higher maintenance requirements. Guidance on sustaining and growth capital spending and free cash flow remain unchanged. Our updated debt leverage target reflects the debenture conversions in the first quarter of 2025.
| Actual results for the six months ended | Outlook for the six months ended | ||||||||||||
| June 30, 2024 | December 31, 2024 | June 30, 2025 | December 31, 2025 | ||||||||||
| Current | Previous | ||||||||||||
| Key measures | |||||||||||||
| Combined revenue(i) | No Change | ||||||||||||
| Adjusted EBITDA(i) | |||||||||||||
| Adjusted EPS(i) | |||||||||||||
| Sustaining capital(i) | No Change | ||||||||||||
| Free cash flow(i) | ( | ( | No Change | ||||||||||
| Capital allocation | |||||||||||||
| Growth spending(i) | Approx. | No Change | |||||||||||
| Net debt leverage(i) | 2.2x | 2.2x | 2.2x | Targeting 2.1x | 1.7x | ||||||||
(i)See “Non-GAAP Financial Measures”.
Results for the three and six months ended June 30, 2025
Consolidated Financial Highlights
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| June 30, | June 30, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | $ | 320,634 | $ | 276,314 | $ | 661,467 | $ | 573,340 | ||||||||
| Cost of sales(i) | 230,293 | 182,804 | 472,521 | 378,474 | ||||||||||||
| Depreciation(i) | 54,511 | 43,151 | 115,225 | 91,013 | ||||||||||||
| Gross profit(i) | $ | 35,830 | $ | 50,359 | $ | 73,721 | $ | 103,853 | ||||||||
| Gross profit margin(i)(ii) | 11.2 | % | 18.2 | % | 11.1 | % | 18.1 | % | ||||||||
| General and administrative expenses (excluding stock-based compensation)(ii) | 11,698 | 12,483 | 22,788 | 23,318 | ||||||||||||
| Stock-based compensation expense (benefit) | 964 | (1,859 | ) | (2,444 | ) | 1,749 | ||||||||||
| Operating income(i) | 22,789 | 39,395 | 53,371 | 77,875 | ||||||||||||
| Interest expense, net | 14,123 | 14,339 | 27,639 | 29,936 | ||||||||||||
| Net income(i) | 10,250 | 14,503 | 16,413 | 26,014 | ||||||||||||
| Comprehensive income(i) | 9,691 | 15,834 | 16,332 | 26,652 | ||||||||||||
| Adjusted EBITDA(i)(ii) | 80,113 | 91,089 | 180,045 | 188,475 | ||||||||||||
| Adjusted EBITDA margin(i)(ii)(iii) | 21.6 | % | 27.6 | % | 23.6 | % | 27.9 | % | ||||||||
| Per share information | ||||||||||||||||
| Basic net income per share | $ | 0.35 | $ | 0.54 | $ | 0.57 | $ | 0.97 | ||||||||
| Diluted net income per share | $ | 0.33 | $ | 0.48 | $ | 0.55 | $ | 0.88 | ||||||||
| Adjusted EPS(ii) | $ | 0.02 | $ | 0.80 | $ | 0.54 | $ | 1.58 | ||||||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
(ii)See "Non-GAAP Financial Measures".
(iii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Free cash flow
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| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||
| Cash provided by operating activities(i) | $ | 64,674 | $ | 66,431 | $ | 116,092 | $ | 85,390 | ||||||||
| Cash used in investing activities(i) | (71,823 | ) | (87,017 | ) | (165,604 | ) | (153,112 | ) | ||||||||
| Effect of exchange rate on changes in cash | 915 | (875 | ) | (160 | ) | (974 | ) | |||||||||
| Add back of growth and non-cash items included in the above figures: | ||||||||||||||||
| Growth capital additions(ii) | 24,463 | 19,943 | 52,529 | 39,550 | ||||||||||||
| Capital additions financed by leases(ii) | (18,605 | ) | (9,031 | ) | (44,808 | ) | (21,069 | ) | ||||||||
| Free cash flow(i) | $ | (376 | ) | $ | (10,549 | ) | $ | (41,951 | ) | $ | (50,215 | ) | ||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
(ii)See "Non-GAAP Financial Measures".
Net debt
| (dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||
| Credit Facility(i) | $ | 257,536 | $ | 421,702 | $ | 395,844 | ||||||
| Equipment financing(i) | 314,414 | 310,361 | 253,639 | |||||||||
| Contingent obligations(i) | 96,837 | 131,246 | 127,866 | |||||||||
| Senior debt(ii) | 668,787 | 863,309 | 777,349 | |||||||||
| Senior unsecured notes | 225,000 | — | — | |||||||||
| Mortgage(i) | 27,175 | 27,388 | 27,600 | |||||||||
| Total debt(ii) | 920,962 | 890,697 | 804,949 | |||||||||
| Convertible debentures(i) | 55,000 | 55,000 | 129,106 | |||||||||
| Cash | (79,025 | ) | (78,241 | ) | (77,875 | ) | ||||||
| Net debt(ii) | $ | 896,937 | $ | 867,456 | $ | 856,180 | ||||||
(i)Includes current portion.
(ii)See "Non-GAAP Financial Measures".
Conference Call and Webcast
Management will hold a conference call and webcast to discuss our financial results for the quarter ended June 30, 2025, tomorrow, Thursday, August 14, 2025, at 7:00 am Mountain Time (9:00 am Eastern Time).
The call can be accessed by dialing:
Toll Free: 1-800-717-1738
Conference ID: 53211
A replay will be available through September 15, 2025, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 53211
Playback Passcode: 53211
The 2025 Q2 earnings presentation for the webcast will be available for download on the company’s website at www.nacg.ca/presentations/
The live presentation and webcast can be accessed at:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=87347F42-2D6F-4E06-867A-B96665B437F5
A replay will be available until September 15, 2025, using the link provided.
About the Company
North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.
For further information contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 960-7171
IR@nacg.ca
www.nacg.ca
Basis of Presentation
We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States ("US GAAP"). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis (“MD&A”) for the quarter ended June 30, 2025, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2025 Q2 Results Presentation for more information on our results and projections which can be found on our website under Investors - Presentations.
Change in significant accounting policy - Classification of heavy equipment tires
Effective in the first quarter of 2025, we have changed our accounting policy for the classification of heavy equipment tires. These tires are now recognized as property, plant, and equipment on the Consolidated Balance Sheets and are amortized through depreciation on the Consolidated Statements of Operations and Comprehensive Income. Previously, all tires were classified as inventories and expensed through cost of sales when placed into service. This change in accounting policy provides a more accurate reflection of the role of tires as components of the heavy equipment in which they are utilized, aligning the accounting treatment with the economic substance of their use.
We have applied this change retrospectively in accordance with Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections, by restating the comparative period. For further details regarding the retrospective adjustments, refer to Note 16 in the consolidated financial statements for the period ended June 30, 2025.
Forward-Looking Information
The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “anticipate”, “believe”, “expect”, “should” or similar expressions.
The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and six months ended June 30, 2025. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.
Non-GAAP Financial Measures
This press release presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted EPS", "adjusted net earnings", "capital additions", "capital work in progress", "cash liquidity", "cash provided by operating activities prior to change in working capital", "cash related interest expense", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "gross profit margin", "growth capital", "margin", "net debt", "net debt leverage", "senior debt", "sustaining capital", "total capital liquidity", "total combined revenue", and "total debt". A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer's historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each non-GAAP financial measure used in this press release is defined and reconciled to its most directly comparable GAAP measure in the "Non-GAAP Financial Measures" section of our Management’s Discussion and Analysis filed concurrently with this press release.
Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA
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| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income(i) | $ | 10,250 | $ | 14,503 | $ | 16,413 | $ | 26,014 | ||||||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation expense (benefit) | 964 | (1,859 | ) | (2,444 | ) | 1,749 | ||||||||||
| (Gain) loss on disposal of property, plant and equipment | (110 | ) | 32 | (1,084 | ) | 293 | ||||||||||
| Change in fair value of contingent obligations from adjustments to estimates | (17,485 | ) | 7,420 | (18,802 | ) | 8,858 | ||||||||||
| Loss on derivative financial instruments | 750 | 273 | 7,662 | 273 | ||||||||||||
| Equity investment loss (gain) on derivative financial instruments | 892 | (984 | ) | 1,911 | 970 | |||||||||||
| Equity investment restructuring costs | — | — | — | 4,517 | ||||||||||||
| Depreciation expense relating to early component failures | — | — | 4,274 | — | ||||||||||||
| Post-acquisition asset relocation and integration costs | — | — | 1,640 | — | ||||||||||||
| Write-down on assets held for sale | — | 4,181 | — | 4,181 | ||||||||||||
| Tax effect of the above items | 5,426 | (2,248 | ) | 5,726 | (4,507 | ) | ||||||||||
| Adjusted net earnings(i)(ii) | 687 | 21,318 | 15,296 | 42,348 | ||||||||||||
| Adjustments: | ||||||||||||||||
| Tax effect of the above items | (5,426 | ) | 2,248 | (5,726 | ) | 4,507 | ||||||||||
| Interest expense, net | 14,123 | 14,339 | 27,639 | 29,936 | ||||||||||||
| Equity investment EBIT(ii) | (5,057 | ) | 6,555 | (1,747 | ) | 2,787 | ||||||||||
| Equity loss (earnings) in affiliates and joint ventures | 5,133 | (6,629 | ) | 1,850 | (5,117 | ) | ||||||||||
| Change in fair value of contingent obligations | 4,247 | 4,143 | 8,594 | 8,098 | ||||||||||||
| Income tax expense | 5,771 | 5,346 | 10,015 | 9,813 | ||||||||||||
| Adjusted EBIT(i)(ii) | 19,478 | 47,320 | 55,921 | 92,372 | ||||||||||||
| Adjustments: | ||||||||||||||||
| Depreciation(i) | 54,511 | 43,151 | 115,225 | 91,013 | ||||||||||||
| Amortization of intangible assets | 489 | 308 | 1,090 | 618 | ||||||||||||
| Depreciation expense relating to early component failures | — | — | (4,274 | ) | — | |||||||||||
| Write-down on assets held for sale | — | (4,181 | ) | — | (4,181 | ) | ||||||||||
| Equity investment depreciation and amortization(ii) | 5,635 | 4,491 | 12,083 | 8,653 | ||||||||||||
| Adjusted EBITDA(i)(ii) | $ | 80,113 | $ | 91,089 | $ | 180,045 | $ | 188,475 | ||||||||
| Adjusted EBITDA margin(i)(ii)(iii) | 21.6 | % | 27.6 | % | 23.6 | % | 27.9 | % | ||||||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
(ii)See "Non-GAAP Financial Measures".
(iii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT
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| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Equity (loss) earnings in affiliates and joint ventures | $ | (5,133 | ) | $ | 6,629 | $ | (1,850 | ) | $ | 5,117 | ||||||
| Adjustments: | ||||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 155 | — | 157 | (175 | ) | |||||||||||
| Interest (income) expense | 183 | (146 | ) | 154 | (719 | ) | ||||||||||
| Income tax expense (benefit) | (262 | ) | 72 | (208 | ) | (1,436 | ) | |||||||||
| Equity investment EBIT(i) | $ | (5,057 | ) | $ | 6,555 | $ | (1,747 | ) | $ | 2,787 | ||||||
(i)See "Non-GAAP Financial Measures".
Reconciliation of total reported revenue to total combined revenue
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| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue from wholly-owned entities per financial statements | $ | 320,634 | $ | 276,314 | $ | 661,467 | $ | 573,340 | ||||||||
| Share of revenue from investments in affiliates and joint ventures | 121,843 | 112,377 | 257,740 | 238,215 | ||||||||||||
| Elimination of joint venture subcontract revenue | (71,849 | ) | (58,968 | ) | (157,415 | ) | (136,119 | ) | ||||||||
| Total combined revenue(i) | $ | 370,628 | $ | 329,723 | $ | 761,792 | $ | 675,436 | ||||||||
(i)See "Non-GAAP Financial Measures".
Reconciliation of reported gross profit to combined gross profit
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| June 30, | June 30, | |||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Gross profit from wholly-owned entities per financial statements | $ | 35,830 | $ | 50,359 | $ | 73,721 | $ | 103,853 | ||||
| Share of gross (loss) profit from investments in affiliates and joint ventures | 3,947 | 12,920 | 17,284 | 21,855 | ||||||||
| Combined gross profit(i)(ii) | $ | 39,777 | $ | 63,279 | $ | 91,005 | $ | 125,708 | ||||
(i)See "Non-GAAP Financial Measures".
(ii)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
Reconciliation of basic net income per share to adjusted EPS
| Three months ended | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net income(i) | $ | 10,250 | $ | 14,503 | $ | 16,413 | $ | 26,014 | ||||
| Interest from convertible debentures (after tax) | 616 | 1,489 | 1,728 | 2,981 | ||||||||
| Diluted net income available to common shareholders(i) | $ | 10,866 | $ | 15,992 | $ | 18,141 | $ | 28,995 | ||||
| Adjusted net earnings(i)(ii) | $ | 687 | $ | 21,318 | $ | 15,296 | $ | 42,348 | ||||
| Weighted-average number of common shares | 29,354,387 | 26,730,049 | 28,611,557 | 26,731,762 | ||||||||
| Weighted-average number of diluted common shares | 32,562,639 | 33,026,740 | 32,743,696 | 33,026,740 | ||||||||
| Basic net income per share | $ | 0.35 | $ | 0.54 | $ | 0.57 | $ | 0.97 | ||||
| Diluted net income per share | $ | 0.33 | $ | 0.48 | $ | 0.55 | $ | 0.88 | ||||
| Adjusted EPS(ii) | $ | 0.02 | $ | 0.80 | $ | 0.54 | $ | 1.58 | ||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
(ii)See "Non-GAAP Financial Measures".
Interim Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)
(Unaudited)
| June 30, 2025 | December 31, 2024(i) | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 79,025 | $ | 77,875 | ||||
| Accounts receivable | 195,313 | 166,070 | ||||||
| Contract assets | 15,670 | 4,135 | ||||||
| Inventories | 74,217 | 69,027 | ||||||
| Prepaid expenses and deposits | 5,540 | 7,676 | ||||||
| Assets held for sale | 683 | 683 | ||||||
| 370,448 | 325,466 | |||||||
| Property, plant and equipment, net of accumulated depreciation of | 1,350,451 | 1,251,874 | ||||||
| Operating lease right-of-use assets | 11,181 | 12,722 | ||||||
| Investments in affiliates and joint ventures | 79,181 | 84,692 | ||||||
| Intangible assets | 10,159 | 9,901 | ||||||
| Other assets | 5,795 | 9,845 | ||||||
| Total assets | $ | 1,827,215 | $ | 1,694,500 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 143,044 | $ | 110,750 | ||||
| Accrued liabilities | 60,966 | 78,010 | ||||||
| Contract liabilities | 6,444 | 1,944 | ||||||
| Current portion of long-term debt | 149,539 | 84,194 | ||||||
| Current portion of contingent obligations | 33,021 | 39,290 | ||||||
| Current portion of operating lease liabilities | 1,488 | 1,771 | ||||||
| 394,502 | 315,959 | |||||||
| Long-term debt | 723,061 | 719,399 | ||||||
| Contingent obligations | 63,816 | 88,576 | ||||||
| Operating lease liabilities | 10,279 | 11,441 | ||||||
| Other long-term obligations | 42,910 | 44,711 | ||||||
| Deferred tax liabilities | 132,431 | 125,378 | ||||||
| 1,366,999 | 1,305,464 | |||||||
| Shareholders' equity | ||||||||
| Common shares (authorized – unlimited number of voting common shares; issued and outstanding – June 30, 2025 - 30,176,981 (December 31, 2024 – 27,704,450)) | 295,074 | 228,961 | ||||||
| Treasury shares (June 30, 2025 - 1,010,022 (December 31, 2024 - 1,000,328)) | (16,156 | ) | (15,913 | ) | ||||
| Additional paid-in capital | 16,783 | 20,819 | ||||||
| Retained earnings | 165,698 | 156,271 | ||||||
| Accumulated other comprehensive loss | (1,183 | ) | (1,102 | ) | ||||
| Shareholders' equity | 460,216 | 389,036 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,827,215 | $ | 1,694,500 | ||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
Interim Consolidated Statements of Operations and
Comprehensive Income
(Expressed in thousands of Canadian Dollars, except per share amounts)
(Unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024(i) | 2025 | 2024(i) | |||||||||||||
| Revenue | $ | 320,634 | $ | 276,314 | $ | 661,467 | $ | 573,340 | ||||||||
| Cost of sales | 230,293 | 182,804 | 472,521 | 378,474 | ||||||||||||
| Depreciation | 54,511 | 43,151 | 115,225 | 91,013 | ||||||||||||
| Gross profit | 35,830 | 50,359 | 73,721 | 103,853 | ||||||||||||
| General and administrative expenses | 12,662 | 10,624 | 20,344 | 25,067 | ||||||||||||
| Amortization of intangible assets | 489 | 308 | 1,090 | 618 | ||||||||||||
| (Gain) loss on disposal of property, plant and equipment | (110 | ) | 32 | (1,084 | ) | 293 | ||||||||||
| Operating income | 22,789 | 39,395 | 53,371 | 77,875 | ||||||||||||
| Interest expense, net | 14,123 | 14,339 | 27,639 | 29,936 | ||||||||||||
| Equity loss (earnings) in affiliates and joint ventures | 5,133 | (6,629 | ) | 1,850 | (5,117 | ) | ||||||||||
| Loss on derivative financial instruments | 750 | 273 | 7,662 | 273 | ||||||||||||
| Change in fair value of contingent obligations | (13,238 | ) | 11,563 | (10,208 | ) | 16,956 | ||||||||||
| Income before income taxes | 16,021 | 19,849 | 26,428 | 35,827 | ||||||||||||
| Current income tax expense (benefit) | 798 | (1,275 | ) | 2,575 | 3,021 | |||||||||||
| Deferred income tax expense | 4,973 | 6,621 | 7,440 | 6,792 | ||||||||||||
| Net income | $ | 10,250 | $ | 14,503 | $ | 16,413 | $ | 26,014 | ||||||||
| Other comprehensive income | ||||||||||||||||
| Unrealized foreign currency translation loss (gain) | 559 | (1,331 | ) | 81 | (638 | ) | ||||||||||
| Comprehensive income | $ | 9,691 | $ | 15,834 | $ | 16,332 | $ | 26,652 | ||||||||
| Per share information | ||||||||||||||||
| Basic net income per share | $ | 0.35 | $ | 0.54 | $ | 0.57 | $ | 0.97 | ||||||||
| Diluted net income per share | $ | 0.33 | $ | 0.48 | $ | 0.55 | $ | 0.88 | ||||||||
(i)The prior year amounts are adjusted to reflect a change in policy. See "Change in significant accounting policy".
FAQ
What were NOA's key financial results for Q2 2025?
Why did NOA's profitability decline in Q2 2025?
What is NOA's dividend payment for Q2 2025?
Has NOA updated its guidance for 2025?
What is NOA's current debt position?
