North American Construction Group Ltd. Announces Results for the Second Quarter Ended June 30, 2026
Rhea-AI Summary
North American Construction Group (TSX/NYSE:NOA) reported record Q2 2026 combined revenue of $456.1 million, up 23% year-over-year, and reported revenue of $401.0 million, up 25%. Growth was driven mainly by the April 7 acquisition of Iron Mine Contracting (IMC) and strong organic expansion in Australia, where heavy equipment revenue rose about 65% to $277.5 million.
Adjusted EBITDA increased 17% to $93.5 million (20.5% margin) and adjusted net earnings rose to $8.5 million, while net income declined 9% to $9.4 million due to higher general and administrative expenses and interest. Free cash flow improved to a $23.0 million inflow. The board declared a $0.12 quarterly dividend per share. Based on a strong first half, NOA raised its 2026 combined revenue guidance to $1.6–$1.8 billion (midpoint $1.7 billion), with adjusted EBITDA guidance unchanged at $380–$420 million and free cash flow at $110–$130 million, supported by a $3.8 billion contractual backlog.
Positive
- Q2 2026 combined revenue $456.1M, up 23% year-over-year
- Reported revenue $401.0M, up $80.3M or 25% year-over-year
- Heavy Equipment – Australia revenue $277.5M, up about 65% year-over-year
- Combined gross profit $49.9M (10.9% margin) vs. $33.4M (9.0%) in Q2 2025
- Adjusted EBITDA $93.5M, up $13.4M year-over-year; IMC contributed $13.1M
- Adjusted EPS $0.32 vs. $0.02 in Q2 2025
- Free cash flow $23.0M inflow vs. $0.4M outflow a year earlier
- 2026 combined revenue guidance raised to $1.6–$1.8B (midpoint $1.7B)
- Contractual backlog of $3.8B supports outlook
- Quarterly dividend maintained at $0.12 per common share
Negative
- Net income $9.4M, down 9% from $10.3M in Q2 2025
- Heavy Equipment – Canada revenue $121.8M, down 17% year-over-year
- Adjusted EBITDA margin 20.5% vs. 21.6% in Q2 2025
- General and administrative expenses $20.1M vs. $11.7M a year earlier
- Interest expense, net $18.9M vs. $14.1M in Q2 2025
- Sustaining capital $62.5M in the quarter, reducing free cash flow from EBITDA
News Explained
Common-share ownership on August 28, 2026 determines eligibility for the scheduled October 2, 2026 cash payment of 12 Canadian cents per share.
The Iron Mine Contracting acquisition is complete as of
For common holders, the declared
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 13 | Q1 earnings report | Positive | +9.9% | Revenue growth, positive free cash flow, acquisition completion, and maintained full-year guidance |
| Mar 11 | Q4 earnings report | Negative | -27.8% | Lower revenue and adjusted EPS accompanied by reduced profitability and higher net debt |
| Nov 12 | Q3 earnings report | Negative | -7.6% | Adjusted EBITDA and EPS declined despite Australian revenue growth and positive free cash flow |
| Aug 13 | Q2 earnings report | Negative | -23.1% | Adjusted EPS and EBITDA declined, with guidance reduced for EBITDA and EPS |
| May 14 | Q1 earnings report | Positive | +2.8% | Revenue and adjusted EBITDA increased despite weather-related operational challenges |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events aligned with subsequent price reactions in all five cases, while the average move was -9.15%.
Key Terms
adjusted ebitda financial
free cash flow financial
adjusted eps financial
non-gaap financial measures financial
us gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Raises Full Year 2026 Combined Revenue Guidance on Record Q2 Top-Line Performance
ACHESON, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the second quarter ended June 30, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended June 30, 2025.
Second Quarter 2026 Financial Highlights
Revenue:
- Combined revenue of
$456.1 million , up$85.5 million or23% year-over-year - Reported revenue of
$401.0 million , up$80.3 million or25% year-over-year
Profitability:
- Adjusted EBITDA of
$93.5 million , up$13.4 million or17% year-over-year - Adjusted net earnings of
$8.5 million , up$7.7 million year-over-year - Net income of
$9.4 million , down$0.9 million or9% year-over-year
Cash flow:
- Free cash flow of
$23.0 million inflow, up$23.4 million year-over-year
Second Quarter 2026 Operational & Corporate Highlights
NACG delivered record revenue and higher adjusted EBITDA in the second quarter, supported by the contribution from IMC, organic growth in Australia and improved joint venture earnings.
- Our Australian operations delivered robust revenue growth of approximately
65% year-over-year, with the majority of the increase reflecting IMC's contribution following the April 7, 2026, acquisition. The MacKellar and DGI businesses also delivered organic growth driven by strong project execution, prior-period growth asset investments, and favourable foreign exchange translation rates. Gross profit in the Australian business remained strong, with a modest year-over-year decline in the margin as depreciation increased on recently commissioned equipment. - On April 7, 2026, we completed the acquisition of Iron Mine Contracting ("IMC"), comprising DCL Corp Pty Ltd. and Iron Hire Pty Ltd., a diversified mining services contractor in Western Australia. The IMC acquisition positions NACG as a national Tier 1 contractor in Australia, broadens our client base across base metals, precious metals, and critical and rare earth minerals, and is expected to reduce our exposure to regional seasonality. Under the acquisition agreement, we are entitled to IMC's economic benefit from January 1, 2026, which is reflected in our combined revenue, gross profit, adjusted net earnings, adjusted EBIT, and adjusted EBITDA.
- In Canada, margin performance benefited from our ongoing fleet optimization strategy, including the 2025 Q4 divestiture of ultra-class haul trucks, with depreciation as a percentage of revenue declining year-over-year, one of the financial benefits of our fleet initiatives. Revenue declined year-over-year due to the reduction in operating capacity from the fleet divestiture, lower activity at the Syncrude mines, spring break-up seasonal impacts, and adverse weather conditions, partially offset by increased support at the Millennium mine and the ramp-up of the Kearl project.
- Equity earnings improved significantly year-over-year, driven primarily by the Fargo-Moorhead flood diversion project returning to profitability after a margin forecast adjustment weighed on the prior year period. MNALP remained a consistent positive contributor, and the IMC PKKPE joint venture, added through the IMC acquisition, delivered a solid first-quarter contribution.
"Record revenue of more than
"Our priorities for the second half are clear: execute the work in hand, improve fleet availability and utilization, convert earnings into free cash flow and allocate that capital toward the strongest risk-adjusted returns. The inflection point of the second quarter is not simply greater scale, but our ability to translate that scale into improved performance and durable value. We believe the combination of near-term earnings drivers and a substantial, qualified growth pipeline positions NACG for a stronger second half and continued momentum into 2027."
Financial Results for the Second Quarter 2026
Combined revenue and reported revenue were generated during the quarter by the following primary segments:
- Heavy Equipment - Australia revenue increased
65% to$277.5 million , reflecting$84.5 million of reported revenue from IMC following its April 7, 2026, acquisition and organic growth of approximately$24.9 million from the legacy Australian business. - Heavy Equipment - Canada revenue decreased
17% to$121.8 million , primarily due to the 2025 Q4 divestiture of ultra-class haul trucks, lower Syncrude activity, and spring break-up impacts, partially offset by ramp-up of the Kearl project. - Revenue from joint ventures and affiliates declined
1% to$49.7 million , reflecting lower MNALP volumes, partially offset by the first contribution from the IMC PKKPE joint venture.
Gross profit increased to
Adjusted EBITDA was
Adjusted net earnings for the quarter were
Quarterly net income of
Free cash flow was
Declaration of Quarterly Dividend
On August 11, 2026, the NACG Board of Directors declared a regular quarterly dividend (the "Dividend") of twelve Canadian cents (
Outlook for 2026 - Raised Full Year 2026 Combined Revenue Guidance
Our operational priorities for 2026 are:
- Safety - safety-first mentality across all global operations - ensuring EVERYONE GETS HOME SAFE;
- Australian workforce mix - optimize heavy equipment maintenance workforce mix in Australia, following the improvements implemented in the second half of 2025;
- Cost reduction - following two years of major growth in Queensland, review and reduce discretionary operating costs while fully maintaining customer requirements;
- Integration - with the Iron Mine Contracting transaction now complete, continued commissioning of expanded fleet in Western Australia to support growth and operational scale;
- Civil execution - deliver the successful completion of the Fargo-Moorhead flood diversion project, reinforcing our large-scale civil execution capabilities; and
- Mechanical availability - continue to improve mechanical availability and reliability of a right-sized heavy equipment fleet in the oil sands region.
Our growth drivers for 2026 and beyond are the strategic building blocks of our success:
- Scaling into a Tier 1 Contractor in Australia - provides ability to secure larger scopes in the much sought-after mining regions of Western Australia and Queensland;
- Securing infrastructure awards across North America - targeting nation-building projects in Canada and mass civil earthwork scopes in the United States for which we have deep experience and expertise; and
- Expanding mining services in Canada and the United States - leveraging our over 70 years of experience, ensuring we are front and center as ever-increasing mine scopes in both countries are issued and awarded.
Based on stronger-than-expected first-half revenue, we have increased our 2026 combined revenue guidance range to
| Key measures | Current Outlook | Previous Outlook | ||
| Combined revenue(i) | ||||
| Adjusted EBITDA(i) | No change | |||
| Free cash flow(i) | No change |
(i)See "Non-GAAP Financial Measures".
Results for the three and six months ended June 30, 2026
Consolidated Financial Highlights
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 400,963 | $ | 320,634 | $ | 720,182 | $ | 661,467 | ||||||||
| Cost of sales | 298,097 | 230,293 | 518,494 | 472,521 | ||||||||||||
| Depreciation | 59,456 | 54,511 | 115,465 | 115,225 | ||||||||||||
| Gross profit | $ | 43,410 | $ | 35,830 | $ | 86,223 | $ | 73,721 | ||||||||
| Gross profit margin(i) | 10.8 | % | 11.2 | % | 12.0 | % | 11.1 | % | ||||||||
| Total combined revenue(i) | 456,082 | 370,628 | 878,605 | 761,792 | ||||||||||||
| Combined gross profit(i) | $ | 49,870 | $ | 33,396 | $ | 107,551 | $ | 77,082 | ||||||||
| Combined gross profit margin(i) | 10.9 | % | 9.0 | % | 12.2 | % | 10.1 | % | ||||||||
| General and administrative expenses (excluding stock-based compensation)(i) | 20,086 | 11,698 | 37,887 | 22,788 | ||||||||||||
| Stock-based compensation expense (benefit) | 230 | 964 | 2,868 | (2,444 | ) | |||||||||||
| Operating income | 20,537 | 22,789 | 42,422 | 53,371 | ||||||||||||
| Interest expense, net | 18,880 | 14,123 | 35,570 | 27,639 | ||||||||||||
| Net income | 9,376 | 10,250 | 14,930 | 16,413 | ||||||||||||
| Comprehensive income | 19,607 | 9,691 | 49,897 | 16,332 | ||||||||||||
| Adjusted EBITDA(i) | 93,467 | 80,113 | 192,939 | 180,045 | ||||||||||||
| Adjusted EBITDA margin(i)(ii) | 20.5 | % | 21.6 | % | 22.0 | % | 23.6 | % | ||||||||
| Free cash flow(i) | 23,029 | (376 | ) | 28,022 | (41,951 | ) | ||||||||||
| Per share information | ||||||||||||||||
| Basic net income per share | $ | 0.35 | $ | 0.35 | $ | 0.55 | $ | 0.57 | ||||||||
| Diluted net income per share | $ | 0.34 | $ | 0.33 | $ | 0.53 | $ | 0.55 | ||||||||
| Adjusted EPS(i) | $ | 0.32 | $ | 0.02 | $ | 0.69 | $ | 0.54 | ||||||||
(i)See "Non-GAAP Financial Measures".
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Conference Call and Webcast
Management will hold a conference call and webcast to discuss our financial results for the quarter ended June 30, 2026, tomorrow, Thursday, August 13, 2026, at 9:00 am Eastern Time (7:00 am Mountain Time).
The call can be accessed by dialing:
Toll Free: 1-800-717-1738
Conference ID: 40245
A replay will be available through September 12, 2026, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 40245
Playback Passcode: 40245
A slide deck for the webcast will be available for download the evening prior to the call and will be found 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=74511C07-BB07-4170-A51A-A1FE7E23F554
A replay will be available until September 12, 2026, 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, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q2 Results Presentation for more information on our results and projections, which can be found on our website under Investors - Presentations.
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 and include guidance with respect to financial metrics provided in our outlook for 2026.
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, 2026. 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 and on our company website at www.nacg.ca.
Non-GAAP Financial Measures
This press release presents certain non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures that may be useful to investors in analyzing our business performance, leverage, and liquidity. 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. A "non-GAAP ratio" is a ratio, fraction, percentage or similar expression that has a non-GAAP financial measure as one or more of its components. Non-GAAP financial measures and ratios do not have standardized meanings under GAAP and therefore may not be comparable to similar measures presented by other issuers. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A "supplementary financial measure" is a financial measure disclosed, or intended to be disclosed, on a periodic basis to depict historical or future financial performance, financial position or cash flows that does not fall within the definition of a non-GAAP financial measure or non-GAAP ratio. The non-GAAP financial measures and ratios we present include, "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted EPS", "adjusted net earnings", "backlog", "capital additions", "capital expenditures, net", "capital inventory", "capital work in progress", "cash liquidity", "cash related interest expense", "cash provided by operating activities prior to change in working capital", "combined backlog", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "equity method investment backlog", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "growth capital", "growth spending", "invested capital", "margin", "net debt", "net debt leverage", "senior-secured debt", "share of affiliate and joint venture capital additions", "sustaining capital", "total capital liquidity", "total combined revenue", and "total debt". We also use supplementary financial measures such as "gross profit margin" and "total net working capital (excluding cash and current portion of long-term debt)" in our MD&A. Each non-GAAP financial measure used in this press release is defined under "Financial Measures" in our Management's Discussion and Analysis filed on EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca.
Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income | $ | 9,376 | $ | 10,250 | $ | 14,930 | $ | 16,413 | ||||||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation expense (benefit) | 230 | 964 | 2,868 | (2,444 | ) | |||||||||||
| Loss (gain) on disposal of property, plant and equipment | 1,330 | (110 | ) | 1,260 | (1,084 | ) | ||||||||||
| Equity investment (gain) loss on disposal of property, plant and equipment | (137 | ) | 155 | (96 | ) | 157 | ||||||||||
| Unrealized foreign exchange loss | 2,294 | — | 1,489 | — | ||||||||||||
| Change in FV of contingent obligations - estimate adjustments | (12,122 | ) | (17,485 | ) | (16,376 | ) | (18,802 | ) | ||||||||
| (Gain) loss on derivative financial instruments | (75 | ) | 750 | 750 | 7,662 | |||||||||||
| Equity investment loss on derivative financial instruments | 342 | 892 | 800 | 1,911 | ||||||||||||
| IMC economic benefit - net income | 103 | — | 2,307 | — | ||||||||||||
| IMC acquisition and integration costs | 1,777 | — | 3,111 | — | ||||||||||||
| Canadian organizational realignment costs | 3,071 | — | 5,750 | — | ||||||||||||
| Depreciation expense relating to early component failures | — | — | — | 4,274 | ||||||||||||
| Post-acquisition asset relocation and integration costs | — | — | — | 1,640 | ||||||||||||
| Tax effect of the above items | 2,342 | 5,390 | 1,890 | 5,690 | ||||||||||||
| Adjusted net earnings(i) | $ | 8,531 | $ | 806 | $ | 18,683 | $ | 15,417 | ||||||||
| Adjustments: | ||||||||||||||||
| Tax effect of the above items | (2,342 | ) | (5,390 | ) | (1,890 | ) | (5,690 | ) | ||||||||
| Income tax expense | 3,796 | 5,771 | 8,039 | 10,015 | ||||||||||||
| Equity investment EBIT(i) | 2,566 | (5,212 | ) | 5,698 | (1,904 | ) | ||||||||||
| Equity (earnings) loss in affiliates and joint ventures | (2,093 | ) | 5,133 | (4,869 | ) | 1,850 | ||||||||||
| Change in FV of contingent obligations - interest accretion | 2,775 | 4,247 | 4,378 | 8,594 | ||||||||||||
| IMC economic benefit - interest and tax expense | 88 | — | 1,737 | — | ||||||||||||
| Interest expense, net | 18,880 | 14,123 | 35,570 | 27,639 | ||||||||||||
| Adjusted EBIT(i) | $ | 32,201 | $ | 19,478 | $ | 67,346 | $ | 55,921 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation | 59,456 | 54,511 | 115,465 | 115,225 | ||||||||||||
| Amortization of intangible assets | 1,227 | 489 | 1,786 | 1,090 | ||||||||||||
| Equity investment depreciation and amortization | 3,188 | 5,635 | 6,581 | 12,083 | ||||||||||||
| IMC economic benefit - depreciation and amortization | 466 | — | 4,832 | — | ||||||||||||
| Write-down expense relating to Canadian organizational realignment costs | (3,071 | ) | — | (3,071 | ) | — | ||||||||||
| Depreciation expense relating to early component failures | — | — | — | (4,274 | ) | |||||||||||
| Adjusted EBITDA(i) | $ | 93,467 | $ | 80,113 | $ | 192,939 | $ | 180,045 | ||||||||
| Adjusted EBITDA margin(i)(ii) | 20.5 | % | 21.6 | % | 22.0 | % | 23.6 | % | ||||||||
(i)See "Non-GAAP Financial Measures".
(ii)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
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Equity earnings in affiliates and joint ventures | $ | 2,093 | $ | (5,133 | ) | $ | 4,869 | $ | (1,850 | ) | ||||||
| Adjustments: | ||||||||||||||||
| Income tax benefit | (14 | ) | (262 | ) | (93 | ) | (208 | ) | ||||||||
| Interest expense, net | 487 | 183 | 922 | 154 | ||||||||||||
| Equity investment EBIT(i) | $ | 2,566 | $ | (5,212 | ) | $ | 5,698 | $ | (1,904 | ) | ||||||
(i) See "Non-GAAP Financial Measures".
Reconciliation of total reported revenue to total combined revenue
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue from wholly-owned entities per financial statements | $ | 400,963 | $ | 320,634 | $ | 720,182 | $ | 661,467 | ||||||||
| Share of revenue from investments in affiliates and joint ventures | 112,266 | 121,843 | 215,443 | 257,740 | ||||||||||||
| IMC economic benefit - revenue | 5,413 | — | 70,096 | — | ||||||||||||
| Elimination of joint venture subcontract revenue | (62,560 | ) | (71,849 | ) | (127,116 | ) | (157,415 | ) | ||||||||
| Total combined revenue(i) | $ | 456,082 | $ | 370,628 | $ | 878,605 | $ | 761,792 | ||||||||
(i) See "Non-GAAP Financial Measures".
Reconciliation of reported gross profit to combined gross profit
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Gross profit from wholly-owned entities per financial statements | $ | 43,410 | $ | 35,830 | $ | 86,223 | $ | 73,721 | ||||||||
| Share of gross profit (loss) from investments in affiliates and joint ventures | 5,522 | (2,434 | ) | 10,396 | 3,361 | |||||||||||
| IMC economic benefit - gross profit | 938 | — | 10,932 | — | ||||||||||||
| Combined gross profit(i)(ii) | $ | 49,870 | $ | 33,396 | $ | 107,551 | $ | 77,082 | ||||||||
| Combined gross profit margin(i)(ii) | 10.9 | % | 9.0 | % | 12.2 | % | 10.1 | % | ||||||||
(i)See "Non-GAAP Financial Measures".
(ii) Certain prior period costs within the Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification has no impact on revenue, income before taxes, or net income.
Reconciliation of basic net income per share to adjusted EPS
| Three months ended | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income | $ | 9,376 | $ | 10,250 | $ | 14,930 | $ | 16,413 | ||||
| Adjusted net earnings | $ | 8,531 | $ | 806 | $ | 18,683 | $ | 15,417 | ||||
| Weighted-average number of common shares | 27,062,861 | 29,354,387 | 27,344,397 | 28,611,557 | ||||||||
| Weighted-average number of diluted shares | 27,943,719 | 32,562,639 | 29,318,292 | 32,743,696 | ||||||||
| Basic net income per share | $ | 0.35 | $ | 0.35 | $ | 0.55 | $ | 0.57 | ||||
| Diluted net income per share | $ | 0.34 | $ | 0.33 | $ | 0.53 | $ | 0.55 | ||||
| Adjusted EPS(i) | $ | 0.32 | $ | 0.02 | $ | 0.69 | $ | 0.54 | ||||
(i)See "Non-GAAP Financial Measures".
Net Debt
| (dollars in thousands) | June 30, 2026 | December 31, 2025 | ||||||
| Credit Facility(i) | $ | 145,000 | $ | 174,156 | ||||
| Equipment financing(i) | 459,125 | 309,238 | ||||||
| Mortgage(i) | 26,302 | 26,742 | ||||||
| Senior-secured debt(ii) | 630,427 | 510,136 | ||||||
| Senior unsecured notes | 550,000 | 350,000 | ||||||
| Contingent obligations(i) | 74,664 | 63,453 | ||||||
| Convertible debentures(i) | — | 55,000 | ||||||
| Cash | (167,676 | ) | (100,128 | ) | ||||
| Net debt(ii) | $ | 1,087,415 | $ | 878,461 | ||||
(i)Includes current portion.
(ii)See "Non-GAAP Financial Measures".
Free Cash Flow
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Per the Consolidated Statements of Cash Flows | ||||||||||||||||
| Cash provided by operating activities | $ | 90,926 | $ | 64,674 | $ | 120,731 | $ | 116,092 | ||||||||
| Cash used in investing activities | (134,792 | ) | (71,823 | ) | (180,961 | ) | (165,604 | ) | ||||||||
| Effect of exchange rate on changes in cash | (440 | ) | 915 | 6,658 | (160 | ) | ||||||||||
| Add back of growth and non-cash items included in the above figures: | ||||||||||||||||
| Acquisition of IMC(i) | 37,535 | — | 37,535 | — | ||||||||||||
| Acquisition costs | 1,620 | — | 2,954 | — | ||||||||||||
| Growth capital additions(ii) | 52,052 | 24,463 | 64,977 | 52,529 | ||||||||||||
| Capital additions financed by leases(ii) | (23,872 | ) | (18,605 | ) | (23,872 | ) | (44,808 | ) | ||||||||
| Free cash flow(ii) | $ | 23,029 | $ | (376 | ) | $ | 28,022 | $ | (41,951 | ) | ||||||
(i)See "Non-GAAP Financial Measures".
Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)
(Unaudited)
| June 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 167,676 | $ | 100,128 | ||||
| Accounts receivable | 235,679 | 148,928 | ||||||
| Contract assets | 32,456 | 30,472 | ||||||
| Inventories | 85,032 | 75,660 | ||||||
| Prepaid expenses and deposits | 10,157 | 6,925 | ||||||
| Assets held for sale | 655 | 107 | ||||||
| 531,655 | 362,220 | |||||||
| Property, plant and equipment, net of accumulated depreciation of | 1,562,209 | 1,358,852 | ||||||
| Operating lease right-of-use assets | 13,283 | 10,734 | ||||||
| Investments in affiliates and joint ventures | 71,479 | 70,416 | ||||||
| Intangible assets | 32,145 | 12,333 | ||||||
| Other assets | 36,402 | 5,198 | ||||||
| Total assets | $ | 2,247,173 | $ | 1,819,753 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 204,673 | $ | 102,054 | ||||
| Accrued liabilities | 94,846 | 89,308 | ||||||
| Contract liabilities | 15,572 | 22,848 | ||||||
| Current portion of long-term debt | 138,409 | 160,557 | ||||||
| Current portion of contingent obligations | 41,625 | 34,597 | ||||||
| Current portion of operating lease liabilities | 2,273 | 1,495 | ||||||
| 497,398 | 410,859 | |||||||
| Long-term debt | 1,033,803 | 749,829 | ||||||
| Contingent obligations | 33,039 | 28,856 | ||||||
| Operating lease liabilities | 11,461 | 9,698 | ||||||
| Other long-term obligations | 23,658 | 22,607 | ||||||
| Deferred tax liabilities | 167,579 | 141,283 | ||||||
| 1,766,938 | 1,363,132 | |||||||
| Shareholders' equity | ||||||||
| Common shares (authorized – unlimited number of voting common shares; issued and outstanding – June 30, 2026 - 27,710,462 (December 31, 2025 – 28,821,481)) | 272,858 | 282,957 | ||||||
| Treasury shares (June 30, 2026 - 881,390 (December 31, 2025 - 871,244)) | (15,202 | ) | (14,993 | ) | ||||
| Additional paid-in capital | — | 2,807 | ||||||
| Retained earnings | 178,225 | 176,463 | ||||||
| Accumulated other comprehensive income | 44,354 | 9,387 | ||||||
| Shareholders' equity | 480,235 | 456,621 | ||||||
| Total liabilities and shareholders' equity | $ | 2,247,173 | $ | 1,819,753 | ||||
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, | ||||||||||||||||
| Note | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | 5 | $ | 400,963 | $ | 320,634 | $ | 720,182 | $ | 661,467 | ||||||||
| Cost of sales | 11 | 298,097 | 230,293 | 518,494 | 472,521 | ||||||||||||
| Depreciation | 59,456 | 54,511 | 115,465 | 115,225 | |||||||||||||
| Gross profit | 43,410 | 35,830 | 86,223 | 73,721 | |||||||||||||
| General and administrative expenses | 20,316 | 12,662 | 40,755 | 20,344 | |||||||||||||
| Amortization of intangible assets | 1,227 | 489 | 1,786 | 1,090 | |||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 1,330 | (110 | ) | 1,260 | (1,084 | ) | |||||||||||
| Operating income | 20,537 | 22,789 | 42,422 | 53,371 | |||||||||||||
| Interest expense, net | 12 | 18,880 | 14,123 | 35,570 | 27,639 | ||||||||||||
| Equity (earnings) loss in affiliates and joint ventures | 7 | (2,093 | ) | 5,133 | (4,869 | ) | 1,850 | ||||||||||
| (Gain) loss on derivative financial instruments | 13(b) | (75 | ) | 750 | 750 | 7,662 | |||||||||||
| Change in fair value of contingent obligations | 13(a) | (9,347 | ) | (13,238 | ) | (11,998 | ) | (10,208 | ) | ||||||||
| Income before income taxes | 13,172 | 16,021 | 22,969 | 26,428 | |||||||||||||
| Current income tax (benefit) expense | (3,050 | ) | 798 | (661 | ) | 2,575 | |||||||||||
| Deferred income tax expense | 6,846 | 4,973 | 8,700 | 7,440 | |||||||||||||
| Net income | 9,376 | 10,250 | 14,930 | 16,413 | |||||||||||||
| Other comprehensive income | |||||||||||||||||
| Unrealized foreign currency translation (gain) loss | (10,231 | ) | 559 | (34,967 | ) | 81 | |||||||||||
| Comprehensive income | $ | 19,607 | $ | 9,691 | $ | 49,897 | $ | 16,332 | |||||||||
| Per share information | |||||||||||||||||
| Basic net income per share | 9(b) | $ | 0.35 | $ | 0.35 | $ | 0.55 | $ | 0.57 | ||||||||
| Diluted net income per share | 9(b) | $ | 0.34 | $ | 0.33 | $ | 0.53 | $ | 0.55 | ||||||||
