North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30, 2026

Higher revenue guidance accompanies lower adjusted EBITDA expectations as Fargo project costs and weaker margins weigh on results.

Rhea-AI Summary

North American Construction Group (NOA) raised its 2026 combined revenue outlook after reporting third-quarter combined revenue of C$438.1 million. Combined revenue rose 12% year over year; reported revenue rose 30% to C$413.3 million. Adjusted EBITDA, an adjusted measure of operating earnings, increased 1% to C$100.1 million, but its margin fell to 22.8% from 25.3%.

A C$24.2 million net loss replaced C$17.3 million in net income. Revised Fargo project costs increased approximately C$45 million for NACG’s interest, putting the contract in a loss position. Free cash flow was negative C$28.3 million. Australian revenue rose 42%, supported by IMC, while Canadian revenue increased 12%.

The company now expects 2026 combined revenue of C$1.7–C$1.8 billion, versus C$1.6–C$1.8 billion previously, but lowered adjusted EBITDA guidance to C$370–C$400 million from C$380–C$420 million. Contractual backlog totals C$3.2 billion.

16 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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2 major · 24 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 combined revenue guidance rose to C$1.7–C$1.8 billion from C$1.6–C$1.8 billion.
• Moderate pointQ3 combined revenue increased 12% year over year to C$438.1 million.
• Moderate pointQ3 adjusted EBITDA increased 1% year over year to C$100.1 million.
• Minor pointQ3 reported revenue increased 30% year over year to C$413.3 million.
• Minor pointAustralian Q3 revenue increased 42% to C$267.8 million, including C$73.6 million from IMC.

11 minor points

• Minor pointMacKellar and DGI delivered C$5.7 million in organic revenue growth during Q3.
• Minor pointCanadian Q3 revenue increased 12% to C$141.2 million on higher operational support demand.
• Minor pointContractual backlog of C$3.2 billion supports the company's revised 2026 outlook.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 improvement is expected from IMC's ramp-up, Australian margins, oil sands utilization and Nuna's Nunavut fleet expansion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Australian discretionary operating cost reductions and maintenance workforce optimization remain company priorities for 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expanded fleet commissioning in Western Australia remains a company priority to support growth.
• Minor pointNine-month reported revenue rose to C$1,133.458 million from C$978.715 million a year earlier.
• Minor pointNine-month combined revenue rose to C$1,316.693 million from C$1,152.569 million a year earlier.
• Minor pointNine-month gross profit rose to C$131.523 million from C$121.988 million; margin fell to 11.6% from 12.5%.
• Minor pointNine-month combined gross profit rose to C$157.327 million; margin increased to 11.9% from 11.5%.
• Minor pointNine-month adjusted EBITDA rose to C$293.018 million from C$278.928 million a year earlier.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance fell to C$370–C$400 million from C$380–C$420 million.
• Major pointFargo's revised project costs added approximately C$45 million attributable to NACG, creating a contract loss position.
• Moderate pointQ3 net loss was C$24.2 million, versus net income of C$17.3 million a year earlier.
• Moderate pointQ3 free cash flow turned negative at C$28.311 million, versus positive C$45.670 million a year earlier.
• Moderate pointQ3 gross profit fell to C$47.1 million; margin declined to 11.4% from 15.6%.
• Moderate pointQ3 adjusted EBITDA margin declined to 22.8% from 25.3%, principally reflecting IMC's margin profile.

18 minor points

• Minor pointQ3 basic and diluted losses were C$0.90 per share, versus earnings of C$0.59 and C$0.56, respectively.
• Minor pointQ3 adjusted net earnings fell to C$6.6 million from C$19.6 million a year earlier.
• Minor pointQ3 adjusted earnings per share fell to C$0.25 from C$0.66 a year earlier.
• Minor pointQ3 combined gross profit fell to C$51.6 million; margin declined to 11.8% from 14.5%.
• Minor pointAustralian combined gross margin of 11.9% reflected additional maintenance costs and pit-wall-failure-related operational inefficiencies.
• Minor pointJoint venture and affiliate Q3 revenue declined 66% to C$24.8 million, reflecting the legacy Fargo project.
• Minor pointQ3 operating results turned to a C$6.048 million loss from C$35.747 million in income.
• Minor pointQ3 net interest expense increased to C$21.288 million from C$15.265 million a year earlier.
• Minor pointQ3 sustaining capital spending of C$76.5 million weighed on free cash flow.
• Minor pointNine-month net loss was C$9.258 million, versus net income of C$33.709 million a year earlier.
• Minor pointNine-month basic and diluted losses were C$0.34 per share, versus earnings of C$1.17 and C$1.11, respectively.
• Minor pointNine-month operating income declined to C$36.374 million from C$89.118 million a year earlier.
• Minor pointNine-month adjusted net earnings declined to C$25.211 million from C$34.922 million a year earlier.
• Minor pointNine-month adjusted earnings per share declined to C$0.94 from C$1.21 a year earlier.
• Minor pointNine-month adjusted EBITDA margin declined to 22.3% from 24.2% a year earlier.
• Minor pointNine-month net interest expense increased to C$56.858 million from C$42.904 million a year earlier.
• Minor pointNine-month free cash flow turned negative at C$1.037 million, versus positive C$3.719 million a year earlier.
• Minor pointNine-month comprehensive income declined to C$29.552 million from C$44.781 million a year earlier.

News Explained

On November 3, 2026, NACG declared a regular quarterly dividend of C$0.12 per common share; shareholders of record on November 25, 2026 are due to receive the cash payment on January 8, 2027.

Key Figures

Combined revenue: C$438.1 million, up 12% year-over-year Adjusted EBITDA: C$100.1 million, up 1% year-over-year Net loss: C$24.2 million +5 more

Combined revenue

C$438.1 million, up 12% year-over-year

Third quarter 2026

Adjusted EBITDA

C$100.1 million, up 1% year-over-year

Third quarter 2026

Net loss

C$24.2 million

Third quarter 2026; prior-year period had C$17.3 million net income

Fargo project cost increase

C$45 million attributable to NACG's 30% interest

Revised forecast; the project was in a contract loss position

Combined revenue guidance

C$1.7–C$1.8 billion

2026 outlook; previous range was C$1.6–C$1.8 billion

Adjusted EBITDA guidance

C$370–C$400 million

2026 outlook; previous range was C$380–C$420 million

Free cash flow

C$28.3 million outflow

Third quarter 2026

Quarterly dividend

C$0.12 per common share

Declared November 3, 2026; payable January 8, 2027

Previous Earnings Reports

2 past events · Latest: Aug 12

Same Type 2 events

1. Aug 12

   Q2 earnings

   24h Move

   -6.0%

   Raised 2026 combined-revenue guidance to $1.6–$1.8 billion; adjusted EBITDA outlook remained unchanged.

2. Nov 12

   Q3 earnings

   24h Move

   -7.6%

   Revenue grew, while adjusted EPS, adjusted EBITDA, and gross profit declined from the prior year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, free cash flow, non-gaap financial measures, us gaap

4 terms

ebitda financial

"Adjusted EBITDA of $100.1 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

free cash flow financial

"Free cash flow was an outflow of $28.3 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap financial measures financial

"See "Non-GAAP Financial Measures"."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

us gaap financial

"accounting principles generally accepted in the United States ("US GAAP")"

U.S. GAAP is the set of official accounting rules and standards companies in the United States use to record and report their financial results. Like a common recipe book for financial statements, it makes company reports consistent and easier to compare, so investors can better judge profitability, risk and trends when deciding to buy, hold or sell shares.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Raises Full Year 2026 Combined Revenue Guidance Underpinned By Strong Q3 Top-Line Performance

ACHESON, Alberta, Nov. 04, 2026 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the third quarter ended September 30, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended September 30, 2025.

Third Quarter 2026 Financial Highlights

Revenue:

• Combined revenue of $438.1 million, up $47.3 million or 12% year-over-year
• Reported revenue of $413.3 million, up $96.0 million or 30% year-over-year

Profitability:

• Adjusted EBITDA of $100.1 million, up $1.0 million or 1% year-over-year
• Adjusted net earnings of $6.6 million, down $13.0 million year-over-year
• Net loss of $24.2 million, down $41.5 million or 240% year-over-year

Third Quarter 2026 Operational & Corporate Highlights

NACG delivered consistent adjusted EBITDA in the third quarter, supported by the contribution from IMC, organic growth in Australia and improved margins in Canada.

• Our Australian operations delivered robust revenue growth of 42% year-over-year, with the majority of the increase reflecting IMC's contribution which was acquired during 2026 Q2. 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. Combined gross profit margin in the Australian business of 11.9% was impacted by i) additional parts and labour costs required to improve and sustain mechanical availability at a thermal coal mine site in Queensland and ii) operational inefficiencies at a lithium mine site in Western Australia caused by a pit wall failure.
• In Canada, margin performance benefited from our ongoing fleet optimization strategy. Revenue increased year-over-year driven by increased operational support scopes at the Syncrude and Millennium mines. When excluding the 797 haul truck fleet from the prior period, the increase of over 20% on a like-for-like basis reflects both the external strong demand in the region as well as the achievement of improved mechanical availability.
• In early October, the Fargo construction joint venture provided financial statements based on a revised forecast which increased total project costs by approximately $150 million on a 100%-basis, or $45 million attributable to our 30% interest, representing an increase of 9.0% over the previous estimate and resulting in a contract loss position. The forecast was approved by the joint venture's executive committee and deemed the final estimate, as the project is considered to be close to physically complete. The Fargo joint ventures are engaged in discussions with the customer regarding mutually beneficial remedies to address the cost increases. No amounts in respect of these potential remedies have been reflected in the Company’s financial statements. The Company is committed to pursuing all legal and commercial avenues to recover the cost increases that have been incurred in completing this project.

"Revenue remained near our quarterly record of $450 million, underpinning our raised full-year revenue outlook. We are seeing tangible benefits from fleet optimization in Canada and further opportunities to improve productivity and returns across our Australian businesses. While our core businesses delivered less improvement than anticipated and Fargo was a significant disappointment, we have already applied the lessons from that project to our approach to project selection and operating structures," commented Barry Palmer, President and Chief Executive Officer.

"With contractual backlog above $3.2 billion, our focus is on finishing 2026 strongly through safe execution of the work in hand and improved fleet performance. Our identified opportunity pipeline of more than $14 billion allows us to be selective, pursuing work that fits our operating strengths and offers attractive returns. As we prepare to welcome Brad Rogers as our new CEO, an orderly transition will preserve continuity in strategy and customer relationships, positioning him to focus in 2027 on converting earnings into free cash flow to support deleveraging and disciplined investment in profitable growth."

Financial Results for the Third Quarter 2026

Combined revenue and reported revenue were generated during the quarter by the following primary segments:

• Heavy Equipment - Australia revenue increased 42% to $267.8 million, reflecting $73.6 million of reported revenue from IMC following its April 7, 2026, acquisition and organic growth of $5.7 million from the MacKellar and DGI businesses.
• Heavy Equipment - Canada revenue increased 12% to $141.2 million, primarily due to higher demand for operational support services at Syncrude and Millennium mines.
• Revenue from joint ventures and affiliates declined 66% to $24.8 million, reflecting the decline from the legacy Fargo Project.

Gross profit decreased to $47.1 million (11.4% margin) from $49.4 million (15.6% margin) in 2025 Q3. Combined gross profit was $51.6 million (11.8% margin), down from $56.8 million (14.5% margin) in the prior year.

Adjusted EBITDA was $100.1 million, up $1.0 million year-over-year, with IMC contributing $8.2 million. Adjusted EBITDA margin was 22.8%, compared to 25.3% in 2025 Q3, principally reflecting IMC's margin profile.

Adjusted net earnings for the quarter were $6.6 million, down from $19.6 million in the prior year period. Adjusted EPS was $0.25, down from $0.66 in 2025 Q3. Consistent gross profit was offset by higher general and administrative costs supporting a larger business and increased interest expense on acquisition-related debt.

Quarterly net loss of $24.2 million was below the prior year's net income of $17.3 million, primarily due to the impact from the Fargo Project, higher general and administrative costs and increased interest expense. Basic net income per share was a loss of $0.90, down from $0.59 in 2025 Q3.

Free cash flow was an outflow of $28.3 million as cash generated by $100.1 million in adjusted EBITDA was offset by sustaining capital spending ($76.5 million), cash interest ($20.5 million) and working capital changes ($23.6 million). Sustaining maintenance capital in Canada of $35.7 million was incurred in response to strong demand in the oil sands region and in direct support of our equipment utilization targets.

Declaration of Quarterly Dividend

On November 3, 2026, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 25, 2026. The Dividend will be paid on January 8, 2027, and is an eligible dividend for Canadian income tax purposes.

Outlook for 2026

Our operational priorities for the remainder of 2026 are:

• Safety - safety-first mentality across all global operations - ensuring Everyone Gets Home Safe;
• Australian workforce mix - following recent improvements, optimize maintenance workforce in Australia;
• 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 complete, continued commissioning of the expanded fleet in Western Australia to support growth and operational scale; and
• Mechanical availability - continue to improve mechanical availability and reliability of the 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 in northern Canada - targeting nation-building projects in Canada and mass civil earthwork scopes 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.

The following table provides projected key measures for 2026. The 2026 outlook is based on our installed equipment fleet and contractual backlog of $3.2 billion.

Key measures		Current Outlook		Previous Outlook
Combined revenue(i)		$1.7 - $1.8B		$1.6 - $1.8B
Adjusted EBITDA(i)		$370 - $400M		$380 - $420M

⁽ⁱ⁾See "Non-GAAP Financial Measures".

“We are raising our full-year combined revenue outlook range to $1.7 billion to $1.8 billion, while tightening our adjusted EBITDA guidance range to $370 million to $400 million to reflect a slower pace of earnings improvement than anticipated," said Jason Veenstra, Chief Financial Officer of NACG. "Our $3.2 billion contractual backlog supports the revised outlook, and we expect fourth-quarter improvement from the continued ramp-up of IMC, stronger Australian margins, increased oil sands utilization, and Nuna’s fleet expansion in Nunavut. Delivering the $385 million adjusted EBITDA midpoint will require disciplined execution, with our focus on translating the operating opportunities into improved profitability.”

Results for the three and nine months ended September 30, 2026

Consolidated Financial Highlights

		Three months ended								Nine months ended
		September 30,								September 30,
(dollars in thousands, except per share amounts)			2026				2025				2026				2025
Revenue		$	413,276			$	317,248			$	1,133,458			$	978,715
Cost of sales			299,943				218,033				818,437				690,554
Depreciation and amortization			66,247				49,858				183,498				166,173
Gross profit		$	47,086			$	49,357			$	131,523			$	121,988
Gross profit margin(i)			11.4	%			15.6	%			11.6	%			12.5	%
Total combined revenue(i)			438,088				390,777				1,316,693				1,152,569
Combined gross profit(i)		$	51,562			$	56,780			$	157,327			$	132,771
Combined gross profit margin(i)			11.8	%			14.5	%			11.9	%			11.5	%
Operating (loss) income			(6,048	)			35,747				36,374				89,118
Interest expense, net			21,288				15,265				56,858				42,904
Net (loss) income			(24,188	)			17,296				(9,258	)			33,709
Comprehensive (loss) income			(20,345	)			28,449				29,552				44,781
Adjusted EBITDA(i)			100,079				99,039				293,018				278,928
Adjusted EBITDA margin(i)(ii)			22.8	%			25.3	%			22.3	%			24.2	%
Free cash flow(i)			(28,311	)			45,670				(1,037	)			3,719
Per share information
Basic net (loss) income per share		$	(0.90	)		$	0.59			$	(0.34	)		$	1.17
Diluted net (loss) income per share		$	(0.90	)		$	0.56			$	(0.34	)		$	1.11
Adjusted EPS(i)		$	0.25			$	0.66			$	0.94			$	1.21

⁽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 September 30, 2026, tomorrow, Thursday, November 5, 2026, at 8:00 a.m. Alberta Time (9:00 a.m. Eastern Time).

The call can be accessed by dialing:

Toll Free: 1-800-717-1738
Conference ID: 01529

A replay will be available through December 5, 2026, by dialing:

Toll Free: 1-888-660-6264
Conference ID: 01529
Playback Passcode: 01529#

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=E582BB87-8979-40FE-9234-16CF120608AA&Referrer=https%3A%2F%2Fnacg.ca%2F

A replay will be available until December 5, 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 September 30, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q3 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 nine months ended September 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								Nine months ended
		September 30,								September 30,
(dollars in thousands)			2026				2025				2026				2025
Net (loss) income		$	(24,188	)		$	17,296			$	(9,258	)		$	33,709
Adjustments:
Stock-based compensation expense (benefit)			970				(156	)			3,838				(2,600	)
Amortization of acquisition related intangible assets			716				239				716				239
Loss (gain) on disposal of property, plant and equipment			2,326				740				3,586				(344	)
Equity investment (gain) loss on disposal of property, plant and equipment			(69	)			(44	)			(165	)			113
Equity investment loss on legacy project			49,852				—				49,852				—
Equity investment loss on derivative financial instruments			236				855				1,036				2,766
Unrealized foreign exchange (gain) loss			(1,007	)			845				482				689
Change in FV of contingent obligations - estimate adjustments			(20,029	)			(2,771	)			(36,405	)			(21,573	)
Loss on derivative financial instruments			1,434				1,684				2,184				9,346
IMC economic benefit - net income			—				—				2,307				—
IMC acquisition and integration costs			872				—				3,983				—
Canadian organizational realignment costs			450				—				6,200				—
Depreciation expense relating to early component failures			—				—				—				4,274
Post-acquisition asset relocation and integration costs			—				—				—				1,640
Tax effect of the above items			(4,973	)			926				(3,145	)			6,663
Adjusted net earnings(i)		$	6,590			$	19,614			$	25,211			$	34,922
Adjustments:
Tax effect of the above items			4,973				(926	)			3,145				(6,663	)
Income tax (recovery) expense			(3,355	)			6,229				4,684				16,244
Equity investment EBIT(i)			(17,661	)			5,734				(11,963	)			3,830
Equity loss (earnings) in affiliates and joint ventures			18,144				(5,232	)			13,275				(3,382	)
Change in FV of contingent obligations - interest accretion			658				3,276				5,036				11,870
IMC economic benefit - interest and tax expense			—				—				1,737				—
Interest expense, net			21,288				15,265				56,858				42,904
Adjusted EBIT(i)		$	30,637			$	43,960			$	97,983			$	99,725
Adjustments:
Depreciation and amortization of non-acquisition related intangible assets			65,531				49,619				182,782				165,934
Equity investment depreciation and amortization			3,911				5,460				10,492				17,543
IMC economic benefit - depreciation and amortization			—				—				4,832				—
Write-down expense relating to Canadian organizational realignment costs			—				—				(3,071	)			—
Depreciation expense relating to early component failures			—				—				—				(4,274	)
Adjusted EBITDA(i)		$	100,079			$	99,039			$	293,018			$	278,928
Adjusted EBITDA margin(i)(ii)			22.8	%			25.3	%			22.3	%			24.2	%

⁽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							Nine months ended
		September 30,							September 30,
			2026				2025			2026				2025
Equity (loss) earnings in affiliates and joint ventures		$	(18,144	)		$	5,232		$	(13,275	)		$	3,382
Adjustments:
Income tax (benefit) expense			(66	)			431			(159	)			223
Interest expense, net			549				71			1,471				225
Equity investment EBIT(i)		$	(17,661	)		$	5,734		$	(11,963	)		$	3,830

⁽ⁱ⁾ See "Non-GAAP Financial Measures".

Reconciliation of total reported revenue to total combined revenue

		Three months ended								Nine months ended
		September 30,								September 30,
(dollars in thousands)			2026				2025				2026				2025
Revenue from wholly-owned entities per financial statements		$	413,276			$	317,248			$	1,133,458			$	978,715
Share of revenue from investments in affiliates and joint ventures			92,679				134,946				308,122				392,686
IMC economic benefit - revenue			—				—				70,096				—
Elimination of joint venture subcontract revenue			(67,867	)			(61,417	)			(194,983	)			(218,832	)
Total combined revenue(i)		$	438,088			$	390,777			$	1,316,693			$	1,152,569

⁽ⁱ⁾ See "Non-GAAP Financial Measures".

Reconciliation of reported gross profit to combined gross profit

		Three months ended								Nine months ended
		September 30,								September 30,
(dollars in thousands)			2026				2025				2026				2025
Gross profit from wholly-owned entities per financial statements		$	47,086			$	49,357			$	131,523			$	121,988
Share of gross (loss) profit from investments in affiliates and joint ventures			(45,376	)			7,423				(34,980	)			10,783
IMC economic benefit - gross profit(ii)			—				—				10,932				—
Equity investment loss on legacy project			49,852				—				49,852				—
Combined gross profit(i)		$	51,562			$	56,780			$	157,327			$	132,771
Combined gross profit margin(i)			11.8	%			14.5	%			11.9	%			11.5	%

⁽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							Nine months ended
		September 30,							September 30,
(dollars in thousands)			2026				2025			2026				2025
Net (loss) income		$	(24,188	)		$	17,296		$	(9,258	)		$	33,709
Interest from convertible debentures (after tax)			—				624			—				2,352
Diluted net (loss) income available to common shareholders		$	(24,188	)		$	17,920		$	(9,258	)		$	36,061
Adjusted net earnings		$	6,590			$	19,614		$	25,211			$	34,922
Weighted-average number of common shares			26,772,517				29,166,135			27,151,499				28,798,450
Weighted-average number of diluted shares			26,772,517				32,283,751			27,151,499				32,588,696
Basic net (loss) income per share		$	(0.90	)		$	0.59		$	(0.34	)		$	1.17
Diluted net (loss) income per share		$	(0.90	)		$	0.56		$	(0.34	)		$	1.11
Adjusted EPS(i)		$	0.25			$	0.66		$	0.94			$	1.21

⁽ⁱ⁾See "Non-GAAP Financial Measures".

Net Debt

(dollars in thousands)		September 30, 2026				December 31, 2025
Credit Facility(i)		$	180,000			$	174,156
Equipment financing(i)			440,104				309,238
Mortgage(i)			26,079				26,742
Senior-secured debt(ii)			646,183				510,136
Senior unsecured notes			550,000				350,000
Contingent obligations(i)			38,478				63,453
Convertible debentures(i)			—				55,000
Cash			(111,657	)			(100,128	)
Net debt(ii)		$	1,123,004			$	878,461

⁽ⁱ⁾Includes current portion.
⁽ⁱⁱ⁾See "Non-GAAP Financial Measures".

Free Cash Flow

		Three months ended								Nine months ended
		September 30,								September 30,
(dollars in thousands)			2026				2025				2026				2025
Per the Consolidated Statements of Cash Flows
Cash provided by operating activities		$	47,166			$	91,824			$	167,897			$	207,916
Cash used in investing activities			(99,190	)			(65,862	)			(280,151	)			(231,466	)
Effect of exchange rate on changes in cash			(154	)			2,278				6,504				2,118
		$	(52,178	)		$	28,240			$	(105,750	)		$	(21,432	)
Add back of growth and non-cash items included in the above:
Acquisition of IMC(i)			—				—				37,535				—
Acquisition costs			1,620				—				3,826				—
Growth capital additions(ii)			30,827				23,275				95,804				75,804
Capital additions financed by leases(ii)			(8,580	)			(5,845	)			(32,452	)			(50,653	)
Free cash flow(ii)		$	(28,311	)		$	45,670			$	(1,037	)		$	3,719

⁽ⁱ⁾Acquisition of IMC is the purchase price less cash acquired
⁽ⁱⁱ⁾See "Non-GAAP Financial Measures".

Consolidated Balance Sheets

(Expressed in thousands of Canadian Dollars)
(Unaudited)

		September 30, 2026				December 31, 2025
Assets
Current assets
Cash		$	111,657			$	100,128
Accounts receivable			217,458				148,928
Contract assets			44,607				30,472
Inventories			92,461				75,660
Prepaid expenses and deposits			11,788				6,925
Assets held for sale			953				107
			478,924				362,220
Property, plant and equipment, net of accumulated depreciation of $691,557 (December 31, 2025 – $582,892)			1,605,520				1,358,852
Operating lease right-of-use assets			24,858				10,734
Investments in affiliates and joint ventures			61,970				70,416
Intangible assets			22,373				12,333
Other assets			30,071				5,198
Total assets		$	2,223,716			$	1,819,753
Liabilities and shareholders' equity
Current liabilities
Accounts payable		$	219,605			$	102,054
Accrued liabilities			98,267				89,308
Contract liabilities			7,471				22,848
Current portion of long-term debt			147,951				160,557
Current portion of contingent obligations			18,357				34,597
Current portion of operating lease liabilities			2,291				1,495
			493,942				410,859
Long-term debt			1,040,022				749,829
Contingent obligations			20,121				28,856
Operating lease liabilities			22,982				9,698
Other long-term obligations			21,848				22,607
Deferred tax liabilities			172,374				141,283
			1,771,289				1,363,132
Shareholders' equity
Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2026 - 27,435,462 (December 31, 2025 – 28,821,481))			270,419				282,957
Treasury shares (September 30, 2026 - 796,568 (December 31, 2025 - 871,244))			(13,827	)			(14,993	)
Additional paid-in capital			—				2,807
Retained earnings			147,638				176,463
Accumulated other comprehensive income			48,197				9,387
Shareholders' equity			452,427				456,621
Total liabilities and shareholders' equity		$	2,223,716			$	1,819,753

Consolidated Statements of Operations and
Comprehensive (Loss) Income

(Expressed in thousands of Canadian Dollars, except per share amounts)
(Unaudited)

		Three months ended								Nine months ended
		September 30,								September 30,
			2026				2025				2026				2025
Revenue		$	413,276			$	317,248			$	1,133,458			$	978,715
Cost of sales			299,943				218,033				818,437				690,554
Depreciation and amortization			66,247				49,858				183,498				166,173
Gross profit			47,086				49,357				131,523				121,988
General and administrative expenses			50,808				12,870				91,563				33,214
Loss (gain) on disposal of property, plant and equipment			2,326				740				3,586				(344	)
Operating (loss) income			(6,048	)			35,747				36,374				89,118
Interest expense, net			21,288				15,265				56,858				42,904
Equity loss (earnings) in affiliates and joint ventures			18,144				(5,232	)			13,275				(3,382	)
Loss on derivative financial instruments			1,434				1,684				2,184				9,346
Change in fair value of contingent obligations			(19,371	)			505				(31,369	)			(9,703	)
(Loss) income before income taxes			(27,543	)			23,525				(4,574	)			49,953
Current income tax (benefit) expense			(10,177	)			206				(10,838	)			2,781
Deferred income tax expense			6,822				6,023				15,522				13,463
Net (loss) income			(24,188	)			17,296				(9,258	)			33,709
Other comprehensive income
Unrealized foreign currency translation gain			(3,843	)			(11,153	)			(38,810	)			(11,072	)
Comprehensive (loss) income		$	(20,345	)		$	28,449			$	29,552			$	44,781
Per share information
Basic net (loss) income per share		$	(0.90	)		$	0.59			$	(0.34	)		$	1.17
Diluted net (loss) income per share		$	(0.90	)		$	0.56			$	(0.34	)		$	1.11

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is North American Construction Group's revised 2026 guidance?

NACG expects C$1.7–C$1.8 billion in combined revenue and C$370–C$400 million in adjusted EBITDA for 2026. Previous ranges were C$1.6–C$1.8 billion and C$380–C$420 million, respectively. The company attributes the lower earnings outlook to a slower pace of earnings improvement than anticipated.

How did the Fargo project affect NOA's third-quarter results?

The revised Fargo forecast increased total project costs by approximately C$150 million, or C$45 million attributable to NACG's 30% interest, resulting in a contract loss position. The revision represented a 9.0% increase over the previous estimate. The joint venture's executive committee approved the forecast as the final estimate because the project is considered close to physically complete.

When will North American Construction Group pay its declared quarterly dividend?

NACG will pay its regular quarterly dividend of C$0.12 per common share on January 8, 2027, to shareholders of record at the close of business on November 25, 2026. The board declared the dividend on November 3, 2026. It is an eligible dividend for Canadian income tax purposes.