North American Construction Group Ltd. Announces Results for the Fourth Quarter and Year Ended December 31, 2024
North American Construction Group (NOA) reported Q4 2024 financial results with combined revenue of $372.7 million, down from $405.4 million in Q4 2023. The company achieved an Adjusted EBITDA of $103.7 million with a 27.8% margin, improving from $101.1 million and 24.9% in the prior year.
Key operational highlights include equipment utilization of 82% in Australia and 54% in Canada. The quarter saw gross profit of $54.3 million with a 14.6% margin, impacted by $10.1 million in integration costs and $8.9 million in claims settlements. Free cash flow was $50.5 million, and net debt decreased by $26.3 million to $856.2 million.
Notable contract awards include a $125 million heavy civil construction project, a $500 million extended regional services contract in oil sands, and a $100 million early works contract in New South Wales, Australia. The company also achieved 60% completion of the Fargo-Moorhead flood diversion project.
North American Construction Group (NOA) ha riportato i risultati finanziari del quarto trimestre 2024 con un fatturato combinato di 372,7 milioni di dollari, in calo rispetto ai 405,4 milioni di dollari del quarto trimestre 2023. L'azienda ha raggiunto un EBITDA rettificato di 103,7 milioni di dollari con un margine del 27,8%, in miglioramento rispetto ai 101,1 milioni di dollari e al 24,9% dell'anno precedente.
I principali punti salienti operativi includono un utilizzo delle attrezzature dell'82% in Australia e del 54% in Canada. Nel trimestre si è registrato un utile lordo di 54,3 milioni di dollari con un margine del 14,6%, influenzato da costi di integrazione di 10,1 milioni di dollari e da 8,9 milioni di dollari in risoluzioni di reclami. Il flusso di cassa libero è stato di 50,5 milioni di dollari e il debito netto è diminuito di 26,3 milioni di dollari, portandosi a 856,2 milioni di dollari.
I contratti assegnati di rilievo includono un progetto di costruzione civile pesante da 125 milioni di dollari, un contratto di servizi regionali estesi da 500 milioni di dollari nelle sabbie bituminose e un contratto di lavori preliminari da 100 milioni di dollari nel New South Wales, Australia. L'azienda ha anche raggiunto il 60% di completamento del progetto di deviazione delle inondazioni Fargo-Moorhead.
North American Construction Group (NOA) informó los resultados financieros del cuarto trimestre de 2024 con unos ingresos combinados de 372,7 millones de dólares, una disminución respecto a los 405,4 millones de dólares del cuarto trimestre de 2023. La compañía logró un EBITDA ajustado de 103,7 millones de dólares con un margen del 27,8%, mejorando desde los 101,1 millones de dólares y el 24,9% del año anterior.
Los aspectos operativos clave incluyen una utilización de equipos del 82% en Australia y del 54% en Canadá. En el trimestre se registró una ganancia bruta de 54,3 millones de dólares con un margen del 14,6%, afectada por costos de integración de 10,1 millones de dólares y 8,9 millones de dólares en liquidaciones de reclamaciones. El flujo de caja libre fue de 50,5 millones de dólares y la deuda neta disminuyó en 26,3 millones de dólares, alcanzando los 856,2 millones de dólares.
Los contratos adjudicados notables incluyen un proyecto de construcción civil pesada de 125 millones de dólares, un contrato de servicios regionales extendidos de 500 millones de dólares en arenas bituminosas y un contrato de trabajos preliminares de 100 millones de dólares en Nueva Gales del Sur, Australia. La empresa también logró un 60% de finalización del proyecto de desvío de inundaciones Fargo-Moorhead.
북미 건설 그룹 (NOA)는 2024년 4분기 재무 결과를 보고하며, 총 수익이 3억 7천 2백 70만 달러로, 2023년 4분기의 4억 5천 4백만 달러에서 감소했다고 발표했습니다. 회사는 조정된 EBITDA 1억 3천 7백만 달러를 달성했으며, 마진은 27.8%로, 전년도 1억 1천 1백만 달러와 24.9%에서 개선되었습니다.
주요 운영 하이라이트로는 호주에서 82%, 캐나다에서 54%의 장비 활용률이 포함됩니다. 이번 분기에는 5천 4백 30만 달러의 총 이익이 발생했으며, 마진은 14.6%로, 1천 1백만 달러의 통합 비용과 8백 90만 달러의 청구 합의로 인해 영향을 받았습니다. 자유 현금 흐름은 5천 5백만 달러였으며, 순부채는 2천 6백 30만 달러 감소하여 8억 5천 6백 20만 달러에 이르렀습니다.
주목할 만한 계약 수주에는 1억 2천 5백만 달러의 중대형 건설 프로젝트, 5억 달러의 오일 샌드 지역 서비스 계약, 호주 뉴사우스웨일즈에서의 1억 달러의 초기 작업 계약이 포함됩니다. 회사는 또한 Fargo-Moorhead 홍수 우회 프로젝트의 60% 완료를 달성했습니다.
North American Construction Group (NOA) a publié ses résultats financiers pour le quatrième trimestre 2024, avec un chiffre d'affaires combiné de 372,7 millions de dollars, en baisse par rapport à 405,4 millions de dollars au quatrième trimestre 2023. L'entreprise a réalisé un EBITDA ajusté de 103,7 millions de dollars avec une marge de 27,8%, s'améliorant par rapport à 101,1 millions de dollars et 24,9% l'année précédente.
Les points forts opérationnels incluent un taux d'utilisation des équipements de 82% en Australie et de 54% au Canada. Le trimestre a enregistré un bénéfice brut de 54,3 millions de dollars avec une marge de 14,6%, impacté par des coûts d'intégration de 10,1 millions de dollars et 8,9 millions de dollars en règlements de réclamations. Le flux de trésorerie libre était de 50,5 millions de dollars, et la dette nette a diminué de 26,3 millions de dollars pour atteindre 856,2 millions de dollars.
Les attributions de contrats notables comprennent un projet de construction lourde de 125 millions de dollars, un contrat de services régionaux prolongés de 500 millions de dollars dans les sables bitumineux, et un contrat de travaux préliminaires de 100 millions de dollars en Nouvelle-Galles du Sud, Australie. L'entreprise a également atteint 60% d'achèvement du projet de dérivation des inondations de Fargo-Moorhead.
North American Construction Group (NOA) hat die finanziellen Ergebnisse des vierten Quartals 2024 veröffentlicht, mit einem kombinierten Umsatz von 372,7 Millionen Dollar, ein Rückgang von 405,4 Millionen Dollar im vierten Quartal 2023. Das Unternehmen erzielte ein bereinigtes EBITDA von 103,7 Millionen Dollar mit einer Marge von 27,8%, was eine Verbesserung gegenüber 101,1 Millionen Dollar und 24,9% im Vorjahr darstellt.
Wichtige betriebliche Höhepunkte umfassen eine Auslastung der Geräte von 82% in Australien und 54% in Kanada. Im Quartal wurde ein Bruttogewinn von 54,3 Millionen Dollar mit einer Marge von 14,6% erzielt, beeinflusst durch Integrationskosten von 10,1 Millionen Dollar und 8,9 Millionen Dollar in Vergleichszahlungen. Der freie Cashflow betrug 50,5 Millionen Dollar, und die Nettoverschuldung verringerte sich um 26,3 Millionen Dollar auf 856,2 Millionen Dollar.
Bemerkenswerte Vertragsvergaben umfassen ein 125 Millionen Dollar schweres Bauprojekt, einen 500 Millionen Dollar umfassenden langfristigen Dienstleistungsvertrag im Bereich Ölsande und einen 100 Millionen Dollar umfassenden Vorarbeitenvertrag in New South Wales, Australien. Das Unternehmen erreichte auch einen 60%igen Fortschritt beim Fargo-Moorhead Hochwasserschutzprojekt.
- Improved Adjusted EBITDA margin to 27.8% from 24.9% year-over-year
- Secured $725 million in new contracts across various regions
- Strong equipment utilization of 82% in Australian operations
- Reduced net debt by $26.3 million quarter-over-quarter
- Combined revenue declined 8.1% year-over-year to $372.7M
- Canadian equipment utilization dropped to 54% from 65% year-over-year
- Gross profit margin decreased to 14.6% from 18.3% year-over-year
- Incurred $10.1M in integration costs and $8.9M in claims settlements
Insights
NOA's Q4 2024 results present a mixed financial picture with a positive strategic outlook. While combined revenue declined 8% year-over-year to
The company secured
Free cash flow generation of
The
NOA's results reveal a company successfully transitioning toward higher-margin operations while building a diversified contract portfolio across geographies and sectors. The Australian expansion strategy is yielding meaningful results with
The company's contract wins demonstrate diversification across resource sectors (oil sands, mining) and infrastructure (flood diversion channels), reducing vulnerability to commodity cycles. The
Management's 2025 strategic priorities appropriately focus on operational excellence in Australia and equipment reliability in Canada – addressing the key performance gaps in each region. The ERP implementation in Australia should improve working capital management, particularly important given the
The notable
ACHESON, Alberta, March 19, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the fourth quarter and year ended December 31, 2024. Unless otherwise indicated, figures are expressed in Canadian dollars with comparisons to prior periods ended December 31, 2023.
Fourth Quarter 2024 Highlights:
- Combined revenue of
$372.7 million , compared to$405.4 million in the same period last year. Reported revenue of$305.6 million , compared to$328.3 million in the same period last year, was generated by our wholly owned subsidiaries as incremental scopes and strong equipment utilization of82% in Australia were more than offset by lower demand for our Canadian heavy equipment fleet when comparing to 2023 Q4. - Our net share of revenue from equity consolidated joint ventures was
$67.1 million in 2024 Q4 and compared to$77.1 million in the same period last year as the consistency in the Fargo and MNALP joint ventures were offset by lower scopes being completed within the Nuna Group of Companies. - Adjusted EBITDA of
$103.7 million and margin of27.8% compared favorably to the prior period operating metrics of$101.1 million and24.9% , respectively, as operational excellence in both Australia and Canada drove margin improvements. - Combined gross profit for the quarter was
$54.3 million and a margin of14.6% . When adjusting for$10.1 million of integration costs incurred and$8.9 million of claims extinguished to secure long-term contracts, the resulting19.7% reflects operational performance and compares favorably to18.3% posted in the same period last year. - Cash flows generated from operating activities of
$97.0 million were lower than the$168.6 million generated in the prior period as higher cash generation from the strong EBITDA was offset by the temporary impact of changes to working capital in the quarter. - Free cash flow generated in the quarter was
$50.5 million as operational earnings were offset by routine capital maintenance and cash interest expenses with working capital and capital work in process balances generating positive cash in the quarter. - Net debt was
$856.2 million at December 31, 2024, a decrease of$26.3 million from September 30, 2024, as free cash flow generation and the impact of a stronger CAD/AUD exchange rate were offset by growth spending, the NCIB program, and the dividend payment . - Additional highlights include: i) in November, we were awarded a
$125 million heavy civil construction project primarily to construct diversion channels; ii) in December, we announced an extended and amended regional services contract, valued at$500 million , with a major producer in the oil sands region; iii) also in December, we were awarded a$100 million early works contract by a copper producer in the Australian state of New South Wales; iv) by the end of the year, we surpassed the60% completion mark at the Fargo-Moorhead flood diversion project; and v) completed go-live activities for the ERP system in Australia during the quarter.
Joe Lambert, President and CEO, stated, "Once again, I would like to thank our operations team for their safe and efficient performance this quarter. The recent contract awards in Australia and Canada speak for themselves but are a testament to the quality and reputation of our operating teams. We're off to a fast and robust start this year, and we couldn't be more excited about completing the work our customers have awarded us. We see opportunities and tailwinds in the heavy civil infrastructure and mining industries in Australia and North America and are diligently advancing efforts to win scopes based on the reputation we have in the respective regions."
| Consolidated Financial Highlights | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 305,590 | $ | 328,282 | $ | 1,165,787 | $ | 964,680 | ||||||||
| Cost of sales | 218,834 | 220,672 | 789,056 | 678,528 | ||||||||||||
| Depreciation | 44,765 | 41,990 | 166,683 | 131,319 | ||||||||||||
| Gross profit | $ | 41,991 | $ | 65,620 | $ | 210,048 | $ | 154,833 | ||||||||
| Gross profit margin | 13.7 | % | 20.0 | % | 18.0 | % | 16.1 | % | ||||||||
| General and administrative expenses (excluding stock-based compensation)(i) | 13,696 | 18,702 | 47,245 | 41,016 | ||||||||||||
| Stock-based compensation expense | 5,625 | (496 | ) | 8,706 | 15,828 | |||||||||||
| Operating income | 22,544 | 45,944 | 153,330 | 96,330 | ||||||||||||
| Interest expense, net | 14,401 | 14,007 | 59,340 | 36,948 | ||||||||||||
| Net income | 4,808 | 17,646 | 44,085 | 63,141 | ||||||||||||
| Adjusted EBITDA(i) | 103,714 | 101,136 | 390,258 | 296,963 | ||||||||||||
| Adjusted EBITDA margin(i)(ii) | 27.8 | % | 24.9 | % | 27.6 | % | 23.2 | % | ||||||||
| Per share information | ||||||||||||||||
| Basic net income per share | $ | 0.18 | $ | 0.66 | $ | 1.65 | $ | 2.38 | ||||||||
| Diluted net income per share | $ | 0.19 | $ | 0.58 | $ | 1.52 | $ | 2.09 | ||||||||
| Adjusted EPS(i) | $ | 1.00 | $ | 0.87 | $ | 3.73 | $ | 2.83 | ||||||||
(i) See "Non-GAAP Financial Measures".
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||
| Cash provided by operating activities | $ | 96,989 | $ | 168,569 | $ | 217,607 | $ | 278,090 | ||||||||
| Cash used in investing activities | (75,764 | ) | (137,756 | ) | (274,683 | ) | (244,879 | ) | ||||||||
| Effect of exchange rate on changes in cash | 1,400 | (4,532 | ) | 353 | (5,994 | ) | ||||||||||
| Add back of growth and non-cash items included in the above figures: | ||||||||||||||||
| Acquisition of MacKellar(i) | — | 51,671 | — | 51,671 | ||||||||||||
| Acquisition costs | — | 5,934 | — | 7,095 | ||||||||||||
| Buyout of BNA Remanufacturing LP | 4,210 | — | 4,210 | — | ||||||||||||
| Growth capital additions(ii) | 23,646 | 35,941 | 84,633 | 40,416 | ||||||||||||
| Capital additions financed by leases(ii) | — | (931 | ) | (14,157 | ) | (28,159 | ) | |||||||||
| Free cash flow(ii) | $ | 50,481 | $ | 118,896 | $ | 17,963 | $ | 98,240 | ||||||||
(i)Acquisition of MacKellar is the purchase price less cash acquired.
(ii)See "Non-GAAP Financial Measures".
Results for the Three Months Ended December 31, 2024
Revenue from wholly-owned entities was
Gross profit was
General and administrative expenses (excluding stock-based compensation expense) were
Cash related interest expense of
Net income of
Free cash flow in the quarter was
Liquidity
Including equipment financing availability and factoring in the amended Credit Facility agreement, total available capital liquidity of
Business Updates
Strategic Focus Areas for 2025
- Safety - maintain our uncompromising commitment to health and safety while elevating the standard of excellence in the field, particularly with regards to front-line leadership training;
- Operational excellence - put into action practical and experienced-based protocols to ensure predictable high-quality project execution in Australia;
- Execution - enhance equipment availability in Canada through improved fleet maintenance, equipment telematics and reliability programs, technical improvements and management systems;
- Integration - utilize recently implemented ERP at MacKellar Group to optimize business processes to lower overall costs and improve working capital management;
- Organic growth - based on strong site operating performance, leverage customer satisfaction to earn contract extensions and expansions;
- Diversification - pursue diversification of customers and resources through strategic partnerships, industry expertise and investment in Indigenous joint ventures; and
- Sustainability - further develop and deliver into our environmental, social and governance goals.
Outlook for 2025
The following table provides projected key measures for 2025 and actual results of 2024 and 2023. The measures for 2025 are predicated on contracts currently in place, including expected renewals and the heavy equipment fleet that we own and operate.
| Key measures | 2023 Actual | 2024 Actual | 2025 Outlook | |||||
| Combined revenue(i) | ||||||||
| Adjusted EBITDA(i) | ||||||||
| Sustaining capital(i) | ||||||||
| Adjusted EPS(i) | $3.73 | |||||||
| Free cash flow(i) | ||||||||
| Capital allocation | ||||||||
| Growth spending(i) | ||||||||
| Net debt leverage(i) | 1.7x | 2.2x | Targeting 1.7x | |||||
(i)See "Non-GAAP Financial Measures".
Conference Call and Webcast
Management will hold a conference call and webcast to discuss our financial results for the three months and year ended December 31, 2024, tomorrow, Thursday, March 20, 2025, 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: 71653
A replay will be available through April 20, 2025, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 71653
Playback Passcode: 71653
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=70DEA77D-C2B3-4C4B-80EF-A1303C5C95BF
A replay will be available until April 20, 2025, using the link provided.
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 three months and year ended December 31, 2024, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2024 Q4 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 - Basis of presentation
During the first quarter of 2024, we changed our accounting policy for the elimination of its proportionate share of profit from downstream sales to affiliates and joint ventures to record through equity earnings in affiliates and joint ventures on the Consolidated Statements of Operations and Comprehensive Income. Prior to this change, we eliminated our proportionate share of profit on downstream sales to affiliates and joint ventures through revenue and cost of sales. The change in accounting policy simplifies the presentation for downstream profit eliminations and has no cumulative impact on retained earnings. We have accounted for the change retrospectively in accordance with the requirements of US GAAP Accounting Standards Codification ("ASC") 250 by restating the comparative period. For details of retrospective changes, refer to note 25 in the consolidated financial statements.
Accounting pronouncements recently adopted
Segment reporting
The Company adopted the new standard for segment reporting that is effective for the fiscal year beginning January 1, 2024. In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This accounting standard update was issued to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company has updated its disclosures to reflect the additional requirements.
Recent accounting pronouncements not yet adopted
Joint venture formations
In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Venture Formations. This accounting standard update was issued to create new requirements for valuing contributions made to a joint venture upon formation. This standard is effective January 1, 2025, with early adoption permitted. We are assessing the impact the adoption of this standard may have on its consolidated financial statements.
Income taxes
In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This accounting standard update was issued to increase transparency by improving income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard is effective for the fiscal year beginning January 1, 2025, with early adoption permitted. We are assessing the impact the adoption of this standard may have on its consolidated financial statements.
Stock compensation
In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation. This accounting standard update was issued to reduce complexity in determining if profit interest awards are subject to Topic 718 and to reduce diversity in practice. This standard is effective for annual statements for the fiscal year beginning January 1, 2025. The Company is assessing the impact the adoption of this standard may have on its consolidated financial statements.
Debt with conversion options
In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options. This accounting standard update was issued to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20. This standard is effective for annual statements for the fiscal year beginning January 1, 2026. The Company is assessing the impact the adoption of this standard may have on its consolidated financial statements.
Expense disaggregation
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This accounting standard update was issued to require public entities to disclose additional information about specific expense categories in the notes to financial statements. This standard is effective for annual statements for the fiscal year beginning January 1, 2027. We are assessing the impact the adoption of this standard may have on its consolidated financial statements.
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 2025.
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 months and year ended December 31, 2024. 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.ca 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", "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.ca and on our company website at www.nacg.ca.
| Reconciliation of total reported revenue to total combined revenue | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (dollars in thousands) | 2024 | 2023(ii) | 2024 | 2023(ii) | ||||||||||||
| Revenue from wholly-owned entities per financial statements | $ | 305,590 | $ | 328,282 | $ | 1,165,787 | $ | 964,680 | ||||||||
| Share of revenue from investments in affiliates and joint ventures | 134,348 | 169,662 | 517,137 | 686,299 | ||||||||||||
| Elimination of joint venture subcontract revenue | (67,200 | ) | (92,522 | ) | (267,595 | ) | (369,891 | ) | ||||||||
| Total combined revenue(i) | $ | 372,738 | $ | 405,422 | $ | 1,415,329 | $ | 1,281,088 | ||||||||
(i) See "Non-GAAP Financial Measures".
(ii)The prior year amounts are adjusted to reflect a change in presentation. See "Accounting Estimates, Pronouncements and Measures".
| Reconciliation of reported gross profit to combined gross profit | ||||||||||||
| Three months ended | Year ended | |||||||||||
| December 31, | December 31, | |||||||||||
| (dollars in thousands) | 2024 | 2023(ii) | 2024 | 2023(ii) | ||||||||
| Gross profit from wholly-owned entities per financial statements | $ | 41,991 | $ | 65,620 | $ | 210,048 | $ | 154,833 | ||||
| Share of gross profit from investments in affiliates and joint ventures | 12,283 | 8,670 | 49,455 | 49,638 | ||||||||
| Combined gross profit(i) | $ | 54,274 | $ | 74,290 | $ | 259,503 | $ | 204,471 | ||||
(i) See "Non-GAAP Financial Measures".
(ii)The prior year amounts are adjusted to reflect a change in presentation. See "Accounting Estimates, Pronouncements and Measures".
| Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 4,808 | $ | 17,646 | $ | 44,085 | $ | 63,141 | ||||||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation expense (benefit) | 5,625 | (496 | ) | 8,706 | 15,828 | |||||||||||
| Loss on disposal of property, plant and equipment | 126 | 1,470 | 767 | 1,659 | ||||||||||||
| Write-down on assets held for sale | — | — | 4,181 | — | ||||||||||||
| Change in fair value of contingent obligation from adjustments to estimates | 9,464 | — | 36,049 | — | ||||||||||||
| (Gain) loss on derivative financial instruments | (4,797 | ) | 916 | (3,952 | ) | (6,063 | ) | |||||||||
| Equity investment (gain) loss on derivative financial instruments | (201 | ) | (713 | ) | 2,633 | (1,362 | ) | |||||||||
| Equity investment restructuring costs | — | — | 4,517 | — | ||||||||||||
| Loss on equity investment customer bankruptcy claim settlement | — | — | — | 759 | ||||||||||||
| Loss on extinguishment of customer claim | 8,866 | — | 8,866 | — | ||||||||||||
| Post-acquisition asset relocation and integration costs | 10,111 | — | 10,111 | — | ||||||||||||
| Acquisition costs | — | 5,934 | — | 7,095 | ||||||||||||
| Tax effect of the above items | (7,197 | ) | (1,589 | ) | (16,169 | ) | (5,829 | ) | ||||||||
| Adjusted net earnings(i) | $ | 26,805 | $ | 23,168 | $ | 99,794 | $ | 75,228 | ||||||||
| Adjustments: | ||||||||||||||||
| Tax effect of the above items | 7,197 | 1,589 | 16,169 | 5,829 | ||||||||||||
| Interest expense, net | 14,401 | 14,007 | 59,340 | 36,948 | ||||||||||||
| Equity investment EBIT(i)(iii) | 5,076 | 1,622 | 12,228 | 24,929 | ||||||||||||
| Equity earnings in affiliates and joint ventures(iii) | (5,754 | ) | (2,236 | ) | (15,299 | ) | (25,199 | ) | ||||||||
| Change in fair value of contingent obligations | 4,797 | 4,681 | 17,157 | 4,681 | ||||||||||||
| Income tax expense | (375 | ) | 10,930 | 15,950 | 22,822 | |||||||||||
| Adjusted EBIT(i) | $ | 52,147 | $ | 53,761 | $ | 205,339 | $ | 145,238 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization | 45,093 | 42,277 | 167,937 | 132,516 | ||||||||||||
| Write-down on assets held for sale | — | — | (4,181 | ) | — | |||||||||||
| Equity investment depreciation and amortization(i) | 6,474 | 5,098 | 21,163 | 19,209 | ||||||||||||
| Adjusted EBITDA(i) | $ | 103,714 | $ | 101,136 | $ | 390,258 | $ | 296,963 | ||||||||
| Adjusted EBITDA margin(i)(ii) | 27.8 | % | 24.9 | % | 27.6 | % | 23.2 | % | ||||||||
(i) See "Non-GAAP Financial Measures".
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
(iii)The prior year amounts are adjusted to reflect a change in presentation. See "Accounting Estimates, Pronouncements and Measures".
| Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (dollars in thousands) | 2024 | 2023(ii) | 2024 | 2023(ii) | ||||||||||||
| Equity earnings in affiliates and joint ventures | $ | 5,754 | $ | 2,236 | $ | 15,299 | $ | 25,199 | ||||||||
| Adjustments: | ||||||||||||||||
| Gain on disposal of property, plant and equipment | (237 | ) | (22 | ) | (595 | ) | (57 | ) | ||||||||
| Interest expense (income), net | 460 | (268 | ) | (877 | ) | (1,183 | ) | |||||||||
| Income tax (recovery) expense | (901 | ) | (324 | ) | (1,599 | ) | 970 | |||||||||
| Equity investment EBIT(i) | $ | 5,076 | $ | 1,622 | $ | 12,228 | $ | 24,929 | ||||||||
(i) See "Non-GAAP Financial Measures"
(ii)The prior year amounts are adjusted to reflect a change in presentation. See "Accounting Estimates, Pronouncements and Measures".
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
| Consolidated Balance Sheets As at December 31 (Expressed in thousands of Canadian Dollars) | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 77,875 | $ | 88,614 | ||||
| Accounts receivable | 166,070 | 97,855 | ||||||
| Contract assets | 4,135 | 35,027 | ||||||
| Inventories | 74,081 | 64,962 | ||||||
| Prepaid expenses and deposits | 7,676 | 7,402 | ||||||
| Assets held for sale | 683 | 1,340 | ||||||
| 330,520 | 295,200 | |||||||
| Property, plant and equipment | 1,246,584 | 1,142,946 | ||||||
| Operating lease right-of-use assets | 12,722 | 12,782 | ||||||
| Investments in affiliates and joint ventures | 84,692 | 81,435 | ||||||
| Intangible assets | 9,901 | 6,971 | ||||||
| Other assets | 9,845 | 7,144 | ||||||
| Total assets | $ | 1,694,264 | $ | 1,546,478 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 110,750 | $ | 146,190 | ||||
| Accrued liabilities | 77,908 | 72,225 | ||||||
| Contract liabilities | 1,944 | 59 | ||||||
| Current portion of long-term debt | 84,194 | 81,306 | ||||||
| Current portion of contingent obligations | 39,290 | 22,501 | ||||||
| Current portion of operating lease liabilities | 1,771 | 1,742 | ||||||
| 315,857 | 324,023 | |||||||
| Long-term debt | 719,399 | 611,313 | ||||||
| Contingent obligations | 88,576 | 93,356 | ||||||
| Operating lease liabilities | 11,441 | 11,307 | ||||||
| Other long-term obligations | 44,711 | 41,001 | ||||||
| Deferred tax liabilities | 125,378 | 108,824 | ||||||
| 1,305,362 | 1,189,824 | |||||||
| Shareholders' equity | ||||||||
| Common shares (authorized – unlimited number of voting common shares; issued and outstanding – December 31, 2024 - 27,704,450 (December 31, 2023 – 27,827,282)) | 228,961 | 229,455 | ||||||
| Treasury shares (December 31, 2024 - 1,000,328 (December 31, 2023 - 1,090,187)) | (15,913 | ) | (16,165 | ) | ||||
| Additional paid-in capital | 20,819 | 20,739 | ||||||
| Retained earnings | 156,125 | 123,032 | ||||||
| Accumulated other comprehensive loss | (1,090 | ) | (407 | ) | ||||
| Shareholders' equity | 388,902 | 356,654 | ||||||
| Total liabilities and shareholders' equity | $ | 1,694,264 | $ | 1,546,478 | ||||
| Consolidated Statements of Operations and Comprehensive Income For the years ended December 31 (Expressed in thousands of Canadian Dollars, except per share amounts) | ||||||||
| 2024 | 2023(i) | |||||||
| Revenue | $ | 1,165,787 | $ | 964,680 | ||||
| Cost of sales | 789,056 | 678,528 | ||||||
| Depreciation | 166,683 | 131,319 | ||||||
| Gross profit | 210,048 | 154,833 | ||||||
| General and administrative expenses | 55,951 | 56,844 | ||||||
| Loss on disposal of property, plant and equipment | 767 | 1,659 | ||||||
| Operating income | 153,330 | 96,330 | ||||||
| Equity earnings in affiliates and joint ventures | (15,299 | ) | (25,199 | ) | ||||
| Interest expense, net | 59,340 | 36,948 | ||||||
| Change in fair value of contingent obligations | 53,206 | 4,681 | ||||||
| Gain on derivative financial instruments | (3,952 | ) | (6,063 | ) | ||||
| Income before income taxes | 60,035 | 85,963 | ||||||
| Current income tax (benefit) expense | (3,280 | ) | 6,841 | |||||
| Deferred income tax expense | 19,230 | 15,981 | ||||||
| Net income | 44,085 | 63,141 | ||||||
| Other comprehensive income | ||||||||
| Unrealized foreign currency translation loss | 683 | 713 | ||||||
| Comprehensive income | $ | 43,402 | $ | 62,428 | ||||
| Per share information | ||||||||
| Basic net income per share | $ | 1.65 | $ | 2.38 | ||||
| Diluted net income per share | $ | 1.52 | $ | 2.09 | ||||
(i)The prior year amounts are adjusted to reflect a change in presentation. See "Accounting Estimates, Pronouncements and Measures".
FAQ
What was NOA's Q4 2024 revenue performance compared to Q4 2023?
How much did NOA reduce its net debt in Q4 2024?
What major contracts did NOA secure in Q4 2024?
What was NOA's equipment utilization rate in Australia and Canada for Q4 2024?
