Canada's North American Construction Q1 revenue rises 8% but misses estimates

North American Construction

13/05/2026 22:13

Corrects revenue metric to "reported revenue" throughout, and to say the figure fell 6%, not rose 8%

Overview

Canada heavy civil contractor's Q1 reported revenue fell 6% yr/yr, missing analyst expectations

Adjusted EBITDA for Q1 beat analyst expectations

Company completed acquisition of Iron Mine Contracting, expanding Australian mining services platform

Outlook

Company sees 2026 combined revenue between C$1.5 bln and C$1.7 bln

Company expects 2026 adjusted EBITDA of C$380 mln to C$420 mln

Company projects 2026 free cash flow of C$110 mln to C$130 mln

Result Drivers

AUSTRALIAN GROWTH - Revenue in Australia rose 17% yr/yr, driven by higher volumes from growth assets, new contract awards, and improved equipment utilization

IMC ACQUISITION - Combined revenue and gross profit benefited from the addition of Iron Mine Contracting, though its lower margins reduced overall profitability metrics

CANADIAN FLEET OPTIMIZATION - Margin performance in Canada improved due to ongoing fleet right-sizing and focus on mechanical availability, despite lower revenue from asset sales and reduced activity at key sites

Company press release: ID:nGNX9srSdG

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Reported revenue
Miss
C$319.22 mln
C$353 mln (3 Analysts)
Q1 Adjusted EPS
Miss
C$0.37
C$0.40 (2 Analysts)
Q1 Adjusted Net Income
C$10.25 mln
Q1 Adjusted EBITDA
Beat
C$99.47 mln
C$91.07 mln (5 Analysts)
Q1 Gross Profit
C$42.81 mln
Q1 Operating Income
C$21.89 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for North American Construction Group Ltd is C$25.50, about 27.9% above its May 12 closing price of C$19.94

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)