NACG Q2 revenue up 16% but misses estimates

North American Construction

13/08/2025 22:10

Overview

NACG Q2 revenue rises 16%, misses analyst expectations, per LSEG data

Adjusted EPS and EBITDA for Q2 miss consensus

Co remains positive about long-term growth targets despite near-term challenges

Outlook

NACG maintains 2025 revenue guidance, supported by backlog

Company adjusts 2025 EBITDA guidance to C$190-C$210 mln, down from C$205-C$225 mln

Company targets 5%-10% annual organic revenue growth beyond 2025

Result Drivers

HEAVY EQUIPMENT AUSTRALIA - Revenue increased 14% due to expanded fleet and new copper mine project

HEAVY EQUIPMENT CANADA - Revenue rose 20% driven by reclamation activities and stream diversion project

DISRUPTIONS - Gross profit impacted by subcontractor labor reliance in Australia and customer-requested shutdown in Canada

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$320.63 mln
C$334.90 mln (7 Analysts)
Q2 Adjusted EPS
Miss
C$0.02
C$0.81 (3 Analysts)
Q2 Adjusted EBITDA
Miss
C$80.11 mln
C$94.20 mln (8 Analysts)
Q2 Gross Profit
C$35.83 mln
Q2 Operating Income
C$22.79 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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$36.00, about 37.1% above its August 12 closing price of C$22.65

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX2Nz68R

(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.)