North American Construction's Q2 combined revenue rises 23%

North American Construction

12/08/2026 22:17

Overview
Canada heavy civil contractor's Q2 combined revenue rose 23% yr/yr
Q2 adjusted EBITDA increased and beat analyst expectations, driven by IMC acquisition and Australian growth
Company raised 2026 combined revenue guidance midpoint to C$1.7 bln from C$1.6 bln

Outlook
Company raises 2026 combined revenue guidance to C$1.6-C$1.8 bln from C$1.5-C$1.7 bln
Company maintains 2026 adjusted EBITDA guidance at C$380-C$420 mln
Company maintains 2026 free cash flow guidance at C$110-C$130 mln

Result Drivers
IMC ACQUISITION - IMC acquisition in Australia contributed C$84.5 mln in reported revenue and improved gross profit, positioning NACG as a national Tier 1 contractor and broadening client base
AUSTRALIAN ORGANIC GROWTH - Organic growth in Australia driven by strong project execution, asset investments, and favorable FX rates
CANADIAN FLEET OPTIMIZATION - Margin performance in Canada benefited from ongoing fleet optimization and divestiture of ultra-class haul trucks, though revenue declined due to reduced operating capacity, lower Syncrude activity, seasonal impacts, and adverse weather

Company press release: ID:nGNXc63JBR

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Combined revenue
 
C$456.1 mln
 
Q2 Adjusted EPS
 
C$0.32
C$0.40 (2 Analysts)
Q2 Adjusted Net Income
 
C$8.53 mln
C$8 mln (1 Analyst)
Q2 Adjusted EBITDA
 
C$93.47 mln
C$90.44 mln (5 Analysts)
Q2 Gross Profit
 
C$43.41 mln
 
Q2 Operating Income
 
C$20.54 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"
Wall Street's median 12-month price target for North American Construction Group Ltd is C$25.00, about 16.9% above its August 11 closing price of C$21.38
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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Aug 10 - AECOM Q3 revenue beats on design business growth

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(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.)