Q4 2025 North American Construction Group Ltd Earnings Call Transcript
Key Points
- North American Construction Group Ltd (NOA) reported a Q4 record revenue of $176 million in Australia, despite challenging weather conditions.
- The company achieved a combined revenue of $1.5 billion in 2025, with Australia and Canada showing a net increase of 10%.
- The acquisition of Iron Mine Contracting (IMC) is expected to increase the company's backlog by 30% and enhance its capabilities in Australia.
- NOA generated $103 million in free cash flow in the second half of 2025, demonstrating strong cash flow management.
- The company has a strong bid pipeline of approximately $12.6 billion, providing visibility into future growth opportunities.
- The Fargo project experienced a $13 million retroactive cost adjustment, impacting the company's EBITDA for the quarter.
- Q4 EBITDA and EBIT were down from 2024 comparables, with a 23% EBITDA margin, approximately 7% lower than the run rate metric.
- The company reported an adjusted earnings per share loss of $0.14 for the quarter.
- The strategic divestiture of the ultra-class fleet impacted Q4 revenue.
- The Fargo project has faced multiple retroactive cost adjustments, affecting current quarter earnings.
Good morning, ladies, and gentlemen. Welcome to the North American Construction Group conference call regarding the fourth-quarter ended December 31, 2025. (Operator Instructions) The media may monitor this call in listen-only mode. They are free to quote any member of management, but they are asked not to quote remarks from any other participant without that participant's permission.
The company wishes to confirm that today's comments contain forward-looking information and that actual results could differ materially from a conclusion, forecast, or projection contained in that forward-looking information. Certain material factors or assumptions were applied in drawing conclusions or in making forecasts or projections that are reflected in the forward-looking information.
Additional information about those material factors is contained in the company's most recent management discussion and analysis, which is available on SEDAR and EDGAR as well as the company's website at NACG.ca. I will now turn the conference over to Jason Veenstra, CFO. Please go ahead.
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