Key Points
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- North American Construction Group raised its 2026 revenue outlook to CAD 1.7 billion–CAD 1.8 billion, but lowered its adjusted EBITDA midpoint to CAD 385 million from CAD 400 million, citing operational challenges.
- A roughly CAD 50 million pretax Fargo project loss and higher Australian costs weighed on results. Australian margins fell to 11.9%, while Canadian margins improved to 10.5%.
- Net debt remained CAD 1.1 billion, and management plans to prioritize free cash flow toward reducing leverage. The company reported a CAD 3.2 billion backlog, a bid pipeline above CAD 15 billion, and expects roughly 10% organic revenue growth in 2027.
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North American Construction Group (NYSE:NOA) raised its 2026 revenue outlook but lowered its adjusted EBITDA forecast after operational challenges in Australia and a substantial loss on its Fargo joint venture project weighed on third-quarter results.
The company reported combined revenue of CAD 438 million for the quarter ended September 30, up CAD 47 million from a year earlier, and EBITDA of CAD 100 million, consistent with the prior-year period. Adjusted earnings per share were CAD 0.25, Chief Financial Officer Jason Veenstra said on the earnings call.
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North American Construction Group Is A Real Asset In Times Like These
IMC, acquired in the second quarter, contributed CAD 74 million in revenue and drove the year-over-year increase. Excluding IMC, Australian revenue grew organically by 5%, while Canadian revenue increased more than 20% on a like-for-like basis, supported by improved equipment availability and demand in the oil sands, Veenstra said.
Fargo Loss and Australian Costs
The company recorded an approximately CAD 50 million pretax impact from the Fargo project after receiving a revised forecast in early October that increased total project costs by 9%, Veenstra said. The impact comprised a CAD 30 million increase in general and administrative costs and a CAD 20 million equity loss.
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