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Highlights

  • NOA’s Q2 2024 revenue surged 41.6% to CAD 276.3 million, driven by Australian equipment utilisation
  • Net income rose to CAD 14.0 million, up from CAD 12.2 million in pcp
  • The company forecasts FY 2024 revenue of CAD 1.4-1.5 billion, with CAD 395-415 million EBITDA

Based in Canada, North American Construction Group Ltd. (TSX:NOA) offers a variety of heavy construction and mining services. It has a market capitalization of CAD 755.86 million.

In Q2 2024, the company's revenue surged by 41.6% compared to the previous corresponding period to CAD 276.3 million, driven primarily by robust equipment utilisation in Australia. This significant increase in revenue led to a substantial rise in operating income, although it was partly offset by higher depreciation expenses.

The company's income before income tax rose to CAD 19.1 million, bolstered by improved operating income but partially offset by increased interest costs and changes in the fair value of contingent obligations. Overall, the company achieved a net income of CAD 14.0 million, up from CAD 12.2 million in the prior comparative period.

Further, the company had a higher gross profit margin of 18% and a higher adjusted EBITDA Margin of 26.3% in Q2 2024, compared to 11.1% and 18.6% respectively, in the previous corresponding period.

Recent Business Update

On 31 July 2024, the company announced a regular quarterly dividend of CAD 0.10 per common share. It is slated to be distributed on October 04, 2024.

Company Outlook

The company expects its combined revenue for FY 2024 to fall between CAD 1.4 billion and CAD 1.5 billion, with an adjusted EBITDA anticipated to range from CAD 395 million to CAD 415 million. Additionally, the company expects to generate annual free cash flow between CAD 100 million and CAD 120 million.

Top 10 Shareholders

NOA's top 10 shareholders collectively own approximately 54.25% of the company's total shares. Mawer Investment Management Ltd. and Ferron (Martin R) are the largest stakeholders, holding around 10.20% and 7.77% of the shares, respectively.

Stock Performance

The stock price of NOA has surged by around 1.05% over the last 1 week. It has increased by around 3.59% over the past 1 month. Moreover, the stock is trading lower than the average of its 52-week high price of CAD 34.87 and its 52-week low price of CAD 23.59.

 

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 03, 2024. The reference data in this report has been partly sourced from EODHD/Others.