Highlights

  • NOA’s Q3 2024 revenue grew by 45.7%, reaching CAD 286.8 million, driven by strong equipment utilization in Australia.
  • Operating income surged 276.2% to CAD 53.8 million, primarily due to higher revenue, despite increased depreciation costs.
  • The company declared a 20% dividend increase, with Q3 2024 net income rising by 23.0% to CAD 13.9 million.

North American Construction Group Ltd. (TSX: NOA) provides a range of mining and heavy construction services.

In Q3 2024, the company achieved a revenue of CAD 286.8 million, an increase of 45.7% compared to CAD 196.8 million in the prior corresponding period (pcp). This growth was mainly driven by strong equipment utilization in Australia. Alongside this revenue increase, operating income jumped by 276.2%, reaching CAD 53.8 million from CAD 14.3 million in pcp. This improvement was mainly due to the higher revenue, although it was partially hampered by higher depreciation costs.

NOA’s income before income taxes rose by 57.3%. This increase was primarily due to higher operating income, though it was partly reduced by higher interest costs and changes in the fair value of contingent obligations. As a result, the company's net income grew by 23.0%, reaching CAD 13.9 million, up from CAD 11.3 million in pcp.

Recent Business Update

Company Outlook

The company expects its total revenue for FY24 to be between CAD 1.4 billion and CAD 1.5 billion. It also forecasts that its adjusted EBITDA will fall between CAD 395 million and CAD 415 million for the same period. Additionally, the company anticipates generating free cash flow of between CAD 100 million and CAD 120 million for the year.

Top 10 Shareholders

The top 10 shareholders of NOA collectively own approximately 61.26% of the total shares. Mawer Investment Management Ltd. holds the largest stake in the company at around 11.17%. It is followed by Ferron (Martin R) holding around 7.97% stake.

Stock Information

Over the past week, NOA's stock price has decreased by approximately 1.89%, while it has increased by about 17.94% over the last month. Additionally, the stock is currently trading below the average of its 52-week high of CAD 34.87 and 52-week low of CAD 22.68. As of November 19 2024, the stock’s closing price is CAD 27.47.

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 November 19, 2024. The reference data in this report has been partly sourced from EODHD/Others.