North American Construction Group (NOA) Q4 2024 earnings summary

Executive summary

• Achieved record annual combined revenue in 2024, driven by strong growth in Australia and highest-ever quarterly revenue at MacKellar Group, despite weather challenges.

• Ended 2024 with a record contractual backlog of $3.5 billion after major contract wins in Canada and Australia.

• Major infrastructure project (Fargo) surpassed $150 million in annual revenue and reached over 60% completion.

• Free cash flow in Q4 was $50 million, reflecting routine EBITDA generation and disciplined capital spending.

• Safety performance improved, with a trailing 12-month total recordable rate of 0.39, below the industry-leading target.

Financial highlights

• Q4 2024 adjusted EBITDA was $104 million (27.8% margin), up from $101 million (24.9%) in Q4 2023.

• Combined gross profit margin was 14.6%, adjusted to 19.7% excluding contract claim and shipping costs.

• Adjusted EPS for Q4 was $1.00, up from $0.87 in Q4 2023; full-year adjusted EPS was $3.73.

• Free cash flow for Q4 was $50 million, with net debt reduced by $26 million to $856 million.

• Net debt leverage ended at 2.2x, improving to 2.0x after post-year-end debt conversion.

Outlook and guidance

• 2025 guidance: combined revenue of $1.4–$1.6 billion, adjusted EBITDA of $415–$445 million, adjusted EPS of $3.70–$4.00.

• Free cash flow expected at $130–$150 million; net debt leverage target of 1.7x.

• Sustaining capital for 2025 expected at $180–$200 million; growth spending planned at $65–$75 million.

• Q1 expected to contribute about 20% of annual results, with Q3 as the largest quarter.

• Australian operations projected to generate 60% of 2025 EBIT.