North American Construction Group (NOA) Q4 2025 earnings summary

Executive summary

• Record annual revenue for 2025 reached CAD 1.5 billion, driven by strong Australian growth and diversification, while Q4 earnings were impacted by a $13 million cost adjustment on the Fargo project and above-average rainfall in Queensland.

• Q4 2025 combined revenue was CAD 344 million, with adjusted EBITDA of CAD 78 million (22.6% margin), affected by one-time items and weather disruptions.

• Workforce grew to 3,300 employees with 7.1 million exposure hours in 2025.

• Announced acquisition of Iron Mine Contracting (IMC) to expand the Australian footprint, expected to close in early Q2 2026, adding CAD 1 billion in backlog and 120 heavy assets.

• Strategic divestiture of the ultra-class fleet in Canada effective December 2025, contributing to free cash flow and segment revenue shift.

Financial highlights

• Q4 2025 combined revenue was CAD 344 million, with Australia up 10% year-over-year to AUD 176 million and Canada down 10% due to fleet divestiture.

• Combined gross profit margin was 8.5%, down from 12.3% prior year, due to project and weather impacts.

• Q4 adjusted EBITDA margin was 22.6%, below the typical 30% run rate.

• Adjusted EPS for Q4 was a loss of CAD 0.14.

• Free cash flow for Q4 was CAD 57 million, the highest quarterly result of the year.

Outlook and guidance

• 2026 revenue guidance is CAD 1.6 billion (midpoint), adjusted EBITDA at CAD 400 million, and free cash flow at CAD 120 million, with $1.2 billion already secured.

• Backlog stands at CAD 3.9 billion, with a CAD 12.6 billion bid pipeline and CAD 4.6 billion in active tenders.

• H2 2026 revenue is expected to be ~20% higher than H1, driven by IMC integration and seasonal activity.

• EBITDA expected to improve in the second half of 2026 as IMC synergies are realized.

• Operational priorities include safety, cost reduction, and improved mechanical availability.