North American Construction Group (NOA) Sidoti Small-Cap Virtual Investor Conference summary

Strategic focus and market positioning

• Targets resource-rich, geopolitically stable countries, focusing on large-volume material movement in sectors like oil sands, coal, iron ore, and gold.

• Australia is the primary growth engine due to a contractor-friendly market and favorable weather, enabling higher asset utilization.

• Infrastructure projects, especially climate resiliency initiatives in North America and Australia, are key growth areas.

• Maintains long-term contracts with blue-chip customers, leveraging a 25-year asset life and rebuild capabilities.

• Indigenous partnerships in Canada and Australia provide access and community engagement.

Competitive advantages and operations

• Operates and maintains some of the largest mining equipment, with in-house maintenance reducing costs by 30%-50% compared to new or OEM parts.

• Proprietary telematics system, developed with Caterpillar, enables real-time equipment health monitoring and preemptive maintenance.

• High barriers to entry due to asset cost, limited equipment availability, and specialized maintenance expertise.

• Safety performance and experience in harsh environments further differentiate the business.

M&A and financial strategy

• Recent acquisition of MacKellar Group in Australia provided favorable economics, geographic and customer diversification, and operational synergies.

• Integration of MacKellar is expected to drive cost reductions, margin improvements, and best practice sharing.

• Current capital allocation prioritizes debt reduction and share buybacks (NCIB), with M&A considered for high-return opportunities.

• Targets debt ratios below 2x in the near term and below 1.5x longer term, balancing debt repayment and shareholder returns.