NACG's Q2 adjusted EBITDA rose to C$93.5M, with IMC adding C$13.1M; free cash flow hit C$23M. Guidance for 2026 was raised. Management's call lands Thursday.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
North American Construction Group Ltd. (TSX/NYSE: NOA) raised its full-year 2026 combined revenue guidance after posting record second-quarter revenue, citing the contribution from IMC, organic growth in Australia and improved joint venture earnings.
The Acheson, Alberta-based contractor said adjusted EBITDA rose to C$93.5 million from C$80.1 million a year earlier. IMC added C$13.1 million to the quarterly figure. Adjusted EBITDA margin narrowed to 20.5% from 21.6%, a shift the company attributed to IMC's margin profile.
Adjusted net earnings were C$8.5 million, or C$0.32 per share, up from C$0.8 million, or C$0.02, in the year-ago quarter. Stronger gross profit, improved equity earnings and reduced interest accretion drove the gain, offset partly by higher interest expense on growth-related debt, the company said.
Reported net income came in at C$9.4 million, or C$0.35 per share, compared with C$10.3 million a year earlier. The year-over-year decline reflected C$4.8 million in acquisition and integration costs plus higher interest expense, which overwhelmed gains in gross profit, the company said.
Free cash flow reached C$23.0 million, an improvement of C$23.4 million from a year earlier. The company said the result reflected C$93.5 million of adjusted EBITDA, offset by C$62.5 million in sustaining capital and C$18.2 million in cash interest.
"The inflection point of the second quarter is not simply greater scale, but our ability to translate that scale into improved performance and durable value," the company said. "We believe the combination of near-term earnings drivers and a substantial, qualified growth pipeline positions NACG for a stronger second half and continued momentum into 2027."
The board declared a quarterly dividend of C$0.12 per share, payable Oct. 2 to shareholders of record Aug. 28.
Management will discuss the results on a conference call Thursday at 9 a.m. Eastern. A replay will be available through Sept. 12.
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