NACG Q2 revenue up 16% but misses estimates

Overview

• NACG Q2 revenue rises 16%, misses analyst expectations, per LSEG data

• Adjusted EPS and EBITDA for Q2 miss consensus

• Co remains positive about long-term growth targets despite near-term challenges

Outlook

• NACG maintains 2025 revenue guidance, supported by backlog

• Company adjusts 2025 EBITDA guidance to C$190-C$210 mln, down from C$205-C$225 mln

• Company targets 5%-10% annual organic revenue growth beyond 2025

Result Drivers

• HEAVY EQUIPMENT AUSTRALIA - Revenue increased 14% due to expanded fleet and new copper mine project

• HEAVY EQUIPMENT CANADA - Revenue rose 20% driven by reclamation activities and stream diversion project

• DISRUPTIONS - Gross profit impacted by subcontractor labor reliance in Australia and customer-requested shutdown in Canada

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for North American Construction Group Ltd is C$36.00, about 37.1% above its August 12 closing price of C$22.65

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX2Nz68R