NOA

Image source: The Motley Fool. Thursday, Aug. 13, 2026, at 9 a.m. ET Chief Financial Officer-Jason Veenstra President and Chief Executive Officer-Barry Palmer Operator: Good morning, ladies and gentlemen. Welcome to the North American Construction Group Conference Call regarding the second quarter ended June 30, 2026. [Operator Instructions] the company wishes to confirm that today's comments contain forward-looking information and that actual results could differ materially from a conclusion, forecast or projection contained in that forward-looking information. Certain material factors or assumptions were applied in drawing conclusions or in making forecasts or projections that are reflected in the forward-looking information. Additional information about those material factors is contained in the company's most recent management's discussion and analysis, which is available on SEDAR and EDGAR as well as on the company's website at nacg.ca. I will now turn the conference call over to Jason Veenstra, CFO. Jason Veenstra: Thanks, Jenny, and good morning, everyone. I'll start today's call with brief commentary on the financials, then pass the call to Barry for his operational and forward-looking comments, and we'll conclude as per usual with Q&A. Starting on Slide 4. We delivered $93 million of EBITDA in the first quarter, translating into year-over-year improvements in both adjusted earnings and margin performance. Combined revenue was up $86 million from last year, with IMC contributing $91 million of revenue in the quarter. Excluding IMC, Australia was up organically 15% in the quarter on commission growth assets and strong execution. Offsetting these increases was the year-over-year impact of the divestiture of the ultra-class haul trucks in Canada. The $456 million of total combined revenue finished off a strong first half foundation of over $875 million, supporting our 2026 combined revenue midpoint of $1.7 billion. Moving to Slide 5. Australia posted 13.6% gross profit margin and Canada delivered a combined adjusted margin of approximately 7% despite difficult seasonal conditions early in the quarter in both regions. These results reflected disciplined project execution, improved internal maintenance capability, lower repair costs and the implementation of continued fleet efficiency initiatives, and importantly, are trending in the right direction heading into the second half of 2026. Moving to Slide 6. Q2 EBITDA and EBIT were both up meaningfully from the prior year quarter on the acquisition of IMC and a more typical quarter from the Fargo joint ventures. Direct adjusted G&A was $15 million, or 3.8% of reported revenue, well below our 5% targeted threshold, demonstrating operating leverage on stronger revenue. Depreciation as a percent of combined revenue dropped to 13% from 16% last year as IMC's lower capital intensity resulted in the combined number being lower than our expected range midpoint of 15%. All told, adjusted EPS of $0.32 was generated by solid operational performance. Interest expense increased to $18.9 million from $14.1 million last year, reflecting the financing of our strategic expansions in Australia. Our average cost of debt for the quarter remained consistent at 6.4%. Moving to Slide 7. The business produced $78 million of operating cash flow before working capital, generated by EBITDA performance, net of cash interest. Free cash flow generation was $23 million after a $13 million positive working capital change in the quarter. Moving to Slide 8. Net debt increased $191 million to $1.1 billion, reflecting the acquisition of IMC and growth capital equipment purchased during the quarter. Trailing 12 net debt leverage is reported at 2.9x, but importantly, is not yet benefiting from 12 months of IMC EBITDA. Based on our second half run rate, we are operating at a 2.6x leverage ratio with the plan to decrease that moving forward. Senior secured debt remains steady at 1.7x based on the $200 million of senior unsecured notes we raised in the quarter and the impact of unsecured debt that partially funded the IMC acquisition. With those comments on the financials, I'll pass the call to Barry. Barry Palmer: Thanks, Jason, and good morning, everyone. As Jason just outlined, our first half performance was stronger than expected entering the year and gives us the confidence to raise our full year revenue outlook. More importantly, the quarter reinforced that North American Construction Group is in an inflection point. The strategic groundwork we have put in place is increasingly translating to measurable growth, stronger earnings visibility and more resilient operating profile. Our operating platform continues to evolve, and there's even more opportunity ahead of us. We are now seeing clear evidence that our broader geographic reach, expanded capabilities and operating discipline are working together. Our focus is to convert that opportunity into quality earnings and free cash flow through consistent execution across all operations. On Slide 11 summarizes the 3 strategic building blocks supporting our growth. First, scaling toward a national Tier 1 contractor platform in Australia; secondly, securing infrastructure awards across North America; and third, expanding mining services in Canada and the United States. These are distinct markets, but the underlying model is consistent. We established a position where our equipment, people and execution capabilities create the right to win. We then deepen our customer relationship, expand the scope of work and allocate capital where we can earn attractive returns. The regional updates that follow are proof that this strategy is gaining further traction. On Slide 12, Australia remains our primary growth engine. Revenue has increased approximately 31% compound annual rate from the first half of 2024 through the first half of 2026, and first half 2026 revenue was 14% above the second half of 2025. This momentum reflects the scale we have added through MacKellar and IMC, supported by favorable operating conditions and strong market demand. Together, MacKellar and IMC give us a broader national presence and the capability to pursue larger, more comprehensive scopes across all of Australia. IMC's new eight-bay Muchea workshop is another important step. It expands our maintenance capacity and supports our equipment rebuild program as well as the larger projects we expect to pursue over time. The strategic value extends beyond scale. We are increasing our exposure to lower capital unit rate work and diversifying across gold, lithium, iron ore, nickel and other critical minerals. This combination will support more consistent utilization and a better balance of growth and returns. This integration is also benefiting from a close alignment in safety, culture, core values and maintenance capabilities, which is critical to sustaining performance as the business expands. As of June 30, our Australian operations had approximately $3.4 billion of contractual backlog and a further $3.9 billion bid pipeline, supported by approximately $278 billion of public infrastructure spending and a $242 billion major project pipeline. This gives us meaningful runway as we continue building the platform. Turning to Slide 13. In Northern Canada, where I want to focus on our infrastructure discussion for today's call. Our strategy is to position capital and capabilities where our operating experience provides a clear advantage. Nuna is a strong example with a fleet of approximately 230 heavy equipment assets. New equipment is arriving to Nunavut during the third quarter, increasing capacity and mechanical availability at an established mine site. We expect that expansion to drive approximately 20% site level revenue growth with our ownership stake providing NACG exposure to Nuna's growing earnings contribution. At the same time, we are executing a land-and-expand strategy across priority mining regions. The Yukon infrastructure award and 3 initial projects in Ontario established footholds from which we can pursue larger follow-on scopes. Our ability to safely deliver on time, on budget with 0 deficiencies is how we earn the opportunity to do more for these customers. Nuna's deep remote operating expertise, established infrastructure and indigenous partnerships are difficult to replicate. Those capabilities position us well as critical minerals, defense and nation building investment advances across Northern Canada. With approximately $5 billion of opportunities in the regional pipeline, we see a significant pathway to long-term growth while remaining disciplined in how we pursue it. Turning to Slide 14. In the oil sands, customer demand is shifting toward more equipment-intensive work as haul distances lengthen and operating requirements broaden. This creates an attractive opportunity for North American that can provide reliable fleet availability and consistent service, but it has also required a disciplined operating plan. During the second quarter, we formally identified 260 multi-life heavy equipment assets as our target fleet and aligned our maintenance and operations team around clear objectives. Mechanical availability is a primary operating measure with a medium-term target of 70%. Improving reliability reduces downtime, provides greater schedule certainty and allows us to capture visible demand more efficiently. This is not simply about increasing activity. It's about improving the quality of earnings. We are concentrating on investment for assets and scopes that meet our return thresholds with incremental investments targeting IRRs above 40% and a clear line of sight toward gross profit margins in the 15% range. Better fleet performance, selective capital allocation and operating discipline are the levers that we will translate strong customer demand into resilient margins. Turning to Slide 15. This shows the depth of our diversity and the opportunity set. Our total bid pipeline exceeds $12 billion with approximately $3.6 billion currently in active tender and procurement. The active pipeline is balanced geographically with approximately $1.8 billion in Australia and $1.8 billion in North America. It is also balanced by type with 54% in mining services and 46% in infrastructure across 14 resource categories. Expected award timing is weighted across the second half of 2026 and into 2027 with additional opportunities beyond that period. We do not need every project to move forward to create meaningful growth. Our priority is to convert the opportunities where our capabilities provide a clear advantage and where the risk-adjusted returns meet our standards. Turning to Slide 16, our outlook. Record contractual backlog of approximately $3.8 billion as of June 30 underpins our full year expectations. Based on stronger-than-expected revenue in the first half, including a quarterly revenue record for Q2, we are raising our combined revenue guidance to a range of $1.6 billion to $1.8 billion. The new midpoint of $1.7 billion is $100 million above our prior midpoint and approximately 14% above our full year 2025 results. We are growing. We continue to expect adjusted EBITDA of $380 million to $420 million and free cash flow of $110 million to $130 million. At the midpoint, that represents $400 million of adjusted EBITDA and $120 million of free cash flow. In Australia, we expect optimal dry seasonal conditions in Queensland to support MacKellar while IMC activity ramps up in Western Australia. In the oil sands, utilization should improve following the spring breakup, supported by fleet optimization and incremental project scopes. At Nuna, we expect the seasonally strong third quarter to be followed by fourth quarter uplift from the Nunavut fleet expansion. Taken together, our first half performance, record backlog and identifiable second half operating drivers support the raised revenue outlook and our continued confidence in the adjusted EBITDA and free cash flow ranges. Our job is now straightforward, safely execute with discipline, improve the quality of earnings and convert the opportunity embedded across the platform into sustainable shareholder value. Lastly, I'm extremely pleased to announce that our Chairman, Martin Ferron, has confirmed that our CEO search is going very well, and we plan to announce our new CEO in the coming weeks. That concludes the Q2 presentation, and we would be happy to take any questions you may have.. Operator: [Operator Instructions] Your first question is from Joseph Reagor from ROTH Capital Partners. Joseph Reagor: Congrats on a strong quarter. So on the increased revenue guide, is this -- like is part of it that there's some flow-through costs that have raised revenue but have also raised costs, which is why the EBITDA guide didn't change? Or is there something else we should read into there? Barry Palmer: Joe, that's a good way to look at it. It's really a first half impact when we look at revenue and how strong it was in the first half and then EBITDA being consistent with what we expected for the first half. So yes, it's a cost conclusion there. Joseph Reagor: Okay. And then a follow-up on that. With higher diesel costs right now, is that something that will flow through your model? It won't like press too hard on your margins, but would potentially push you guys toward the higher end of the revenue guide? Barry Palmer: No, there's no impact to us either on revenue or EBITDA margin. It's always -- for the vast majority of our operations, it's a flow-through. Operator: Your next question is from Adam Thalhimer from Thompson, Davis. Adam Thalhimer: Congrats on a nice quarter. The fuel services contract that you won in July, can you give some more color on that and comment if you see additional opportunities similar to that award? Barry Palmer: Yes, it's great. And I mean, that was a great win for us. I mean that business has been up till now solely servicing our own gear with odds and ends with different other contractors, truck here or there. And we've been looking to win something like that for a while. So that's very -- it was very exciting to win that. And what we see going forward is there's other opportunities coming up where some of these contracts are nearing the end of what was contracted out 4, 5 years ago. And we're in a very good position to certainly take advantage of some of that. And we look forward to winning 1, 2 or maybe even 3 more of these as they come online. Adam Thalhimer: And that was -- so that's not included in the Q2 backlog, correct? Jason Veenstra: Actually, it is, Adam. It is part of $3.8... Adam Thalhimer: Okay. Well, still $5 million of spend for $135 million backlog is a pretty good trade. Jason Veenstra: Excellent contract. And as Barry mentioned, it definitely is opening doors for additional ones. And it's a lot less capital intensive, as you alluded, with the $5 million. Adam Thalhimer: And then a quick update. Can you just give a quick update on IMC integration, how that's going? And how you think the margin profile of that business is going to trend over time? Barry Palmer: Yes. I mean the IMC integration is going really well. I mean the beauty about IMC is they're so like-minded of how we do business here in Canada. They're very good operators. I mean, I guess that's what attracted us to them is that they're so much like us on how they view equipment rebuilds. They're very, very, very structured. They've been executing unit rate work for many, many years. As far as the margins go, they're not quite as high as what we would expect on the equipment rental side in the Queensland business because a lot of the work that they do is unit rate work. However, there is opportunity to go higher because of the unit rate style contract. The better we perform, the better the margin is. Operator: And your next question is from Tim Monachello from ATB Cormark Capital Markets. Tim Monachello: I'm just wondering if you can dig in a little bit more on the equipment optimization strategy in the oil sands. So you've identified 260 fleet assets. What are you doing with the remainder? And can you talk about some capital investments within that fleet? What type of investments need to be made there? And, I guess, how do you expect that in terms of CapEx in '26 and '27 coming through? Barry Palmer: Yes. So on the fleet we've identified, and just to clarify, that's on multi-life assets. So that's the large assets. So that's the fleet that we see vision for active work in the oil sands where we can take advantage of some of this additional work that's coming out. As for the remainder of this, look, we're in no rush to say we're going to sell this stuff or whatever we're going to do. Some of these assets we've set aside are smaller assets that were underutilized. But with the activity that's going on in the oil sands with some of this exciting opportunities that we're seeing through Nuna, we feel that we'll have the ability to bring some of those units back in because they're the smaller nature and actually put those things to work. And if somebody come along and we didn't have a use for some of these units and they offer the right price, obviously, we'd look at taking advantage of that. And I mean, there is opportunities, too. I've said this in the past with moving some units to Australia. It's not front and center. But because the way IMC is structured and their rebuild philosophy and -- it's something that we've already done. We've sent half a dozen units that way because it made good sense. As far as the capital spend, what's required this year, it's probably on the fleet that we want to focus on and get our availability up above that 70% range. We're probably in the $50 million range for 2026 to get us where we need to be. Tim Monachello: Okay. What has to happen with those assets? I was under the impression that they're all in pretty good working conditions. So a little bit surprised you have to invest more in those. So just maybe if you could provide some context. Barry Palmer: Yes. I mean it's just -- I mean, because they're multi-life assets, these things -- we run them for these things, they got 20-plus year lives, and they come up when the schedule hits on component change-outs. And these aren't small dollar items. I mean it's -- some of these things are million dollar items. So it's just in the cycle of where we're at with them, and we just need to focus and make sure that we're doing the proper thing here and replacing components as they need and making sure these things are in tiptop shape so that when we win work, we go in there and we execute as planned and we satisfy the clients' needs and meet our margin targets. Tim Monachello: And then more generally, in the oil sands, are you seeing an inflection in demand alongside higher crude prices? Barry Palmer: Yes, absolutely. I mean there's a lot of excitement in the oil sands. I mean there's -- we're getting more offers every day of can you do this, can you do that? There's this scope. And so we're pricing stuff every day out there right now, and it's an exciting time in the oil sands. I mean, look, I've been in the oil sands since the mid-80s, and this is one of these times where over the last couple of years, it's been kind of a bit of a lull and where there's in-sourcing and stuff, but it's full steam ahead, and there's capital projects going on in the sites and there's volume to be moved. And as we said in the deck, the haul distances are lengthening, which means you have to add more trucks to move the same amount of volume. So yes, I mean, we're extremely excited about the oil sands right now. Tim Monachello: Okay. Fantastic. And then last one, just in Australia, I understand that it's pretty large and diverse market, but we did see a decline, a fairly meaningful decline in your stated bid pipeline quarter-over-quarter. So maybe you can talk a little bit about what's going on there? Barry Palmer: Yes. So I mean, there was one large project on there that we missed on. And the funny thing is we still have opportunity on that. So it was -- we were shortlisted. It was between us and the incumbent. And I think the -- obviously, the owner thought that replacing the incumbent was far too expensive at this point in time. So they went with the incumbent. That said, they've come back to us already asking if there's opportunity or we can see the possibility of putting a fleet or 2 onto that site. So we still see opportunity there. We're actively working on that site, always have been. We won a fairly good contract there a couple of years ago or a year ago. So yes, we see great opportunity still there. And maybe it's a blessing in a way because it's not that -- that was a large amount of capital investment to get to win that work. So this will be less capital and yet still have opportunity to increase our revenue and margins on that site. We also missed one in IMC on the West side, but we have another one right in our pipeline right now that we're shortlisted for. And again, we think that we have a very good opportunity at winning. So we'll see where that goes. Operator: Your next question is from Roman Pshenychnyi from National Bank of Canada. Roman Pshenychnyi: Congrats on the very good quarter. I just had a quick question on the pro forma FCF profile. So you've rightsized the fleet. You bought a much less capital-intensive asset in IMC. Could you maybe give us some color on what the conversion looks like going forward? Jason Veenstra: Sorry, Roman, can you repeat that? Roman Pshenychnyi: Sorry, I was just looking for more color on free cash flow generation and conversion going forward, given that IMC is a lower capital intensity asset. Jason Veenstra: Yes. I think given IMC is 15% of our business, the conversion target of 30% remains. That's still where we think when our business is at a run rate that we can operate at. We've been there before, and we expect to be there this year when working capital is neutral. And so we don't think IMC will have a meaningful impact on that ratio target -- conversion target. Roman Pshenychnyi: And sorry, just as a follow-up, do you see the 30% conversion holding for next year as well? I know it's a bit hard to predict working capital. So just curious there. Jason Veenstra: Yes. There's no reason why we can't. With our margin initiatives, we should hopefully be able to actually increase that ratio next year. But I think it's a good placeholder for your models. Operator: [Operator Instructions] And your next question is from Sean Jack from Raymond James. Sean Jack: Just wanted to ask a quick question for Australia. Wondering with this increase in unit rate work from IMC, like should we be expecting that this type of contract might become like more popular in the broader segment? Or is this just going to be isolated in IMC? Barry Palmer: No, I would say -- I don't know if it's more popular. I mean it's been very prevalent anyway in Western Australia for a lot of the work -- the majority of the work that IMC does has been unit rate style work because a lot of their scopes are mine site civil. So it's more than just load hauls on place. It's more detailed type work. So that is pretty typical with that type of work anyway. I mean you'll see it also in some of the remediation on mine sites and stuff. But I would say it will kind of stay pretty much the status quo as it's been. Sean Jack: Okay. Perfect. Good to know. Next question for me would just be -- so obviously, nation building projects, et cetera, et cetera, like there seems to be a big heat up of demand and especially sentiment in Canada. You guys have touched upon a growing bid pipeline in Canada. But I just wanted to hear from you guys like any other sort of commentary on levels of excitement, level of demand that's, kind of, swelling in Canada or in the United States? Anything beyond stuff that's already captured in your bid pipeline? Barry Palmer: I don't know. I mean that's -- I mean we've captured most of what we see that excites us in the bid pipeline. What I would say, though, on that is I'm extremely excited about the opportunities that are in front of Nuna. Nuna has -- I mean, just because of where they're positioned, how they're positioned, they've picked up some small wins over the last 3 to 6 months, and this puts us and them in very good light of follow-on projects that will be the bigger projects. And I mean this is scattered across Nunavut, Northern Quebec, Ontario, Northwest Territories. I mean it's exciting times for them. And it's -- we just need these things to come to RFP the bigger projects and to be let out there so that we have the opportunity to win them and then get in there and start executing. Operator: Your next question is from Chris Thompson from CIBC. Christopher Thompson: Just a couple of questions here for you. On the salaries and wages quarter-over-quarter increase, could you provide a bit more color on what's behind that? Jason Veenstra: Yes. Primarily, that would be IMC. They have a G&A function. I'm assuming you're looking at G&A and cost of sales as well, but that's primarily IMC related. Christopher Thompson: Got it. Okay. And then I take the third-party rentals piece meaningfully higher in Q2 and both those and salaries and wages in your COGS, is that a run rate that we should expect going forward? Barry Palmer: No. I mean, the salaries are one thing, but the third-party rentals, the third-party rentals, that's typically what that is, Chris, is some of the jobs we take on, they come to us quicker than anticipated. So we end up having third-party rentals to start out with as we bring our own fleet in and then those costs somewhat disappear. So that's where we get the margin improvement. You'll see on some jobs where we start out and the margin isn't exactly as stated. And as the project progresses along, those margins come back, and that's when that third-party rental disappear and we get our own fleet actively engaged. Christopher Thompson: Okay. So is that primarily an Australia-driven increase then? Barry Palmer: Yes. Christopher Thompson: Got it. Okay. And then the capital spend in Australia on the growth side, does that include the IMC piece? Jason Veenstra: Yes. Yes, that definitely -- so IMC acquired on April 7 came with the balance sheet as disclosed. And then growth at that lithium mine came through our growth capital spending. Christopher Thompson: Okay. Got it. And then just in terms of sustaining capital back late last year, you guys guided to $60 million, $70 million of sustaining in 2026. And H1 is already at $84 million, granted you've had some growth activity in the business. But how should we expect that sustaining number to trend through the balance of the year? Jason Veenstra: Yes. We're still just a little north of $200 million. As Barry alluded to on that, that oil sands slide, given the inflection of demand and our strategy to really run efficiently in the oil sands with mechanical availability well north of 70% MA. That's really why we're seeing going from, say, a little bit under $200 million to above $200 million for the year. Australia is exactly on track as we agreed on back in December with those operating teams. So the change is really a reflection in commitment to the oil sands and getting that operation running more efficiently. Operator: Thank you. There are no further questions at this time. I will now pass the call back over to Barry Palmer, President and CEO, for closing comments. Barry Palmer: Thanks, Jenny, and thanks again, everyone, for joining us today. As always, we remain focused on disciplined execution and look forward to providing our next update with our third quarter results. Operator: Thank you. This now concludes the North American Construction Group conference call regarding the second quarter ended June 30, 2026. You may now disconnect your lines. 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This article first appeared on GuruFocus. Combined Revenue: $456 million in Q2 2026, up $86 million year-over-year, with IMC contributing $91 million. Adjusted EBITDA: $93 million in Q2 2026. Gross Profit Margin (Australia): 13.6% in Q2 2026. Adjusted Margin (Canada): Approximately 7% in Q2 2026. Adjusted EPS: $0.32 in Q2 2026. Direct Adjusted G&A: $15 million, or 3.8% of reported revenue. Depreciation as % of Combined Revenue: 13%, down from 16% last year. Interest Expense: $18.9 million, up from $14.1 million last year. Operating Cash Flow Before Working Capital: $78 million in Q2 2026. Free Cash Flow: $23 million in Q2 2026. Net Debt: Increased $191 million to $1.1 billion. Net Debt Leverage (Trailing 12): 2.9 times; 2.6 times based on second half run rate. Senior Secured Debt Leverage: 1.7 times. Contractual Backlog: Approximately $3.8 billion as of June 30, 2026. Combined Revenue Guidance (FY2026): Raised to $1.6 billion to $1.8 billion, with a midpoint of $1.7 billion. Adjusted EBITDA Guidance (FY2026): $380 million to $420 million. Free Cash Flow Guidance (FY2026): $110 million to $130 million. Warning! GuruFocus has detected 6 Warning Signs with NOA. Is NOA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue and raised full-year revenue guidance to $1.6-$1.8 billion, reflecting strong first-half performance. Australia remains a primary growth engine with 31% CAGR in revenue since H1 2024, supported by MacKellar and IMC acquisitions. Record contractual backlog of approximately $3.8 billion and a $12 billion bid pipeline, providing strong earnings visibility. Improved operational efficiency with lower repair costs and better internal maintenance, leading to higher gross profit margins in Australia and Canada. Strategic expansion in Northern Canada, including Nuna fleet expansion expected to drive 20% site-level revenue growth. Net debt increased by $191 million to $1.1 billion due to the IMC acquisition and growth capital expenditures. Interest expense rose to $18.9 million from $14.1 million year-over-year, reflecting financing for strategic expansions. Missed out on a large Australian project bid, though there is potential for future opportunities on the same site. Sustaining capital expenditure guidance increased to over $200 million for 2026, up from previous estimates, due to oil sands fleet optimization. EBITDA guidance remained unchanged despite higher revenue, indicating cost pressures or flow-through costs. Q: Can you provide more color on the fuel services contract won in July and whether additional opportunities similar to that award exist?A: Barry Palmer (President & CEO): This was a significant win for us, as this business previously only serviced our own equipment. We see other opportunities emerging as similar contracts, originally awarded four to five years ago, near their end. We are well-positioned to potentially win one, two, or even three more of these contracts as they come online. Jason Veenstra (CFO) added that this contract is included in the Q2 backlog and is much less capital-intensive, requiring only $5 million in spend for a $135 million backlog. Q: Can you dig into the equipment optimization strategy in the oil sands? What is happening with the non-core fleet, and what capital investments are needed for the 260 identified assets?A: Barry Palmer (President & CEO): The 260 multi-life assets are the large fleet we see as active for future oil sands work. We are in no rush to sell the remaining assets, as some smaller, underutilized units may be redeployed to new opportunities, including those at Nuna. We are also open to selling units at the right price and have already moved half a dozen units to Australia. For 2026, we expect to spend approximately $50 million on the core fleet to improve mechanical availability above the 70% target, which involves replacing large components that are due for change-outs. Q: Are you seeing an inflection in demand in the oil sands alongside higher crude prices?A: Barry Palmer (President & CEO): Absolutely. There is a lot of excitement in the oil sands, and we are receiving more offers daily for new scopes. We are pricing work constantly. Having been in the oil sands since the mid-80s, this feels like a full-steam-ahead period after a recent lull. With capital projects underway and haul distances lengthening, more trucks are needed to move the same volume, which is a positive for our business. Q: The stated bid pipeline in Australia declined meaningfully quarter-over-quarter. What is driving that change?A: Barry Palmer (President & CEO): We missed out on one large project where the owner decided replacing the incumbent was too expensive. However, they have already come back to us about potentially placing a fleet or two on that site, so we still see opportunity there with less capital required. We also missed one project on the West side with IMC, but we are shortlisted for another one right now where we believe we have a very good chance of winning. Q: Given the lower capital intensity of IMC, what does the free cash flow conversion profile look like going forward?A: Jason Veenstra (CFO): The 30% conversion target remains intact, as IMC represents only about 15% of our business. We expect to achieve this target this year when working capital is neutral. There is no reason we cannot hold this ratio next year, and with our margin initiatives, we hope to potentially increase it. It remains a good placeholder for financial models. Q: With the increase in unit rate work from IMC, should we expect this type of contract to become more popular in the broader Australian segment?A: Barry Palmer (President & CEO): Unit rate work is already very prevalent in Western Australia, particularly for IMC, as much of their scope involves mine site civil work that is more detailed than simple load and haul. This is typical for that type of work, including mine site remediation, so we expect the contract mix to remain largely the status quo. Q: Beyond what is captured in the bid pipeline, can you provide commentary on the level of demand swelling in Canada or the United States?A: Barry Palmer (President & CEO): Most of what excites us is captured in the bid pipeline. However, I am extremely excited about the opportunities in front of Nuna. They have picked up some small wins over the last three to six months, which positions them well for larger follow-on projects across Nunavut, Northern Quebec, Ontario, and the Northwest Territories. We just need these bigger projects to come to RFP so we can win and execute them. Q: The third-party rentals piece was meaningfully higher in Q2. Is this a run rate we should expect going forward?A: Barry Palmer (President & CEO): No. Third-party rentals typically occur when jobs come to us quicker than anticipated, so we use them to start out while we bring our own fleet in. As the project progresses and our own fleet becomes engaged, those costs disappear, which is where we see margin improvement. This increase was primarily driven by Australia. Q: Sustaining capital was guided to $60-$70 million for 2026, but H1 is already at $84 million. How should we expect this to trend for the balance of the year?A: Jason Veenstra (CFO): We are still just a little north of $200 million for the full year. The increase from the prior guidance reflects our commitment to the oil sands and the strategy to run that operation more efficiently with mechanical availability well north of 70%. Australia is exactly on track with the plans agreed upon in December. Q: The increased revenue guidance did not come with an increased EBITDA guide. Is this due to flow-through costs, or is there something else to read into?A: Barry Palmer (President & CEO): That is a good way to look at it. The revenue increase reflects a strong first half, while EBITDA performance was consistent with our expectations for the first half. It is a cost conclusion. Regarding higher diesel costs, there is no impact to us on either revenue or EBITDA margin, as it is a flow-through for the vast majority of our operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in North American Construction Group Ltd.? Here are five stocks we like better. 2026 revenue guidance was raised to C$1.6 billion–C$1.8 billion, while adjusted EBITDA guidance remained C$380 million–C$420 million and free cash flow guidance stayed at C$110 million–C$130 million. Second-quarter revenue rose to C$456 million, including C$91 million from the IMC acquisition, while EBITDA reached C$93 million and adjusted EPS was C$0.32. Australia remained the primary growth driver, with organic revenue up 15% excluding IMC. The company reported record contractual backlog of about C$3.8 billion and a total bid pipeline exceeding C$12 billion, but net debt increased to C$1.1 billion following the IMC acquisition and equipment investments. Management also expects to announce a new CEO in the coming weeks. Will Fed Rate-Hike Pause Lead To Small-Cap Outperformance? North American Construction Group (NYSE:NOA) raised its 2026 combined revenue outlook after reporting stronger-than-expected first-half performance, supported by growth in Australia, the contribution from its IMC acquisition and improved operating activity across its markets. The company said second-quarter combined revenue reached C$456 million, an increase of C$86 million from the prior-year period. IMC, which was acquired during the year, contributed C$91 million in quarterly revenue. Excluding IMC, Australian revenue grew organically by 15%, driven by commissioned growth assets and execution, Chief Financial Officer Jason Veenstra said. → Lumentum Just Delivered the AI Growth Investors Wanted North American Construction Group Is A Real Asset In Times Like These North American Construction Group reported C$93 million of EBITDA for the quarter and adjusted earnings per share of C$0.32. EBITDA and EBIT rose meaningfully from the prior-year quarter, reflecting the IMC acquisition and what Veenstra described as a more typical quarter from the Fargo joint ventures. “Our first half performance was stronger than expected entering the year and gives us the confidence to raise our full year revenue outlook,” President and CEO Barry Palmer said. → Ryman Checks Into a $1.38B Hospitality Upgrade The company increased its 2026 combined revenue guidance to a range of C$1.6 billion to C$1.8 billion, with a midpoint of C$1.7 billion. That midpoint is C$100 million above the prior outlook midpoint and would represent approximately 14% growth from the company’s 2025 result, according to management. North American Construction Group maintained its adjusted EBITDA outlook of C$380 million to C$420 million and its free-cash-flow outlook of C$110 million to C$130 million. At the midpoints, the guidance calls for C$400 million in adjusted EBITDA and C$120 million in free cash flow. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal During the question-and-answer session, Palmer said the higher revenue forecast primarily reflects the strength of first-half revenue, while EBITDA was consistent with management’s prior expectations. He also said diesel-cost changes are largely passed through in most of the company’s operations and are not expected to affect either revenue or EBITDA guidance. The company reported C$78 million in operating cash flow before working capital during the quarter and C$23 million in free cash flow after a C$13 million positive working-capital change. Net debt rose by C$191 million to C$1.1 billion, reflecting the IMC acquisition and growth capital equipment purchases. Reported trailing-12-month net-debt leverage was 2.9 times, while Veenstra said the business was operating at a second-half run-rate leverage ratio of 2.6 times. Palmer said Australia remains the company’s primary growth engine. Revenue in the region increased at an approximately 31% compound annual rate from the first half of 2024 through the first half of 2026, while first-half 2026 revenue was 14% above the second half of 2025. The MacKellar and IMC businesses have expanded the company’s national presence in Australia and its ability to pursue larger project scopes, management said. IMC’s new eight-bay workshop in Muchea is expected to increase maintenance capacity and support equipment rebuilds as well as larger projects. Management said IMC adds exposure to lower-capital-intensity unit-rate work and broadens the company’s mineral exposure across gold, lithium, iron ore, nickel and other critical minerals. Palmer said IMC’s margins are not as high as those of the equipment-rental business in Queensland because much of its work is conducted under unit-rate contracts. However, he said the format offers potential margin improvement when performance exceeds expectations. As of June 30, the Australian operations had about C$3.4 billion in contractual backlog and a further C$3.9 billion bid pipeline, the company said. In Canada’s oil sands, North American Construction Group has identified 260 multi-life heavy equipment assets as its target fleet. Management is focused on improving mechanical availability, with a medium-term target above 70%. Palmer said customer demand is increasing as haul distances lengthen and operating requirements expand. The company plans to invest about C$50 million in 2026 in the prioritized fleet to replace components and improve reliability. Management said incremental investments will target internal rates of return above 40% and a path toward gross profit margins of roughly 15%. Veenstra said total capital spending for the year is expected to be slightly above C$200 million, compared with an earlier expectation below that level. The increase is tied primarily to the company’s oil sands fleet-efficiency strategy, while Australia is tracking in line with operating plans established late last year. In northern Canada, the company said Nuna is adding equipment in Nunavut during the third quarter. The expansion is expected to increase site-level revenue by about 20%. Nuna also has secured a Yukon infrastructure award and three initial Ontario projects, which management said establish footholds for potential follow-on work. North American Construction Group’s total bid pipeline exceeded C$12 billion as of June 30, including approximately C$3.6 billion in active tender and procurement. The active pipeline was split evenly between Australia and North America and consisted of 54% mining services and 46% infrastructure opportunities. Record contractual backlog of approximately C$3.8 billion underpins the company’s outlook, management said. The second-half plan includes dry-season conditions supporting MacKellar in Queensland, continued IMC activity ramping in Western Australia, improved oil sands utilization after spring breakup and a fourth-quarter contribution from the Nunavut fleet expansion. Management also discussed a recently won fuel-services contract, which Veenstra said is included in the C$3.8 billion backlog. The contract requires approximately C$5 million of capital spending and carries about C$135 million of backlog, according to comments during the call. Palmer said the award could create opportunities for additional contracts as existing agreements in the market approach expiration. Finally, Palmer said Chairman Martin Ferron had indicated that the company’s CEO search was progressing well and that North American Construction Group expects to announce a new CEO in the coming weeks. North American Construction Group Ltd (NYSE: NOA) is a Canadian industrial company headquartered in Edmonton, Alberta, that specializes in providing integrated heavy construction equipment solutions. Through its two core segments—Sales and Rentals—the company offers a comprehensive portfolio of new and used off-highway trucks, wheel loaders, hydraulic excavators, dozers and motor graders, along with aftermarket parts and maintenance services. In its Sales division, North American Construction Group partners with leading global equipment manufacturers to distribute and support a broad range of heavy machinery across multiple industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "North American Construction Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

North American Construction (NOA) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.69%. A quarter ago, it was expected that this heavy construction and mining services company would post earnings of $0.32 per share when it actually produced earnings of $0.27, delivering a surprise of -15.63%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. North American Construction, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $289.65 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.52%. This compares to year-ago revenues of $231.73 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. North American Construction shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 12.9%. While North American Construction has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for North American Construction was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.69 on $282.12 million in revenues for the coming quarter and $1.79 on $1.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Pedevco Corp. (PED), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +190%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Pedevco Corp.'s revenues are expected to be $38 million, up 445.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report Pedevco Corp. (PED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Raises Full Year 2026 Combined Revenue Guidance on Record Q2 Top-Line Performance ACHESON, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the second quarter ended June 30, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended June 30, 2025. Second Quarter 2026 Financial Highlights Revenue: Combined revenue of $456.1 million, up $85.5 million or 23% year-over-year Reported revenue of $401.0 million, up $80.3 million or 25% year-over-year Profitability: Adjusted EBITDA of $93.5 million, up $13.4 million or 17% year-over-year Adjusted net earnings of $8.5 million, up $7.7 million year-over-year Net income of $9.4 million, down $0.9 million or 9% year-over-year Cash flow: Free cash flow of $23.0 million inflow, up $23.4 million year-over-year Second Quarter 2026 Operational & Corporate Highlights NACG delivered record revenue and higher adjusted EBITDA in the second quarter, supported by the contribution from IMC, organic growth in Australia and improved joint venture earnings. Our Australian operations delivered robust revenue growth of approximately 65% year-over-year, with the majority of the increase reflecting IMC's contribution following the April 7, 2026, acquisition. The MacKellar and DGI businesses also delivered organic growth driven by strong project execution, prior-period growth asset investments, and favourable foreign exchange translation rates. Gross profit in the Australian business remained strong, with a modest year-over-year decline in the margin as depreciation increased on recently commissioned equipment. On April 7, 2026, we completed the acquisition of Iron Mine Contracting ("IMC"), comprising DCL Corp Pty Ltd. and Iron Hire Pty Ltd., a diversified mining services contractor in Western Australia. The IMC acquisition positions NACG as a national Tier 1 contractor in Australia, broadens our client base across base metals, precious metals, and critical and rare earth minerals, and is expected to reduce our exposure to regional seasonality. Under the acquisition agreement, we are entitled to IMC's economic benefit from January 1, 2026, which is reflected in our combined revenue, gross profit, adjusted net earnings, adjusted EBIT, and adjusted EBITDA. In Canada, margin performance benefited from our ongoing fleet optimization strategy, including the 2025 Q4 divestiture of ultra-class haul trucks, with depreciation as a percentage of revenue declining year-over-year, one of the financial benefits of our fleet initiatives. Revenue declined year-over-year due to the reduction in operating capacity from the fleet divestiture, lower activity at the Syncrude mines, spring break-up seasonal impacts, and adverse weather conditions, partially offset by increased support at the Millennium mine and the ramp-up of the Kearl project. Equity earnings improved significantly year-over-year, driven primarily by the Fargo-Moorhead flood diversion project returning to profitability after a margin forecast adjustment weighed on the prior year period. MNALP remained a consistent positive contributor, and the IMC PKKPE joint venture, added through the IMC acquisition, delivered a solid first-quarter contribution. "Record revenue of more than $450 million demonstrates both the growing scale of the business and the demand across our markets. With work in hand, seasonal momentum and recent scope expansions, we remain confident in the $400 million midpoint of our 2026 adjusted EBITDA guidance," commented Barry Palmer, President and Chief Executive Officer. "Our priorities for the second half are clear: execute the work in hand, improve fleet availability and utilization, convert earnings into free cash flow and allocate that capital toward the strongest risk-adjusted returns. 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. 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." Financial Results for the Second Quarter 2026 Combined revenue and reported revenue were generated during the quarter by the following primary segments: Heavy Equipment - Australia revenue increased 65% to $277.5 million, reflecting $84.5 million of reported revenue from IMC following its April 7, 2026, acquisition and organic growth of approximately $24.9 million from the legacy Australian business. Heavy Equipment - Canada revenue decreased 17% to $121.8 million, primarily due to the 2025 Q4 divestiture of ultra-class haul trucks, lower Syncrude activity, and spring break-up impacts, partially offset by ramp-up of the Kearl project. Revenue from joint ventures and affiliates declined 1% to $49.7 million, reflecting lower MNALP volumes, partially offset by the first contribution from the IMC PKKPE joint venture. Gross profit increased to $43.4 million (10.8% margin) from $35.8 million (11.2% margin) in 2025 Q2. Combined gross profit was $49.9 million (10.9% margin), up from $33.4 million (9.0% margin) in the prior year, driven by IMC's $10.5 million contribution, a $7.6 million improvement from core segments, and Fargo's return to profitability. Both gross profit measures exceeded 2026 Q1 results. Adjusted EBITDA was $93.5 million, up $13.4 million year-over-year, with IMC contributing $13.1 million. Adjusted EBITDA margin was 20.5%, compared to 21.6% in 2025 Q2, principally reflecting IMC's margin profile. Adjusted net earnings for the quarter were $8.5 million, up significantly from $0.8 million in the prior year period. Adjusted EPS was $0.32, up significantly from $0.02 in 2025 Q2. The increase in both metrics is driven by stronger gross profit, improved equity earnings, and reduced interest accretion, partially offset by higher interest expense on growth-related debt. Quarterly net income of $9.4 million was below the prior year's $10.3 million, as higher general and administrative costs, driven by $4.8 million of acquisition and integration activities, combined with increased interest expense to more than offset gains in gross profit. Basic net income per share was $0.35, consistent with 2025 Q2. Free cash flow was $23.0 million, improving $23.4 million year-over-year. Cash generation was supported by $93.5 million in adjusted EBITDA, offset by $62.5 million in sustaining capital, and $18.2 million in cash interest. Declaration of Quarterly Dividend On August 11, 2026, the NACG Board of Directors declared a regular quarterly dividend (the "Dividend") of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on August 28, 2026. The Dividend will be paid on October 2, 2026, and is an eligible dividend for Canadian income tax purposes. Outlook for 2026 - Raised Full Year 2026 Combined Revenue Guidance Our operational priorities for 2026 are: Safety - safety-first mentality across all global operations - ensuring EVERYONE GETS HOME SAFE; Australian workforce mix - optimize heavy equipment maintenance workforce mix in Australia, following the improvements implemented in the second half of 2025; Cost reduction - following two years of major growth in Queensland, review and reduce discretionary operating costs while fully maintaining customer requirements; Integration - with the Iron Mine Contracting transaction now complete, continued commissioning of expanded fleet in Western Australia to support growth and operational scale; Civil execution - deliver the successful completion of the Fargo-Moorhead flood diversion project, reinforcing our large-scale civil execution capabilities; and Mechanical availability - continue to improve mechanical availability and reliability of a right-sized heavy equipment fleet in the oil sands region. Our growth drivers for 2026 and beyond are the strategic building blocks of our success: Scaling into a Tier 1 Contractor in Australia - provides ability to secure larger scopes in the much sought-after mining regions of Western Australia and Queensland; Securing infrastructure awards across North America - targeting nation-building projects in Canada and mass civil earthwork scopes in the United States for which we have deep experience and expertise; and Expanding mining services in Canada and the United States - leveraging our over 70 years of experience, ensuring we are front and center as ever-increasing mine scopes in both countries are issued and awarded. Based on stronger-than-expected first-half revenue, we have increased our 2026 combined revenue guidance range to $1.6 to $1.8 billion, raising the midpoint to $1.7 billion from $1.6 billion. Adjusted EBITDA and free cash flow guidance remain $380 to $420 million and $110 to $130 million, respectively, given first-half generation came in largely as expected. The outlook is supported by our fleet capacity and contractual backlog of $3.8 billion. (i)See "Non-GAAP Financial Measures". Results for the three and six months ended June 30, 2026 Consolidated Financial Highlights (i)See "Non-GAAP Financial Measures". (ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue. Conference Call and Webcast Management will hold a conference call and webcast to discuss our financial results for the quarter ended June 30, 2026, tomorrow, Thursday, August 13, 2026, at 9:00 am Eastern Time (7:00 am Mountain Time). The call can be accessed by dialing: Toll Free: 1-800-717-1738Conference ID: 40245 A replay will be available through September 12, 2026, by dialing: Toll Free: 1-888-660-6264Conference ID: 40245Playback Passcode: 40245 A slide deck for the webcast will be available for download the evening prior to the call and will be found on the Company’s website at www.nacg.ca/presentations/ The live presentation and webcast can be accessed at: https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=74511C07-BB07-4170-A51A-A1FE7E23F554 A replay will be available until September 12, 2026, using the link provided. About the Company North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets. For further information contact: Jason Veenstra, CPA, CAChief Financial OfficerNorth American Construction Group Ltd.(780) [email protected] Basis of Presentation We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States ("US GAAP"). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis ("MD&A") for the quarter ended June 30, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q2 Results Presentation for more information on our results and projections, which can be found on our website under Investors - Presentations. Forward-Looking Information The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by, or that include the words "anticipate", "believe", "expect", "should" or similar expressions and include guidance with respect to financial metrics provided in our outlook for 2026. The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and six months ended June 30, 2026. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca. Non-GAAP Financial Measures This press release presents certain non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures that may be useful to investors in analyzing our business performance, leverage, and liquidity. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer's historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. A "non-GAAP ratio" is a ratio, fraction, percentage or similar expression that has a non-GAAP financial measure as one or more of its components. Non-GAAP financial measures and ratios do not have standardized meanings under GAAP and therefore may not be comparable to similar measures presented by other issuers. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A "supplementary financial measure" is a financial measure disclosed, or intended to be disclosed, on a periodic basis to depict historical or future financial performance, financial position or cash flows that does not fall within the definition of a non-GAAP financial measure or non-GAAP ratio. The non-GAAP financial measures and ratios we present include, "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted EPS", "adjusted net earnings", "backlog", "capital additions", "capital expenditures, net", "capital inventory", "capital work in progress", "cash liquidity", "cash related interest expense", "cash provided by operating activities prior to change in working capital", "combined backlog", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "equity method investment backlog", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "growth capital", "growth spending", "invested capital", "margin", "net debt", "net debt leverage", "senior-secured debt", "share of affiliate and joint venture capital additions", "sustaining capital", "total capital liquidity", "total combined revenue", and "total debt". We also use supplementary financial measures such as "gross profit margin" and "total net working capital (excluding cash and current portion of long-term debt)" in our MD&A. Each non-GAAP financial measure used in this press release is defined under "Financial Measures" in our Management's Discussion and Analysis filed on EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca. Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA (i)See "Non-GAAP Financial Measures".(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue. Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT (i) See "Non-GAAP Financial Measures". Reconciliation of total reported revenue to total combined revenue (i) See "Non-GAAP Financial Measures". Reconciliation of reported gross profit to combined gross profit (i)See "Non-GAAP Financial Measures".(ii) Certain prior period costs within the Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification has no impact on revenue, income before taxes, or net income. Reconciliation of basic net income per share to adjusted EPS (i)See "Non-GAAP Financial Measures". Net Debt (i)Includes current portion.(ii)See "Non-GAAP Financial Measures". Free Cash Flow (i)See "Non-GAAP Financial Measures". Consolidated Balance Sheets (Expressed in thousands of Canadian Dollars)(Unaudited) Consolidated Statements of Operations andComprehensive Income (Expressed in thousands of Canadian Dollars, except per share amounts)(Unaudited)

Natural Gas Services (NGS) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.03%. A quarter ago, it was expected that this maker of natural gas compression equipment and industrial flare systems would post earnings of $0.45 per share when it actually produced earnings of $0.53, delivering a surprise of +17.78%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Natural Gas Services, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $51.4 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.73%. This compares to year-ago revenues of $41.38 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Natural Gas Services shares have added about 10% since the beginning of the year versus the S&P 500's gain of 13.3%. While Natural Gas Services has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Natural Gas Services was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.56 on $58.71 million in revenues for the coming quarter and $2.05 on $216.46 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, North American Construction (NOA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This heavy construction and mining services company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +2800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. North American Construction's revenues are expected to be $252.93 million, up 9.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Natural Gas Services Group, Inc. (NGS) : Free Stock Analysis Report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Solaris Energy Infrastructure, Inc. (SEI) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.81%. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.44, delivering a surprise of +69.23%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Solaris Energy Infrastructure, Inc., which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $219.4 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.78%. This compares to year-ago revenues of $149.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Solaris Energy Infrastructure, Inc. shares have added about 26% since the beginning of the year versus the S&P 500's gain of 13%. While Solaris Energy Infrastructure, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Solaris Energy Infrastructure, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $201.58 million in revenues for the coming quarter and $1.01 on $805.81 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, North American Construction (NOA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This heavy construction and mining services company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +2800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. North American Construction's revenues are expected to be $252.93 million, up 9.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Solaris Energy Infrastructure, Inc. (SEI) : Free Stock Analysis Report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kodiak Gas Services (KGS) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -17.91%. A quarter ago, it was expected that this provider of oil and gas infrastructure services would post earnings of $0.54 per share when it actually produced earnings of $0.59, delivering a surprise of +9.26%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Kodiak Gas, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $391.12 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $322.84 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kodiak Gas shares have added about 54.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Kodiak Gas has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kodiak Gas was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $387.84 million in revenues for the coming quarter and $2.41 on $1.51 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. North American Construction (NOA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This heavy construction and mining services company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +2800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. North American Construction's revenues are expected to be $252.93 million, up 9.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kodiak Gas Services, Inc. (KGS) : Free Stock Analysis Report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Innovex International (INVX) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this maker of offshore drilling and production equipment would post earnings of $0.23 per share when it actually produced earnings of $0.34, delivering a surprise of +47.83%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Innovex International, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $244.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.04%. This compares to year-ago revenues of $224.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Innovex International shares have added about 28.4% since the beginning of the year versus the S&P 500's gain of 9.4%. While Innovex International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Innovex International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $251 million in revenues for the coming quarter and $0.86 on $993 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, North American Construction (NOA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This heavy construction and mining services company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +2800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. North American Construction's revenues are expected to be $252.93 million, up 9.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Innovex International, Inc. (INVX) : Free Stock Analysis Report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research