North American Construction Group Ltd. · TSX:NOA
North American Construction — Q1 2025 Earnings Presentation
25 slides from North American Construction's earnings presentation, May 15, 2025
Slide 1: 2025 Q1 Earnings Presentation
2025 Q1 EARNINGS PRESENTATION May 15, 2025 1
Slide 2: Forward-looking statements & non-GAAP financial measures
Forward-looking statements & non-GAAP financial measures This presentation contains forward-looking information which reflects the current plans This presentation presents certain non-GAAP financial measures because and expectations of North American Construction Group Ltd. (the “Company”) with mana
Slide 3: Everyone Gets Home Safe
Everyone Gets Home Safe Total Recordable Focused on health & safety for ourselves, Injury Rate our customers, our environment, & the communities we work in • Trailing twelve-month injury rate of below target of 0.50 • Primary initiatives in the first quarter of 2025 • Rolled out Lessons Learned comm
Slide 4: 2025 Q1 Accomplishments
2025 Q1 Accomplishments • Commissioned additional large capacity heavy equipment in Australia, increasing the fleet by over 10% during the quarter • Achieved 68% equipment utilization in the Canadian oil sands with February 2025 at 70% • Commenced early-stage development & heavy civil infrastructure
Slide 5: Equipment Utilization & Hours
Equipment Utilization & Hours1 Target for Australia (85%) Target for Canada (75%) Australia impacted by excessive rainfall | Canada posted second-highest Q1 on record 1 Wholly-owned, large capacity heavy equipment fleet only 5
Slide 6: 2025 Q1 Financial Overview
AMERICAN CONS TRUCTION GROUP
Slide 7: 2025 Q1 Performance
2025 Q1 Performance $392M $100M 25.5% 10.6% Combined Adjusted Adjusted Return on revenue1 EBITDA1 EBITDA margin1 invested capital1 1 • Third consecutive quarter of growth in Australia & Canada with 2025 Q1 revenues of $336 million being a 25% increase from 2024 Q2 revenue of $270 million • 68% equip
Slide 8: Combined Results
Combined Results (figures in millions of Canadian dollars) 2025 Q1 2024 Q1 Variance Heavy Equipment - Australia $158 $134 $24 - Canada $178 $158 $20 Joint ventures & other $56 $54 $2 Combined revenue 1 $392 $346 $46 Heavy Equipment - Australia $25 16.1% $33 24.7% ($8) - Canada $10 5.5% $16 10.4% ($6
Slide 9: Adjusted EBITDA and EPS
Adjusted EBITDA1 and EPS1 (figures in millions of Canadian dollars) 2025 Q1 2024 Q1 Variance Adjusted EBITDA 1,3 $100 25.5% $97 28.2% $3 Adjusted EBIT 1,3 $36 9.3% $45 13.0% ($9) Adjusted EPS 1 $0.52 $0.79 ($0.27) General & administrative expenses 2 $11 3.3% $11 3.6% $— Net income $6 $12 ($6) Basic
Slide 10: Cash Provided by Operating Activities
Cash Provided by Operating Activities 2025 Q1 2024 Q1 Variance (figures in millions of Canadian dollars unless otherwise stated) Cash provided by operations prior to WC1 $76 $73 $3 Net changes in non-cash working capital (25) (54) 29 Cash provided by operating activities $51 $19 $32 Sustaining capit
Slide 11: Balance Sheet
Balance Sheet (figures in millions of Canadian dollars unless otherwise stated) March 31, 2025 December 31, 2024 December 31, 2023 Cash $78 $78 $89 Total capital liquidity1 199 275 293 Property, plant & equipment 1,315 1,252 1,143 Total assets 1,794 1,695 1,546 Senior debt1,2 $732 1.8x $649 1.7x $53
Slide 12: Outlook
2025 Outlook 12
Slide 13: Priorities for 2025
Priorities for 2025 #1 #2 #3 Enhance safety systems Increase equipment Geographic and resource focusing on consistency & utilization & advance diversification outside of front-line leaders training equipment telematics Queensland and Alberta #4 #5 #6 Keen focus on customer Leverage ERP System in Exp
Slide 14: Tailwinds for Significant Civil Infrastructure Spend
TAILWINDS FOR SIGNIFICANT CIVIL INFRASTRUCTURE SPEND Growing Civil Infrastructure Spend Expected Through 2028 Last Fiscal Year vs Forecasted Allocation to Civil Infrastructure Spend (Local Currency $ Billions) Aging infrastructure underpins need Canada1 United States1 Australia2 for continued expend
Slide 15: Mining Opportunities Australia
MINING OPPORTUNITIES AUSTRALIA Surface contract mining services is a $12 billion market MacKellar Group represents less than 10% of the market Growing demand for Australian iron ore and critical minerals Western Australia represents 50% of active mines Industry to grow annually 2.4% over the next fi
Slide 16: Bid Pipeline
Bid Pipeline 2025 2026 2027 Projects in active procurement Potential contract extensions & expansions Upcoming bid opportunities Bid pipeline1 contains well over $10 billion of specific scopes of work Diversified resources & infrastructure • Australia – consistent strong demand across key commoditie
Slide 17: Contractual Backlog of $3.2 Billion
Contractual Backlog1 of $3.2 Billion 2025 Q1 derived $300 million from the year-end backlog of $3.5 billion QUEENSLAND & CANADIAN CIVIL INFRASTRUCTURE & WESTERN AUSTRALIA OIL SANDS REGION MINE MANAGEMENT Metallurgical and thermal coal Backlog1 provides stability & benefits • Strategic partnerships w
Slide 18: 2025 Outlook Unchanged
2025 Outlook Unchanged Operational metrics unchanged with growth spending updated for timing • Based on existing contracts in place in Key Metrics Australia & Canada Combined revenue1 $1.4B - $1.6B Outlook for earnings per share reflects Adjusted EBITDA1 $415M - $445M shares issued in February 2025
Slide 19: Current Diversified Run-Rate
Current Diversified Run-Rate1 Australian operations now generating over 60% of earnings before interest and taxes Sustained growth from the MacKellar Group has led to it generating approximately 60% of earnings before interest and taxes Enhanced geographic and commodity diversification, positioning
Slide 20: Supplemental Information
Supplemental Information 20
Slide 21: Company Overview
Company Overview Fleet of over 1,200 heavy equipment assets • Backed by support equipment & infrastructure Current workforce of ~3,000 employees • Canada, Australia, U.S.; over 90% operational Operator of Nuna Group of Companies • Inuit-owned contractor in northern Canada PREMIER PROVIDER OF MINING
Slide 22: North American Construction Group
North American Construction Group Australian contractor of civil earthmoving, mining • Large scale services, and large-scale equipment rentals • Low-cost operator • Globally diversified Provider of fully-maintained high-quality heavy equipment in Western Australia • +70 years of experience • Strong
Slide 23: Long-Term Contracts
Long-Term Contracts Type Contract1 Queensland thermal Operations Full mine 2079 coal mine support services Queensland metallurgical Operations Maintained 2040 coal mine support rental Queensland thermal Operations Maintained 2037 coal mine support rental Queensland metallurgical Operations Maintaine
Slide 24: Heavy Equipment Fleet
Heavy Equipment Fleet • As of March 31, 2025, approximately 1,200 heavy equipment assets provide scale and operational flexibility • Managed on an individual asset basis and deployed with sole objective of maximum operating utilization • Replacement value1 of heavy equipment fleet estimated at $3.8
Slide 25: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation 2025 Q1 2024 Q1 Change (figures in millions of Canadian dollars unless otherwise stated) Net income $ 6 $ 12 $ (6) (Gain) loss on disposal of property, plant and equipment (1) — (1) Stock-based compensation (benefit) expense (3) 4 (7) Loss on derivative financial inst
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