North American Construction Group Ltd. · TSX:NOA
North American Construction — Q4 2024 Earnings Presentation
26 slides from North American Construction's earnings presentation, Mar 20, 2025
Slide 1: 2024 Q4 Earnings Presentation
2024 Q4 EARNINGS PRESENTATION March 20, 2025
Slide 2: Forward-looking statements & non-GAAP financial measures
Forward-looking statements & NOA TSX - NYSE 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 “Comp
Slide 3: Everyone Gets Home Safe
NOA TSX - NYSE Everyone Gets Home Safe Total Recordable Injury Rate Continuous focus on improving health & safety for ourselves, our environment, our customers and the communities we work in 0.39 • Trailing twelve-month injury rate of 0.39 well below target of 0.50 • Primary safety initiatives in th
Slide 4: 2024 Q4 Accomplishments
NOA 2024 Q4 Accomplishments TSX - NYSE • MacKellar Group continued its growth trend with Q4 being its highest revenue quarter ever despite significant rainfall in December • Completed second full year of construction on the Fargo-Moorhead flood diversion project surpassing 60% completion in December
Slide 5: MacKellar Group – Year One
NOA TSX - NYSE MacKellar Group – Year One 1. Growth in 2024 of +30% from run-rate at acquisition • From 2019 to 2025E, top-line revenue generation by the MacKellar Group has increased over 8.0 times 2. New and extended contracts worth $1.0 billion • Two extensions, with scope increases, and a new co
Slide 6: Five Year Growth Trend
NOA TSX - NYSE Five Year Growth Trend Adjusted EBITDA1 ($M) $500 $415m to $445 $450 $400 20% CAGR2 $350 Q4 2024 $300 $250 $200 $150 $100 $50 $- 2020 2021 2022 2023 2024 2025F 6 1 See Slide 2 or 2024 Annual Report for Non-GAAP Financial Measures 2 Compound Annual Growth Rate
Slide 7: Equipment Utilization & Hours
NOA TSX - NYSE Equipment Utilization & Hours 1 Equipment utilization Equipment hours 200,000 90% Target for Australia (85%) 80% Target for Canada (75%) 82% 150,000 70% Q4 2024 100,000 60% 54% 50% 50,000 40% 30% - Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023
Slide 8: 2024 Q4 Financial Overview
2024 Q4 FINANCIAL OVERVIEW
Slide 9: 2024 Q4 Performance
NOA 2024 Q4 Performance TSX - NYSE $373M $104M 27.8% 11.9% Combined Adjusted Adjusted Return on revenue1 EBITDA1 EBITDA margin1 invested capital1 • Strong quarter adjusted EBITDA1 of $104 million on improved operating $120 Adjusted EBITDA1 margins and disciplined Q4 2024 administrative expenses $104
Slide 10: Combined Results
NOA Combined Results TSX - NYSE (figures in millions of Canadian dollars) 2024 Q4 2023 Q4 Variance 2024 Q3 Wholly-owned entities $306 $328 ($23) $287 Share of amounts from investments $67 $77 ($10) $80 TOTAL COMBINED REVENUE1 $373 $405 ($33) $367 Combined gross profit1 $54 14.6% $74 18.3% ($20) $80
Slide 11: Adjusted EBITDA and EPS
NOA TSX - NYSE Adjusted EBITDA1 and EPS 1 (figures in millions of Canadian dollars, except per share amounts) 2024 Q4 2023 Q4 Variance Adjusted EBITDA1,3 $104 27.8% $101 24.9% $2 Adjusted EBIT1,3 $52 14.0% $54 13.3% ($2) Adjusted EPS1 $1.00 $0.87 $0.13 General & administrative expenses2 $14 4.5% $19
Slide 12: Cash Provided by Operating Activities
NOA TSX - NYSE Cash Provided by Operating Activities (figures in millions of Canadian dollars unless otherwise stated) 2024 Q4 2023 Q4 Variance 1 Cash provided by operations prior to WC $62 $93 ($31) Net changes in non-cash working capital 35 76 (41) Cash provided by operating activities $97 $169 ($
Slide 13: Balance Sheet
NOA TSX - NYSE Balance Sheet (figures in millions of Canadian dollars unless otherwise stated) December 31, 2024 December 31, 2023 December 31, 2022 Cash $78 $89 $69 1 Total capital liquidity 275 293 212 Property, plant & equipment 1,247 1,143 646 Total assets 1,694 1,546 980 1,2 Senior debt $677 1.
Slide 14: 2025 Outlook
2025 OUTLOOK C) Atiznican CONSTRUCTION GROUP
Slide 15: Priorities for 2025
Priorities for 2025 1 2 3 Enhance safety systems → Increase equipment utilization Geographic and resource focusing on consistency and → Advance telematics and diversification outside of front-line leaders training roll-out in Australia Queensland and Alberta 4 5 6 Keen focus on customer Leverage ERP
Slide 16: Bid Pipeline
NOA TSX - NYSE Bid Pipeline ESTIMATED PROJECT COMMENCEMENT 2025 2026 2027+ Projects in active procurement Q4 2024 Potential contract extensions & expansions Upcoming bid opportunities Diversified resources & infrastructure BID PIPELINE1 CONTAINS OVER $10 BILLION OF SPECIFIC SCOPES OF WORK Oil sands
Slide 17: Contractual backlog of $3.5 billion
NOA TSX - NYSE Contractual backlog1 of $3.5 billion Significant additions of $1.7 billion offset by over $1.3 billion of work executed in 2024 QUEENSLAND & WESTERN AUSTRALIA CANADIAN OIL SANDS REGION CIVIL INFRASTRUCTURE & OTHER Metallurgical and thermal coal mines Backlog 1 provides stability & b
Slide 18: 2025 Outlook
NOA TSX - NYSE 2025 Outlook Operational metrics unchanged with growth spending updated for timing • Based on existing contracts in place in Australia & Canada KEY METRICS Outlook for earnings per share reflects Combined revenue1 $1.4B - $1.6B recently issued shares • Redemption of convertible debent
Slide 19: The Diversification Journey
NOA The Diversification Journey 1 TSX - NYSE Australian operations now generating 60% of earnings before interest and taxes Equipment & Canadian resources, 7.5% Equipment and component sales, component sales, 5% 5.0% Time & material, 65% Unit rate, 20% Canadian oil Civil construction, Western sands
Slide 20: Supplemental Information
SUPPLEMENTAL pain INFORMATION AMERICAN
Slide 21: Company Overview
NOA TSX - NYSE Company Overview Fleet of over 1,100 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 Q4 2024 PREM
Slide 22: North American Construction Group
NOA North American Construction Group TSX - NYSE Australian contractor of civil earthmoving, mining services, and large-scale equipment rentals Provider of fully-maintained high-quality heavy equipment in Western Australia LARGE SCALE Majority Inuit-owned contract mining, heavy civil LOW-COST OP
Slide 23: Long-Term Contracts
NOA TSX - NYSE Long-Term Contracts Owner Contract1,2 Queensland thermal Full mine 2027 2079 Confidential coal mine services Queensland metallurgical Maintained 2030 2040 Confidential coal mine rental Queensland thermal Maintained 2025 2037 Confidential coal mine rental Queensland metallurgical Maint
Slide 24: Heavy Equipment Fleet
NOA Heavy Equipment Fleet TSX - NYSE • As of December 31, 2024, approximately 1,100 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
Slide 25: Q4 2024 Guidance and Results
NOA TSX - NYSE 2024 Q4 GUIDANCE ACTUAL TARGETS RESULTS Combined revenue1 $350M - $375M $373M Adjusted EBITDA1 $100M - $110M $104M Sustaining capital1 $55M - $65M $48M Q4 2024 Adjusted EPS1 $1.00 - $1.10 $1.00 Free cash flow1 $45M - $55M $50M Leverage Ratios: Net debt leverage 1, 2 2.0x - 2.2x 2.2x M
Slide 26: GAAP to Non-GAAP reconciliation
NOA GAAP to Non-GAAP reconciliation TSX - NYSE (figures in millions of Canadian dollars) Q4 2024 Q4 2023 2024 2023 Net Income 5 18 44 63 Adjustments: Loss on disposal of property, plant and equipment 0 1 1 2 Stock-based compensation expense (benefit) 6 (0) 9 16 Change in fair value of contingent obl
North American Construction Group — Q4 2024 Earnings Presentation on 6ix