North American Construction Group Ltd. · TSX:NOA
North American Construction — Investor Presentation (March 2025)
38 slides from North American Construction's investor presentation, March 2025
Slide 1: Investor Presentation | March 2025
Investor Presentation | March 2025 NORTH AMERICAN CONSTRUCTION GROUP 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: Global Operations
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE GLOBAL OPERATIONS $1.4B-$1.6B estimated 2025 combined revenue generated from over fifty diversified sites across three countries +1,100 heavy equipment assets replacement cost 1 over $3.5 billion 3,000 employees Over 90% of employees are op
Slide 4: The Heavy Equipment Fleet
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE THE HEAVY EQUIPMENT FLEET PAYLOAD / FLEET REPLACEMENT CAPACITY COUNT COST 1 ($M) Haul trucks +150t to 400t 195 $1,400 up to 150t 237 700 Loading units +10m3 to 61m3 28 250 up to 10m3 301 200 Dozers & graders 300 780 Support fleet 74 80 1,13
Slide 5: What We Do: Mining Services & Civil Construction
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE WHAT WE DO: MINING SERVICES & CIVIL CONSTRUCTION Canadian Equipment & resources, 7.5% component sales, 5% Equipment & component Canadian oil Time & material, 65% sales, 5.0% sands region, Equipment 25.0% rental, 10% Civil Western Australia,
Slide 6: Proven Growth Track Record
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE PROVEN GROWTH TRACK RECORD ADJUSTED EBITDA1 ($M) ADJUSTED EPS1 $415 +20% to $445 $450 CAGR $5.00 4.4x $3.70 $400 $390 $4.50 increase to $4.00 $4.00 $350 $3.73 $297 $3.50 $300 $3.00 $2.83 $250 $2.50 $200 $2.00 $150 Acquisitions & $1.50 $102
Slide 7: Australia – Mining & Civil
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE AUSTRALIA – MINING & CIVIL ACTIVE AUSTRALIAN PROJECTS – 350 mines Mining is the cornerstone of the Australian economy (~15% of GDP) Strongest mining contractor market in the world (10x size of Canada) MacKellar’s market share is less than 1
Slide 8: MacKellar Group – Year One
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE MACKELLAR GROUP – YEAR ONE 2024 was an exceptional year by all accounts → Growth in calendar 2024 of 15% from 2023 Q4 run rate • From 2019 to 2025E, MacKellar has increased over 8.0 times showcasing exceptional growth and operational excell
Slide 9: Poised for Additional Growth
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE POISED FOR ADDITIONAL GROWTH → 2025 revenue estimated to grow over 25% from 2024 • Primarily from contracts won in second half of 2024 • Trucks from Canada commissioned in 2024 Q4 • Incremental equipment utilization gains expected → Signifi
Slide 10: Canadian Oil Sands Region
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE CANADIAN OIL SANDS REGION OIL SANDS PRODUCTION (k barrels per day) Record production levels achieved during 2024 4,000 All producers planning production increases through 2026 3,500 Life of mine projections out to 2060 3,000 2,500 Increasin
Slide 11: Our Fleet in the Oil Sands
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE OUR FLEET IN THE OIL SANDS Over 200 large capacity assets are fully engaged → Large capacity haulage fleet equivalent to 80 400T-sized trucks → Fleet moves about 120 million tons per year 1 → 25% of Canadian fleet contributing 75% of oil sa
Slide 12: Opening a New Mining Area
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE OPENING A NEW MINING AREA 400T owner Electrical equipment [substation] 200T NACG haul truck NORTH AMERICAN CONSTRUCTION GROUP 12
Slide 13: Growth of 110,000 Barrels per Day by 2026
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE Growth of 110,000 barrels per day by 2026 Equipment required for 110,000 barrels per day • 100 x 400T trucks1 plus loading and support fleets 100 x 400-ton 9 x 800-ton trucks loaders 1 barrel requires 4 tons of material to be moved 4 to
Slide 14: Fargo-Moorhead Flood Diversion Project
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE FARGO-MOORHEAD FLOOD DIVERSION PROJECT Largest civil project award in company history Construction phase through 2026 with operations and maintenance phase through contracted through 2056 Over 60% complete and tracking on time and budget P3
Slide 15: Five Key Barriers to Entering Our Business
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE FIVE KEY BARRIERS TO ENTERING OUR BUSINESS Upfront fleet Expensive, capital-intensive, acquisition long lead times Maintenance Reliance on third parties not capability economically competitive Indigenous Limited Tier 1 partners partnerships
Slide 16: The Winning Formula: Maximizing Equipment Utilization
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE THE WINNING FORMULA: MAXIMIZING EQUIPMENT UTILIZATION1 90% Australian fleet 82% ← target: +85% 70% ← Canadian fleet target: +75% 54% 50% Canada Australia 30% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 Fleet in Au
Slide 17: What Really Differentiates Us: Equipment Maintenance
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE WHAT REALLY DIFFERENTIATES US: EQUIPMENT MAINTENANCE • Over 90% of maintenance activities completed in-house • Approximately 30% of tradesperson in apprentice programs • 30% to 50% cost savings on full machine “zero-hour” rebuilds • Central
Slide 18: Equipment Telematics
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE EQUIPMENT TELEMATICS REAL-TIME MACHINE MONITORING 1. Maintenance alerts • Telematics monitoring over 375 units on a real-time basis with alerts triggered for non-routine metrics • Early warnings safeguard components resulting in increased u
Slide 19: Invested Capital in Place
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE INVESTED CAPITAL IN PLACE • Since 2018, invested capital has steadily increased and provides strong foundation for organic growth • Specific focus on mining in Western Australia and infrastructure projects in the United States • Additional
Slide 20: Mining Opportunities in Australia
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE MINING OPPORTUNITIES IN AUSTRALIA Surface contract mining & support services → A$12 billion market Growing demand for Australian iron ore and critical minerals Western Australia represents half of active mines Steady industry projected to g
Slide 21: Upside for MacKellar to Expand Presence in Key Australian Mining Regions
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE UPSIDE FOR MACKELLAR TO EXPAND PRESENCE IN KEY AUSTRALIAN MINING REGIONS +100 Queensland Western Australia PRODUCING Coal +50 Iron ore MINES PRODUCING MINES 8 MacKellar presence 10 STABLE COAL PRODUCTION IN GROWING IRON ORE PRODUCTION IN QU
Slide 22: Mining: Steady and Growing
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE MINING: STEADY AND GROWING The mining customers we service operate multi-decade mines requiring large earth moving and are generally not sensitive to commodity price fluctuations PRIMARY SECONDARY • Oil sands • Iron ore • Gold • Copper • Co
Slide 23: Civil Infrastructure / Climate Resiliency Projects
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE OUR FUTURE THE FUTURE CIVIL INFRASTRUCTURE / CLIMATE RESILIENCY PROJECTS Tracking 42 N.A. projects with value of ~$850B Strong demand in our core markets • Impacts of extreme weather events driving governments to sustainable, long-term damage mitigati
Slide 24: Mining Opportunities in Canada
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE MINING OPPORTUNITIES IN CANADA Canada has the resources the world needs for the energy transition Growing production in gold, iron ore, metallurgical coal Indigenous partnerships prominent (over 500 agreements in place) IRON ORE PRODUCTION
Slide 25: Bid Pipeline
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE BID PIPELINE ESTIMATED PROJECT COMMENCEMENT TIMING 2025 2026+ Projects in the active procurement process Potential contract extensions Upcoming bid opportunities Australia – Queensland, WA, NSW Diversified resources & geography Canadian oil
Slide 26: Organic Growth
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE ORGANIC GROWTH Three areas of Displacing Infrastructure Mining in • Annual growth target of 5% to 10% opportunity higher cost projects in the Ontario & contractors in Unites States & northern • Improved equipment utilization Australia Austr
Slide 27: Current Run Rate & 2025 Outlook
THE COMPANY AUSTRALIA CANADA CIVIL OUR ADVANTAGE THE FUTURE CURRENT RUN RATE & 2025 OUTLOOK Combined revenue1 $1.4b - $1.6b • Over $3.5 billion backlog1 provides visibility to midpoint of $1.5 billion • Line of sight and visibility to over 90% of combined revenue midpoint Adjusted EBITDA1 $415m - $4
Slide 28: Supplemental Materials
SUPPLEMENTAL MATERIALS NORTH AMERICAN CONSTRUCTION GROUP 28
Slide 29: Founded in 1953 & 1966: Experience Matters
FOUNDED IN 1953 & 1966 EXPERIENCE MATTERS Since the Since the Since the Since the Thousands of projects 1950’s 1960’s 1970’s 1980’s completed over seven decades Civil Queensland Fort McMurray Canadian infrastructure mining oil sands resource projects region region industry NORTH AMERICAN CONSTRUCTIO
Slide 30: NOA by the Numbers
NOA BY THE NUMBERS Operations 1,100 3,000 3 Over 50 Heavy Employees Countries Operating equipment sites assets 2024 $1.2B 11.9% 14.7% 2.0x metrics 1 Invested Return on Combined Net debt capital invested gross profit Leverage 12.31.2024 capital margin 2025 $1.4B to $1.6B 26% to 30% $4.15 to $4.45 $13
Slide 31: Australia and Canadian Fleets
AUSTRALIA AND CANADIAN FLEETS CANADIAN FLEET AUSTRALIAN FLEET PAYLOAD / FLEET REPLACEMENT FLEET REPLACEMENT CAPACITY COUNT COST 1 ($M) COUNT COST 1 ($M) Ultra-class & +200-ton trucks +150t to 400t 125 $950 70 $450 Large capacity loading units +10m3 to 61m3 18 200 10 50 Heavy dozers & graders 77 250
Slide 32: Long-Term Contracts
LONG-TERM CONTRACTS Owner Contract1,2 Queensland thermal Full mine 2027 2079 Confidential coal mine services Queensland metallurgical Maintained 2030 2040 Confidential NACG coal mine rental MacKellar Group Queensland thermal Maintained 2025 2037 Expected mine life Confidential coal mine rental Queen
Slide 33: Capital & Debt Structure
CAPITAL & DEBT STRUCTURE ENTERPRISE VALUE1 - $1.5 billion NET DEBT - $782 million Australian-dollar denominated Vendor $442M or 56% financing (15%) Net debt Credit facility, net of cash Canadian-dollar (45%) denominated $340M or 44% 5.00% convertible debentures (7%) Market $650M capitalization Equip
Slide 34: FAQ: Why Do Our Customers Use Contractors?
FAQ: WHY DO OUR CUSTOMERS USE CONTRACTORS? Top reasons 1 2 Avoidance of multi-billion capital-intensive investment Peak shaving of fleet required by mine plan • In addition to initial purchase, heavy equipment • Primary example is the required fleet to requires significant ongoing capital spending u
Slide 35: High-Quality, Well-Established Customers
HIGH-QUALITY, WELL-ESTABLISHED CUSTOMERS NORTH AMERICAN CONSTRUCTION GROUP 35
Slide 36: Our Indigenous Partners
OUR INDIGENOUS PARTNERS Productive partnerships with strong track record Essential qualification for majority of proposals Spending thresholds for impacted Indigenous regions Collaborative investment opportunities Indigenous employment & community development NORTH AMERICAN CONSTRUCTION GROUP 36
Slide 37: Notes
NOTES NORTH AMERICAN CONSTRUCTION GROUP 37
Slide 38: Everyone Gets Home Safe
EVERYONE GETS HOME SAFE NORTH AMERICAN CONSTRUCTION GROUP 38
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