North American Construction Group Ltd. · TSX:NOA
North American Construction — Q3 2024 Earnings Presentation
24 slides from North American Construction's earnings presentation, Oct 31, 2024
Slide 1: 2024 Q3 Earnings Presentation
2024 Q3 EARNINGS PRESENTATION October 31, 2024
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 Continuous focus on improving the health and safety Injury Rate performance for ourselves, our environment, our customers and the communities we work in • Trailing twelve-month injury rate of 0.39 below target of 0.50 0.39 • Primary safety init
Slide 4: Blackwoods Collaboration Award
NOA TSX - NYSE Blackwoods Collaboration Award Significant safety recognition of the MacKellar Group and Manabotix at the Queensland Mining Awards • MacKellar Group, in partnership with Manabotix, was awarded for the Bund Monitoring System fit to all water trucks at the Jellinbah site, providing real
Slide 5: 2024 Q3 Accomplishments
NOA 2024 Q3 Accomplishments TSX - NYSE • Consistent operating conditions and successful commissioning of growth assets in Australia generated strong top line results • MacKellar Group posted record-setting revenue driven by steady site conditions at the Middlemount and Carmichael mines • Solid incre
Slide 6: Equipment Utilization
NOA TSX - NYSE Equipment Utilization1,2 90% Target for Australia (85%) 80% 84% Target for Canada (75%) 70% Q3 2024 60% 51% 50% Canada Australia 40% 30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Heavy equipment fleet in Australia maintained strong performance trend 1
Slide 7: 2024 Q3 Financial Overview
2024 Q3 FINANCIAL OVERVIEW C) amiznican CONSTRUCTION GROUP.
Slide 8: 2024 Q3 Performance
NOA 2024 Q3 Performance TSX - NYSE $367M $106M 29.0% 12.0% Combined Adjusted Adjusted Return on revenue1 EBITDA1 EBITDA margin1 invested capital1 • Record adjusted EBITDA1 of $106.4 million with Q3 performance reflecting a more $120 Adjusted EBITDA1 consistent diversified business $106.4 Q3 2024 $10
Slide 9: Combined Results
NOA Combined Results TSX - NYSE (figures in millions of Canadian dollarss) 2024 Q3 2023 Q3 Variance Wholly-owned entities $287 $197 $90 Share of amounts from investments $80 $78 $2 TOTAL COMBINED REVENUE1 $367 $275 $92 Combined gross profit1 $80 21.9% $38 13.8% $42 Q3 2024 Revenue from wholly owned
Slide 10: Adjusted EBITDA and EPS
NOA TSX - NYSE Adjusted EBITDA1 and EPS 1 (figures in millions of Canadian dollars, except per share amounts) 2024 Q3 2023 Q3 Variance Adjusted EBITDA1,3 $106 29.0% $59 21.6% $46 Adjusted EBIT1,3 $62 16.8% $25 9.2% $37 Adjusted EPS1 $1.17 $0.54 $0.63 General & administrative expenses2 $10 3.3% $7 3.
Slide 11: Cash Provided by Operating Activities
NOA TSX - NYSE Cash Provided by Operating Activities (figures in millions of Canadian dollars unless otherwise stated) 2024 Q3 2023 Q3 Variance Cash provided by operations prior to WC1 $80 $42 $38 Net changes in non-cash working capital (32) (4) (28) Cash provided by operating activities $48 $38 $11
Slide 12: Balance Sheet
NOA TSX - NYSE Balance Sheet (figures in millions of Canadian dollars unless otherwise stated) September 30, 2024 December 31, 2023 December 31, 2022 Cash $78 $89 $69 Total capital liquidity 1 173 293 212 Property, plant & equipment 1,235 1,143 646 Total assets 1,694 1,546 980 Senior debt 1,2 $691 1
Slide 13: 2025 Outlook
2025 OUTLOOK C) Attenican CONSTRUCTION GROUP
Slide 14: Assessing 2024 Priorities
ASSESSING 2024 PRIORITIES 1 2 Integrate & grow MacKellar Win large-scale mining or with ERP and stronger civil construction project systems & processes in place Qualify for major earthworks for second half of 2024 infrastructure tender 3 4 Achieve fleet utilization Re-establish operational targe
Slide 15: Priorities for Q4 2024 & Full Year 2025
Priorities for Q4 2024 & Full Year 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 Alberta and Queensland 4 5 6 Keen focus on c
Slide 16: Bid Pipeline
NOA TSX - NYSE Bid Pipeline ESTIMATED PROJECT COMMENCEMENT 2024 2025 2026+ TIMING Projects in active procurement Q3 2024 Potential contract extensions & expansions Upcoming bid opportunities Diversified resources & infrastructure BID PIPELINE1 CONTAINS OVER $10 BILLION OF SPECIFIC SCOPES OF WORK Oil
Slide 17: Contractual backlog of $3.1 billion
NOA TSX - NYSE Contractual backlog1 of $3.1 billion Significant additions in 2024 of $1.4 billion offset by over $900 million of work executed year-to-date MINING, RESOURCE & CIVIL CANADIAN OIL SANDS REGION QUEENSLAND & WESTERN AUSTRALIA • Strategic partnerships with Backlog provides stability & b
Slide 18: 2024 Outlook
Key metrics unchanged with growth NOA TSX - NYSE 2024 Outlook spending updated for Q3 contract win • 2024 Q4 remains consistent with prior expectations KEY METRICS • Line of sight based on existing contracts in Australia & Canada Combined revenue1 $1.4B - $1.5B • Fleet transported to & commissioned
Slide 19: The Diversification Journey Continues
NOA The Diversification Journey Continues1 TSX - NYSE Australian operations expected to exceed 50% of earnings generation Canadian oil Queensland metallurgical coal, 30% Q3 2024 sands region, 25% Australian operations, 55% Queensland thermal coal, 15% United States, 10% Other Australia (copper, gold
Slide 20: Supplemental Information
SUPPLEMENTAL O meen AMERICAN CONSTRUCTION GROUP INFORMATION
Slide 21: Company Overview
Head office & maintenance facilities in Acheson, Alberta NOA TSX - NYSE Company Overview MacKellar Group – Corporate office & maintenance facilities Sites with significant current operations Fleet of over 1,100 heavy equipment assets • Backed by support equipment & infrastructure Current workforce o
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 Regional Heavy MUA 2027 2059 Various Civil Earthworks with term Kearl Imperial Oil MSA 2027 2060 Mine Limited with term Fargo- Moorhead Flood Metro Flood Design & Construction - 2027 O&M - 2056 Diversion Project Diversion Authority build Texas min
Slide 24: Heavy Equipment Fleet
NOA Heavy Equipment Fleet TSX - NYSE • As of September 30, 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
North American Construction Group — Q3 2024 Earnings Presentation on 6ix