North American Construction Group Ltd. · TSX:NOA
North American Construction — Q2 2024 Earnings Presentation
23 slides from North American Construction's earnings presentation, Aug 1, 2024
Slide 1: 2024 Q2 Earnings Presentation
2024 Q2 EARNINGS PRESENTATION August 1, 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 performance for Injury Rate ourselves, our environment, our customers and the communities we work in • Trailing twelve-month injury rate of 0.45 is below the target of 0.50 0.45 • As at June 3
Slide 4: John T. Ryan National Safety Award
NOA TSX - NYSE John T. Ryan National Safety Award Significant recognition for the North American and Mikisew teams, safety lies at the core of our operations, embodied in the belief that Everyone Gets Home Safe • Mikisew North American Limited Partnership was the recipient of the John T. Ryan Nation
Slide 5: 2024 Q2 Accomplishments
NOA TSX - NYSE 2024 Q2 Accomplishments • MacKellar Group posted record-setting revenue in May driven by effective fleet operation and favourable site conditions at the Middlemount and Carmichael mines • Delivered consistent operating and project margins in the oil sands region despite significant ad
Slide 6: Equipment Utilization
NOA TSX - NYSE Equipment Utilization1,2 100% 90% Target for Australia 80% Target for Canada 82% 70% Q2 2024 60% 50% 42% 40% 30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 Canada Australia Australia and Canada fleets inversely impacted by operating
Slide 7: 2024 Q2 Financial Overview
2024 Q2 FINANCIAL OVERVIEW NORTH AMERICAN CONSTRUCTION GROUP.
Slide 8: NOA 2024 Q2 Performance
NOA 2024 Q2 Performance TSX - NYSE $330M $87M 26.3% 11.4% Combined Adjusted Adjusted Return on revenue1 EBITDA1 EBITDA margin1 invested capital1 • Record Q2 adjusted EBTIDA1 of $86.9 million beat previous metric by 70% reflecting a $120 Adjusted EBITDA1 more consistent diversified business Q2 2024 $
Slide 9: NOA Combined Results
NOA Combined Results TSX - NYSE (figures in millions of Canadian dollarss) Q2 2024 Q2 2023 Variance Wholly-owned entities $276 $195 $81 Share of amounts from investments $54 $84 ($30) 1 TOTAL COMBINED REVENUE $330 $279 $52 Combined gross profit1 $60 18.3% $36 13.0% $24 Q2 2024 Revenue from wholly ow
Slide 10: Adjusted EBITDA and EPS
NOA TSX - NYSE Adjusted EBITDA1 and EPS 1 (figures in millio ns o f Canadian do llars, except per share amo unts) Q2 2024 Q2 2023 Variance Adjusted EBITDA1,3 $87 26.3% $52 18.6% $34 Adjusted EBIT1,3 $47 14.1% $23 8.3% $24 Adjusted EPS1 $0.78 $0.47 $0.31 General & administrative expenses2 $13 4.6% $7
Slide 11: Cash Provided by Operating Activities
NOA TSX - NYSE Cash Provided by Operating Activities (figures in millio ns o f Canadian do llars unless o therwise stated) Q2 2024 Q2 2023 Variance Cash provided by operations prior to WC1 $69 $27 $42 Net changes in non-cash working capital (10) 13 (23) Cash provided by operating activities $59 $40
Slide 12: Balance Sheet
NOA TSX - NYSE Balance Sheet (figures in millions of Canadian dollars unless otherwise stated) June 30, 2024 December 31, 2023 December 31, 2022 Cash $68 $89 $69 1 Total capital liquidity 189 293 212 Property, plant & equipment 1,204 1,143 646 Total assets 1,625 1,546 980 Senior debt 1,2 $657 1.7x $
Slide 13: 2024 Outlook
2024 OUTLOOK C) aiienican CONSTRUCTION GROUP
Slide 14: Operational Priorities for 2024
Operational Priorities for 2024 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
Slide 15: Bid Pipeline
NOA TSX - NYSE Bid Pipeline ESTIMATED PROJECT COMMENCEMENT 2024 2025 2026+ TIMING Projects in the active procurement process Q2 2024 Potential contract extensions Upcoming bid opportunities Diversified resources & infrastructure BID PIPELINE1 CONTAINS OVER $10 BILLION OF SPECIFIC SCOPES OF WORK Oil
Slide 16: Contractual backlog of $2.8 billion
NOA TSX - NYSE Contractual backlog1 of $2.8 billion Additions in 2024 of $720 million offset by $600 million of work executed in the first half of the year MINING, RESOURCE & CIVIL CANADIAN OIL SANDS REGION QUEENSLAND & WESTERN AUSTRALIA • Strategic partnerships with Backlog provides stability & b
Slide 17: Updated 2024 Outlook
Updated 2024 Outlook Revenue, EBITDA & EPS updated to NOA reflect 2024 H1 performance TSX - NYSE • 2024 H2 remains consistent with original expectations KEY METRICS • Line of sight based on contracts in Combined revenue 1 $1.4B - $1.5B place and upcoming busy season • Fleet transported to & commissi
Slide 18: Supplemental Information
SUPPLEMENTAL NORTH INFORMATION O) atetican CONSTRUCTION GROUP
Slide 19: 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 ~1,200 heavy equipment assets • Backed by support equipment & infrastructure Current workforce of ~4
Slide 20: 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 21: Diversified Business
NOA Diversified Business1 TSX - NYSE Canada Australia Equipment & component sales Western Australia 20% Queensland thermal coal 35% Q2 2024 Queensland metallurgical coal 17.5% Canada oil sands region 5% 7.5% Northern Canada mining (Nuna) 5% 10% U.S. civil construction and project management United S
Slide 22: 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 23: Heavy Equipment Fleet
NOA Heavy Equipment Fleet TSX - NYSE • As of June 30, 2024, 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 esti
North American Construction Group — Q2 2024 Earnings Presentation on 6ix