North American Construction Group Ltd. Announces Results for the Second Quarter Ended June 30, 2026

About this update from North American Construction Group Ltd.

Raises Full Year 2026 Combined Revenue Guidance on Record Q2 Top-Line Performance ACHESON, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG") (TSX:NOA/NYSE:NOA) today announced results for the second quarter ended June 30, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended June 30, 2025. Second Quarter 2026 Financial Highlights Revenue: Profitability: Cash flow: Second Quarter 2026 Operational & Corporate Highlights NACG delivered record revenue and higher adjusted EBITDA in the second quarter, supported by the contribution from IMC, organic growth in Australia and improved joint venture earnings. "Record revenue of more than $450 million demonstrates both the growing scale of the business and the demand across our markets. With work in hand, seasonal momentum and recent scope expansions, we remain confident in the $400 million midpoint of our 2026 adjusted EBITDA guidance," commented Barry Palmer, President and Chief Executive Officer. "Our priorities for the second half are clear: execute the work in hand, improve fleet availability and utilization, convert earnings into free cash flow and allocate that capital toward the strongest risk-adjusted returns. The inflection point of the second quarter is not simply greater scale, but our ability to translate that scale into improved performance and durable value. We believe the combination of near-term earnings drivers and a substantial, qualified growth pipeline positions NACG for a stronger second half and continued momentum into 2027." Financial Results for the Second Quarter 2026 Combined revenue and reported revenue were generated during the quarter by the following primary segments: Gross profit increased to $43.4 million (10.8% margin) from $35.8 million (11.2% margin) in 2025 Q2. Combined gross profit was $49.9 million (10.9% margin), up from $33.4 million (9.0% margin) in the prior year, driven by IMC's $10.5 million contribution, a $7.6 million improvement from core segments, and Fargo's return to profitability. Both gross profit measures exceeded 2026 Q1 results. Adjusted EBITDA was $93.5 million, up $13.4 million year-over-year, with IMC contributing $13.1 million. Adjusted EBITDA margin was 20.5%, compared to 21.6% in 2025 Q2, principally reflecting IMC's margin profile. Adjusted net earnings for the quarter were $8.5 million, up significantly from $0.8 million in the prior year period. Adjusted EPS was $0.32, up significantly from $0.02 in 2025 Q2. The increase in both metrics is driven by stronger gross profit, improved equity earnings, and reduced interest accretion, partially offset by higher interest expense on growth-related debt. Quarterly net income of $9.4 million was below the prior year's $10.3 million, as higher general and administrative costs, driven by $4.8 million of acquisition and integration activities, combined with increased interest expense to more than offset gains in gross profit. Basic net income per share was $0.35, consistent with 2025 Q2. Free cash flow was $23.0 million, improving $23.4 million year-over-year. Cash generation was supported by $93.5 million in adjusted EBITDA, offset by $62.5 million in sustaining capital, and $18.2 million in cash interest. Declaration of Quarterly Dividend On August 11, 2026, the NACG Board of Directors declared a regular quarterly dividend (the "Dividend") of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on August 28, 2026. The Dividend will be paid on October 2, 2026, and is an eligible dividend for Canadian income tax purposes. Outlook for 2026 - Raised Full Year 2026 Combined Revenue Guidance Our operational priorities for 2026 are: Our growth drivers for 2026 and beyond are the strategic building blocks of our success: Based on stronger-than-expected first-half revenue, we have increased our 2026 combined revenue guidance range to $1.6 to $1.8 billion, raising the midpoint to $1.7 billion from $1.6 billion. Adjusted EBITDA and free cash flow guidance remain $380 to $420 million and $110 to $130 million, respectively, given first-half generation came in largely as expected. The outlook is supported by our fleet capacity and contractual backlog of $3.8 billion. (i)See "Non-GAAP Financial Measures". Results for the three and six months ended June 30, 2026 Consolidated Financial Highlights (i)See "Non-GAAP Financial Measures". (ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue. Conference Call and Webcast Management will hold a conference call and webcast to discuss our financial results for the quarter ended June 30, 2026, tomorrow, Thursday, August 13, 2026, at 9:00 am Eastern Time (7:00 am Mountain Time). The call can be accessed by dialing: Toll Free: 1-800-717-1738 Conference ID: 40245 A replay will be available through September 12, 2026, by dialing: Toll Free: 1-888-660-6264 Conference ID: 40245 Playback Passcode: 40245 A slide deck for the webcast will be available for download the evening prior to the call and will be found on the Company's website at www.nacg.ca/presentations/ The live presentation and webcast can be accessed at: https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=74511C07-BB07-4170-A51A-A1FE7E23F554 A replay will be available until September 12, 2026, using the link provided. About the Company North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets. For further information contact: Jason Veenstra, CPA, CA Chief Financial Officer North American Construction Group Ltd. (780) 960.7171 [email protected] www.nacg.ca Basis of Presentation We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States ("US GAAP"). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management's Discussion and Analysis ("MD&A") for the quarter ended June 30, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q2 Results Presentation for more information on our results and projections, which can be found on our website under Investors - Presentations. Forward-Looking Information The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by, or that include the words "anticipate", "believe", "expect", "should" or similar expressions and include guidance with respect to financial metrics provided in our outlook for 2026. The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and six months ended June 30, 2026. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG's control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca . Non-GAAP Financial Measures This press release presents certain non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures that may be useful to investors in analyzing our business performance, leverage, and liquidity. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer's historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer's GAAP and that is not presented in an issuer's financial statements. A "non-GAAP ratio" is a ratio, fraction, percentage or similar expression that has a non-GAAP financial measure as one or more of its components. Non-GAAP financial measures and ratios do not have standardized meanings under GAAP and therefore may not be comparable to similar measures presented by other issuers. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A "supplementary financial measure" is a financial measure disclosed, or intended to be disclosed, on a periodic basis to depict historical or future financial performance, financial position or cash flows that does not fall within the definition of a non-GAAP financial measure or non-GAAP ratio. The non-GAAP financial measures and ratios we present include, "adjusted EBIT", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted EPS", "adjusted net earnings", "backlog", "capital additions", "capital expenditures, net", "capital inventory", "capital work in progress", "cash liquidity", "cash related interest expense", "cash provided by operating activities prior to change in working capital", "combined backlog", "combined gross profit", "combined gross profit margin", "equity investment depreciation and amortization", "equity investment EBIT", "equity method investment backlog", "free cash flow", "general and administrative expenses (excluding stock-based compensation)", "growth capital", "growth spending", "invested capital", "margin", "net debt", "net debt leverage", "senior-secured debt", "share of affiliate and joint venture capital additions", "sustaining capital", "total capital liquidity", "total combined revenue", and "total debt". We also use supplementary financial measures such as "gross profit margin" and "total net working capital (excluding cash and current portion of long-term debt)" in our MD&A. Each non-GAAP financial measure used in this press release is defined under "Financial Measures" in our Management's Discussion and Analysis filed on EDGAR on the SEC website at www.sec.gov or on the CSA website at  www.sedarplus.com and on our company website at www.nacg.ca . Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA (i)See "Non-GAAP Financial Measures". (ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue. Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT (i) See "Non-GAAP Financial Measures". Reconciliation of total reported revenue to total combined revenue (i) See "Non-GAAP Financial Measures". Reconciliation of reported gross profit to combined gross profit (i)See "Non-GAAP Financial Measures". (ii) Certain prior period costs within the Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification has no impact on revenue, income before taxes, or net income. Reconciliation of basic net income per share to adjusted EPS (i)See "Non-GAAP Financial Measures". Net Debt (i)Includes current portion. (ii)See "Non-GAAP Financial Measures". Free Cash Flow (i)See "Non-GAAP Financial Measures". Consolidated Balance Sheets (Expressed in thousands of Canadian Dollars) (Unaudited) Consolidated Statements of Operations and Comprehensive Income (Expressed in thousands of Canadian Dollars, except per share amounts) (Unaudited)

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