Update shared on15 Aug 2025
Fair value Decreased 8.84%A sharp decline in net profit margin combined with a substantial increase in the future P/E ratio signals deteriorating profitability and a less attractive valuation, leading analysts to lower their fair value estimate for North American Construction Group from CA$33.94 to CA$30.94.
What's in the News
- Maintained earnings guidance for the second half of 2025, with combined revenue expected at $700 million to $750 million.
- Outlook for the second half remains positive, with revenue in the oil sands business consistent with expectations but higher costs anticipated due to demand volatility and large truck fleet expenses.
- Long-term growth targets remain unchanged, projecting 5% to 10% annual organic revenue growth driven by Australian operations and new infrastructure projects supporting diversification.
Valuation Changes
Summary of Valuation Changes for North American Construction Group
- The Consensus Analyst Price Target has fallen from CA$33.94 to CA$30.94.
- The Future P/E for North American Construction Group has significantly risen from 6.23x to 11.92x.
- The Net Profit Margin for North American Construction Group has significantly fallen from 16.94% to 8.02%.
Disclaimer
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