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NOA: Future Shareholder Returns Will Benefit From Ongoing Share Repurchase Program

Increasing Infrastructure Renewal And Automation Will Reshape Construction Markets

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NOA
AnalystHighTarget
Not Invested
Published 02 Aug 2025

Update shared on 12 Dec 2025

Fair value Decreased 7.14%
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AnalystHighTarget's Fair Value
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1Y
-34.6%
7D
-0.05%

Analysts have trimmed their price target for North American Construction Group by 2.00 dollars to 26.00 dollars, citing slightly lower long term revenue growth expectations, partly offset by improved margin and valuation assumptions.

What's in the News

  • Announced completion of a substantial normal course issuer bid, repurchasing 1,781,550 shares, representing 6.16% of outstanding shares, for CAD 20.34 million under the buyback announced on October 30, 2024 (Key Developments)
  • Between July 1, 2025 and November 3, 2025, repurchased 1,102,442 shares, or 3.78% of shares outstanding, for CAD 4.04 million as part of the latest buyback tranche (Key Developments)
  • Issued earnings guidance for the six months ended December 31, 2025, forecasting combined revenue in the range of 700 million dollars to 750 million dollars (Key Developments)

Valuation Changes

  • Fair Value Estimate reduced from 28.00 dollars to 26.00 dollars, a decrease of about 7 percent, reflecting slightly lower long term expectations.
  • Discount Rate lowered from 9.65 percent to 8.71 percent, indicating a modestly lower perceived risk profile or cost of capital.
  • Revenue Growth trimmed from 4.02 percent to 3.73 percent annually, suggesting slightly more conservative top line assumptions.
  • Net Profit Margin increased from 8.11 percent to 9.80 percent, implying improved long term profitability expectations.
  • Future P/E reduced significantly from 11.29x to 6.66x, pointing to a materially cheaper valuation multiple on expected earnings.

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