Recent Insider Transactions • Jun 04
Independent Chairman of the Board recently bought US$68k worth of stock On the 3rd of June, Martin Ferron bought around 5k shares on-market at roughly US$13.61 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$149k. Martin has been a buyer over the last 12 months, purchasing a net total of US$366k worth in shares. Recent Insider Transactions • May 20
Independent Chairman of the Board recently bought US$149k worth of stock On the 19th of May, Martin Ferron bought around 10k shares on-market at roughly US$14.86 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of US$298k worth in shares. Declared Dividend • May 17
First quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 3rd June 2026 Payment date: 3rd July 2026 Dividend yield will be 2.5%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but not covered by cash flows (dividend approximately 7x free cash flows). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 130% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: EPS: CA$0.20 (down from CA$0.22 in 1Q 2025). Revenue: CA$319.2m (down 6.3% from 1Q 2025). Net income: CA$5.55m (down 9.9% from 1Q 2025). Profit margin: 1.7% (in line with 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 46%. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Apr 28
North American Construction Group Ltd. to Report Q1, 2026 Results on May 13, 2026 North American Construction Group Ltd. announced that they will report Q1, 2026 results After-Market on May 13, 2026 Announcement • Apr 08
North American Construction Group Ltd. (TSX:NOA) completed the acquisition of Iron Mine Contracting Pty Ltd for approximately CAD 120 million. North American Construction Group Ltd. (TSX:NOA) entered into a definitive share purchase agreement to acquire Iron Mine Contracting Pty Ltd for approximately CAD 120 million on December 18, 2025. The acquisition is expected to be significantly accretive, increasing NACG’s incremental earnings per share by approximately 20% in 2026. The Transaction will be fully funded by senior-secured bank financing (65% of the purchase price) and vendor-provided debt financing (35% of the purchase price). The estimated upfront payment of approximately CAD 40 million will be funded by North American Construction Group Ltd’s existing revolving credit facility. In addition, NACG plans to assume secured equipment financing of CAD 35 million. The remaining CAD 40 million of the consideration will be addressed through structured earn-out and deferred payment mechanisms payable to the vendors over the next four years.
The Transaction is subject to satisfaction of certain regulatory and other customary closing conditions and is expected to close in the first quarter of 2026.
National Bank of Canada Financial Markets acted as financial advisor for North American Construction Group Ltd. Fasken Martineau DuMoulin LLP acted as legal advisor for North American Construction Group Ltd. MinterEllison acted as legal advisor for North American Construction Group Ltd.
North American Construction Group Ltd. (TSX:NOA) completed the acquisition of Iron Mine Contracting Pty Ltd for on April 7, 2026. Recent Insider Transactions • Mar 19
Independent Lead Director recently bought US$52k worth of stock On the 16th of March, Bryan Pinney bought around 4k shares on-market at roughly US$13.07 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$1.2m more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to US$13.51, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 19x in the Energy Services industry in the US. Total loss to shareholders of 11% over the past three years. Declared Dividend • Mar 15
Fourth quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 26th March 2026 Payment date: 9th April 2026 Dividend yield will be 3.0%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 142% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Mar 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 86% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.9x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.6% net profit margin). Reported Earnings • Mar 12
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: CA$1.18 (down from CA$1.65 in FY 2024). Revenue: CA$1.28b (up 10% from FY 2024). Net income: CA$33.8m (down 23% from FY 2024). Profit margin: 2.6% (down from 3.8% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 32%. Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Feb 19
North American Construction Group Ltd. to Report Q4, 2025 Results on Mar 11, 2026 North American Construction Group Ltd. announced that they will report Q4, 2025 results at 4:00 PM, US Eastern Standard Time on Mar 11, 2026 Announcement • Feb 17
North American Construction Group Ltd., Annual General Meeting, May 20, 2026 North American Construction Group Ltd., Annual General Meeting, May 20, 2026. Announcement • Dec 20
North American Construction Group Ltd. (TSX:NOA) entered into a definitive share purchase agreement to acquire Iron Mine Contracting Pty Ltd for approximately CAD 120 million. North American Construction Group Ltd. (TSX:NOA) entered into a definitive share purchase agreement to acquire Iron Mine Contracting Pty Ltd for approximately CAD 120 million on December 18, 2025. The acquisition is expected to be significantly accretive, increasing NACG’s incremental earnings per share by approximately 20% in 2026. The Transaction will be fully funded by senior-secured bank financing (65% of the purchase price) and vendor-provided debt financing (35% of the purchase price). The estimated upfront payment of approximately CAD 40 million will be funded by North American Construction Group Ltd’s existing revolving credit facility. In addition, NACG plans to assume secured equipment financing of CAD 35 million. The remaining CAD 40 million of the consideration will be addressed through structured earn-out and deferred payment mechanisms payable to the vendors over the next four years.
The Transaction is subject to satisfaction of certain regulatory and other customary closing conditions and is expected to close in the first quarter of 2026.
National Bank of Canada Financial Markets acted as financial advisor for North American Construction Group Ltd. Fasken Martineau DuMoulin LLP acted as legal advisor for North American Construction Group Ltd. MinterEllison acted as legal advisor for North American Construction Group Ltd. Declared Dividend • Nov 16
Third quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 26th November 2025 Payment date: 9th January 2026 Dividend yield will be 2.7%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (9% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 74% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 14
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: CA$0.59 (up from CA$0.52 in 3Q 2024). Revenue: CA$317.2m (up 11% from 3Q 2024). Net income: CA$17.3m (up 24% from 3Q 2024). Profit margin: 5.5% (up from 4.8% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 10%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Oct 17
North American Construction Group Ltd. to Report Q3, 2025 Results on Nov 12, 2025 North American Construction Group Ltd. announced that they will report Q3, 2025 results After-Market on Nov 12, 2025 Recent Insider Transactions • Aug 22
Independent Chairman of the Board recently bought US$264k worth of stock On the 20th of August, Martin Ferron bought around 21k shares on-market at roughly US$12.40 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of US$658k worth in shares. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to US$12.98, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Energy Services industry in the US. Total returns to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$5.36 per share. Declared Dividend • Aug 17
Second quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 29th August 2025 Payment date: 3rd October 2025 Dividend yield will be 3.1%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (37% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 126% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 14
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: CA$0.35 (down from CA$0.52 in 2Q 2024). Revenue: CA$320.6m (up 16% from 2Q 2024). Net income: CA$10.3m (down 27% from 2Q 2024). Profit margin: 3.2% (down from 5.1% in 2Q 2024). Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) also missed analyst estimates by 52%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jul 18
North American Construction Group Ltd. to Report Q2, 2025 Results on Aug 13, 2025 North American Construction Group Ltd. announced that they will report Q2, 2025 results After-Market on Aug 13, 2025 New Risk • Jul 05
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$181k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.2% net profit margin). Significant insider selling over the past 3 months (US$181k sold). Recent Insider Transactions • Jun 18
Independent Chairman of the Board recently sold US$181k worth of stock On the 10th of June, Martin Ferron sold around 10k shares on-market at roughly US$18.09 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite the recent sale, Martin has been a net buyer over the last 12 months, purchasing a net total of US$957k worth of shares. Declared Dividend • May 18
First quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 4th June 2025 Payment date: 11th July 2025 Dividend yield will be 2.1%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 128% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 16
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: CA$0.22 (down from CA$0.42 in 1Q 2024). Revenue: CA$340.8m (up 15% from 1Q 2024). Net income: CA$6.16m (down 46% from 1Q 2024). Profit margin: 1.8% (down from 3.8% in 1Q 2024). Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) missed analyst estimates by 71%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 2.9% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Apr 21
North American Construction Group Ltd. to Report Q1, 2025 Results on May 14, 2025 North American Construction Group Ltd. announced that they will report Q1, 2025 results at 4:00 PM, US Eastern Standard Time on May 14, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$13.44, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Energy Services industry in the US. Total loss to shareholders of 2.5% over the past three years. Recent Insider Transactions • Mar 28
Chairman of the Board recently bought US$65k worth of stock On the 24th of March, Martin Ferron bought around 4k shares on-market at roughly US$16.30 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of US$192k worth in shares. New Risk • Mar 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.6x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.6x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.8% net profit margin). Significant insider selling over the past 3 months (US$668k sold). Reported Earnings • Mar 20
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CA$1.65 (down from CA$2.38 in FY 2023). Revenue: CA$1.17b (up 21% from FY 2023). Net income: CA$44.1m (down 30% from FY 2023). Profit margin: 3.8% (down from 6.5% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 28%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 3% per year. Announcement • Mar 10
North American Construction Group Ltd., Annual General Meeting, May 14, 2025 North American Construction Group Ltd., Annual General Meeting, May 14, 2025. Declared Dividend • Feb 28
Third quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 13th March 2025 Payment date: 9th April 2025 Dividend yield will be 2.0%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (19% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 47% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 26
North American Construction Group Ltd. Announces Regular Quarterly Dividend, Payable on April 9, 2025 On February 24, 2025, the North American Construction Group Ltd. Board of Directors declared a regular quarterly dividend of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on March 13, 2025. The Dividend will be paid on April 9, 2025, and is an eligible dividend for Canadian income tax purposes. Announcement • Feb 05
North American Construction Group Ltd. to Report Q4, 2024 Results on Mar 05, 2025 North American Construction Group Ltd. announced that they will report Q4, 2024 results After-Market on Mar 05, 2025 New Risk • Jan 05
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$424k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (173% net debt to equity). Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.8% net profit margin). Significant insider selling over the past 3 months (US$424k sold). Announcement • Dec 05
North American Construction Group Ltd. Provides Earnings Guidance of for the Fourth Quarter 2024 and Full Year 2025 North American Construction Group Ltd. provided earnings guidance of for the fourth quarter 2024 and full year 2025, for the quarter the company expects combined revenue of $350 million to $375 million.
for the year, the company expects combined revenue of $1.4 billion to $1.6 billion. Upcoming Dividend • Nov 20
Upcoming dividend of CA$0.12 per share Eligible shareholders must have bought the stock before 27 November 2024. Payment date: 03 January 2025. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (2.3%). Recent Insider Transactions • Nov 14
Chairman of the Board recently bought US$121k worth of stock On the 12th of November, Martin Ferron bought around 6k shares on-market at roughly US$20.13 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of US$84k worth in shares. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to US$20.86, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Energy Services industry in the US. Total returns to shareholders of 34% over the past three years. Declared Dividend • Nov 03
Third quarter dividend of CA$0.12 announced Shareholders will receive a dividend of CA$0.12. Ex-date: 27th November 2024 Payment date: 3rd January 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (5% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 75% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 01
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CA$0.52 (up from CA$0.43 in 3Q 2023). Revenue: CA$286.9m (up 47% from 3Q 2023). Net income: CA$13.9m (up 22% from 3Q 2023). Profit margin: 4.8% (down from 5.8% in 3Q 2023). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 51%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 6% per year. Announcement • Oct 31
North American Construction Group Ltd. Declares Quarterly Dividend, Payable on January 3, 2025 On October 29, 2024, North American Construction Group Ltd.'s Board of Directors declared a regular quarterly dividend of CAD 0.12 per common share, payable to common shareholders of record at the close of business on November 27, 2024. The Dividend will be paid on January 3, 2025, and is an eligible dividend for Canadian income tax purposes. Announcement • Oct 22
North American Construction Group Ltd. to Report Q3, 2024 Results on Oct 30, 2024 North American Construction Group Ltd. announced that they will report Q3, 2024 results After-Market on Oct 30, 2024 Recent Insider Transactions • Aug 15
Chairman of the Board recently bought US$330k worth of stock On the 9th of August, Martin Ferron bought around 19k shares on-market at roughly US$17.36 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Martin has been a net seller over the last 12 months, reducing personal holdings by US$868k. Declared Dividend • Aug 04
Second quarter dividend of CA$0.10 announced Shareholders will receive a dividend of CA$0.10. Ex-date: 30th August 2024 Payment date: 4th October 2024 Dividend yield will be 1.8%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (10% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 97% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Aug 01
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.0% net profit margin). Reported Earnings • Aug 01
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CA$0.52 (up from CA$0.46 in 2Q 2023). Revenue: CA$276.3m (up 43% from 2Q 2023). Net income: CA$14.0m (up 14% from 2Q 2023). Profit margin: 5.1% (down from 6.3% in 2Q 2023). Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 47%. Revenue is forecast to grow 10.0% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jul 19
North American Construction Group Ltd. to Report Q2, 2024 Results on Jul 31, 2024 North American Construction Group Ltd. announced that they will report Q2, 2024 results After-Market on Jul 31, 2024 Recent Insider Transactions • Jun 25
Chairman of the Board recently bought US$232k worth of stock On the 24th of June, Martin Ferron bought around 12k shares on-market at roughly US$19.37 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Martin has been a net seller over the last 12 months, reducing personal holdings by US$1.6m. Upcoming Dividend • May 24
Upcoming dividend of CA$0.10 per share Eligible shareholders must have bought the stock before 31 May 2024. Payment date: 05 July 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (2.3%). Recent Insider Transactions • May 17
Chairman of the Board recently bought US$102k worth of stock On the 16th of May, Martin Ferron bought around 5k shares on-market at roughly US$20.33 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Martin has been a net seller over the last 12 months, reducing personal holdings by US$2.1m. New Risk • May 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.4x net interest cover). Minor Risks Profit margins are more than 30% lower than last year (5.2% net profit margin). Shareholders have been diluted in the past year (5.4% increase in shares outstanding). Significant insider selling over the past 3 months (US$551k sold). Reported Earnings • May 02
First quarter 2024 earnings: EPS misses analyst expectations First quarter 2024 results: EPS: CA$0.43 (down from CA$0.83 in 1Q 2023). Revenue: CA$297.0m (up 22% from 1Q 2023). Net income: CA$11.4m (down 48% from 1Q 2023). Profit margin: 3.8% (down from 9.0% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 46%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 14% per year. Announcement • Apr 21
North American Construction Group Ltd. to Report Q1, 2024 Results on May 01, 2024 North American Construction Group Ltd. announced that they will report Q1, 2024 results After-Market on May 01, 2024 Recent Insider Transactions • Apr 10
Chairman of the Board recently sold US$457k worth of stock On the 2nd of April, Martin Ferron sold around 20k shares on-market at roughly US$22.85 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Martin has been a net seller over the last 12 months, reducing personal holdings by US$2.6m. Recent Insider Transactions • Mar 27
Chairman of the Board recently sold US$94k worth of stock On the 19th of March, Martin Ferron sold around 4k shares on-market at roughly US$23.47 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Martin has been a net seller over the last 12 months, reducing personal holdings by US$2.2m. Reported Earnings • Mar 15
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CA$2.38 (down from CA$2.46 in FY 2022). Revenue: CA$957.2m (up 24% from FY 2022). Net income: CA$63.1m (down 6.3% from FY 2022). Profit margin: 6.6% (down from 8.8% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 14
North American Construction Group Ltd. Provides Earnings Guidance for the Year 2024 North American Construction Group Ltd. provided earnings guidance for the year 2024. For the period, the company expects combined revenue to be in the range of $1.5 billion - $1.7 billion. Announcement • Mar 09
North American Construction Group Ltd., Annual General Meeting, May 15, 2024 North American Construction Group Ltd., Annual General Meeting, May 15, 2024. Announcement • Mar 02
North American Construction Group Ltd. Appoints Vanessa Guthrie AO to Its Board of Directors North American Construction Group Ltd. announced the appointment of Dr. Vanessa Guthrie AO to its Board of Directors, effective March 1, 2024. Dr. Guthrie has broad strategic experience in the natural resources sector in Australia, spanning more than 30 years. She hasheld a diverse array of senior leadership positions across operations, indigenous affairs, corporate development, andsustainability. These include being the Managing Director of Toro Energy Limited, an Australia Stock Exchange ("ASX") listedcompany involved in uranium mining, Vice President of Sustainable Development for Woodside Energy Group Ltd. and a minemanager for Alcoa Corporation. Dr. Guthrie also has extensive past and current experience serving on the boards of several prominent ASX-listed companies,including Santos Ltd, Orica Ltd. and Lynas Rare Earths Ltd. She is a former chair of Minerals Council of Australia and acurrent board member of Infrastructure Australia. Her contribution to the mining and resources industry was recognized in2017, via the award of an Honorary Doctor of Science degree from Curtin University, where she is now Chancellor Elect, for hercontribution to sustainability, innovation, and policy leadership in the resources industry. In 2021 she was also made an Officerof the Order of Australia for distinguished service to the minerals and resources sector, and as a role model for women inbusiness. Dr. Guthrie has a PhD in Geology, as well as qualifications in law, environment, and business management. Upcoming Dividend • Feb 29
Upcoming dividend of CA$0.10 per share Eligible shareholders must have bought the stock before 07 March 2024. Payment date: 05 April 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of American dividend payers (4.8%). Lower than average of industry peers (2.3%). Declared Dividend • Feb 25
Third quarter dividend of CA$0.10 announced Shareholders will receive a dividend of CA$0.10. Ex-date: 7th March 2024 Payment date: 5th April 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 73% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 22
North American Construction Group Ltd. Declares Regular Quarterly Dividend, Payable on April 5, 2024 On February 20, 2024, the North American Construction Group Ltd. announced that the board of directors declared a regular quarterly dividend of CAD 0.10 per common share, payable to common shareholders of record at the close of business on March 8, 2024. The Dividend will be paid on April 5, 2024, and is an eligible dividend for Canadian income tax purposes. Announcement • Feb 15
North American Construction Group Ltd. to Report Q4, 2023 Results on Mar 13, 2024 North American Construction Group Ltd. announced that they will report Q4, 2023 results After-Market on Mar 13, 2024 Upcoming Dividend • Nov 24
Upcoming dividend of CA$0.10 per share at 1.5% yield Eligible shareholders must have bought the stock before 29 November 2023. Payment date: 05 January 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of American dividend payers (5.0%). Lower than average of industry peers (2.0%). Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CA$0.43 (down from CA$0.75 in 3Q 2022). Revenue: CA$194.7m (up 1.8% from 3Q 2022). Net income: CA$11.4m (down 44% from 3Q 2022). Profit margin: 5.8% (down from 11% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 26%. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 02
North American Construction Group Ltd. Declares Regular Quarterly Dividend, Payable on January 5, 2024 On October 31, 2023, North American Construction Group Ltd. Board of Directors declared a regular quarterly dividend of CAD 0.10 per common share, payable to common shareholders of record at the close of business on November 30, 2023. The Dividend will be paid on January 5, 2024, and is an eligible dividend for Canadian income tax purposes. Announcement • Oct 20
North American Construction Group Ltd. to Report Q3, 2023 Results on Nov 01, 2023 North American Construction Group Ltd. announced that they will report Q3, 2023 results After-Market on Nov 01, 2023 Recent Insider Transactions • Sep 03
Chairman of the Board recently sold US$367k worth of stock On the 25th of August, Martin Ferron sold around 15k shares on-market at roughly US$24.44 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth US$501k. Martin has been a net seller over the last 12 months, reducing personal holdings by US$2.8m. Upcoming Dividend • Aug 24
Upcoming dividend of CA$0.10 per share at 1.2% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 06 October 2023. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of American dividend payers (4.9%). Lower than average of industry peers (1.9%). New Risk • Aug 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 9.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.9x net interest cover). Minor Risks Share price has been volatile over the past 3 months (9.7% average weekly change). Significant insider selling over the past 3 months (US$501k sold). Recent Insider Transactions • Aug 11
Chairman of the Board recently sold US$501k worth of stock On the 2nd of August, Martin Ferron sold around 20k shares on-market at roughly US$25.06 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Martin has been a net seller over the last 12 months, reducing personal holdings by US$2.5m. New Risk • Jul 29
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.9x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.9x net interest cover). Minor Risk Significant insider selling over the past 3 months (US$879k sold). Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: CA$0.46 (up from CA$0.27 in 2Q 2022). Revenue: CA$193.6m (up 15% from 2Q 2022). Net income: CA$12.3m (up 63% from 2Q 2022). Profit margin: 6.3% (up from 4.5% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Energy Services industry in the US. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth.