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Here are 1-3 brief analogies to describe North American Construction (NOA):

• Imagine a **Granite Construction (GVA)**, but highly specialized in large-scale mining and heavy industrial earthmoving projects.
• They're like the **Schlumberger (SLB)** of heavy construction and mining services – providing essential, capital-intensive operational support to major resource and industrial clients.

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• Contract Mining Services: Provides full-service mine operations, including overburden removal, ore hauling, and equipment fleet management for major resource projects.
• Heavy Civil Construction: Offers large-scale earthworks, site preparation, and infrastructure development for industrial, energy, and resource sector clients.
• Tailings and Reclamation Services: Specializes in environmental management related to mining, including the construction of tailings dams and land remediation efforts.
• Equipment Management and Rental: Supplies a large fleet of heavy construction and mining equipment for rent, along with comprehensive maintenance and management solutions.
• Pipeline Construction: Engages in the construction of large-diameter pipelines, primarily serving the oil and gas industry across North America.

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Major Customers of North American Construction Group Ltd. (NOA)

North American Construction Group Ltd. (NOA) sells primarily to other companies.

While the company states that its top five customers collectively accounted for approximately 78% of its revenue in 2023, North American Construction Group does not publicly disclose the specific names of these individual major customers. This is typically because no single customer represents a sufficiently large percentage of total revenue to trigger specific disclosure requirements; the company reported that no single customer accounted for more than 20% of its revenue in 2023.

Based on its stated service offerings and industry focus, NOA's customer base consists primarily of large-scale operators within the following sectors in Canada:

• Oil Sands Companies: Major producers and developers in the Athabasca oil sands region that require extensive heavy civil earthworks, overburden removal, and infrastructure development services. These would include major integrated energy companies.
• Mining Companies: Operators of large open-pit mines (e.g., for base metals, precious metals, or industrial minerals) needing services such as overburden removal, site preparation, and ongoing contract mining operations.
• Infrastructure Developers: Entities, both public and private, undertaking significant infrastructure projects (e.g., major road construction, dam projects, site preparation for large industrial facilities) that demand heavy construction expertise.

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Joseph C. Lambert, President & Chief Executive Officer

Mr. Lambert became Chief Executive Officer of North American Construction Group Ltd. on January 1, 2021, and had previously been appointed President on October 31, 2017. He also served as Chief Operating Officer, a role he held since June 1, 2013. Mr. Lambert originally joined the company in April 2008 as General Manager of Mining, following an extensive career within the mining industry.

Jason W. Veenstra, Executive Vice President & Chief Financial Officer

Mr. Veenstra joined North American Construction Group Ltd. in 2018 as Chief Financial Officer. Prior to this, he worked for Finning International Inc., where he was responsible for leading sales and marketing efforts for Caterpillar equipment within their Canadian mining division. Mr. Veenstra also spent a decade at the publicly traded Westmoreland Coal Company, serving in various capacities including CFO and Treasurer. His career also includes experience in the nickel industry with Sherritt International and the insurance industry with Forensic Investigations. Mr. Veenstra articled to become a Chartered Accountant at Ernst & Young. He held positions as Chief Financial Officer, Treasurer & Director at Westmoreland Resources GP LLC and Westmoreland Resource Partners LP, and as CFO, Treasurer & Head-Investor Relations at Westmoreland Coal Co.

Barry W. Palmer, Chief Operating Officer & Regional President of MacKellar Group

Mr. Palmer began his career with North American Construction Group Ltd. in 1982 as a heavy equipment operator. Over the years, he advanced through various roles including Operations Foreman, General Foreman, Superintendent, Project Manager, Operations Manager, and General Manager of HC&M. He was promoted to Vice President, Oil Sands Operations in December 2011, then Vice President, Heavy Construction & Mining in June 2013, and Senior Vice President Operations in November 2018. Mr. Palmer was named Chief Operating Officer and Regional President of the MacKellar Group in 2024.

Jordan A. Slator, Chief Legal Officer

Mr. Slator was appointed Chief Legal Officer in January 2024, having previously served as NACG's Vice President and General Counsel since November 28, 2018. He initially joined the Corporation as General Counsel on August 30, 2010, and has also held the role of Corporate Secretary since June 2, 2011. Mr. Slator commenced his legal career with Miller Thomson LLP in Edmonton, where he practiced in the corporate commercial department.

David G. Kallay, Chief People Officer

Mr. Kallay was named Chief People Officer in January 2024, after serving as Vice President, Health, Safety, Environment and Human Resources since November 28, 2018. He originally joined the Corporation as Health and Safety Manager on December 1, 2008. He was subsequently promoted to General Manager of Health, Safety, Environment and Training on October 1, 2011, and General Manager of Human Resources on July 21, 2016. Mr. Kallay brings over 20 years of progressive leadership experience in human resources and safety management from both the private and public sectors.

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The key risks to North American Construction Group Ltd. (NOA) include its exposure to cyclical markets and commodity price fluctuations, significant operational challenges, and a leveraged balance sheet.

1. Cyclicality and Commodity Price Fluctuations: North American Construction Group's performance is highly susceptible to the cyclical nature of commodity markets and broader economic cycles, particularly due to its heavy involvement in the mining and oil sands sectors. Fluctuations in commodity prices can directly impact the viability and profitability of projects, affecting demand for NOA's services. Changes in the oil sands mix have also exerted pressure on the company's profits.
2. Operational Challenges: The company faces ongoing operational challenges that can affect its profitability and efficiency. These include higher labor costs, project execution risks, and elevated subcontractor costs, which have pressured margins in recent periods. Additionally, extreme weather events, such as heavy rainfall in Australia and severe cold in Canada, have significantly disrupted operations, leading to increased costs and reduced profit margins. The capital-intensive nature of the industry also necessitates substantial ongoing investment in equipment maintenance and fleet replacement.
3. High Net Debt / Leveraged Balance Sheet: North American Construction Group operates with a leveraged balance sheet, reflecting a reliance on debt financing. The company reported high net debt, for instance, $904 million as of Q3 2025 and $867.5 million as of March 31, 2025. This elevated debt level can limit financial flexibility and increase financial risk, especially in a cyclical industry requiring substantial capital investment.

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A clear emerging threat for North American Construction (NOA) is the accelerating adoption of **automation and autonomous heavy equipment** in the mining and heavy construction sectors. Major equipment manufacturers are rapidly advancing technologies for autonomous haul trucks, drills, dozers, and excavators. Mining companies, particularly in large-scale operations, are increasingly deploying these autonomous fleets to improve safety, reduce operational costs, and increase efficiency. As this technology becomes more prevalent, it could fundamentally alter the demand for human operators and traditional equipment rental/maintenance services, which are core to NOA's business model. Companies that fail to adapt their fleets, workforce skills, and service offerings to this automated future risk being outcompeted by firms that embrace or specialize in autonomous operations.

Another significant emerging threat is the **accelerated global push for decarbonization and the energy transition**, particularly as it impacts the oil and gas sector. A substantial portion of NOA's historical revenue has been tied to large-scale oil sands projects in Canada. Increasingly stringent environmental regulations, global climate policies, and investor pressure are leading to reduced long-term capital investment in fossil fuel projects and a greater focus on renewable energy and sustainable infrastructure. While existing projects will continue to require maintenance and services, a rapid shift away from fossil fuels could shrink NOA's core market for large-scale earthmoving and mining services related to oil and gas extraction, compelling the company to pivot significantly towards other sectors or risk a diminishing project pipeline.

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North American Construction Group Ltd. (NOA) operates primarily in heavy civil construction and mining services, including equipment maintenance and refurbishment, with significant operations in Canada, and to a lesser extent, the U.S. and Australia.

The addressable markets for their main products and services are as follows:

• Heavy Civil Construction Services: The heavy engineering construction market in Canada was valued at USD 72.1 billion in 2024 and is projected to reach USD 72.5 billion in 2025. More broadly, the total construction market in Canada was valued at USD 266.7 billion in 2024 and is estimated to grow to USD 417.3 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 5.10% from 2025-2033. Another estimate places the Canada construction market size at USD 283.63 billion in 2024, expected to reach USD 296.44 billion by the end of 2025, and USD 349.78 billion by 2030, with a CAGR of 3.36% between 2025 and 2030.
• Mining Services and Equipment: The mining equipment market in Canada generated revenues of USD 8,469.7 million in 2022 and is projected to reach USD 11,890.7 million by 2030, growing at a CAGR of 4.3% from 2023 to 2030. The broader Canadian metals and mining industry had total revenues of USD 99.8 billion in 2022. Additionally, Canada's mineral production alone was valued at USD 71.9 billion in 2023. The Canada Heavy Construction Equipment market is also projected to grow from USD 6.2 billion in 2024 to USD 10.3 billion by 2035.

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North American Construction Group (NOA) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors:

1. Geographic Expansion and Mining Opportunities in Australia: The company's Australian operations, particularly through MacKellar Group, are a significant contributor to earnings and are poised for continued growth. The Australian mining market is projected to expand annually, and North American Construction Group is actively increasing its market share in surface contract mining services, which represents a substantial market.
2. Increased Civil Infrastructure Spending: Significant investments in civil infrastructure are anticipated through 2028 across Canada, the U.S., and Australia. These expenditures are driven by factors such as aging infrastructure, population growth, and ongoing investments in energy transition projects, providing a robust market for NOA's services.
3. New Project Wins and Diversified Service Offerings: North American Construction Group continues to secure new and substantial projects, such as a notable $2.0 billion contract in Queensland, Australia. The company is also engaged in new copper mine projects and stream diversion projects, showcasing its ability to win diverse work and expand its service portfolio.
4. Expanded Heavy Equipment Fleet and High Utilization Rates: Revenue growth is further supported by the company's increased heavy equipment capacity, particularly in Australia, coupled with consistently high equipment utilization rates across its operations, including Canada. This operational strength allows NOA to take on more projects and drive top-line revenue.

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Share Repurchases

• On October 30, 2024, North American Construction Group announced a Normal Course Issuer Bid (NCIB) to repurchase and cancel up to 2,087,577 common shares, representing 10% of the public float and 7.5% of outstanding shares. This program is expected to commence on November 4, 2024, and terminate on November 3, 2025.
• In January 2025, an automatic share purchase plan (ASPP) was established to facilitate these repurchases, enabling the designated broker to buy up to the authorized number of shares for cancellation until November 3, 2025.
• For the fiscal year ended December 31, 2024, the company purchased and cancelled 149,408 shares under an existing NCIB at an average price of $28.84 per share.

Outbound Investments

• On October 1, 2023, North American Construction Group acquired 100% of MacKellar Group, an Australia-based provider of heavy earthworks solutions to the mining and civil sectors.
• The total consideration for the MacKellar Group acquisition was $179.7 million, with the overall purchase price, including assumed debt and cash, amounting to $369.7 million.
• This acquisition was a strategic move to significantly expand the company's global capabilities and involved an increase in its heavy equipment fleet, with $34.9 million in growth capital spending during the fourth quarter of 2023.

Capital Expenditures

• Historical capital expenditures were CAD 117 million in 2020, CAD 114 million in 2021, CAD 115 million in 2022, CAD 203 million in 2023, and CAD 284 million in 2024.
• Projected capital expenditures are CAD 278 million for 2025, CAD 289 million for 2026, and CAD 308 million for 2027.
• The primary focus of capital expenditures includes maintaining and expanding the heavy equipment fleet for mining and heavy civil construction services, with $89.9 million in front-loaded capital maintenance spending incurred in Q1 2025.