North American Construction Group Ltd. reported a fourth‑quarter loss of adjusted earnings per share of $(0.14), a reversal from the $1.01 profit posted in the same quarter a year earlier. Combined revenue for the quarter fell to $344.0 million, down 7.4% from $372.7 million in Q4 2024, while adjusted EBITDA dropped to $77.6 million and free cash flow to $57.4 million. The company also declared a dividend of twelve Canadian cents per share, payable to shareholders of record on March 9, 2026.
The loss was driven by a $13 million one‑time catch‑up related to the Fargo‑Moorhead flood‑diversion project, which reduced adjusted EBITDA and pushed the company into a loss. Revenue decline was concentrated in Canada, where heavy‑equipment sales fell 10% to $127.9 million from $141.6 million in Q4 2024, largely due to reduced scopes at Syncrude mines and the divestiture of the 797 fleet. In contrast, Australian operations grew 10% to $175.9 million from $160.3 million, supported by scope expansion and higher volumes, though margins were pressured by above‑average wet weather in Queensland.
Management highlighted that the Fargo project cost adjustment and mechanical‑availability issues in Canada were the primary headwinds, while the Australian segment’s growth was offset by weather‑related delays. Gross profit fell 35.9% year‑over‑year, and the adjusted EBITDA margin contracted to 23% from 30% in the prior year, underscoring the impact of the one‑time charge and operational challenges.
Looking ahead, the company guided for 2026 combined revenue of $1.5 billion to $1.7 billion (midpoint $1.6 billion), adjusted EBITDA of $380 million to $420 million (midpoint $400 million), and free cash flow of $110 million to $130 million (midpoint $120 million). CEO Barry Palmer noted that “2025 marked a year of record revenue for NACG, reflecting the continued growth and diversification of our global platform. However, earnings during the year were severely impacted by a number of extraordinary one‑time project‑level adjustments. Specific to the fourth quarter, we recognized a life‑to‑date adjustment for updated cost to complete of the structures, railroads and aqueducts within the Fargo‑Moorhead flood diversion project. Notably, our portion of the project, the large‑scale earthworks, have continued to perform well – as expected. In addition, above average rain events in Queensland had a negative impact late in the quarter.” CFO Jason Veenstra added that “Our 2026 outlook is supported by strong visibility, with approximately $1.2 billion of revenue already secured, representing roughly 75% of our midpoint revenue guidance.”
The market reacted sharply to the earnings miss, with the stock falling roughly 24% in after‑hours trading. The steep decline was driven by the unexpected EPS loss, which fell far below analyst expectations of a positive profit, outweighing the revenue beat and the company’s optimistic 2026 guidance.
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