North American Construction Group Ltd.

Q2 combined revenue was $456 million, up $86 million year over year, with IMC contributing $91 million of revenue. Adjusted EBITDA was $93 million, adjusted EPS was $0.32, and Australia posted a 13.6% gross profit margin while Canada delivered a combined adjusted margin of approximately 7%; direct adjusted G&A was $15 million, or 3.8% of reported revenue. Operating cash flow before working capital was $78 million, free cash flow was $23 million, and net debt increased $191 million to $1.1 billion; trailing 12-month net debt leverage was 2.9x, but management said the second-half run rate implies about 2.6x. For 2026, the company raised combined revenue guidance to $1.6 billion-$1.8 billion, kept adjusted EBITDA guidance at $380 million-$420 million, and kept free cash flow guidance at $110 million-$130 million.

Barry Palmer described the quarter as evidence that the company is at an inflection point, with its broader geographic reach, expanded capabilities, and operating discipline translating into stronger earnings visibility and a more resilient operating profile. He emphasized three growth pillars: scaling Australia, winning infrastructure work across North America, and expanding mining services in Canada and the U.S. His tone was constructive and confident, repeatedly pointing to backlog, pipeline, and second-half operating drivers as support for the raised outlook.

Jason Veenstra focused on the quarter’s financial strength and leverage metrics. He cited $93 million of EBITDA, $15 million of direct adjusted G&A, $18.9 million of interest expense versus $14.1 million a year ago, $78 million of operating cash flow before working capital, and $23 million of free cash flow after a $13 million positive working-capital change. He also noted net debt of $1.1 billion, 2.9x trailing leverage, and that the business is running at about 2.6x leverage on a second-half run rate, with the plan to reduce that over time; average cost of debt stayed at 6.4%.

Analysts pressed on why revenue guidance rose while EBITDA guidance did not; management said the increase mainly reflects stronger first-half revenue and associated costs, not a change in margin assumptions. Questions also focused on diesel pass-through, the new fuel services contract, IMC integration, oil sands fleet optimization, and sustaining capex; management said diesel is largely flow-through, the fuel contract was a small-capital, strategically important win included in backlog, IMC integration is going well, oil sands capex for 2026 is around $50 million for the targeted fleet, and sustaining capital for 2026 is now a little north of $200 million. On Australia, management said a missed large bid reduced the pipeline but still left follow-on opportunities, and on Canada they said Nuna and northern infrastructure opportunities are creating excitement but still need to reach RFP and award stages.