North American Construction Group Ltd. (NOA) Q2 2024 Earnings Call Highlights
Welcome to the North American Construction Group Ltd. (NOA) earnings call for the second quarter ended June 30, 2024. This morning, we are joined by Joe Lambert, President and CEO, and Jason Veenstra, Chief Financial Officer, to discuss our Q2 operational performance, financial overview, and outlook for the rest of the year.
Operational Highlights
Joe Lambert kicked off the call by highlighting our Q2 performance and notable achievements. “Our Q2 trailing 12-month recordable injury rate remains below our industry-leading target frequency of 0.5, showcasing our unyielding commitment to safety,” Lambert emphasized. This achievement underscores the importance of safety in our operations and our efforts to ensure that every employee returns home safely.
Lambert also shared insights into our workforce growth and the recognition of our safety efforts through the John T. Ryan National Safety Award, a testament to our safety culture and practices. “Our Australian business continues to deliver strong results, with MacKellar achieving its best monthly result in company history,” Lambert added, highlighting the seamless progress in our Australian operations integration.
Financial Overview
Jason Veenstra provided a comprehensive overview of our financials. “Our EBITDA stood at CAD 87 million with a 26% margin, driven by successful performances, particularly from our Australian operations,” Veenstra reported. This reflects strong operational performance across the board, with a significant contribution from MacKellar. Despite challenges in the Canadian oil sands due to adverse weather conditions, our team maintained solid margins, managing costs effectively.
The financial section delved further into revenue and gross profit, showcasing a combined gross profit margin of 18.3%, and highlighted the effectiveness of our operations in Australia, which boasted equipment utilization rates surpassing our end-of-year target in some months.
2024 Operational Priorities and Outlook
Lambert then outlined our operational priorities for the rest of the year, emphasizing the continuation of our efforts to integrate MacKellar fully and to win a large-scale mining or civil construction project. “Our bid pipeline remains robust, with several opportunities across Canada and Australia,” Lambert added.
Looking ahead, Lambert shared our updated outlook for 2024, maintaining our guidance with expectations of strong performance in the latter half of the year. “While we have faced operational interruptions earlier in the year, our focus remains unchanged, and we are committed to delivering strong results,” Lambert concluded.
Following the executive discussions, the floor was opened for questions, providing further insights into our operational strategies, financial planning, and future growth opportunities.
Closing Remarks
In conclusion, the Q2 2024 earnings call underscored North American Construction Group’s resilient performance, strategic priorities, and optimistic outlook for the future. Our commitment to safety, operational excellence, and financial discipline positions us for continued success in the dynamic and challenging construction industry landscape.
Thank you for joining today’s earnings call. We look forward to sharing our progress in the coming quarters.
