ACHESON, Alberta, Nov. 04, 2026 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG”) (TSX:NOA/NYSE:NOA) today announced results for the third quarter ended September 30, 2026. Unless otherwise indicated, figures are expressed in Canadian dollars, and comparisons are to the prior period ended September 30, 2025.
Third Quarter 2026 Financial Highlights
Revenue:
- Combined revenue of $438.1 million, up $47.3 million or 12% year-over-year
- Reported revenue of $413.3 million, up $96.0 million or 30% year-over-year
Profitability:
- Adjusted EBITDA of $100.1 million, up $1.0 million or 1% year-over-year
- Adjusted net earnings of $6.6 million, down $13.0 million year-over-year
- Net loss of $24.2 million, down $41.5 million or 240% year-over-year
Third Quarter 2026 Operational & Corporate Highlights
NACG delivered consistent adjusted EBITDA in the third quarter, supported by the contribution from IMC, organic growth in Australia and improved margins in Canada.
- Our Australian operations delivered robust revenue growth of 42% year-over-year, with the majority of the increase reflecting IMC’s contribution which was acquired during 2026 Q2. The MacKellar and DGI businesses also delivered organic growth driven by strong project execution, prior-period growth asset investments, and favourable foreign exchange translation rates. Combined gross profit margin in the Australian business of 11.9% was impacted by i) additional parts and labour costs required to improve and sustain mechanical availability at a thermal coal mine site in Queensland and ii) operational inefficiencies at a lithium mine site in Western Australia caused by a pit wall failure.
- In Canada, margin performance benefited from our ongoing fleet optimization strategy. Revenue increased year-over-year driven by increased operational support scopes at the Syncrude and Millennium mines. When excluding the 797 haul truck fleet from the prior period, the increase of over 20% on a like-for-like basis reflects both the external strong demand in the region as well as the achievement of improved mechanical availability.
- In early October, the Fargo construction joint venture provided financial statements based on a revised forecast which increased total project costs by approximately $150 million on a 100%-basis, or $45 million attributable to our 30% interest, representing an increase of 9.0% over the previous estimate and resulting in a contract loss position. The forecast was approved by the joint venture’s executive committee and deemed the final estimate, as the project is considered to be close to physically complete. The Fargo joint ventures are engaged in discussions with the customer regarding mutually beneficial remedies to address the cost increases. No amounts in respect of these potential remedies have been reflected in the Company’s financial statements. The Company is committed to pursuing all legal and commercial avenues to recover the cost increases that have been incurred in completing this project.
“Revenue remained near our quarterly record of $450 million, underpinning our raised full-year revenue outlook. We are seeing tangible benefits from fleet optimization in Canada and further opportunities to improve productivity and returns across our Australian businesses. While our core businesses delivered less improvement than anticipated and Fargo was a significant disappointment, we have already applied the lessons from that project to our approach to project selection and operating structures,” commented Barry Palmer, President and Chief Executive Officer.
“With contractual backlog above $3.2 billion, our focus is on finishing 2026 strongly through safe execution of the work in hand and improved fleet performance. Our identified opportunity pipeline of more than $14 billion allows us to be selective, pursuing work that fits our operating strengths and offers attractive returns. As we prepare to welcome Brad Rogers as our new CEO, an orderly transition will preserve continuity in strategy and customer relationships, positioning him to focus in 2027 on converting earnings into free cash flow to support deleveraging and disciplined investment in profitable growth.”
Financial Results for the Third Quarter 2026
Combined revenue and reported revenue were generated during the quarter by the following primary segments:
- Heavy Equipment – Australia revenue increased 42% to $267.8 million, reflecting $73.6 million of reported revenue from IMC following its April 7, 2026, acquisition and organic growth of $5.7 million from the MacKellar and DGI businesses.
- Heavy Equipment – Canada revenue increased 12% to $141.2 million, primarily due to higher demand for operational support services at Syncrude and Millennium mines.
- Revenue from joint ventures and affiliates declined 66% to $24.8 million, reflecting the decline from the legacy Fargo Project.
Gross profit decreased to $47.1 million (11.4% margin) from $49.4 million (15.6% margin) in 2025 Q3. Combined gross profit was $51.6 million (11.8% margin), down from $56.8 million (14.5% margin) in the prior year.
Adjusted EBITDA was $100.1 million, up $1.0 million year-over-year, with IMC contributing $8.2 million. Adjusted EBITDA margin was 22.8%, compared to 25.3% in 2025 Q3, principally reflecting IMC’s margin profile.
Adjusted net earnings for the quarter were $6.6 million, down from $19.6 million in the prior year period. Adjusted EPS was $0.25, down from $0.66 in 2025 Q3. Consistent gross profit was offset by higher general and administrative costs supporting a larger business and increased interest expense on acquisition-related debt.
Quarterly net loss of $24.2 million was below the prior year’s net income of $17.3 million, primarily due to the impact from the Fargo Project, higher general and administrative costs and increased interest expense. Basic net income per share was a loss of $0.90, down from $0.59 in 2025 Q3.
Free cash flow was an outflow of $28.3 million as cash generated by $100.1 million in adjusted EBITDA was offset by sustaining capital spending ($76.5 million), cash interest ($20.5 million) and working capital changes ($23.6 million). Sustaining maintenance capital in Canada of $35.7 million was incurred in response to strong demand in the oil sands region and in direct support of our equipment utilization targets.
Declaration of Quarterly Dividend
On November 3, 2026, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 25, 2026. The Dividend will be paid on January 8, 2027, and is an eligible dividend for Canadian income tax purposes.
Outlook for 2026
Our operational priorities for the remainder of 2026 are:
- Safety – safety-first mentality across all global operations – ensuring Everyone Gets Home Safe;
- Australian workforce mix – following recent improvements, optimize maintenance workforce in Australia;
- Cost reduction – following two years of major growth in Queensland, review and reduce discretionary operating costs while fully maintaining customer requirements;
- Integration – with the Iron Mine Contracting transaction complete, continued commissioning of the expanded fleet in Western Australia to support growth and operational scale; and
- Mechanical availability – continue to improve mechanical availability and reliability of the heavy equipment fleet in the oil sands region.
Our growth drivers for 2026 and beyond are the strategic building blocks of our success:
- Scaling into a Tier 1 Contractor in Australia – provides ability to secure larger scopes in the much sought-after mining regions of Western Australia and Queensland;
- Securing infrastructure awards in northern Canada – targeting nation-building projects in Canada and mass civil earthwork scopes for which we have deep experience and expertise; and
- Expanding mining services in Canada and the United States – leveraging our over 70 years of experience, ensuring we are front and center as ever-increasing mine scopes in both countries are issued and awarded.
The following table provides projected key measures for 2026. The 2026 outlook is based on our installed equipment fleet and contractual backlog of $3.2 billion.
| Key measures | Current Outlook | Previous Outlook | ||
| Combined revenue(i) | $1.7 – $1.8B | $1.6 – $1.8B | ||
| Adjusted EBITDA(i) | $370 – $400M | $380 – $420M |
(i)See “Non-GAAP Financial Measures”.
“We are raising our full-year combined revenue outlook range to $1.7 billion to $1.8 billion, while tightening our adjusted EBITDA guidance range to $370 million to $400 million to reflect a slower pace of earnings improvement than anticipated,” said Jason Veenstra, Chief Financial Officer of NACG. “Our $3.2 billion contractual backlog supports the revised outlook, and we expect fourth-quarter improvement from the continued ramp-up of IMC, stronger Australian margins, increased oil sands utilization, and Nuna’s fleet expansion in Nunavut. Delivering the $385 million adjusted EBITDA midpoint will require disciplined execution, with our focus on translating the operating opportunities into improved profitability.”
Results for the three and nine months ended September 30, 2026
Consolidated Financial Highlights
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 413,276 | $ | 317,248 | $ | 1,133,458 | $ | 978,715 | ||||||||
| Cost of sales | 299,943 | 218,033 | 818,437 | 690,554 | ||||||||||||
| Depreciation and amortization | 66,247 | 49,858 | 183,498 | 166,173 | ||||||||||||
| Gross profit | $ | 47,086 | $ | 49,357 | $ | 131,523 | $ | 121,988 | ||||||||
| Gross profit margin(i) | 11.4 | % | 15.6 | % | 11.6 | % | 12.5 | % | ||||||||
| Total combined revenue(i) | 438,088 | 390,777 | 1,316,693 | 1,152,569 | ||||||||||||
| Combined gross profit(i) | $ | 51,562 | $ | 56,780 | $ | 157,327 | $ | 132,771 | ||||||||
| Combined gross profit margin(i) | 11.8 | % | 14.5 | % | 11.9 | % | 11.5 | % | ||||||||
| Operating (loss) income | (6,048 | ) | 35,747 | 36,374 | 89,118 | |||||||||||
| Interest expense, net | 21,288 | 15,265 | 56,858 | 42,904 | ||||||||||||
| Net (loss) income | (24,188 | ) | 17,296 | (9,258 | ) | 33,709 | ||||||||||
| Comprehensive (loss) income | (20,345 | ) | 28,449 | 29,552 | 44,781 | |||||||||||
| Adjusted EBITDA(i) | 100,079 | 99,039 | 293,018 | 278,928 | ||||||||||||
| Adjusted EBITDA margin(i)(ii) | 22.8 | % | 25.3 | % | 22.3 | % | 24.2 | % | ||||||||
| Free cash flow(i) | (28,311 | ) | 45,670 | (1,037 | ) | 3,719 | ||||||||||
| Per share information | ||||||||||||||||
| Basic net (loss) income per share | $ | (0.90 | ) | $ | 0.59 | $ | (0.34 | ) | $ | 1.17 | ||||||
| Diluted net (loss) income per share | $ | (0.90 | ) | $ | 0.56 | $ | (0.34 | ) | $ | 1.11 | ||||||
| Adjusted EPS(i) | $ | 0.25 | $ | 0.66 | $ | 0.94 | $ | 1.21 | ||||||||
(i)See “Non-GAAP Financial Measures”.
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Conference Call and Webcast
Management will hold a conference call and webcast to discuss our financial results for the quarter ended September 30, 2026, tomorrow, Thursday, November 5, 2026, at 8:00 a.m. Alberta Time (9:00 a.m. Eastern Time).
The call can be accessed by dialing:
Toll Free: 1-800-717-1738
Conference ID: 01529
A replay will be available through December 5, 2026, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 01529
Playback Passcode: 01529#
A slide deck for the webcast will be available for download the evening prior to the call and will be found on the Company’s website at www.nacg.ca/presentations/
The live presentation and webcast can be accessed at:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=E582BB87-8979-40FE-9234-16CF120608AA&Referrer=https%3A%2F%2Fnacg.ca%2F
A replay will be available until December 5, 2026, using the link provided.
About the Company
North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets.
For further information contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 960.7171
ir@nacg.ca
www.nacg.ca
Basis of Presentation
We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2026, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2026 Q3 Results Presentation for more information on our results and projections, which can be found on our website under Investors – Presentations.
Forward-Looking Information
The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by, or that include the words “anticipate”, “believe”, “expect”, “should” or similar expressions and include guidance with respect to financial metrics provided in our outlook for 2026.
The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and nine months ended September 30, 2026. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca.
Non-GAAP Financial Measures
This press release presents certain non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures that may be useful to investors in analyzing our business performance, leverage, and liquidity. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer’s historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. A “non-GAAP ratio” is a ratio, fraction, percentage or similar expression that has a non-GAAP financial measure as one or more of its components. Non-GAAP financial measures and ratios do not have standardized meanings under GAAP and therefore may not be comparable to similar measures presented by other issuers. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A “supplementary financial measure” is a financial measure disclosed, or intended to be disclosed, on a periodic basis to depict historical or future financial performance, financial position or cash flows that does not fall within the definition of a non-GAAP financial measure or non-GAAP ratio. The non-GAAP financial measures and ratios we present include, “adjusted EBIT”, “adjusted EBITDA”, “adjusted EBITDA margin”, “adjusted EPS”, “adjusted net earnings”, “backlog”, “capital additions”, “capital expenditures, net”, “capital inventory”, “capital work in progress”, “cash liquidity”, “cash related interest expense”, “cash provided by operating activities prior to change in working capital”, “combined backlog”, “combined gross profit”, “combined gross profit margin”, “equity investment depreciation and amortization”, “equity investment EBIT”, “equity method investment backlog”, “free cash flow”, “general and administrative expenses (excluding stock-based compensation)”, “growth capital”, “growth spending”, “invested capital”, “margin”, “net debt”, “net debt leverage”, “senior-secured debt”, “share of affiliate and joint venture capital additions”, “sustaining capital”, “total capital liquidity”, “total combined revenue”, and “total debt”. We also use supplementary financial measures such as “gross profit margin” and “total net working capital (excluding cash and current portion of long-term debt)” in our MD&A. Each non-GAAP financial measure used in this press release is defined under “Financial Measures” in our Management’s Discussion and Analysis filed on EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com and on our company website at www.nacg.ca.
Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (loss) income | $ | (24,188 | ) | $ | 17,296 | $ | (9,258 | ) | $ | 33,709 | ||||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation expense (benefit) | 970 | (156 | ) | 3,838 | (2,600 | ) | ||||||||||
| Amortization of acquisition related intangible assets | 716 | 239 | 716 | 239 | ||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 2,326 | 740 | 3,586 | (344 | ) | |||||||||||
| Equity investment (gain) loss on disposal of property, plant and equipment | (69 | ) | (44 | ) | (165 | ) | 113 | |||||||||
| Equity investment loss on legacy project | 49,852 | — | 49,852 | — | ||||||||||||
| Equity investment loss on derivative financial instruments | 236 | 855 | 1,036 | 2,766 | ||||||||||||
| Unrealized foreign exchange (gain) loss | (1,007 | ) | 845 | 482 | 689 | |||||||||||
| Change in FV of contingent obligations – estimate adjustments | (20,029 | ) | (2,771 | ) | (36,405 | ) | (21,573 | ) | ||||||||
| Loss on derivative financial instruments | 1,434 | 1,684 | 2,184 | 9,346 | ||||||||||||
| IMC economic benefit – net income | — | — | 2,307 | — | ||||||||||||
| IMC acquisition and integration costs | 872 | — | 3,983 | — | ||||||||||||
| Canadian organizational realignment costs | 450 | — | 6,200 | — | ||||||||||||
| Depreciation expense relating to early component failures | — | — | — | 4,274 | ||||||||||||
| Post-acquisition asset relocation and integration costs | — | — | — | 1,640 | ||||||||||||
| Tax effect of the above items | (4,973 | ) | 926 | (3,145 | ) | 6,663 | ||||||||||
| Adjusted net earnings(i) | $ | 6,590 | $ | 19,614 | $ | 25,211 | $ | 34,922 | ||||||||
| Adjustments: | ||||||||||||||||
| Tax effect of the above items | 4,973 | (926 | ) | 3,145 | (6,663 | ) | ||||||||||
| Income tax (recovery) expense | (3,355 | ) | 6,229 | 4,684 | 16,244 | |||||||||||
| Equity investment EBIT(i) | (17,661 | ) | 5,734 | (11,963 | ) | 3,830 | ||||||||||
| Equity loss (earnings) in affiliates and joint ventures | 18,144 | (5,232 | ) | 13,275 | (3,382 | ) | ||||||||||
| Change in FV of contingent obligations – interest accretion | 658 | 3,276 | 5,036 | 11,870 | ||||||||||||
| IMC economic benefit – interest and tax expense | — | — | 1,737 | — | ||||||||||||
| Interest expense, net | 21,288 | 15,265 | 56,858 | 42,904 | ||||||||||||
| Adjusted EBIT(i) | $ | 30,637 | $ | 43,960 | $ | 97,983 | $ | 99,725 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization of non-acquisition related intangible assets | 65,531 | 49,619 | 182,782 | 165,934 | ||||||||||||
| Equity investment depreciation and amortization | 3,911 | 5,460 | 10,492 | 17,543 | ||||||||||||
| IMC economic benefit – depreciation and amortization | — | — | 4,832 | — | ||||||||||||
| Write-down expense relating to Canadian organizational realignment costs | — | — | (3,071 | ) | — | |||||||||||
| Depreciation expense relating to early component failures | — | — | — | (4,274 | ) | |||||||||||
| Adjusted EBITDA(i) | $ | 100,079 | $ | 99,039 | $ | 293,018 | $ | 278,928 | ||||||||
| Adjusted EBITDA margin(i)(ii) | 22.8 | % | 25.3 | % | 22.3 | % | 24.2 | % | ||||||||
(i)See “Non-GAAP Financial Measures”.
(ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT
| Three months ended | Nine months ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Equity (loss) earnings in affiliates and joint ventures | $ | (18,144 | ) | $ | 5,232 | $ | (13,275 | ) | $ | 3,382 | ||||
| Adjustments: | ||||||||||||||
| Income tax (benefit) expense | (66 | ) | 431 | (159 | ) | 223 | ||||||||
| Interest expense, net | 549 | 71 | 1,471 | 225 | ||||||||||
| Equity investment EBIT(i) | $ | (17,661 | ) | $ | 5,734 | $ | (11,963 | ) | $ | 3,830 | ||||
(i) See “Non-GAAP Financial Measures”.
Reconciliation of total reported revenue to total combined revenue
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue from wholly-owned entities per financial statements | $ | 413,276 | $ | 317,248 | $ | 1,133,458 | $ | 978,715 | ||||||||
| Share of revenue from investments in affiliates and joint ventures | 92,679 | 134,946 | 308,122 | 392,686 | ||||||||||||
| IMC economic benefit – revenue | — | — | 70,096 | — | ||||||||||||
| Elimination of joint venture subcontract revenue | (67,867 | ) | (61,417 | ) | (194,983 | ) | (218,832 | ) | ||||||||
| Total combined revenue(i) | $ | 438,088 | $ | 390,777 | $ | 1,316,693 | $ | 1,152,569 | ||||||||
(i) See “Non-GAAP Financial Measures”.
Reconciliation of reported gross profit to combined gross profit
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Gross profit from wholly-owned entities per financial statements | $ | 47,086 | $ | 49,357 | $ | 131,523 | $ | 121,988 | ||||||||
| Share of gross (loss) profit from investments in affiliates and joint ventures | (45,376 | ) | 7,423 | (34,980 | ) | 10,783 | ||||||||||
| IMC economic benefit – gross profit(ii) | — | — | 10,932 | — | ||||||||||||
| Equity investment loss on legacy project | 49,852 | — | 49,852 | — | ||||||||||||
| Combined gross profit(i) | $ | 51,562 | $ | 56,780 | $ | 157,327 | $ | 132,771 | ||||||||
| Combined gross profit margin(i) | 11.8 | % | 14.5 | % | 11.9 | % | 11.5 | % | ||||||||
(i)See “Non-GAAP Financial Measures”.
(ii) Certain prior period costs within the Fargo joint venture have been reclassified from non-operating to operating to better align with NACG classifications. This reclassification has no impact on revenue, income before taxes, or net income.
Reconciliation of basic net income per share to adjusted EPS
| Three months ended | Nine months ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net (loss) income | $ | (24,188 | ) | $ | 17,296 | $ | (9,258 | ) | $ | 33,709 | ||||
| Interest from convertible debentures (after tax) | — | 624 | — | 2,352 | ||||||||||
| Diluted net (loss) income available to common shareholders | $ | (24,188 | ) | $ | 17,920 | $ | (9,258 | ) | $ | 36,061 | ||||
| Adjusted net earnings | $ | 6,590 | $ | 19,614 | $ | 25,211 | $ | 34,922 | ||||||
| Weighted-average number of common shares | 26,772,517 | 29,166,135 | 27,151,499 | 28,798,450 | ||||||||||
| Weighted-average number of diluted shares | 26,772,517 | 32,283,751 | 27,151,499 | 32,588,696 | ||||||||||
| Basic net (loss) income per share | $ | (0.90 | ) | $ | 0.59 | $ | (0.34 | ) | $ | 1.17 | ||||
| Diluted net (loss) income per share | $ | (0.90 | ) | $ | 0.56 | $ | (0.34 | ) | $ | 1.11 | ||||
| Adjusted EPS(i) | $ | 0.25 | $ | 0.66 | $ | 0.94 | $ | 1.21 | ||||||
(i)See “Non-GAAP Financial Measures”.
Net Debt
| (dollars in thousands) | September 30, 2026 |
December 31, 2025 |
||||||
| Credit Facility(i) | $ | 180,000 | $ | 174,156 | ||||
| Equipment financing(i) | 440,104 | 309,238 | ||||||
| Mortgage(i) | 26,079 | 26,742 | ||||||
| Senior-secured debt(ii) | 646,183 | 510,136 | ||||||
| Senior unsecured notes | 550,000 | 350,000 | ||||||
| Contingent obligations(i) | 38,478 | 63,453 | ||||||
| Convertible debentures(i) | — | 55,000 | ||||||
| Cash | (111,657 | ) | (100,128 | ) | ||||
| Net debt(ii) | $ | 1,123,004 | $ | 878,461 | ||||
(i)Includes current portion.
(ii)See “Non-GAAP Financial Measures”.
Free Cash Flow
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Per the Consolidated Statements of Cash Flows | ||||||||||||||||
| Cash provided by operating activities | $ | 47,166 | $ | 91,824 | $ | 167,897 | $ | 207,916 | ||||||||
| Cash used in investing activities | (99,190 | ) | (65,862 | ) | (280,151 | ) | (231,466 | ) | ||||||||
| Effect of exchange rate on changes in cash | (154 | ) | 2,278 | 6,504 | 2,118 | |||||||||||
| $ | (52,178 | ) | $ | 28,240 | $ | (105,750 | ) | $ | (21,432 | ) | ||||||
| Add back of growth and non-cash items included in the above: | ||||||||||||||||
| Acquisition of IMC(i) | — | — | 37,535 | — | ||||||||||||
| Acquisition costs | 1,620 | — | 3,826 | — | ||||||||||||
| Growth capital additions(ii) | 30,827 | 23,275 | 95,804 | 75,804 | ||||||||||||
| Capital additions financed by leases(ii) | (8,580 | ) | (5,845 | ) | (32,452 | ) | (50,653 | ) | ||||||||
| Free cash flow(ii) | $ | (28,311 | ) | $ | 45,670 | $ | (1,037 | ) | $ | 3,719 | ||||||
(i)Acquisition of IMC is the purchase price less cash acquired
(ii)See “Non-GAAP Financial Measures”.
Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)
(Unaudited)
| September 30, 2026 |
December 31, 2025 |
|||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 111,657 | $ | 100,128 | ||||
| Accounts receivable | 217,458 | 148,928 | ||||||
| Contract assets | 44,607 | 30,472 | ||||||
| Inventories | 92,461 | 75,660 | ||||||
| Prepaid expenses and deposits | 11,788 | 6,925 | ||||||
| Assets held for sale | 953 | 107 | ||||||
| 478,924 | 362,220 | |||||||
| Property, plant and equipment, net of accumulated depreciation of $691,557 (December 31, 2025 – $582,892) | 1,605,520 | 1,358,852 | ||||||
| Operating lease right-of-use assets | 24,858 | 10,734 | ||||||
| Investments in affiliates and joint ventures | 61,970 | 70,416 | ||||||
| Intangible assets | 22,373 | 12,333 | ||||||
| Other assets | 30,071 | 5,198 | ||||||
| Total assets | $ | 2,223,716 | $ | 1,819,753 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 219,605 | $ | 102,054 | ||||
| Accrued liabilities | 98,267 | 89,308 | ||||||
| Contract liabilities | 7,471 | 22,848 | ||||||
| Current portion of long-term debt | 147,951 | 160,557 | ||||||
| Current portion of contingent obligations | 18,357 | 34,597 | ||||||
| Current portion of operating lease liabilities | 2,291 | 1,495 | ||||||
| 493,942 | 410,859 | |||||||
| Long-term debt | 1,040,022 | 749,829 | ||||||
| Contingent obligations | 20,121 | 28,856 | ||||||
| Operating lease liabilities | 22,982 | 9,698 | ||||||
| Other long-term obligations | 21,848 | 22,607 | ||||||
| Deferred tax liabilities | 172,374 | 141,283 | ||||||
| 1,771,289 | 1,363,132 | |||||||
| Shareholders’ equity | ||||||||
| Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2026 – 27,435,462 (December 31, 2025 – 28,821,481)) | 270,419 | 282,957 | ||||||
| Treasury shares (September 30, 2026 – 796,568 (December 31, 2025 – 871,244)) | (13,827 | ) | (14,993 | ) | ||||
| Additional paid-in capital | — | 2,807 | ||||||
| Retained earnings | 147,638 | 176,463 | ||||||
| Accumulated other comprehensive income | 48,197 | 9,387 | ||||||
| Shareholders’ equity | 452,427 | 456,621 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,223,716 | $ | 1,819,753 | ||||
Consolidated Statements of Operations and
Comprehensive (Loss) Income
(Expressed in thousands of Canadian Dollars, except per share amounts)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 413,276 | $ | 317,248 | $ | 1,133,458 | $ | 978,715 | ||||||||
| Cost of sales | 299,943 | 218,033 | 818,437 | 690,554 | ||||||||||||
| Depreciation and amortization | 66,247 | 49,858 | 183,498 | 166,173 | ||||||||||||
| Gross profit | 47,086 | 49,357 | 131,523 | 121,988 | ||||||||||||
| General and administrative expenses | 50,808 | 12,870 | 91,563 | 33,214 | ||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 2,326 | 740 | 3,586 | (344 | ) | |||||||||||
| Operating (loss) income | (6,048 | ) | 35,747 | 36,374 | 89,118 | |||||||||||
| Interest expense, net | 21,288 | 15,265 | 56,858 | 42,904 | ||||||||||||
| Equity loss (earnings) in affiliates and joint ventures | 18,144 | (5,232 | ) | 13,275 | (3,382 | ) | ||||||||||
| Loss on derivative financial instruments | 1,434 | 1,684 | 2,184 | 9,346 | ||||||||||||
| Change in fair value of contingent obligations | (19,371 | ) | 505 | (31,369 | ) | (9,703 | ) | |||||||||
| (Loss) income before income taxes | (27,543 | ) | 23,525 | (4,574 | ) | 49,953 | ||||||||||
| Current income tax (benefit) expense | (10,177 | ) | 206 | (10,838 | ) | 2,781 | ||||||||||
| Deferred income tax expense | 6,822 | 6,023 | 15,522 | 13,463 | ||||||||||||
| Net (loss) income | (24,188 | ) | 17,296 | (9,258 | ) | 33,709 | ||||||||||
| Other comprehensive income | ||||||||||||||||
| Unrealized foreign currency translation gain | (3,843 | ) | (11,153 | ) | (38,810 | ) | (11,072 | ) | ||||||||
| Comprehensive (loss) income | $ | (20,345 | ) | $ | 28,449 | $ | 29,552 | $ | 44,781 | |||||||
| Per share information | ||||||||||||||||
| Basic net (loss) income per share | $ | (0.90 | ) | $ | 0.59 | $ | (0.34 | ) | $ | 1.17 | ||||||
| Diluted net (loss) income per share | $ | (0.90 | ) | $ | 0.56 | $ | (0.34 | ) | $ | 1.11 | ||||||
Media gallery
