The following is a summary of the North American Construction Group Ltd. (NOA) Q1 2024 Earnings Call Transcript:

Financial Performance:

• North American Construction Group reported a Q1 EBITDA of $93 million with a margin of 27%, and a combined gross profit margin of 18%.

• The firm reported a $0.78 adjusted earnings per share for Q1, down from $0.18 in Q1 of 2023 due to increased interest rates.

• Net cash from operations, prior to working capital, was $74 million while net debt levels rested at $781 million by the end of this quarter.

• The company is working on decreasing its debt-to-EBITDA ratio to 1.5x by year-end, with a projected free cash flow of $160 million to $185 million identified for this purpose.

Business Progress:

• The company reported a good performance from its recently acquired Australian business, a successful start on the Fargo-Moorhead flood diversion project, and significant savings through the application of a telematics system.

• Safety standards are being improved with a focus on frontline leadership training, the betterment of the peer-to-peer recognition program, and increased field leadership visibility.

• North American Construction Group is targeting an expansion of operational efficiency and maintenance expertise, alongside winning on strategic projects.

• There is a continued focus on growth across all commodity markets (excluding nickel and lithium) with strong business in iron ore, gold, and coal markets.

• The company has successfully completed the restructuring process for Nuna, which is expected to yield stronger earnings by summer.

• The company is bidding for an iron ore mine in Quebec, which if successful, would significantly raise their revenue.

• North American Construction Group is also concentrating on improving their balance sheet to make way for bigger projects by year end.

More details: North American Construction IR

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