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International August 28, 2026

North American Construction Raised the Year on Australia. Canada Oil Sands Revenue Fell

On August 12 North American Construction said combined second-quarter revenue was a record $456.1 million. Adjusted EBITDA was $93.5 million. Combined 2026 revenue guidance moved to $1.6 billion to $1.8 billion. EBITDA guidance did not. Canada heavy-equipment revenue fell 17 percent to $121.8 million. Australia rose 65 percent after the April 7 IMC buy.

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Energy Market Analysis

A raised sales range is not a raised earnings range

North American Construction (TSX: NOA, NYSE: NOA) reported second-quarter 2026 results on August 12. Combined revenue was $456.1 million, up 23 percent. Reported revenue was $401.0 million, up 25 percent. Adjusted EBITDA was $93.5 million, up 17 percent. Adjusted net earnings were $8.5 million, or $0.32 a share. IFRS net income was $9.4 million, or $0.35, down 9 percent, after $4.8 million of acquisition and integration costs and higher interest. Free cash flow was $23.0 million. Sustaining capital was $62.5 million. Cash interest was $18.2 million. The dividend is $0.12, payable October 2 to holders of record August 28.

Full-year combined revenue guidance is now $1.6 billion to $1.8 billion, midpoint $1.7 billion, up from a $1.6 billion midpoint. Adjusted EBITDA is still $380 million to $420 million. Free cash flow is still $110 million to $130 million. Backlog is $3.8 billion. Barry Palmer kept the $400 million EBITDA midpoint. Do not write the sales raise as an earnings raise.

IMC is Australia. Kearl is not the whole Canadian line

Australia heavy equipment rose 65 percent to $277.5 million. IMC, closed April 7, put $84.5 million on the reported line and $13.1 million of adjusted EBITDA. Legacy Australia added about $24.9 million. IMC economics run from January 1 under the deal. Canada heavy equipment fell 17 percent to $121.8 million. The company cites the late-2025 ultra-class truck sale, lower Syncrude activity, breakup, and weather, partly offset by Millennium support and a Kearl ramp. Joint-venture revenue was $49.7 million. Fargo-Moorhead is back to a profit after last year's margin reset. This is a contractor. It is not an oil-sands producer.

Neutral read

NOA is on the listed oilfield-services list. Banks were skipped. $456.1 million of combined sales and an unchanged $380 million to $420 million EBITDA guide are the facts. Write the raise as Australia and IMC, not as a Syncrude recovery. Watch whether $3.8 billion of backlog converts, whether Canadian oil-sands hours stabilize after the truck sale, and whether the $400 million EBITDA midpoint still holds in the second half.

Professional Energy Analysis
Published Aug 28, 2026
International
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