Canada's North American Construction Q3 revenue rises; tightens FY outlook
Overview
Canada heavy civil contractor's Q3 combined revenue rose 12% yr/yr
Q3 adjusted EPS declined yr/yr
Company raised full-year revenue outlook but tightened adjusted EBITDA guidance
Outlook
North American Construction raises 2026 combined revenue outlook to C$1.7 bln-C$1.8 bln
Company tightens 2026 adjusted EBITDA guidance to C$370 mln-C$400 mln from C$380 mln-C$420 mln
Company expects Q4 improvement from IMC ramp-up, stronger Australian margins, and increased oil sands utilization
Result Drivers
AUSTRALIA GROWTH - Revenue in Australian operations rose 42% yr/yr, driven by the IMC acquisition and organic growth at MacKellar and DGI
AUSTRALIA MARGIN IMPACT - Combined gross profit margin was impacted by additional parts and labour costs at Queensland thermal coal mine site and operational inefficiencies at a lithium mine site in Western Australia
CANADIAN FLEET OPTIMIZATION - Improved margins in Canada attributed to ongoing fleet optimization
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | C$0.25 | ||
Q3 Adjusted Net Income | C$6.59 mln | ||
Q3 Adjusted EBITDA | Miss | C$100.08 mln | C$108.63 mln (6 Analysts) |
Q3 Gross Profit | C$47.09 mln | ||
Q3 Operating Income | -C$6.05 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)