North American raises 2026 revenue guidance after Q2 results

North American (NYSE: NOA ) released second-quarter financial results and hosted an earnings call on Thursday.

Read the complete transcript below.

APIs provide real-time access to earnings call transcripts and financial data.

Visit to learn more.

The full earnings call is available at Summary North American Construction Group reported a strong first half of 2026 with a total combined revenue of $456 million for Q2, supporting a revenue midpoint target of $1.7 billion for 2026.

Australia remains a significant growth engine, contributing a 31% compound annual growth rate in revenue from the first half of 2024 through the first half of 2026.

The acquisition of IMC has positively impacted EBITDA and EBIT, with the company planning to reduce net debt leverage from 2.9x to 2.6x.

Adjusted EPS for Q2 was $0.32, with an increase in interest expense due to strategic expansions.

The company raised its full-year revenue guidance to $1.6 billion to $1.8 billion, reflecting a 14% increase over the prior year.

The strategic focus includes scaling operations in Australia, expanding mining services in North America, and enhancing fleet efficiency.

Operational highlights include a $3.8 billion contractual backlog and a diverse $12 billion bid pipeline, with significant opportunities in mining and infrastructure.

Management expressed strong confidence in continued growth and operational execution, with plans to announce a new CEO shortly.

Full Transcript Jason Million from last year with IMC contributing $91 million of revenue in the quarter.

Excluding IMC, Australia was up organically 15% in the quarter on commission, growth assets and strong execution.

Offsetting these increases was the year-over-year impact of the divestiture of the ultra class haul trucks in Canada.

The $456 million of total combined revenue finished off a strong first half foundation of over $875 million, supporting our 2026 combined revenue midpoint of $1.7 billion.

Moving to slide 5, Australia posted a 13.6% gross profit margin and Canada delivered a combined adjusted margin of approximately 7% despite difficult seasonal conditions early in the quarter in both regions.

These results reflected disciplined project execution, improved internal maintenance capability, lower repair costs and the implementation of continued fleet efficiency initiatives, and importantly are trending in the right direction heading into the second half of 2026.

Moving to slide 6, Q2 EBITDA and EBIT were both up meaningfully from the prior-year quarter on the acquisition of IMC and a more typical quarter from the Fargo joint ventures.

Direct adjusted G&A was $15 million, or 3.8% of reported revenue, well below our 5% targeted threshold, demonstrating operating leverage on stronger revenue.

Depreciation as a percent of combined revenue dropped to 13% from 16% last year as IMC's lower capital intensity resulted in the combined number being lower than our expected range midpoint of 15%.

All told, adjusted EPS of $0.32 was generated by solid operational performance.

Interest expense increased to $18.9 million from $14.1 million last year, reflecting the financing of our strategic expansions in Australia.

Our average cost of debt for the quarter remained consistent at 6.4%.

Moving to slide 7, the business produced $78 million of operating cash flow before working capital, generated by EBITDA performance.

Net of cash interest, free cash flow generation was $23 million after a $13 million positive working capital change in the quarter.

Moving to slide 8, net debt increased $191 million to $1.1 billion, reflecting the acquisition of IMC and growth capital equipment purchased during the quarter.

Trailing twelve-month net debt leverage is reported as 2.9 times but, importantly, is not yet benefiting from 12 months of IMC EBITDA.

Based on our second half run-rate, we are operating at a 2.6x leverage ratio with the plan to decrease that moving forward.

Senior secured debt remains steady at 1.7 times based on the $200 million of senior unsecured notes we raised in the quarter and the impact of unsecured debt that partially funded the IMC acquisition.

With those comments on the financials, I'll pass the call to Barry.

Barry Thanks, Jason, and good morning everyone.

As Jason just outlined, our first half performance was stronger than expected entering the year and gives us the confidence to raise our full year revenue outlook.

More importantly, the quarter reinforced that North American Construction Group is at an inflection point.

The strategic groundwork we have put in place is increasingly translating to measurable growth, stronger earning visibility and a more resilient operating profile.

Our operating platform continues to evolve and there's even more opportunity ahead of us.