Recent News
On August 6, 2025 North American Construction Group Ltd. announced an amended five-year extension for its MacKellar subsidiary in Queensland, Australia, creating approximately $2.0 billion of incremental contractual backlog and lifting total proforma backlog to about $4.0 billion as of March 31, 2025. On August 13, 2025 the company released second-quarter results for the period ended June 30, 2025, reporting combined revenue growth, a steep drop in adjusted EPS to $0.02, adjusted EBITDA contraction, modest free-cash-use, and a net-debt increase.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX reads 24.35, signaling an emerging trend; DI+ at 27.87 shows bullish direction while DI- at 13.72 trends downward, reinforcing short-term positive directional momentum. This short-term upside contrasts with the valuation assessment and argues for careful evaluation of execution before momentum extends.
MACD and momentum: MACD stands at 0.13 and trends increasing, with the MACD line above the signal line at 0.01; that cross represents a bullish momentum signal and aligns with rising short-term moving averages.
MRO (Momentum/Regression Oscillator): MRO registers -10.04 with a peak-and-reversal pattern; the negative level implies price sits below the model target and supports potential upward pressure as the oscillator reverses.
RSI and short-term strength: RSI at 48.95 and increasing indicates neutral-to-improving momentum without overbought readings, consistent with scope for additional near-term upside if execution stabilizes.
Price vs moving averages and bands: Last close $14.51 sits above the 12-day EMA ($14.29), 20-day average ($14.13), and 50-day average ($14.06) while remaining below the 200-day average ($16.46). The stock trading near the 1x upper Bollinger band ($14.61) suggests short-term strength that could meet resistance toward the 200-day average unless margin or cash-flow concerns abate. SuperTrend support lies near $13.80, providing a short-term reference for downside containment.
Fundamental Analysis
Revenue and margins: Total revenue reached $320,634,000. Gross profit totaled $35,830,000, producing a gross margin of 11.18%. Operating income registered $22,679,000 and EBIT reached $29,452,000, producing an EBIT margin of 9.19%. QoQ the EBIT margin expanded about 34.14%, while YoY the EBIT margin contracted roughly 22.46%. The EBIT margin sits slightly below the industry peer mean of 10.66% and close to the industry peer median of 9.65%, indicating margin performance near peer central tendency but lagging the peer mean.
Earnings and estimates: Reported EPS came in at $0.02 against an estimate of $0.72, an EPS surprise of approximately -97.22% and an EPS difference of -$0.70. Adjusted EBITDA measured $80,100,000, down 12% year-over-year, reflecting one-time operational disruptions flagged in the quarter.
Cash flow and capital deployment: Operating cash flow produced $64,674,000, while free cash flow shows a use of cash of $10,572,000 and a free-cash-flow yield of -2.23%. Growth capital and sustaining capex contributed to the negative free-cash-flow position despite positive operating cash generation.
Leverage and balance sheet: Total debt stands at $884,367,000 with net debt around $793,575,000 versus market capitalization of $474,357,602, producing a debt-to-EBITDA near 10.53x and debt-to-equity of 1.92. Enterprise multiple measures about 15.24. Elevated leverage levels and rising net debt amplify sensitivity to margin and cash-flow volatility despite record backlog.
Profitability and returns: Return on equity runs near 2.23% and return on assets near 0.57%; YoY returns contracted materially while QoQ measures improved. Interest coverage reads 2.19x, indicating limited cushion against rising interest cost pressure relative to operating earnings.
Dividends and forward view: The board declared a quarterly dividend of $0.12 per share payable October 3, 2025, producing a yield of roughly 0.75% and a payout ratio near 34.70%. Forward EPS and forward PE stand near $0.8125 and 20.85x, respectively, providing a forward earnings multiple materially lower than the trailing reported PE of 805.88 driven by current-period EPS compression. WMDST values the stock as over-valued given the combination of negative free cash flow, elevated leverage, and the earnings shortfall despite record backlog.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-13 |
| NEXT REPORT DATE: | 2025-11-12 |
| CASH FLOW | Begin Period Cash Flow | $ 78.2 M |
| Operating Cash Flow | $ 64.7 M | |
| Capital Expenditures | $ -75.25 M | |
| Change In Working Capital | $ 788.0 K | |
| Dividends Paid | $ -3.56 M | |
| Cash Flow Delta | $ 784.0 K | |
| End Period Cash Flow | $ 79.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 320.6 M | |
| Forward Revenue | $ 185.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 284.8 M | |
| Depreciation | $ 54.5 M | |
| Depreciation and Amortization | $ 54.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 298.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 35.8 M | |
| EBITDA | $ 84.0 M | |
| EBIT | $ 29.5 M | |
| Operating Income | $ 22.7 M | |
| Interest Income | $ -692.00 K | |
| Interest Expense | $ 13.4 M | |
| Net Interest Income | $ -14.12 M | |
| Income Before Tax | $ 16.0 M | |
| Tax Provision | $ 5.8 M | |
| Tax Rate | 36.0 % | |
| Net Income | $ 10.2 M | |
| Net Income From Continuing Operations | $ 10.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.72 | |
| EPS Actual | $ 0.02 | |
| EPS Difference | $ -0.70 | |
| EPS Surprise | -97.222 % | |
| Forward EPS | $ 0.81 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 10.2 M | |
| Net Tangible Assets | $ 450.1 M | |
| Total Current Assets | $ 370.4 M | |
| Cash and Short-Term Investments | $ 79.0 M | |
| Cash | $ 79.0 M | |
| Net Receivables | $ 162.9 M | |
| Inventory | $ 74.2 M | |
| Long-Term Investments | $ 5.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 143.0 M | |
| Short-Term Debt | $ 149.5 M | |
| Total Current Liabilities | $ 394.5 M | |
| Net Debt | $ 793.6 M | |
| Total Debt | $ 884.4 M | |
| Total Liabilities | $ 1.4 B | |
| EQUITY | ||
| Total Equity | $ 460.2 M | |
| Retained Earnings | $ 165.7 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.64 | |
| Shares Outstanding | 29.167 M | |
| Revenue Per-Share | $ 10.89 | |
| VALUATION | Market Capitalization | $ 474.4 M |
| Enterprise Value | $ 1.3 B | |
| Enterprise Multiple | 15.241 | |
| Enterprise Multiple QoQ | 3.851 % | |
| Enterprise Multiple YoY | 96.627 % | |
| Enterprise Multiple IPRWA | high: 95.131 median: 53.696 mean: 51.182 NOA: 15.241 low: -67.628 |
|
| EV/R | 3.991 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.97 | |
| Asset To Liability | 1.337 | |
| Debt To Capital | 0.658 | |
| Debt To Assets | 0.484 | |
| Debt To Assets QoQ | 5.147 % | |
| Debt To Assets YoY | 755.124 % | |
| Debt To Assets IPRWA | high: 0.774 NOA: 0.484 median: 0.249 mean: 0.227 low: 0.002 |
|
| Debt To Equity | 1.922 | |
| Debt To Equity QoQ | 7.463 % | |
| Debt To Equity YoY | 693.275 % | |
| Debt To Equity IPRWA | high: 2.025 NOA: 1.922 median: 0.704 mean: 0.662 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.031 | |
| Price To Book QoQ | -1.997 % | |
| Price To Book YoY | -27.166 % | |
| Price To Book IPRWA | high: 10.918 mean: 5.732 median: 4.996 NOA: 1.031 low: -0.322 |
|
| Price To Earnings (P/E) | 805.882 | |
| Price To Earnings QoQ | 2461.61 % | |
| Price To Earnings YoY | 3027.381 % | |
| Price To Earnings IPRWA | NOA: 805.882 high: 293.534 mean: 83.227 median: 76.689 low: -53.717 |
|
| PE/G Ratio | -8.907 | |
| Price To Sales (P/S) | 1.479 | |
| Price To Sales QoQ | 3.79 % | |
| Price To Sales YoY | -23.91 % | |
| Price To Sales IPRWA | high: 23.152 mean: 6.262 median: 5.911 NOA: 1.479 low: 0.284 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 20.846 | |
| Forward PE/G | -0.23 | |
| Forward P/S | 2.537 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -4.418 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.177 | |
| Asset Turnover Ratio QoQ | -9.381 % | |
| Asset Turnover Ratio YoY | 2.685 % | |
| Asset Turnover Ratio IPRWA | high: 0.628 mean: 0.359 median: 0.348 NOA: 0.177 low: 0.014 |
|
| Receivables Turnover | 2.005 | |
| Receivables Turnover Ratio QoQ | -12.273 % | |
| Receivables Turnover Ratio YoY | -11.976 % | |
| Receivables Turnover Ratio IPRWA | high: 3.98 NOA: 2.005 mean: 1.783 median: 1.668 low: 0.173 |
|
| Inventory Turnover | 3.837 | |
| Inventory Turnover Ratio QoQ | -6.074 % | |
| Inventory Turnover Ratio YoY | 17.031 % | |
| Inventory Turnover Ratio IPRWA | high: 34.314 mean: 15.347 median: 7.771 NOA: 3.837 low: 0.368 |
|
| Days Sales Outstanding (DSO) | 45.504 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 25.43 | |
| Cash Conversion Cycle Days QoQ | 13.448 % | |
| Cash Conversion Cycle Days YoY | 25.232 % | |
| Cash Conversion Cycle Days IPRWA | high: 187.155 mean: 52.502 median: 50.272 NOA: 25.43 low: -27.376 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -13.33 | |
| CapEx To Revenue | -0.235 | |
| CapEx To Depreciation | -1.38 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.2 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ 450.1 M | |
| Net Working Capital | $ -24.05 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.2 | |
| Current Ratio | 0.939 | |
| Current Ratio QoQ | 1.719 % | |
| Current Ratio YoY | -8.774 % | |
| Current Ratio IPRWA | high: 3.952 mean: 1.624 median: 1.395 NOA: 0.939 low: 0.093 |
|
| Quick Ratio | 0.751 | |
| Quick Ratio QoQ | 2.016 % | |
| Quick Ratio YoY | -6.162 % | |
| Quick Ratio IPRWA | high: 2.807 mean: 1.471 median: 1.197 NOA: 0.751 low: 0.088 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.533 | |
| Cost Of Debt | 1.005 % | |
| Interest Coverage Ratio | 2.193 | |
| Interest Coverage Ratio QoQ | 21.513 % | |
| Interest Coverage Ratio YoY | -9.061 % | |
| Interest Coverage Ratio IPRWA | high: 49.953 mean: 15.015 median: 8.89 NOA: 2.193 low: -23.759 |
|
| Operating Cash Flow Ratio | 0.16 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 42.432 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.882 | |
| Dividend Payout Ratio | 0.347 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.824 % | |
| Revenue Growth | -5.926 % | |
| Revenue Growth QoQ | -151.383 % | |
| Revenue Growth YoY | -15.015 % | |
| Revenue Growth IPRWA | high: 83.442 % mean: 13.897 % median: 11.3 % NOA: -5.926 % low: -29.363 % |
|
| Earnings Growth | -90.476 % | |
| Earnings Growth QoQ | 88.492 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 192.157 % mean: 35.916 % median: 27.757 % NOA: -90.476 % low: -129.268 % |
|
| MARGINS | ||
| Gross Margin | 11.175 % | |
| Gross Margin QoQ | 0.522 % | |
| Gross Margin YoY | -37.834 % | |
| Gross Margin IPRWA | high: 53.284 % median: 22.54 % mean: 21.852 % NOA: 11.175 % low: 1.408 % |
|
| EBIT Margin | 9.186 % | |
| EBIT Margin QoQ | 34.141 % | |
| EBIT Margin YoY | -22.461 % | |
| EBIT Margin IPRWA | high: 25.6 % mean: 10.663 % median: 9.646 % NOA: 9.186 % low: -4.933 % |
|
| Return On Sales (ROS) | 7.073 % | |
| Return On Sales QoQ | 3.286 % | |
| Return On Sales YoY | -40.297 % | |
| Return On Sales IPRWA | high: 25.639 % mean: 10.315 % median: 9.646 % NOA: 7.073 % low: -4.372 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -10.57 M | |
| Free Cash Flow Yield | -2.229 % | |
| Free Cash Flow Yield QoQ | -74.441 % | |
| Free Cash Flow Yield YoY | -29.551 % | |
| Free Cash Flow Yield IPRWA | high: 10.236 % mean: 1.101 % median: 1.028 % NOA: -2.229 % low: -18.993 % |
|
| Free Cash Growth | -75.047 % | |
| Free Cash Growth QoQ | -74.407 % | |
| Free Cash Growth YoY | 7.964 % | |
| Free Cash Growth IPRWA | high: 289.595 % median: 7.663 % mean: -62.099 % NOA: -75.047 % low: -337.942 % |
|
| Free Cash To Net Income | -1.031 | |
| Cash Flow Margin | 19.673 % | |
| Cash Flow To Earnings | 6.154 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.566 % | |
| Return On Assets QoQ | 60.34 % | |
| Return On Assets YoY | -35.24 % | |
| Return On Assets IPRWA | high: 8.275 % mean: 2.426 % median: 1.947 % NOA: 0.566 % low: -8.889 % |
|
| Return On Capital Employed (ROCE) | 2.056 % | |
| Return On Equity (ROE) | 0.022 | |
| Return On Equity QoQ | 66.942 % | |
| Return On Equity YoY | -39.648 % | |
| Return On Equity IPRWA | high: 0.152 mean: 0.062 median: 0.053 NOA: 0.022 low: -0.23 |
|
| DuPont ROE | 2.223 % | |
| Return On Invested Capital (ROIC) | 1.414 % | |
| Return On Invested Capital QoQ | -9.068 % | |
| Return On Invested Capital YoY | -98.604 % | |
| Return On Invested Capital IPRWA | high: 11.354 % mean: 5.31 % median: 4.144 % NOA: 1.414 % low: -5.909 % |
|