Despite Challenges, North American Construction Group's Low Valuation Multiples Keep It Attractive

2025-05-21 06:41:03 ET

Summary

• NOA maintains a strong project backlog, benefits from mining activity in Australia and Canada, and continues to diversify assets and revenue streams.
• Despite weather and tariff risks, I expect utilization rates and EBITDA growth to recover in 2H 2025, supporting a positive medium-term outlook.
• The stock remains undervalued versus peers, with share repurchases and improving cash flow supporting my continued 'Buy' rating.

NOA Keeps It Stable

I discussed North American Construction Group ( NOA ) in the past, and you can read the previous article here , published on January 6, 2025. Increased mining activity in Western Australia and steady oil sands production in Canada kept the company’s backlog strong in recent months. Early-stage development and heavy civil infrastructure benefited the company’s topline in Q1. Also, it focuses on enhancing customer relationships, which has ensured extended contract terms and commitment over a longer period....

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