North American Construction Group Secures Record $2B Contract Extension In Australia, Boosting Total Backlog To $4B Through 2030

Author: Benzinga Newsdesk | August 06, 2025 05:16pm

North American Construction Group Ltd. ("NACG" or "the Company") (TSX:NOA, NYSE:NOA) today announced that the MacKellar Group ("MacKellar"), a wholly owned subsidiary of NACG, has been awarded an amended and extended five-year contract by an existing client, a leading coal producer in the state of Queensland, Australia.

The extended mine services contract has an expiry date of April 30, 2030, provides total backlog of approximately $2.0 billion and is the largest contract signed in the Company's history. The extension results in an $800 million increase to backlog in relation to the original contract. The amendments introduce certain risk and reward mechanisms that contractually align NACG with the producer to consistently operate effectively. The contract does not contemplate growth capital with backlog values generally based on the existing run-rate of the mine.

This incremental value results in total contractual backlog for the Company of $4.0 billion as of March 31, 2025, on a proforma basis, compared to the $3.2 billion reported in the 2025 Q1 MD&A. This level of backlog sets another Company record, surpassing the previous record of $3.5 billion reported on December 31, 2024. The contractual backlog in place for the Australian operations, $3.0 billion as at March 31, 2025, on a proforma basis, now provides full top-line visibility to 2029 at current levels.

Posted In: NOA TSX:NOA