NOA Overview

Aegis Financial Overview: Aegis Financial is a small, internally owned firm focused on deep value investments in small caps, cyclicals, and commodities, managed by Scott Barbee, who emphasizes long-term results and aligns interests with clients.

Third Quarter Portfolio Activity: In the third quarter, Aegis made significant portfolio adjustments, including new positions in Cenovus Energy and North American Construction Group, while increasing stakes in Precision Drilling, Vermilion Energy, and Galiano Gold, reflecting a disciplined value management approach.

Investment Philosophy: Aegis targets undervalued assets in sectors like energy and mining, capitalizing on market mispricing and maintaining a concentrated portfolio, while managing risk through strategic trims and exits, such as reducing their position in Equinox Gold and exiting Peabody Energy.

Market Positioning: The firm is focused on acquiring hard assets at deep discounts, leveraging cash flow and operational strength in commodity markets, and avoiding trends like AI, instead opting for a patient investment strategy that rewards long-term value realization.

Earnings Growth: North American Construction Group Ltd. reported a profit of $17.30 million for Q3, up from $14.49 million the previous year, translating to earnings per share of $0.56 compared to $0.48 last year.

Adjusted Earnings: The company’s adjusted earnings for the period were $19.48 million, or $0.67 per share, excluding certain items.

Revenue Increase: Revenue for the third quarter rose by 10.6% to $317.25 million, compared to $286.86 million in the same quarter last year.

Financial Summary: Key financial figures include earnings of $17.30 million, EPS of $0.56, and revenue of $317.25 million, all showing positive growth year-over-year.

Financial Performance: North American Construction Group Ltd. reported a combined revenue of $390.8 million for Q3 2025, a 6% increase year-over-year, while adjusted EPS decreased by 44% to $0.67 due to higher interest expenses and an increased share count.

Operational Highlights: The Heavy Equipment - Australia segment saw a 26% revenue increase driven by fleet expansion and strong contract performance, while the Heavy Equipment - Canada segment experienced a 5% revenue decline due to reduced activity at Syncrude mines.

Gross Profit Margins: Combined gross profit margin improved to 14.6%, up 5.7% from the previous year, attributed to operational consistency and improved cost control, despite lower gross profit figures compared to the prior year.

Dividend Declaration and Outlook: The NACG Board declared a quarterly dividend of $0.12 per share, payable in January 2026, and maintained its 2025 outlook for combined revenue and adjusted EBITDA, projecting continued financial stability.

Financial Results Announcement: North American Construction Group Ltd. (NACG) will release its third-quarter financial results for 2025 on November 12, 2025, after market close.

Conference Call Details: A conference call and webcast to discuss the results will take place on November 13, 2025, at 7:00 a.m. Mountain Time, with access details provided for participants.