North American Construction Group Ltd. (NOA) entered into a definitive share‑purchase agreement on December 18, 2025 to acquire Iron Mine Contracting (IMC), a privately‑owned Western Australian mining services contractor, for approximately $115 million CAD. The deal is slated to close in the first quarter of 2026 and will immediately add a $1 billion backlog of work, including a newly awarded three‑year lithium‑mining contract that will further diversify NOA’s commodity exposure.
The acquisition is a cornerstone of NOA’s strategic pivot from a Canadian oil‑sands contractor to a high‑margin global mining services platform. By combining IMC with its existing MacKellar Group, NOA will achieve Tier 1 contractor status across Australia, positioning the company to win larger, long‑term contracts in a region that is a global powerhouse for base metals, precious metals and critical minerals. The move also gives NOA a foothold in lithium, a critical mineral that underpins the clean‑energy transition and electric‑vehicle supply chains.
Financially, the transaction is expected to be immediately accretive, boosting NOA’s 2026 earnings per share by roughly 20%. IMC is valued at about 2.5 times its projected 2026 EBITDA, and the combined pro‑forma backlog is projected to reach $4.3 billion. The deal will be financed with 65 % senior‑secured bank debt and 35 % vendor‑provided debt, with an upfront $40 million payment drawn from NOA’s revolving credit facility. Concurrently, NOA is selling 26 Caterpillar 400‑ton haul trucks in Canada and purchasing eight Komatsu 240‑ton haul trucks in Australia, a fleet optimization that is expected to reduce property, plant and equipment and net debt by roughly $20 million.
Segmentally, IMC’s operations will be folded into NOA’s Heavy Equipment Australia division, strengthening that segment’s revenue mix and margin profile. The acquisition also enhances NOA’s safety record and high‑margin business model, reinforcing the company’s competitive advantage in both the Canadian and Australian markets. Despite the additional debt, the net effect of the fleet swap and the expected cost synergies is a modest reduction in overall leverage, mitigating the impact of the new financing on NOA’s balance sheet.
Looking ahead, NOA has set 2026 guidance of C$1.5–1.7 billion in revenue, C$380–420 million in adjusted EBITDA, and C$2.85–3.15 in adjusted EPS, with free cash flow projected at C$110–130 million. The guidance is about $35 million below consensus estimates, reflecting a cautious outlook on oil‑sands work and the additional debt load. CEO Joe Lambert noted that the acquisition “represents a natural and strategic extension” that will fast‑track NOA’s Western Australia growth strategy, while IMC CEO Clinton Keenan described the partnership as a “strategic accelerator” for both companies.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.