Significant Contract Extension Announced by NACG
North American Construction Group Ltd. (NOA) is excited to share that their subsidiary, the MacKellar Group, has been awarded a remarkable five-year contract, valued at $2.0 billion. This contract, received from a leading coal producer in Queensland, Australia, marks a pivotal development in the company’s business trajectory.
Details of the Contract
The contract extension will remain effective until April 30, 2030, and it signifies a substantial backlog for NACG, increasing by $800 million compared to the previous contract. This contract embodies risk and reward mechanics, strategically aligning NACG with the producer to ensure effective operations. It is important to note that the backlog values are primarily based on the mine's existing run-rate and do not account for additional growth capital.
Record-Breaking Backlog Levels
With this new contract in place, NACG’s total contractual backlog has now reached approximately $4.0 billion, as of the end of March 2025, representing a significant jump from the $3.2 billion reflected in their first-quarter MD&A report for 2025. This surpasses the previous record of $3.5 billion achieved by the company, showcasing their continued growth and market strength.
Positive Outlook from Company Leaders
Joe Lambert, the President and CEO of NACG, expressed excitement stating, "The signing of the largest contract in our history reflects our consistent execution and the trusted partnerships we’ve built over the years. With a record-high backlog of over $3.0 billion from Australia alone, we have exceptional revenue visibility for the upcoming decade and a solid foundation for long-term growth."
MacKellar Group's Track Record
Barry Palmer, COO of NACG, remarked on the significance of this contract for the MacKellar Group. He noted, "This extension is a true testament to the successful relationship we have fostered with our customer since our inception in 2022. We are dedicated to this customer’s ongoing success and anticipate achieving notable results on site."
About MacKellar Group
Founded in 1966 and a wholly owned subsidiary of NACG since 2023, the MacKellar Group has established an excellent reputation in Australia for its performance and reliability. The firm is renowned for providing heavy earthmoving equipment solutions and has an impressive history in major mining and civil earthwork projects.
About North American Construction Group Ltd.
NACG stands as one of the largest providers of heavy construction and mining services in Australia and Canada. For over 70 years, the company has contributed significantly to the mining, resources, and infrastructure construction markets, showcasing its expertise and commitment to excellence.
For further inquiries, you can reach out to Jason Veenstra, Chief Financial Officer at NACG, via phone at 780.960.7171 or email at ir@nacg.ca.
Frequently Asked Questions
What is the value of the contract awarded to NACG?
The contract awarded to North American Construction Group is valued at $2.0 billion.
What is the duration of the contract?
The contract is set for a duration of five years, expiring on April 30, 2030.
How does this contract impact NACG's backlog?
This contract extension adds $800 million to the backlog, bringing the total backlog to approximately $4.0 billion.
Who is the CEO of North American Construction Group?
Joe Lambert is the President and CEO of NACG.
What is the history of the MacKellar Group?
The MacKellar Group has been operating since 1966 and has been a wholly owned subsidiary of NACG since 2023, known for its reliability in mining and civil projects.
