Q2 2026 North American Construction Group Ltd Earnings Call

August 13, 2026

Speaker #1: Good morning, ladies and gentlemen. Welcome to the NORTH AMERICAN CONSTRUCTION GROUP CONFERENCE CALL regarding the second quarter ended June 30, 2026. At this time, all participants are in a listen-only mode.

Speaker #1: Following management's prepared remarks, there will be an opportunity for analysts, shareholders, and bondholders to ask questions. The media may monitor this call in listen-only mode.

Speaker #1: They are free to quote any member of management, but they are asked not to quote remarks from any other participant without that participant's permission.

Speaker #1: The company wishes to confirm that today's comments contain forward-looking information and that actual results could differ materially from a conclusion, forecast, or projection contained in that forward-looking information.

Speaker #1: Certain material factors or assumptions were applied in drawing conclusions or in making forecasts or projections that are reflected in the forward-looking information. Additional information about those material factors is contained in the company's most recent management discussion and analysis which is available on Cedar and Edgar, as well as on the company's website at NACG.ca.

Operator: Additional information about those material factors is contained in the company's most recent management's discussion and analysis, which is available on SEDAR and EDGAR, as well as on the company's website at nacg.ca. I will now turn the conference call over to Jason Veenstra, CFO.

Speaker #1: I will now turn the conference call over to Jason Venstra, CFO.

Speaker #2: Thanks, Jenny, and good morning, everyone. I'll start today's call with brief commentary on the financials, then pass the call to Barry for his operational and forward-looking comments, and we'll conclude, as per usual, with Q&A.

Jason Veenstra: Thanks, Jenny, and good morning, everyone. I will start today's call with brief commentary on the financials, then pass the call to Barry for his operational and forward-looking comments, and we will conclude, as per usual, with Q&A. Starting on slide 4, we delivered CAD 93 million of EBITDA in the Q1, translating into year-over-year improvements in both adjusted earnings and margin performance. Combined revenue was up CAD 86 million from last year, with IMC contributing CAD 91 million of revenue in the quarter. Excluding IMC, Australia was up organically 15% in the quarter on commission growth assets and strong execution. Offsetting these increases was the year-over-year impact of the divestiture of the Ultra-Class haul trucks in Canada. The CAD 456 million of total combined revenue finished off a strong H1 foundation of over CAD 875 million, supporting our 2026 combined revenue midpoint of CAD 1.7 billion.

Speaker #2: Starting on slide 4, we delivered $93 million of EBITDA in the first quarter, translating into year-over-year improvements in both adjusted earnings and margin performance.

Speaker #2: Combined revenue was up $86 million from last year, with IMC contributing $91 million of revenue in the quarter. Excluding IMC, Australia was up organically 15% in the quarter on commission growth assets and strong execution.

Speaker #2: Offsetting these increases, was the year-over-year impact of the divestiture of the ultra-class haul trucks in Canada. The 456 million dollars of total combined revenue finished off a strong first-half foundation of over 875 million dollars, supporting our 2026 combined revenue midpoint of 1.7 billion.

Speaker #2: Moving to slide 5, Australia posted 13.6% gross profit margin, and Canada delivered a combined adjusted margin of approximately 7%, despite difficult seasonal conditions early in the quarter in both regions.

Jason Veenstra: Moving to slide 5, Australia posted 13.6% gross profit margin and Canada delivered a combined adjusted margin of approximately 7%, despite difficult seasonal conditions early in the quarter in both regions. These results reflect a disciplined project execution, improved internal maintenance capability, lower repair costs, and the implementation of continued fleet efficiency initiatives. Importantly, are trending in the right direction heading into the H2 of 2026. Moving to slide 6, Q2 EBITDA and EBIT were both up meaningfully from the prior year quarter on the acquisition of IMC and a more typical quarter from the Fargo joint ventures. Direct adjusted G&A was CAD 15 million, or 3.8% of reported revenue, well below our 5% targeted threshold, demonstrating operating leverage on stronger revenue.

Speaker #2: These results reflect a disciplined project execution improved internal maintenance capability lower repair costs, and the implementation of continued fleet efficiency initiatives. And, importantly, our trending in the right direction heading into the second half of 2026.

Speaker #2: Moving to slide 6, Q2 EBITDA and EBIT were both up meaningfully from the prior year quarter on the acquisition of IMC and a more typical quarter from the Fargo joint ventures.

Speaker #2: Direct adjusted G&A was 15 million dollars, or 3.8% of reported revenue, well below our 5% targeted threshold. Demonstrating operating leverage on stronger revenue. Depreciation as a percent of combined revenue dropped to 13% from 16% last year, as IMC's lower capital intensity resulted in the combined number being lower than our expected range midpoint of 15%.

Jason Veenstra: Depreciation as a percent of combined revenue dropped to 13% from 16% last year, as IMC's lower capital intensity resulted in the combined number being lower than our expected range midpoint of 15%. All told, adjusted EPS of CAD 0.32 was generated by solid operational performance. Interest expense increased to CAD 18.9 million from CAD 14.1 million last year, reflecting the financing of our strategic expansions in Australia. Our average cost of debt for the quarter remained consistent at 6.4%. Moving to slide 7, the business produced CAD 78 million of operating cash flow before working capital, generated by EBITDA performance net of cash interest. Free cash flow generation was CAD 23 million after a CAD 13 million positive working capital change in the quarter. Moving to slide 8, net debt increased CAD 191 million to CAD 1.1 billion, reflecting the acquisition of IMC and growth capital equipment purchased during the quarter.

Speaker #2: All told, adjusted EPS of 32 cents was generated by solid operational performance. Interest expense increased to 18.9 million dollars from 14.1 million dollars last year, reflecting the financing of our strategic expansions in Australia.

Speaker #2: Our average cost of debt for the quarter remained consistent at 6.4%. Moving to slide 7, the business produced $78 million of operating cash flow before working capital, generated by EBITDA performance, net of cash interest.

Jason Veenstra: Moving to slide 7, the business produced CAD 78 million of operating cash flow before working capital, generated by EBITDA performance net of cash interest. Free cash flow generation was CAD 23 million after a CAD 13 million positive working capital change in the quarter. Moving to slide 8, net debt increased CAD 191 million to CAD 1.1 billion, reflecting the acquisition of IMC and growth capital equipment purchased during the quarter.

Speaker #2: Free cash flow generation was 23 million dollars after a 13 million dollar positive working capital change in the quarter. Moving to slide 8, net debt increased 191 million dollars to 1.1 billion.

Speaker #2: Reflecting the acquisition of IMC and growth capital equipment purchased during the quarter. Trailing 12 net debt leverage is reported as 2.9 times, but importantly, is not yet benefiting from 12 months of IMC EBITDA.

Jason Veenstra: Trailing 12 net debt leverage is reported as 2.9x, but importantly is not yet benefiting from 12 months of IMC EBITDA. Based on our H2 run rate, we are operating at a 2.6x leverage ratio with the plan to decrease that moving forward. Senior secured debt remains steady at 1.7x based on the CAD 200 million of senior unsecured notes we raised in the quarter and the impact of unsecured debt that partially funded the IMC acquisition. With those comments on the financials, I'll pass the call to Barry.

Speaker #2: Based on our second half run rate, we are operating at a 2.6 times leverage ratio with the plan to decrease that moving forward. Senior secured debt remains steady at 1.7 times based on the 200 million dollars of senior unsecured notes we raised in the quarter and the impact of unsecured debt that partially funded the IMC acquisition.

Speaker #2: With those comments on the financials, I'll pass the call to Barry.

Speaker #3: Thanks, Jason, and good morning, everyone. As Jason just outlined, our first-half performance was stronger than expected entering the year, and gives us the confidence to raise our full-year revenue outlook.

Barry Palmer: Thanks, Jason, and good morning, everyone. As Jason just outlined, our H1 performance was stronger than expected entering the year and gives us the confidence to raise our full year revenue outlook. More importantly, the quarter reinforced that North American Construction Group is in an inflection point. The strategic groundwork we have put in place is increasingly translating to measurable growth, stronger earning visibility, and more resilient operating profiles. Our operating platform continues to evolve and there's even more opportunity ahead of us. We are now seeing clear evidence that our broader geographic reach, expanded capabilities, and operating discipline are working together. Our focus is to convert that opportunity into quality earnings and free cash flow through consistent execution across all operations. On slide 11 summarizes the three strategic building blocks supporting our growth. First, scaling toward a national Tier 1 contractor platform in Australia.

Speaker #3: More importantly, the quarter reinforced that North American Construction Group is at an inflection point. The strategic groundwork we have put in place is increasingly translating to measurable growth, stronger earnings visibility, and a more resilient operating profile.

Speaker #3: Our operating platform continues to evolve, and there is even more opportunity ahead of us. We are now seeing clear evidence that our capabilities and operating discipline are working together.

Speaker #3: Our focus is to convert that opportunity into quality earnings and free cash flow through consistent execution across all operations. On slide 11, summarizes as three strategic building blocks supporting our growth.

Speaker #3: First, scaling toward a national tier-one contractor platform in Australia. Secondly, securing infrastructure awards across North America and third, expanding mining services in Canada and the United States.

Barry Palmer: Secondly, securing infrastructure awards across North America. Third, expanding mining services in Canada and the United States. These are distinct markets, but the underlying model is consistent. We establish a position where our equipment, people, and execution capabilities create the right to win. We then deepen our customer relationship, expand the scope of work, and allocate capital where we can earn attractive returns. The regional updates that follow are proof that this strategy is gaining further traction. On slide 12, Australia remains our primary growth engine. Revenue has increased approximately 31% compound annual rate from H1 2024 through H1 2026, and H1 2026 revenue was 14% above the H2 2025. This momentum reflects the scale we have added through MacKellar and IMC, supported by favorable operating conditions and strong market demand.

Speaker #3: These are distinct markets, but the underlying model is consistent. We establish a position where our equipment, people, and execution capabilities create the right to win.

Speaker #3: We then deepen our customer relationships, expand the scope of work, and allocate capital where we can earn attractive returns. The regional updates that follow are proof that this strategy is gaining further traction.

Speaker #3: On slide 12, Australia remains our primary growth engine. Revenue is increased approximately 31% compound annual rate from the first half of 2024 through the first half of 2026.

Speaker #3: And first-half 2026 revenue was 14% above the second half of 2025. This momentum reflects the scale we have added through McKeller and IMC, supported by favorable operating conditions and strong market demand.

Speaker #3: Together, McKeller and IMC give us a broader national presence, and the capability to pursue larger, more comprehensive scopes across all of Australia. IMC's new 8-way MACHIA workshop is another important step.

Barry Palmer: Together, MacKellar and IMC give us a broader national presence and the capability to pursue larger, more comprehensive scopes across all of Australia. IMC's new eight-bay Mackay workshop is another important step. It expands our maintenance capacity and supports our equipment rebuild program, as well as the larger projects we expect to pursue over time. The strategic value extends beyond scale. We are increasing our exposure to lower capital unit rate work and diversifying across gold, lithium, iron ore, nickel, and other critical minerals. This combination will support more consistent utilization and a better balance of growth and returns. This integration is also benefiting from a close alignment in safety, culture, core values, and maintenance capabilities, which is critical to sustaining performance as the business expands. As of 30 June, our Australian operations had approximately CAD 3.4 billion of contractual backlog and a further CAD 3.9 billion bid pipeline.

Speaker #3: It expands our maintenance capacity and supports our equipment rebuild program, as well as the larger projects we expect to pursue over time. The strategic value extends beyond scale.

Speaker #3: We are increasing our exposure to lower capital unit rate work and diversifying across gold, lithium, iron ore, nickel, and other critical minerals. This combination will support more consistent utilization and a better balance of growth and returns.

Speaker #3: This integration is also benefiting from a close alignment in safety, culture, core values, and maintenance capabilities, which is critical to sustaining performance as the business expands.

Speaker #3: As of June 30th, our Australian operations had approximately $3.4 billion of contractual backlog and a further $3.9 billion bid pipeline. Supported by approximately $278 billion of public infrastructure spending and a $242 billion major project pipeline, this gives us meaningful runway as we continue building the platform.

Barry Palmer: Supported by approximately CAD 278 billion of public infrastructure spending and a CAD 242 billion major project pipeline, this gives us meaningful runway as we continue building the platform. Turning to slide 13. In Northern Canada, where I want to focus on our infrastructure discussion for today's call. Our strategy is to position capital and capabilities where our operating experience provides a clear advantage. Nuna is a strong example, with a fleet of approximately 230 heavy equipment assets. New equipment is arriving in Nunavut during Q3, increasing capacity and mechanical availability at an established mine site. We expect that expansion to drive approximately 20% site-level revenue growth, with our ownership stake providing NACG exposure to Nuna's growing earnings contribution. At the same time, we are executing a land and expand strategy across priority mining regions.

Speaker #3: Turning to slide 13, in Northern Canada, where I want to focus on our infrastructure discussion for today's call. Our strategy is to position capital and capabilities where our operating experience provides a clear advantage.

Speaker #3: NUNA is a strong example, with a fleet of approximately 230 heavy equipment assets, new equipment is arriving in Nunavut during the third quarter, increasing capacity and mechanical availability at an established mine site.

Speaker #3: We expect that expansion to drive approximately 20% site-level revenue growth with our ownership state providing NACG exposure to NUNA's growing earnings contribution. At the same time, we are executing a land and expand strategy across priority mining regions.

Speaker #3: The Yukon infrastructure award and three initial projects in Ontario establish footholds from which we can pursue larger follow-on scopes. Our ability to safely deliver on time, on budget, with zero deficiencies is how we earn the opportunity to do more for these customers.

Barry Palmer: The Yukon infrastructure award and three initial projects in Ontario establish footholds from which we can pursue larger follow-on scopes. Our ability to safely deliver on time, on budget, with zero deficiencies is how we earn the opportunity to do more for these customers. Nuna's deep remote operating expertise, established infrastructure, and indigenous partnerships are difficult to replicate. Those capabilities position us well as critical minerals, defense, and nation-building investment advances across Northern Canada. With approximately CAD 5 billion of opportunities in the regional pipeline, we see a significant pathway to long-term growth while remaining disciplined in how we pursue it. Turning to slide 14. In the oil sands, customer demand is shifting towards more equipment-intensive work as haul distances lengthen and operating requirements broaden. This creates an attractive opportunity for North American that can provide reliable fleet availability and consistent service, but it has also required a disciplined operating plan.

Speaker #3: NUNA's deep remote operating expertise established infrastructure in indigenous partnerships are difficult to replicate. Those capabilities position us well as critical minerals defense and nation-building investment advances across Northern Canada.

Speaker #3: With approximately 5 billion of opportunities in the regional pipeline, we see a significant pathway to long-term growth while remaining disciplined in how we pursue it.

Barry Palmer: With approximately CAD 5 billion of opportunities in the regional pipeline, we see a significant pathway to long-term growth while remaining disciplined in how we pursue it. Turning to slide 14. In the oil sands, customer demand is shifting towards more equipment-intensive work as haul distances lengthen and operating requirements broaden. This creates an attractive opportunity for North American that can provide reliable fleet availability and consistent service, but it has also required a disciplined operating plan.

Speaker #3: Turning to slide 14, in the oil sands, custom demand is shifting towards more equipment-intensive work as hauled distances lengthen and operating requirements broaden. This creates an attractive opportunity for North American that can provide reliable fleet availability and consistent service but it is also required a disciplined operating plan.

Speaker #3: During the second quarter, we formally identified 260 multi-life heavy equipment assets as our target fleet and aligned our maintenance and operations team around clear objectives.

Barry Palmer: During Q2, we formally identified 260 multi-life heavy equipment assets as our target fleet and aligned our maintenance and operations team around clear objectives. Mechanical availability is a primary operating measure with a medium-term target of 70%. Improving reliability reduces downtime, provides greater schedule certainty, and allows us to capture visible demand more efficiently. This is not simply about increasing activity. It is about improving the quality of earnings. We are concentrating on investment for assets and scopes that meet our return thresholds with incremental investments targeting IRRs above 40% and a clear line of sight towards gross profit margins in the 15% range. Better fleet performance, selective capital allocation, and operating discipline are the levers that we will translate strong customer demand into resilient margins. Turning to slide 15. This shows the depth of our diversity in the opportunity set.

Speaker #3: Mechanical availability is a primary operating measure, with a medium-term target of 70%. Improving reliability reduces downtime, provides greater schedule certainty, and allows us to capture visible demand more efficiently.

Speaker #3: This is not simply about increasing activity. It's about improving the quality of earnings. We are concentrating on investment for assets and scopes that meet our return thresholds with incremental investments targeting IRRs above 40% and a clear line of sight towards gross profit margins in the 15% range.

Speaker #3: Better fleet performance, selective capital allocation, and operating discipline are the levers that we will translate strong customer demand into resilient margins. Turning to slide 15, this shows the depth of our diversity in the opportunity set.

Speaker #3: Our total bid pipeline exceeds 12 billion dollars, with approximately 3.6 billion currently in active tender and procurement. The active pipeline is balanced geographically with approximately 1.8 billion in Australia and 1.8 billion in North America.

Barry Palmer: Our total bid pipeline exceeds CAD 12 billion, with approximately CAD 3.6 billion currently in active tender and procurement. The active pipeline is balanced geographically, with approximately CAD 1.8 billion in Australia and CAD 1.8 billion in North America. It is also balanced by type, with 54% in mining services and 46% in infrastructure across 14 resource categories. Expected award timing is weighted across the H2 2026 and into 2027, with additional opportunities beyond that period. We do not need every project to move forward to create meaningful growth. Our priority is to convert the opportunities where our capabilities provide a clear advantage and where the risk-adjusted returns meet our standards. Turning to slide 16, our outlook. Record contractual backlog of approximately CAD 3.8 billion as of 30 June underpins our full-year expectations.

Speaker #3: It is also balanced by type, with 54% in mining services and 46% in infrastructure across 14 resource categories. Expected award timing is weighted across the second half of 2026 and into 2027, with additional opportunities beyond that period.

Speaker #3: We do not need every project to move forward to create meaningful growth. Our priority is to convert the opportunities where our capabilities provide a clear advantage and where the risk-adjusted returns meet our standards.

Speaker #3: Turning to slide 16, our outlook: record contractual backlog of approximately 3.8 billion as of June 30th underpins our full-year expectations. Based on stronger-than-expected revenue in the first half, including a quarterly revenue record for Q2, we are raising our combined revenue guidance to a range of 1.6 billion to 1.8 billion.

Barry Palmer: Based on stronger than expected revenue in the H1, including a quarterly revenue record for Q2, we are raising our combined revenue guidance to a range of CAD 1.6 billion to CAD 1.8 billion. The new midpoint of CAD 1.7 billion is CAD 100 million above our prior midpoint and approximately 14% above our full year 2025 result. We are growing. We continue to expect adjusted EBITDA of CAD 380 million to CAD 420 million and free cash flow of CAD 110 million to CAD 130 million. At the midpoint, that represents CAD 400 million of adjusted EBITDA and CAD 120 million of free cash flow. In Australia, we expect optimal dry seasonal conditions in Queensland to support MacKellar while IMC activity ramps up in Western Australia. In the oil sands, utilization should improve following the spring breakup, supported by fleet optimization and incremental project scopes.

Speaker #3: The new midpoint of $1.7 billion is $100 million above our prior midpoint and approximately 14% above our full-year 2025 result. We are growing. We continue to expect adjusted EBITDA of $380 million to $420 million and free cash flow of $110 million to $130 million.

Speaker #3: At the midpoint, that represents $400 million of adjusted EBITDA and $120 million of free cash flow. In Australia, we expect optimal, dry seasonal conditions in Queensland to support McKeller, while IMC activity ramps up in Western Australia.

Speaker #3: In the oil sands, utilization should improve following the spring breakup, supported by fleet optimization and incremental project scopes. At NUNA, we expect the seasonally strong third quarter to be followed by fourth quarter uplift from the Nunavut fleet expansion.

Barry Palmer: At Nuna, we expect the seasonally strong Q3 to be followed by Q4 uplift from the Nunavut fleet expansion. Taken together, our H1 performance, record backlog

Speaker #3: Taken together, our first-half performance, record backlog, and identifiable second-half operating drivers support the raised revenue outlook and our continued confidence in the adjusted EBITDA and free cash flow ranges.

Barry Palmer: and identifiable H2 operating drivers support the raised revenue outlook and our continued confidence in the adjusted EBITDA and free cash flow ranges. Our job is now straightforward. Safely execute with discipline, improve the quality of earnings, and convert the opportunity embedded across the platform into sustainable shareholder value. Lastly, I am extremely pleased to announce that our Chairman, Martin Ferron, has confirmed that our CEO search is going very well, and we plan to announce our new CEO in the coming weeks. That concludes the Q2 presentation, and we would be happy to take any questions you may have.

Speaker #3: Our job is now straightforward. Safely execute with discipline, improve the quality of earnings, and convert the opportunity embedded across the platform into sustainable shareholder value.

Speaker #3: Lastly, I'm extremely pleased to announce that our chairman, Martin Farron, has confirmed that our CEO search is going very well and we plan to announce our new CEO in the coming weeks.

Speaker #3: That concludes the Q2 presentation, and we would be happy to take any questions you may have.

Speaker #1: Thank you, ladies and gentlemen, to ask a question. Please press door one on your touchstone phone. If you wish to withdraw your question, you can press door two.

Operator: Thank you. Ladies and gentlemen, to ask a question, please press star one on your touch-tone phone. If you wish to withdraw your question, you can press star two. Once you have completed your questions and would like to return to the queue, please press star one again. After a brief pause, we will begin the Q&A session. Your first question is from Joseph Roiger from Rock Capital Partners. Your line is now open.

Speaker #1: Once you have completed your questions and would like to return to the queue, please press door one again. After a brief pause, we will begin the Q&A session.

Speaker #1: Your first question is from Joseph Rigger from Roth Capital Partners. Your line is now open.

Speaker #2: Hey, guys. Thanks for taking the questions and congrats on a strong quarter.

Joseph Roiger: Hey, guys. Thanks for taking the questions, and congrats on a strong quarter.

[Analyst] (Acumen Capital Partners): Hey, guys. Thanks for taking the questions, and congrats on a strong quarter.

Speaker #4: Thanks, Joel.

Barry Palmer: Thanks, Joe.

Speaker #2: So on the increased revenue guide, is this part of it that there's some flow-through costs that have raised revenue but have also raised costs, which is why the EBITDA guide didn't change?

Joseph Roiger: So on the increased revenue guide, is part of it that there is some flow-through costs that have raised revenue but have also raised costs, which is why the EBITDA guide did not change? Or is there something else that we should read into there?

[Analyst] (Acumen Capital Partners): So on the increased revenue guide, is part of it that there is some flow-through costs that have raised revenue but have also raised costs, which is why the EBITDA guide did not change? Or is there something else that we should read into there?

Speaker #2: Or is there something else we should read into there?

Speaker #4: Joel, that's a good way to look at it. It's really a first half impact. When we look at revenue and how strong it was in the first half, and then EBITDA being consistent with what we expected for the first half, so yeah, it's a cost conclusion there.

Jason Veenstra: Joe, that's a good way to look at it. It's really a H1 impact when we look at revenue and how strong it was in the H1, then EBITDA being consistent with what we expected for the H1. So it's a cost conclusion there.

Speaker #2: Okay. And then follow-up on that, with higher diesel costs right now, is that something that'll flow through your model? It won't press too hard on your margins, but would potentially push you guys towards the higher end of the revenue guide?

Joseph Roiger: Okay. Then follow-up on that. With higher diesel costs right now, is that something that'll flow through your model? It won't press too hard on your margins, but would potentially push you guys towards the higher end of the revenue guide?

[Analyst] (Acumen Capital Partners): Okay. Then follow-up on that. With higher diesel costs right now, is that something that'll flow through your model? It won't press too hard on your margins, but would potentially push you guys towards the higher end of the revenue guide?

Speaker #4: No, there's no impact to us either on revenue or EBITDA guide. Margin is always for the vast majority of our operations, it's a flow-through.

Jason Veenstra: No, there's no impact to us either on revenue or EBITDA margin. For the vast majority of our operations, it's a flow-through.

Speaker #2: Okay. All right. Thanks for the clarity there. I'll turn it over.

Joseph Roiger: Okay. All right. Thanks for the clarity there. I'll turn it over.

[Analyst] (Acumen Capital Partners): Okay. All right. Thanks for the clarity there. I'll turn it over.

Speaker #4: Thanks.

Jason Veenstra: Thanks.

Speaker #1: Thank you. Your next question is from Adam Palmer from Thomson Davis. Your line is now open.

Operator: Thank you. Your next question is from Adam Palmer from Thompson Davis. Your line is now open.

Speaker #5: Hey, good morning, guys. Congrats on a nice quarter.

Adam Palmer: Hey. Good morning, guys. Congrats on a nice quarter.

[Analyst] (Thompson Davis): Hey. Good morning, guys. Congrats on a nice quarter.

Speaker #4: Thanks, Adam.

Barry Palmer: Thanks, Adam.

Speaker #5: Hey, the fuel services contract that you won in July, can you give some more color on that and comment if you see additional opportunities similar to that award?

Barry Palmer: Hey, the fuel services contract that you won in July, can you give some more color on that and comment if you see additional opportunities similar to that award?

Speaker #4: Yeah, it's great. And I mean, that was a great win for us. I mean, that business has been up till now solely servicing our own gear with odds and ends with different other contractors, truck here or there.

Barry Palmer: Yeah. It's great. That was a great win for us. That business has been, up till now, solely servicing our own gear with odds and ends with different other contractors, truck here or there. We've been looking to win something like that for a while, so it was very exciting to win that. What we see going forward is there's other opportunities coming up where some of these contracts are nearing the end of what was contracted out four or five years ago. We're in a very good position to certainly take advantage of some of that. We look forward to winning one, two, or maybe even three more of these as they come online.

Speaker #4: And we've been looking to win something like that for a while, so that's very it was very exciting to win that. And what we see going forward is there's other opportunities coming up where some of these contracts are nearing the end of what was contracted out four or five years ago.

Speaker #4: And we're in a very good position to certainly take advantage of some of that, and we look forward to winning one, two, or maybe even three more of these as they come online.

Speaker #5: And that was so that's not included in the Q2 backlog, correct?

Adam Palmer: So that's not included in the Q2 backlog, correct?

[Analyst] (Thompson Davis): So that's not included in the Q2 backlog, correct?

Speaker #4: Actually, it is. Adam, it's part of the three-point point eight.

Jason Veenstra: Actually, it is, Adam.

Jason Veenstra: It is.

Jason Veenstra: It's part of the 3.8.

Speaker #5: Okay. Well, still, $5 million of spend for a $135 million backlog is a pretty good trade.

Adam Palmer: Well, still, CAD 5 million of spend for CAD 135 million of backlog is a pretty good trade.

[Analyst] (Thompson Davis): Well, still, CAD 5 million of spend for CAD 135 million of backlog is a pretty good trade.

Speaker #4: Excellent contract. And as Barry mentioned, it definitely is opening doors for additional ones. And it's a lot less capital-intensive, as you alluded with the 5 million.

Jason Veenstra: Excellent contract, and as Barry mentioned, it definitely is opening doors for additional ones. It's a lot less capital intensive, as you alluded with the CAD 5 million.

Speaker #5: And then quick update. Can you just give a quick update on IMC integration, how that's margin profile of that business is going to trend over time?

Adam Palmer: Then a quick update. Can you just give a quick update on IMC integration, how that's going, and how you think the margin profile of that business is going to trend over time?

[Analyst] (Thompson Davis): Then a quick update. Can you just give a quick update on IMC integration, how that's going, and how you think the margin profile of that business is going to trend over time?

Speaker #4: Yeah. I mean, the IMC integration is going really well. I mean, the beauty about IMC is they're so like-minded of how we do business here in Canada.

Barry Palmer: Yeah. The IMC integration is going really well. The beauty about IMC is they are so like-minded of how we do business here in Canada. They are very good operators. I guess that is what attracted us to them is that they are so much like us on how they view equipment rebuilds. They are very structured. They have been executing unit rate work for many, many years. As far as the margins go, they are not quite as high as what we would expect on the equipment rental side in the Queensland business, because a lot of the work that they do is unit rate work. However, there is opportunity to go higher because of the unit rate style contract. The better we perform, the better the margin is.

Speaker #4: They're very good operators. I mean, I guess that's what attracted us to them, is that they're so much like us on how they view equipment rebuilds, they're very, very, very structured.

Speaker #4: They've been executing unit-rate work for many, many years. As far as the margins go, they're not quite as high as what we would expect on the equipment rental side in the Queensland business because a lot of the work that they do is unit-rate work.

Speaker #4: However, there is opportunity to go higher because of the unit rate. It's a style contract—the better we perform, the better the margin is.

Speaker #5: Interesting. Okay. Perfect. Thanks, guys.

Adam Palmer: Interesting. Okay, perfect. Thanks, guys.

[Analyst] (Thompson Davis): Interesting. Okay, perfect. Thanks, guys.

Speaker #4: Thanks, Adam.

Barry Palmer: Thanks, Adam.

Speaker #1: Thank you. And your next question is from Tim Monachello from ATB Cormorant Capital Markets. Your line is now open.

Operator: Thank you. Your next question is from Tim Monachello from ATB Cormark Capital Markets. Your line is now open.

Tim Monachello: Hey. Good morning, guys.

Speaker #6: Hey, good morning, guys.

Speaker #4: Morning, Tim. Morning, Tim.

Jason Veenstra: Morning, Tim.

Speaker #6: I'm just wondering if you can dig in a little bit more on the equipment optimization strategy in the oil sands. So, you've identified 260 fleet assets.

Tim Monachello: I am just wondering if you can dig in a little bit more on the equipment optimization strategy in the oil sands. You have identified 260 fleet assets. What are you doing with the remainder? You talked about some capital investments within that fleet. What type of investments need to be made there, and I guess how do you expect that in terms of CapEx in 2026 and 2027 coming through.

Speaker #6: What are you doing with the remainder? And you talked about some capital investments with NetFleet. What type of investments need to be made there?

Speaker #6: And I guess how do you expect that in terms of capex in '26 and '27 coming through?

Speaker #4: Yeah. So on the fleet, we've identified just to clarify, that's on multi-life assets. So that's the large assets. So that's the fleet that we see vision for active work in the oil sands where we can take advantage of some of this additional work that's coming out.

Barry Palmer: Yeah. So on the fleet we have identified, and just to clarify, that is on multi-life assets. So that is the large assets. So that is the fleet that we see vision for active work in the oil sands where we can take advantage of some of this additional work that is coming out. As for the remainder of this, look, we are in no rush to say we are going to sell this stuff or whatever we are going to do. Some of these assets we have set aside are smaller assets or were underutilized. But with the activity that is going on in the oil sands, with some of this exciting opportunities that we are seeing through Nuna, we feel that we will have the ability to bring some of those units back in because of their smaller nature and actually put those things to work.

Speaker #4: As for the remainder of this, look, we're in no rush to say we're going to sell this stuff or whatever we're going to do.

Speaker #4: Some of these assets we've set aside are smaller assets, so we're underutilized. But with the activity that's going on in the oil sands, with some of these exciting opportunities that we're seeing through Nuna, we feel that we'll have the ability to bring some of those units back in because they're smaller in nature.

Speaker #4: And actually put those things to work. And if somebody come along and we didn't have a use for some of these units in the offer the right price, obviously, we'd look at taking advantage of that.

Barry Palmer: If somebody come along and we did not have a use for some of these units and they offer the right price, obviously, we would look at taking advantage of that. And there is opportunities, too, I have said this in the past, with moving some units to Australia. It is not front and center, but because of the way Iron Mine Contracting is structured and their rebuild philosophy, and it is something that we have already done. We have sent half a dozen units that way because it made good sense. As far as the capital spend, what is required this year, it is probably on the fleet that we want to focus on and get our availability up above that 70% range. We are probably in the CAD 50 million range, for 2026 to get us where we need to be.

Speaker #4: And I mean, there is opportunities too. I've said this in the past with moving some units to Australia. It's not front and center, but because of the way IMC is structured and they're rebuilt philosophy and it's something that we've already done.

Speaker #4: We've sent half a dozen units that way because it made good sense. As far as the capital spend—what's required this year—it's probably on the fleet that we want to focus on and get our availability up above that 70% range.

Speaker #4: We're probably in the 50 million dollar range. For 2026, to get us where we need to be.

Speaker #6: Okay. What has to happen with those assets? I was under the impression that they're all in pretty good working condition, so I'm a little bit surprised that you have to invest more in them.

Tim Monachello: Okay. What has to happen with those assets? I was under the impression that they were all in pretty good working condition, so a little bit surprised you have to invest more in them. So just maybe if you could provide some context.

Speaker #6: So, I'm just—maybe if you could provide some context.

Speaker #4: Yeah. I mean, it's just I mean, because they're multi-life assets, these things we run them for these things they got 20-plus year lives. And they come up when the schedule hits on component changeouts.

Barry Palmer: Yeah, because they are multi-life assets, these things, we run them for these things, they got 20-plus-year lives, and they come up when the schedule hits on component changeouts, and these are not small dollar items. Some of these things are million-dollar items. So it is just in the cycle of where we are at with them, and we just need to focus and make sure that we are doing the proper thing here and replacing components as they need and making sure these things are in tip-top shape so that when we win work, we go in there and we execute as planned, and we satisfy the client's needs and to meet our margin targets.

Speaker #4: And these aren't small-dollar items. I mean, some of these things are million-dollar items. So, it's just in the cycle of where we're at with them.

Speaker #4: And we just need to focus and make sure that we're doing the proper thing here and replacing components as they need and making sure these things are in tip-top shape so that when we win work, we go in there and we execute as planned and we satisfy the client's needs.

Speaker #4: And to meet our margin targets.

Speaker #6: And then more generally in the oil sands, are you seeing an inflection in demand? Always had higher crude prices.

Tim Monachello: And then more generally in the oil sands, are you seeing an inflection in demand alongside higher crude prices?

Speaker #4: Yeah, absolutely. I mean, there's a lot of excitement in the oil sands. I mean, there's we're getting more offers every day of, "Can you do this?

Barry Palmer: Yeah, absolutely. There is a lot of excitement in the oil sands. We are getting more offers every day of, "Can you do this? Can you do that? There is this scope." And so we are pricing stuff every day out there right now, and it is an exciting time in the oil sands. Look, I have been in the oil sands since the mid-1980s, and this is one of these times where over the last couple of years, it has been a bit of a lull and where there is insourcing and stuff, but it is full steam ahead, and there are capital projects going on on the sites, and there is volume to be moved. As we said in the deck, the haul distances are lengthening, which means you have to add more trucks to move the same amount of volume. So yeah, we are extremely excited about the oil sands right now.

Speaker #4: Can you do that?" There's this scope. And so we're pricing stuff every day out there right now. And it's an exciting time in the oil sands.

Speaker #4: I mean, look, I've been in the oil sands since the these times where over the last couple of years, it's been kind of a bit of a lull and where there's insourcing and stuff.

Speaker #4: But it's full steam ahead and there's capital projects going on on the sites and there's volume to be moved. And as we said in the deck, the haul distances are lengthening, which means you have to add more trucks to move the same amount of volume.

Speaker #4: So yeah, I mean, we're extremely excited about the oil sands right now.

Speaker #6: Okay, fantastic. And then last one—just in Australia. I understand that it's a pretty large and diverse market, but we did see a fairly meaningful decline in your stated bid pipeline.

Tim Monachello: Okay, fantastic. Then, last one, just in Australia. Understand that it is a pretty large and diverse market, but we did see a decline, a fairly meaningful decline in your stated bid pipeline quarter over quarter. So, maybe you can talk a little bit about what is going on there.

Speaker #6: Quarter over quarter. So maybe you can talk a little bit about what's going on there.

Speaker #4: Yeah. So I mean, there was one large project on there that we missed on. And the funny thing is, is we still have opportunity on that.

Barry Palmer: Yeah. There was one large project on there that we missed on, and the funny thing is we still have opportunity on that. So we were shortlisted. It was between us and the incumbent. I think obviously the owner thought that replacing the incumbent was far too expensive at this point in time, so they went with the incumbent. That said, they have come back to us already asking if there is opportunity or if we can see the possibility of putting a fleet or two onto that site. So we still see opportunity there. We are actively working on that site, always have been. We won a fairly good contract there a couple years ago, or a year ago. So yeah, we see great opportunities still there. Maybe it is a blessing in a way because that was a large amount of capital investment to win that work.

Speaker #4: So, we were shortlisted. It was between us and the incumbent. And I think, obviously, the owner thought that replacing the incumbent was far too expensive at this point in time.

Speaker #4: So they went with the incumbent. That said, they've come back to us already asking if there's opportunity or if we can see the possibility of putting a fleet or two onto that site.

Speaker #4: So, we still see opportunity. We're actively working on that site—always have been. We won a fairly good contract there a couple of years ago, or a year ago.

Speaker #4: So yeah, we see great opportunity still there. And maybe it's a blessing in a way because it's not that that was a large amount of capital investment to get to win that work.

Speaker #4: So this will be less capital and yet still opportunity to increase our revenue and margins on that site. We also missed one in IMC.

Barry Palmer: This will be less capital, yet still have opportunity to increase our revenue and margins on that site. We also missed one in IMC, on the west side. We have another one right in our pipeline right now that we are shortlisted for, and again, we think that we have a very good opportunity at winning. We will see where that goes.

Speaker #4: On the west side, but we have another one right in our pipeline right now that's we're shortlisted for. And again, we think that we have a very good opportunity at winning.

Speaker #4: So, we'll see where that goes.

Speaker #6: Okay. I appreciate it. I'll turn it back.

Tim Monachello: Okay, I appreciate all to the back.

Speaker #4: Thanks. Thanks, Tim.

Barry Palmer: Thanks, Tim.

Speaker #1: Thank you. Your next question is from Ramon Shinichi from National Bank of Canada. Your line is still open.

Operator: Thank you. Your next question is from Ramon Janichi from National Bank of Canada. Your line is now open.

Speaker #6: Good morning, Jason. Good morning. Barry and congrats on the very good quarter. I just had a quick question. I just had a quick question on the proforma FCF profile.

Ramon Janichi: Good morning, Jason. Good morning, Barry. And congrats on the very good quarter.

[Analyst] (National Bank of Canada): Good morning, Jason. Good morning, Barry. And congrats on the very good quarter.

Barry Palmer: Thanks, Ramon.

Ramon Janichi: I just had a quick question on the pro forma FCF profile. You have right-sized the fleet. You bought a much less capital-intensive asset in IMC. Could you maybe give us some color on what the conversion looks like going forward?

[Analyst] (National Bank of Canada): I just had a quick question on the pro forma FCF profile. You have right-sized the fleet. You bought a much less capital-intensive asset in IMC. Could you maybe give us some color on what the conversion looks like going forward?

Speaker #6: So you've right sized the fleet. You bought a much less capital-intensive asset in IMC. Could you maybe give us some color on what the conversion looks like going forward?

Speaker #4: Sorry, Roman. Can you repeat that?

Jason Veenstra: Sorry, Roman, can you repeat that?

Ramon Janichi: Oh, sorry. Was just looking for more color on free cash flow generation and conversion going forward, given that IMC is a lower capital intensity asset.

[Analyst] (National Bank of Canada): Oh, sorry. Was just looking for more color on free cash flow generation and conversion going forward, given that IMC is a lower capital intensity asset.

Speaker #6: Oh, sorry. I was just looking for more color on free cash flow generation and conversion going forward. Given that IMC is a lower capital intensity asset.

Speaker #4: Oh, yeah. I think given IMC is 15% of our business, the conversion target of 30% remains. That's still where we think when our business is at a run rate that we can operate at.

Jason Veenstra: Oh, yeah. I think given IMC is 15% of our business, the conversion target of 30% remains. That is still where we think when our business is at a run rate that we can operate at. We have been there before, and we expect to be there this year when working capital is neutral. We do not think IMC will have a meaningful impact on that ratio target, conversion target.

Speaker #4: We've been there before. And we expect to be there this year when working capital is neutral. And so we don't think IMC will have a meaningful impact on that ratio target.

Speaker #4: Conversion target.

Ramon Janichi: Sorry, just as a follow-up, do you see the 30% conversion holding for next year as well? I know it is a bit hard to predict working capital, so just curious there.

Speaker #6: And sorry, just as a follow-up, do you see the 30% conversion holding for next year as well? I know it's a bit hard to predict working capital.

[Analyst] (National Bank of Canada): Sorry, just as a follow-up, do you see the 30% conversion holding for next year as well? I know it is a bit hard to predict working capital, so just curious there.

Speaker #6: So just curious there.

Speaker #4: Yeah. There's no reason why we can't. With our margin initiatives, we should hopefully be able to actually increase that ratio next year. But I think it's a good placeholder for your models.

Jason Veenstra: Yeah. There is no reason why we cannot. With our margin initiatives, we should hopefully be able to actually increase that ratio next year. But I think it is a good placeholder for your models.

Speaker #6: Perfect. Thank you so much. Appreciate it.

Ramon Janichi: Perfect. Thank you so much. Appreciate it.

[Analyst] (National Bank of Canada): Perfect. Thank you so much. Appreciate it.

Speaker #4: Thanks.

Jason Veenstra: Thanks.

Speaker #1: Thank you once again. That is store one should you wish to ask a question. And your next question is from Sean Jack from Raymond James.

Operator: Thank you. Once again, that is star one should you wish to ask a question. Your next question is from Steven Hansen from Raymond James. Your line is now open.

Speaker #1: Your line is still open.

Speaker #5: Hey, good morning, guys. Just wanted to ask a quick question for Australia. Wondering, with this increasing unit rate work from IMC, should we be expecting that this type of contract might become more popular in the broader segment?

Steven Hansen: Hey, good morning, guys.

Barry Palmer: Hey, Sean.

Steven Hansen: Just wanted to ask a quick question for Australia. I am wondering, with this increase in unit rate work from IMC, should we be expecting that this type of contract might become more popular in the broader segment, or is this just going to be isolated in IMC?

Speaker #5: Or is this just going to be isolated in IMC?

Speaker #4: No, I would say I don't know if it's more popular. I mean, it's been very prevalent anyway in Western Australia for a lot of the work, the majority of the work that IMC does has been unit rate style work because a lot of their scopes are mine site civil.

Barry Palmer: No, I would say, I do not know if it is more popular. It has been very prevalent anyway in Western Australia for a lot of the work. The majority of the work that IMC does has been unit rate style work because a lot of their scopes are mine site civil. So it is more than just a load, haul, dump, place. It is more detailed type work. So that is pretty typical with that type of work anyway. You will see it also in some of the remediation on mine sites and stuff, but I would say it will stay pretty much the status quo as it has been.

Speaker #4: So it's more than just load haul dump place. It's more detailed type work. So that is pretty typical with that type of work anyway.

Speaker #4: I mean, you'll see it also in some of the remediation on mine sites and stuff. But I would say it'll kind of stay pretty much the status quo as it's been.

Speaker #5: Okay, perfect. Good to know. Next question from me would be: so, obviously, nation-building projects, etc., etc.—there seems to be a big heat-up of demand.

Steven Hansen: Okay, perfect. Good to know. Next question from me would just be, so obviously, nation building projects, et cetera, there seems to be a big heat up of demand and especially sentiment in Canada. You guys have touched upon a growing bid pipeline in Canada, but I just wanted to hear from you guys, any other sort of commentary on levels of excitement, level of demand that is kind of swelling in Canada or in the United States? Anything beyond stuff that is already captured in your bid pipeline?

Speaker #5: And especially sentiment in Canada. You guys have touched upon a growing bid pipeline in Canada. But I just wanted to hear from you guys any other sort of commentary on levels of excitement, level of demand that's kind of swelling in Canada or in the United States.

Speaker #5: Anything beyond stuff that's already captured in your bid pipeline?

Speaker #4: Oh, I don't know. I mean, yeah. I mean, we've captured most of what we see that excites us in the bid pipeline. What I would say, though, on that is I'm extremely excited about the opportunities they're in front of Nuna.

Barry Palmer: I do not know. We have captured most of what we see that excites us in the bid pipeline. What I would say, though, on that is I am extremely excited about the opportunities that are in front of Nuna. Nuna, just because of where they are positioned, how they are positioned, they have picked up some small wins over the last 3 to 6 months, and this puts us and them in very good light of follow on projects that will be the bigger projects. This is scattered across Nunavut, northern Quebec, Ontario, Northwest Territories. It is exciting times for them, and we just need these things to come to RFP, the bigger projects, and to be let out there so that we have the opportunity to win them and then get in there and start executing.

Speaker #4: Nuna has—I mean, just because of where they're positioned, how they're positioned, they've picked up some small wins over the last three to six months.

Speaker #4: And this puts us and them in very good light of follow-on projects that'll be the bigger projects. And I mean, this is scattered across Nunavut, Northern Quebec, Ontario, Northwest Territories.

Speaker #4: I mean, it's exciting times for them. And it's we just need these things to come to RFP, the bigger projects, and to be let out there so that we have the opportunity to win them.

Speaker #4: And then get in there and start executing.

Speaker #5: Perfect. Okay. Yeah, that's all from me, guys. Congrats on the quarter. Thanks.

Steven Hansen: Perfect. Okay. Yeah, that is all from me, guys. Congrats on the quarter. Thanks.

Speaker #4: Thanks again, Sean.

Barry Palmer: Thanks again, Steven.

Speaker #1: Thank you. Your next question is from Chris Thompson from CIBC. Your line is still open.

Operator: Thank you. Your next question is from Chris Thompson from CIBC. Your line is now open.

Speaker #6: Hey, guys. Good morning. Just a couple questions here for you. On the salaries and wages, quarter over quarter increase, could you provide a bit more color on what's behind that?

Chris Thompson: Hey, guys. Good morning. Just a couple questions here for you. On the salaries and wages quarter-over-quarter increase, could you provide a bit more color on what is behind that?

Speaker #4: Yeah. Primarily, that would be IMC, then I'll have a G&A function. I'm assuming you're looking at G&A and cost of sales as well, but that's primarily IMC-related.

Jason Veenstra: Yeah, primarily that would be IMC. They have a G&A function. I am assuming you are looking at G&A and cost of sales as well, but that is primarily IMC related.

Speaker #6: Got it. Okay. And then I take it the third-party rentals piece meaningfully higher in Q2. And both those and salaries and wages in your COGS is that a run rate that we should expect going forward?

Chris Thompson: Got it. Okay. I take it the third party rentals piece meaningfully higher in Q2, and both those and salaries and wages in your COGS, is that a run rate that we should expect going forward?

Speaker #4: No, I mean on the salaries, for one thing. But on the third-party rentals— the third-party rentals— typically, what that is, Chris, is some of the jobs we take on come to us quicker than anticipated.

Jason Veenstra: No. On the salaries are one thing, but the third party rentals, that is typically what that is, Chris, is some of the jobs we take on, they come to us quicker than anticipated, so we end up having third party rentals to start out with as we bring our own fleet in, and then those costs somewhat disappear. So that is where we get the margin improvement. You will see on some jobs where we start out and the margin is not exactly as stated, and as the project progresses along, those margins come back, and that is when that third party rentals disappear and we get our own fleet actively engaged.

Speaker #4: So we end up having third-party rentals to start out with as we bring our own fleet in, and then those costs somewhat disappear. So that's where we get the margin improvement.

Speaker #4: You'll see on some jobs where we start out and the margin isn't exactly as stated, and as the project progresses along, those margins come back.

Speaker #4: And that's when that third-party rentals disappear. And we get our own fleet actively engaged.

Speaker #6: Okay. So was that primarily in Australia-driven increase then?

Chris Thompson: Okay. So was that primarily an Australia driven increase then?

Speaker #4: Yes.

Jason Veenstra: Yes.

Speaker #6: Got it. Okay. And then the capital spend in Australia, on the growth side, does that include the IMC piece?

Chris Thompson: Got it. Okay, the capital spend in Australia on the growth side, does that include the IMC piece?

Speaker #4: Yes. Yeah, definitely. So, IMC, acquired on April 7th, came with the balance sheet as disclosed. And then growth at that lithium mine came through our growth capital spending.

Jason Veenstra: Yes. That definitely. So IMC acquired on 7 April, came with the balance sheet as disclosed, and growth at that lithium mine came through our growth capital spending.

Speaker #6: Okay, got it. And then, just in terms of sustaining capital, back late last year you guys guided to $60–$70 million of sustaining in 2026.

Chris Thompson: Okay. Got it. Just in terms of sustaining capital, back late last year, you guys guided to CAD 60 million to CAD 70 million of sustaining in 2026, and H1 is already at CAD 84 million. Granted, you have had some growth activity in the business, but how should we expect that sustaining number to trend through the balance of the year?

Speaker #6: And H1's already at 84 million, granted you've had some growth activity in the business. But how should we expect that sustaining number to trend through the balance of the year?

Speaker #4: Yeah. We're still just a little north of 200 million. As Barry alluded to on that oil sand slide, given the inflection of demand and our strategy to really run efficiently in the oil sands, with mechanical availability, well north of 70% MA, that's really why we're seeing going from, say, a little bit under 200 to above 200 for the year.

Jason Veenstra: Well, we are still just a little north of CAD 200 million. As Barry alluded to on that oil sands slide, given the inflection of demand and our strategy to really run efficiently in the oil sands with mechanical availability well north of 70% MA. That is really why we are seeing going from, say, a little bit under 200 to above 200 for the year. Australia is exactly on track as we agreed on back in December with those operating teams. So the change is really a reflection and commitment to the oil sands and getting that operation running more efficiently.

Speaker #4: Australia is exactly on track as we agreed on back in December with those operating teams. So the change is really a reflection in commitment to the oil sands and getting that operation running more efficiently.

Speaker #6: Okay. Thank you. I'll hand it back.

Chris Thompson: Okay. Thank you. I will hand it back.

Jason Veenstra: Thanks.

Speaker #4: Thanks, Chris.

Jason Veenstra: Thanks, Chris.

Speaker #1: Thank you. There are no further questions at this time. I will now pass a call back over to Barry Palmer, president and CEO, for closing comments.

Operator: Thank you. There are no further questions at this time. I will now pass the call back over to Barry Palmer, President and CEO, for closing comments.

Speaker #4: Thanks, Jenny. And thanks again, everyone, for joining us today. As always, we remain focused on discipline execution. And look forward to providing our next update with our third quarter results.

Barry Palmer: Thanks, Jenny. Thanks again, everyone, for joining us today. As always, we remain focused on disciplined execution and look forward to providing our next update with our Q3 results.

Speaker #1: Thank you. This now concludes the NORTH AMERICAN CONSTRUCTION GROUP CONFERENCE CALL regarding the second quarter ended June 30, 2026. You may now disconnect your lines.

Operator: Thank you. This now concludes the North American Construction Group conference call regarding the Q2 ended 30 June 2026. You may now disconnect your lines.