North American Construction Group Ltd. (NOA): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how a major player in the heavy construction and mining space actually makes its money, right? Well, digging into the Business Model Canvas for North American Construction Group Ltd. shows a strategy built on massive physical assets-think a fleet valued at $1,315 million as of Q1 2025-and securing huge, sticky work, evidenced by their $3.6 billion contractual backlog late in 2024. This isn't a quick-flip operation; it's about deep, embedded relationships with oil sands giants and leveraging strategic joint ventures across Canada, the U.S., and Australia to service complex resource projects. Honestly, understanding the interplay between their high fixed costs, like significant interest expense on C$896.9 million of net debt (Q2 2025), and their diversified revenue streams is key to seeing the whole picture. Dive below to see exactly how North American Construction Group Ltd. structures its operations to manage that scale and secure those long-term fees.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep North American Construction Group Ltd. (NOA) running, especially in the heavy construction and mining sectors as of late 2025. These partnerships are critical for securing large, long-term work, particularly in the Canadian oil sands.

The company's structure heavily relies on specific joint ventures to access key markets and meet Indigenous participation requirements.

Joint Venture with Mikisew Group of Companies (MNALP, 49% interest)

The relationship with Mikisew Group of Companies, through the Mikisew North American Limited Partnership (MNALP), is central to North American Construction Group Ltd.'s (NOA) Canadian oil sands operations. North American Construction Group Ltd. holds a 49% ownership and voting interest in MNALP, with the Mikisew Group holding the majority 51% interest.

A major anchor for this partnership is the extended and amended regional services contract with a major oil sands producer, effective January 1, 2025, through January 31, 2029. This agreement includes a committed spend of $500 million spread over its term, mainly for heavy equipment rentals and bulk unit rate earthwork scopes. These committed volumes are estimated to cover approximately one-third of the total expected work across various mine sites.

Further bolstering this partnership was a heavy civil construction contract awarded in November 2024, valued at approximately $125 million, set to run from January 2025 to October 2026, focusing on building diversion ditches.

Here's a quick look at the financial contribution from North American Construction Group Ltd.'s equity-consolidated joint ventures, which includes MNALP:

The revenue contribution from joint ventures and affiliates saw a sequential decline in Q3 2025, largely attributed to decreased volumes from the Nuna Group of Companies.

Nuna Group of Companies joint ventures for remote projects

North American Construction Group Ltd. holds a 49% ownership interest in Nuna Logistics, established through a partnership where the Kitikmeot Corporation, the business arm of the Kitikmeot Inuit Association, holds the remaining 51%. This partnership provides access to Nuna's expertise as the largest Inuit-owned heavy civil construction contractor in Canada, active in Nunavut and the Northwest Territories.

The Nuna Group of Companies can plan and execute concurrent projects in excess of $250 million per project, with a workforce that can extend to over 900 people in remote locations.

The impact of the Nuna joint venture volumes on North American Construction Group Ltd.'s results in 2025 included:

• Q1 2025: Lower volumes offset an increase in the Fargo project revenue.
• Q2 2025: Lower revenue contributions were the primary reason for the 6% decrease in joint venture revenue.
• Q3 2025: Decreased volumes were largely related to the Nuna Group of Companies, contributing to an 8% decrease in joint venture revenue.

Strategic alliances with major oil sands producers for long-term work

The relationship with the major oil sands producer via the MNALP contract provides stability, with the contract extending to January 31, 2029. North American Construction Group Ltd. has maintained over 40-year relationships with key clients in this sector.

The company's overall proforma contractual backlog reached a record $3.6 billion by the end of 2024, providing stability for 2025 execution.

Key operational aspects related to oil sands alliances in 2025:

• Heavy Equipment - Canada revenue decreased 5% in Q3 2025 due to reduced scopes at the Syncrude mines.
• Q3 2025 saw an improvement in the Canadian gross margin by 4.8% due to steady operations, despite the revenue decline in the oil sands.
• The company is still in the process of right-sizing its Canadian equipment fleet, awaiting bid results to determine future allocations.

Equipment suppliers for ultra-class truck tires and parts

Partnerships with key suppliers are essential for maintaining the large equipment fleet, which is a significant asset for North American Construction Group Ltd.

One specific supplier relationship noted in early 2025 involved:

• First operational wins achieved under the new Finning parts and component supply and services agreement during Q1 2025.

The committed spend of $500 million under the MNALP contract is primarily related to heavy equipment rentals, which necessitates strong supplier relationships for maintenance and parts.

Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Key Activities

You're looking at the core engine of North American Construction Group Ltd. (NOA) operations as of late 2025. These are the things the company spends its time and capital on daily to generate revenue and grow.

Heavy civil construction and contract mining services

The bread and butter remains heavy civil and contract mining, with the Australian segment showing significant momentum. For the third quarter ended September 30, 2025, combined revenue hit $390.8 million. The Heavy Equipment - Australia segment was the clear leader, posting revenue of $188.5 million, a year-over-year jump of 26%. In contrast, the Heavy Equipment - Canada segment saw revenue decrease by 5% to $125.7 million, largely due to lower activity in the oil sands. Operationally, safety remains a key activity, with the trailing 12-month total recordable rate at 0.45, which beats their industry target frequency of 0.50.

Here's a quick breakdown of the Q3 2025 revenue contribution by segment:

The civil-infrastructure Fargo project, a key diversification effort, is also moving along, progressing towards 80% complete as of the third quarter.

Fleet optimization and strategic asset reallocation to Australia

A major ongoing activity is managing and growing the equipment fleet, specifically shifting capacity toward higher-demand areas like Australia. In Q1 2025, the company expanded its heavy equipment fleet in Australia by over 10%. By Q3 2025, the fleet size in Australia had expanded by 20% compared to the prior year, supporting that segment's revenue growth. This reallocation is critical because the global equipment utilization rate in Q2 2025 was 74%, slightly below the target range of 75% to 80%. The Canadian fleet, meanwhile, is still in the process of right-sizing, awaiting bid results to finalize future allocations. The goal is clear: maximize asset efficiency across the global footprint.

Reclamation and stream diversion project execution

The Canadian segment's activities include specific environmental and water management projects. For instance, increased reclamation activities and the ramp-up of the stream diversion project were noted as drivers for revenue growth in the Heavy Equipment - Canada segment during Q2 2025. The Fargo flood diversion project, mentioned earlier, is a prime example of this capability, entering its final year of major construction as of Q2 2025.

Securing and executing the $3.6 billion contractual backlog

Securing future work is a constant, high-stakes activity. The company reported achieving a record backlog following its Q2 close, bolstered by winning the biggest contract in company history shortly after that quarter ended. Earlier in 2025, the company expected its backlog to hit a record $4 billion mid-year. This execution momentum continued into Q3 2025 with the signing of a new $2.0 billion contract in Queensland, Australia. The overall bid pipeline is substantial, containing well over $12 billion of specific scopes of work. The company is managing this work while carrying a net debt of $904.0 million as of the end of Q3 2025.

Advancing infrastructure initiatives in the U.S. and Canada

North American Construction Group Ltd. is actively working to make infrastructure a larger part of its business mix. The strategic plan involves increasing infrastructure's contribution to around 25% of the overall business by 2028. This is supported by a long-term outlook targeting organic revenue growth of 5% to 10% annually beyond 2025, which is underpinned by these new infrastructure projects. The company is positioning itself to support major general contractors across North America who are currently at capacity, potentially securing subcontracting work in 2026.

Key infrastructure focus areas include:

• Early stage development at a major copper mine in New South Wales.
• Strong production momentum on the civil-infrastructure Fargo project.
• Pursuing top 10 projects with two strong project teams expected to be secured before year-end 2025.

Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Key Resources

You're looking at the foundation of North American Construction Group Ltd. (NOA)'s ability to execute major projects. These aren't just assets; they are the tangible and intangible engines driving their revenue visibility, especially given the current market dynamics.

The sheer scale of the owned equipment is a primary resource. As of the first quarter of 2025, the reported value of the heavy equipment fleet, sitting on the balance sheet as Property, Plant, and Equipment (PP&E), stood at $1,315 million. This massive fleet, which included approximately 1,100 heavy equipment assets at the end of 2024, provides operational flexibility across their geographies.

Revenue visibility is anchored by the contractual backlog. While you might have seen figures around $3.6 billion from late 2024, the company secured a major contract extension in August 2025, pushing the total contractual backlog to a record $4.0 billion as of March 31, 2025, on a proforma basis. That's serious forward-looking revenue stability.

Operational efficiency is measured by how hard that fleet is working. For the second quarter of 2025, North American Construction Group Ltd. reported a global equipment utilization rate of 74%. That number, consistent with the prior year, shows they are keeping the machinery earning, though utilization in the Canadian oil sands region was noted at 68% in Q1 2025.

Here's a quick look at the most concrete resource metrics as of mid-2025:

Beyond the balance sheet numbers, the intangible assets are critical, especially for securing and executing these large contracts. The company relies heavily on its human capital and deep operational experience.

• Experienced personnel and operational know-how in oil sands and mining sectors.
• The MacKellar Group, the key Australian operating segment, which secured the largest contract in company history.
• Australian operations generated revenue of $188.5 million in Q3 2025, supported by a 20% expansion in fleet size in that region.
• Australian contracts show a strong retention track record, with a 100% renewal rate and average 5-year contract terms mentioned in the context of the record backlog.

The Fargo-Moorhead Flood Diversion Project, a civil-infrastructure joint venture, is also a key operational asset, progressing to approximately 80% completion by the end of Q3 2025. Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose North American Construction Group Ltd. (NOA) over the competition. It boils down to scale, stability, and reach across major resource markets.

Long-term, stable service provision for complex resource projects is a major draw. The company backs this up with a substantial forward-looking commitment. For instance, a regional services contract extension announced in late 2024, effective January 1, 2025, included committed spending of $500 million over its term in the Canadian oil sands sector. Furthermore, the overall proforma contractual backlog stood at a record $3.6 billion at the end of 2024, giving you a clear line of sight into future work. Management also maintains long-term growth targets, anticipating organic revenue growth of 5% to 10% annually beyond 2025.

The geographic footprint is a key differentiator, providing essential diversification. Australian operations are now generating 65% of earnings, a significant shift from prior periods. This is supported by strong segment performance; in Q1 2025, Heavy Equipment - Australia generated $158 million in revenue, while Canadian operations contributed $178 million. By Q3 2025, the Australia segment saw a 26% year-over-year revenue increase, showing successful market penetration outside of Canada.

North American Construction Group Ltd. delivers full-service heavy equipment and mining solutions at scale. You see this scale in the fleet size. As of December 31, 2024, the Heavy Equipment - Canada segment operated 566 units, while the Heavy Equipment - Australia segment operated 334 units directly. The company's entire heavy equipment fleet is valued at approximately $3.8 billion in replacement value. This scale allows them to handle large infrastructure and resource projects, like the $125 million heavy civil construction contract awarded in late 2024 for diversion ditches in the oil sands.

Client commitment is strong, though we don't have the exact 100% renewal figure you mentioned for Australia, the data shows significant contract longevity and new awards. The MacKellar Group, for example, secured a five-year contract with a metallurgical coal producer in August 2024. This focus on long-term relationships helps secure revenue streams, as seen by the $500 million committed spending in the January 1, 2025, oil sands contract extension.

Safety remains a core value proposition, with performance metrics consistently beating internal targets. The trailing 12-month total recordable rate for Q1 2025 improved to 0.34, which was better than the industry-leading target frequency of 0.50. More recently, for Q3 2025, the recordable rate was 0.45, again bettering the target frequency of 0.50. This commitment to safety is a non-negotiable part of their service delivery.

Here's a quick look at the operational scale and geographic split from Q1 2025:

Also, you should note the financial commitment to the future, like the $125 million Senior Unsecured Notes closed in October 2025, which helps fund general corporate purposes and debt repayment, supporting the overall stability you're looking for.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Customer Relationships

You're looking at how North American Construction Group Ltd. (NOA) manages its most valuable asset: the long-term client. This isn't about one-off jobs; it's about deep integration, especially in the Canadian oil sands.

Dedicated account management for long-term, high-value clients.

North American Construction Group Ltd. (NOA) leans heavily on established tenure. The company notes maintaining over 40-year relationships with key clients in the oil sands sector, which speaks volumes about the stability of their account structure. While specific dedicated account manager headcount isn't public, the financial results suggest high-value client focus. For instance, the Heavy Equipment - Australia segment saw revenue jump 26% year-over-year in Q3 2025, reaching $188.5 million, driven by fleet expansion and major contracts, indicating successful relationship management in that growing geography.

Embedded, non-transactional relationships with major oil sands producers.

The relationship with major oil sands producers is clearly embedded, moving beyond simple transactional work. This is evidenced by the structure of their Canadian operations, even as that segment faced headwinds. In Q3 2025, Heavy Equipment - Canada revenue was $125.7 million, a 5% decrease, with the gross margin in the oil sands region specifically at 9.2%, though this was an improvement from the prior quarter. The commitment to safety, a cornerstone of these embedded relationships, is quantified by their recordable rate of 0.45, which beats their industry-leading target frequency of 0.50.

Contract-based relationships with a focus on renewals and extensions.

The focus on locking in future work through contract extensions is a clear strategy. A prime example is the extended and amended regional services contract announced in late 2024 with a major oil sands producer, effective January 1, 2025, and extending the expiry date to January 31, 2029, up from the previous 2027 date. This agreement includes a committed spend of $500 million over its term. These committed volumes are significant, estimated to represent approximately one-third of the total work expected across those specific mine sites. Furthermore, revenue from joint ventures and affiliates, which includes the Nuna Group of Companies, was $73.5 million in Q3 2025, showing the ongoing nature of these shared contracts, even with an 8% decrease from the prior year's $80.3 million.

Partnering to deliver safe, low-cost services.

Delivering safe, low-cost services is explicitly stated as a goal in securing these long-term deals. The company's overall combined gross margin improved 5.7% in Q3 2025 to 14.6%, reflecting operational consistency and cost control. This focus on efficiency is crucial for maintaining partnerships where cost is a key metric. The Fargo-Moorhead civil-infrastructure project, for instance, remained strong, comparable to the prior year, as it progressed towards 80% complete, suggesting successful execution within the partnership framework.

Here's a quick look at the scale of some key contractual relationships and operational metrics as of late 2025:

The company is definitely focused on securing the future, with management noting in Q1 2025 that they believe they can build the infrastructure business to about 25% of their overall business within the next three years. Still, the uncertainty around Canadian critical mineral projects, with expectations pushed to 2027, shows where near-term relationship development might be slower than hoped.

Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Channels

You're looking at how North American Construction Group Ltd. (NOA) gets its work done and connects with its revenue sources as of late 2025. The channels here are heavily weighted toward direct client relationships and established geographic footprints, supplemented by strategic partnerships for specific access.

Direct sales team managing large, multi-year contracts.

The backbone of North American Construction Group Ltd.'s channel strategy involves securing substantial, long-term commitments directly with major resource producers. This approach provides revenue visibility, which is crucial for capital planning. For instance, the MacKellar Group, a wholly owned subsidiary, secured an amended and extended five-year contract in Queensland, Australia, in August 2025, which provides a total backlog of approximately $2.0 billion and expires on April 30, 2030. This single contract is the largest signed in the Company's history. Furthermore, a Canadian oil sands regional services contract, effective January 1, 2025, includes committed spending of $500 million over its term, covering earthworks and equipment rentals. As of March 31, 2025, the total contractual backlog stood at a record $4.0 billion on a proforma basis, with the Australian operations alone accounting for $3.0 billion of that backlog.

The direct channel performance is clear when you look at the segment revenue for the third quarter ended September 30, 2025:

The Australian segment, driven by direct contracts and fleet expansion, is clearly the primary revenue driver, bringing in $188.5 million in Q3 2025.

Joint ventures (JVs) for specialized and remote project access.

Joint ventures are used to access specific project types or maintain relationships in key areas where partnership is preferred or required. Revenue from joint ventures and affiliates was $73.5 million in the third quarter of 2025, though this was down 8% from the prior year, largely due to decreased volumes from the Nuna Group of Companies. Still, the civil-infrastructure Fargo project, a key JV, maintained strong production momentum and progressed towards 80% complete as of the end of Q3 2025. These partnerships help North American Construction Group Ltd. manage risk and secure work like the Fargo project, which is a significant civil undertaking.

The use of JVs is a calculated part of the overall revenue mix:

• JV revenue contributed 18% of 2024 combined revenue (based on prior year data).
• The Nuna Group of Companies is an operator specializing in Inuit-owned contracting in northern Canada.
• The company has joint ventures dedicated to the Fargo-Moorhead flood diversion project.
• The overall combined gross margin for the company in Q3 2025 was 15.7%, significantly improved from 8.9% in Q2 2025.

Direct operational presence in Canada, the U.S., and Australia.

North American Construction Group Ltd. maintains a direct physical presence across three key countries, which allows them to deploy their fleet of over 1,100 heavy equipment assets where demand is highest. The operational focus in Q3 2025 showed a clear geographic skew:

• Australia operations generated $188.5 million in revenue, up 26% year-over-year, supported by a 20% expansion in fleet size.
• Canada operations generated $125.7 million in revenue, down 5% year-over-year, impacted by reduced scopes at Syncrude mines.
• The U.S. presence is primarily captured within the 'Other' segment, which includes mine management contract work, and the company is actively exploring new opportunities there.

The company's safety systems are a key operational channel differentiator, maintaining a recordable rate of 0.45 in Q3 2025, beating their target frequency of 0.50, which is important for securing work in all operating countries. Finance: review Q4 2025 capital allocation plan for U.S. opportunities by December 15th.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Customer Segments

You're looking at the core client base for North American Construction Group Ltd. (NOA) as of late 2025. This company doesn't chase small jobs; their model is built on securing massive, long-term commitments with major players in the resource and infrastructure sectors across Canada, Australia, and the U.S.

The Q3 2025 combined revenue hit $390.8 million, which gives you a real-time look at where the work is coming from. Honestly, the geographic split is telling, with Australia becoming a massive revenue driver, though the Canadian oil sands remain a foundational relationship.

Here's how the customer base breaks down based on the operational segments and recent contract wins:

• Major oil, natural gas, and resource companies provide steady, though sometimes fluctuating, work, especially in the Canadian oil sands region.
• Mining sector clients, particularly coal producers in Australia, are driving significant growth and backlog visibility.
• Government and private entities fund large, multi-year civil infrastructure plays, like the major flood diversion project in the US.
• Large-scale industrial construction clients are served through specialized heavy civil work and equipment services.

The company's total contractual backlog as of March 31, 2025, on a proforma basis, was a record $4.0 billion, which shows you the depth of commitment from these segments well into the next decade.

The reliance on these large clients is clear when you look at the revenue contributions from the Q3 2025 period:

Let's drill down into the specific client relationships that underpin these numbers. You can see the focus is on securing multi-year, high-value arrangements.

Major oil, natural gas, and resource companies (e.g., oil sands producers)

This segment relies heavily on the Mikisew North American Limited Partnership (MNALP) joint venture. Despite a Q3 2025 revenue dip of 5% to $125.7 million for the Canadian segment due to reduced oil sands activity, the long-term commitment is solid. They secured an extended and amended regional services contract with a major producer, effective January 1, 2025, which includes committed spend of $500 million over its term. Also, a separate heavy civil contract, awarded in late 2024 for diversion ditches, is expected to generate approximately $125 million in revenue, running through October 2026.

Mining sector clients (e.g., metallurgical coal, copper mines)

This is where the growth is, defintely. The Heavy Equipment - Australia segment, serving coal producers, saw revenue jump 26% year-over-year in Q3 2025 to $188.5 million. The largest contract in the company's history was announced in August 2025 with a Queensland coal producer, an amended five-year contract providing a total backlog of approximately $2.0 billion. Furthermore, a metallurgical coal producer contract secured in late 2024 was valued at $375 million. A copper producer in New South Wales also awarded a $100 million contract in Q4 2024.

Government and private entities for civil infrastructure projects

The Fargo-Moorhead flood diversion project is the concrete example here. As of September 30, 2025, this civil-infrastructure project, executed through a joint venture, remained strong and was progressing towards 80% complete. This project, along with others, contributes to the joint ventures and affiliates revenue stream, which was $73.5 million in Q3 2025.

Large-scale industrial construction clients

This segment overlaps with the others, but the focus is on the scale of the civil and earthwork scopes. The oil sands contract extension includes bulk unit rate earthwork scopes. The Australian operations, providing fully maintained heavy equipment rentals at metallurgical and thermal coal mines, are key here, with the Australian backlog alone providing visibility to 2029 at current levels.

Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Cost Structure

You're looking at the major drains on North American Construction Group Ltd.'s (NOA) cash flow, which is critical for understanding their operational leverage. The cost structure is heavily weighted toward asset ownership and financing that massive fleet.

High fixed costs from depreciation are a major component. Based on Q1 2025 combined revenue of $391.5 million, the fixed cost associated with depreciation is estimated at 16%, which translates to approximately $62.64 million for that quarter alone. This high depreciation reflects the significant investment in their heavy equipment fleet, which is central to their operations across three continents.

Financing these assets results in significant interest expense on net debt. As of the end of Q2 2025, North American Construction Group Ltd. reported net debt of C$896.9 million. The cash interest expense for that same quarter was $13.4 million, which rose slightly to $14.5 million in Q3 2025, showing the ongoing cost of leverage. That's a substantial, non-discretionary expense.

Maintaining that fleet is another huge cost center. Sustaining capital additions for fleet maintenance were reported at $47.0 million in Q3 2025. This is distinct from growth capital, representing the necessary spend just to keep the existing machinery running effectively.

Labor and personnel costs across three continents are variable but significant. In Q2 2025, the company noted that a temporary over-reliance on subcontractor labour in Australia increased costs and impacted margins, leading to a focus on hiring and training internal labour moving forward. The need to manage personnel across Canada, the United States, and Australia adds complexity and cost to the structure.

Finally, fuel and maintenance costs for ultra-class truck fleets are definitely a big expense. In Q3 2025, the company saw lower third-party maintenance costs in Australia, which helped improve gross profit margin by 4.5% there, suggesting these variable costs are closely managed. The company also noted in Q2 2025 that they expected increased near-term costs related to higher maintenance requirements on their largest truck fleets.

Here's a quick look at how key expense-related metrics trended across the first three quarters of 2025 (all figures in millions of Canadian dollars unless noted):

The operational costs tied to keeping the machinery moving include:

• Temporary over-reliance on subcontractors in Australia impacting Q2 2025 margins.
• Increased productive maintenance headcount in Australia during Q3 2025.
• Higher maintenance requirements projected for large truck fleets impacting H2 2025 outlook.
• Global equipment utilization was 74% in Q2 2025.

The interest cost is directly tied to the debt load, which has been increasing slightly:

• Net debt increased by $29.5 million in Q2 2025.
• Net debt increased by $7.1 million in Q3 2025.
• The cash-related interest rate on debt in Q1 2025 was 6.2%.

Finance: draft 13-week cash view by Friday.

North American Construction Group Ltd. (NOA) - Canvas Business Model: Revenue Streams

You're looking at how North American Construction Group Ltd. (NOA) brings in its money as of late 2025. The streams are heavily weighted toward heavy equipment services across two main geographies, supplemented by joint venture income.

The overall expectation for the full year 2025 is quite clear; North American Construction Group Ltd. maintained its projection for combined revenue to land between $\text{C}\$1.4 \text{ billion}$ and $\text{C}\$1.6 \text{ billion}$. To give you a sense of the run rate, the third quarter ended September 30, 2025, saw combined revenue hit $\text{\$390.8 million}$, which was a 6% increase year-over-year for that period.

The core of the revenue comes from heavy equipment services and contract mining fees, split between Canada and Australia. The performance in Australia has been a significant driver, showing strong growth from fleet expansion and contract wins. Here's how the segments looked in Q3 2025:

The Canadian revenue decrease in Q3 2025 was mainly due to lower scopes at the Syncrude mines and reduced activity in the oil sands for overburden and reclamation work. Still, the company's focus on operational execution and fleet utilization is key to these service fees, which often come from committed spend contracts for equipment deployment.

Revenue from joint ventures and affiliates provides another important, though sometimes more variable, stream. This revenue is tied to specific projects and partnerships, such as the Fargo civil-infrastructure project and the Nuna Group of Companies. For Q3 2025, this category brought in $\text{\$73.5 million}$, an 8% decrease from the prior year, largely due to lower volumes from the Nuna Group.

You can see the primary revenue components that make up the combined revenue figure:

• Heavy equipment services and contract mining fees (Canada/Australia).
• Revenue generated by joint ventures and affiliates, including the Fargo project.
• The Heavy Equipment segment revenue is the closest proxy for equipment rental revenue derived from committed spend contracts.

To give you a look back at the first half of the year, Q2 2025 combined revenue was $\text{\$370.6 million}$, and Q1 2025 combined revenue was $\text{\$392 million}$. Finance: draft 13-week cash view by Friday.