North American Construction Group Ltd.’s NOA Australian operations subsidiary, MacKellar Group, has been selected by a major copper producer in the Australian state of New South Wales for a new contract.

Operational at a long-life copper mine, MacKellar’s early works and development contract involves a variety of production-related activities related to mining. The contract will mainly focus on the establishment of site infrastructure in a new mining area, initial overburden removal and the closure of a previously used reclamation facility. Moreover, the majority of the heavy and light equipment fleet required for the various work scopes will be procured from Canada.

The work related to the project is expected to be initiated in the first quarter of 2025 and close by the second quarter of 2026. North American Construction believes that this new customer in Australia will support it in moving forward with its strategic objective of customer, commodity and geographic diversification.

Joint Ventures & Acquisitions – NOA’s Growth Drivers

North American Construction focuses on corporate strategies, which ensure profitable growth and diversification. The primary strategies include indulging in joint ventures (JVs), especially First Nation alliances and accretive acquisitions. The company is committed to the early involvement as well as the collaborative participation of First Nations communities, thus sparking successful partnerships, which help to deliver high-value construction and mining services.

Regarding acquisitions, in October 2023, the company acquired MacKellar Group for a total expected consideration of $395 million. NOA’s third-quarter 2024 EBITDA was up 75% year over year driven by this acquisition.

Considering the JVs, North American Construction benefits immensely from its two largest alliances, Nuna Logistics and Mikisew Group of Companies. In November 2018, the company acquired a 49% ownership interest in Nuna Logistics, which offered it access to broader equipment fleet, experienced field personnel and expanded services such as growing its external maintenance offering. Also, during the same time, it formed a partnership with the Mikisew Group of Companies to deliver construction and mining services to oilsands customers.

Image Source: Zacks Investment Research

Shares of this heavy equipment and mining contractor have gained 5.8% in the past month against the Zacks Building Products - Heavy Construction industry’s 3.9% decline. It is expected to continue benefiting from the growing demand for equipment and services in Australia.

NOA’s Zacks Rank & Key Picks

North American Construction currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have gained 59.2% in the past six months. The Zacks Consensus Estimate for STRL’s 2025 sales and earnings per share (EPS) implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.

Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. FIX delivered a trailing four-quarter earnings surprise of 14.7%, on average. The stock has gained 45.3% in the past six months.

The consensus estimate for FIX’s 2025 sales and EPS indicates an increase of 7.9% and 20.8%, respectively, from a year ago.

MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 24.4% in the past six months.

The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.6% and 45.5%, respectively, from a year ago.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report

Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report

MasTec, Inc. (MTZ) : Free Stock Analysis Report

North American Construction Group Ltd. (NOA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research