Canada Outlook
Q: How will Canada hit utilization target?
A: Management expects Canada’s utilization to remain similar to last year and plans to win additional non–oil sands work or transfer/sell underutilized assets to meet the 75% target.

Oil Sands Revenue
Q: Why a 30% oil sands drop?
A: They noted a 30% decline in oil sands, attributing it to deferred work and in-sourced shifts in long-cycle projects, projecting stability at current levels.

Q1 Weather Impact
Q: How is Q1 affected by weather?
A: Management explained that Q1, constituting 20% of annual business, faces lower activity due to cold in Alberta and heavy rains in Australia.

Fargo Normalization
Q: What’s the Fargo revenue forecast?
A: Fargo’s revenue is expected to be around $140 million in 2025, about 10% lower than its peak in 2024 as part of a normalization trend.

US Infrastructure
Q: What U.S. projects follow Fargo learnings?
A: They plan to leverage Fargo insights by pursuing modest, capital-light infrastructure projects—mainly roadworks and civil construction—with trusted partners.

Backlog Trends
Q: How is backlog trending?
A: Management anticipates a strong and growing backlog through contract extensions, new work additions, and diversified project wins, ensuring stable revenue.

NCIB Activity
Q: Any insights on NCIB timing?
A: They indicated limited current NCIB activity but expect increased buybacks as cash flow improves and share prices stabilize.

Tariffs Impact
Q: Will tariffs drive equipment costs up?
A: Tariffs are not materially affecting operations, with observed differences of 10% vs 25% and minimal impact on overall costs.

Capital Intensity
Q: How intense is capital expenditure?
A: Infrastructure projects are described as capital-light, offering quick, positive cash flow, notably in the U.S. and Australia.

Asset Mobilization
Q: Transfer or lease underused assets?
A: Management prefers transferring underutilized assets to more productive areas rather than leasing or buying new equipment.

Gross Margin Adjustments
Q: Why adjust gross margin?
A: They adjusted margins by resolving a contractual claim and recording shipping/logistics costs, aiming to reflect underlying operational performance.

GICS/Name Change
Q: Update on GICS code and name?
A: A filing has been made to review the GICS classification reflecting a diversified business, while discussions on a name change continue.

JV Revenue Offset
Q: Can JV work offset Fargo decline?
A: There’s modest potential in joint ventures to balance the slight drop in Fargo revenue, with improvements expected as work ramps up in Q2.

Australia Competition
Q: How competitive is Australia’s bid landscape?
A: Despite strong demand and healthy competition, the market remains disciplined, with a favorable outlook for renewals and expansion opportunities.

Australia Weather Details
Q: How did cyclone affect Australia?
A: Cyclone Alfred and heavy February rains impacted operations primarily on the corporate side, typical of Q1 weather challenges that should stabilize later.