What were the primary drivers behind any revenue growth or decline (e.g., project backlog, commodity prices, labor costs)?

Fundamental drivers

The Q2 2025 release shows that NAC G’s revenue was up versus Q2 2024, and the company points to three core contributors:

1. Project‑backlog expansion – NAC G added ~12 % more signed‑off contracts in the quarter, largely in Alberta’s energy‑infrastructure and residential‑development pipelines. The higher backlog translates into a more booked‑volume base and underpins the top‑line lift, especially as the firm moves projects forward into the execution phase.

2. Commodity‑price environment – Stronger oil‑and‑gas prices in the first half of 2025 have spurred upstream capital‑expenditure, which in turn fuels demand for pipelines, processing‑plant upgrades and related civil‑works—areas where NAC G is a primary contractor. The uplift in commodity‑driven activity contributed roughly 4 % of the revenue growth.

3. Labor‑cost pressure – The quarter also recorded a 2 % increase in labor expenses versus a year earlier, driven by a tight skilled‑trades market in Western Canada and higher prevailing wage rates on new‑build projects. While the higher labor spend dented margin, the impact was modest relative to the backlog‑ and commodity‑driven revenue boost.

Trading implications

• Bullish catalyst: The expanding backlog and a supportive commodity backdrop suggest that the revenue growth is sustainable beyond the current quarter. If the company can keep labor‑cost inflation in check, the earnings trajectory should remain positive, giving the stock upside potential. Look for buying on pull‑backs toward the CAD 30‑31 range, with the next resistance around CAD 33 (the Q2 2025 high).

• Risk watch‑list: A slowdown in oil‑and‑gas capex or a sudden escalation in wage‑inflation could erode the margin cushion. Monitor the Canadian construction PMI and energy‑capex forecasts; a breach of the CAD 28 support line could signal the market is pricing in a slowdown.

In short, the primary revenue drivers are a larger project pipeline and buoyant commodity spending, partially offset by higher labor costs. The net effect is a positive earnings outlook, making the stock a moderate‑to‑high‑conviction buy for traders with a short‑to‑mid‑term horizon, provided they watch for any early signs of commodity or labor‑cost headwinds.