What happened

Construction and mining services company North American Construction Group (NOA 1.28%) reported strong growth, and the company also announced a deal that would greatly expand its presence in Australia. The company's shares are rallying as a result, up more than 30% on Thursday afternoon.

So what

North American operates one of the continent's largest fleets of hauling trucks, shovels, and mining equipment used in construction, mining, and energy extraction. The Alberta-based company earned 0.40 Canadian dollars per share on revenue of CA$193.6 million ($145 million) in the second quarter, significant growth compared to the CA$0.17 per share in earnings on sales of CA$168 million reported a year ago.

The company attributed the growth to strong demand from oil sands regions. North American generated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$51.8 million in the quarter for a margin of 18.7%.

"The second quarter is always the most difficult to navigate from an operating perspective, but despite the rainy weather and fleet remobilization, the business posted historical high Q2 results in almost every fundamental metric we measure," CEO Joseph Lambert said in a statement. "The business remains focused on executing and I am excited about the second half of the year."

North American also announced a planned CA$395 million acquisition of MacKellar Group of Australia. MacKellar has a similar business, operating a fleet of heavy equipment for the mining and construction sectors in Australia.

Now what

North American appears to have no shortage of opportunities on its native continent, but the acquisition would help to diversify its revenue streams and provide it strong exposure to a massive mining economy.

Shares of North American Construction have now more than doubled over the past year and are up by nearly 300% since 2018. That's massive growth for an industrial business, but given the company's aggressive growth strategy and the opportunities in front of it as a consolidator, there is reason to hope the outperformance can continue from here.