Aecon Q2 revenue up 52%, beats expectations

Overview

• Aecon Q2 revenue rises 52% yr/yr, beating analyst expectations, per LSEG data

• Backlog at record C$10.7 bln, driven by strategic acquisitions and nuclear projects

Outlook

• Company anticipates improved profitability as legacy projects complete by end of 2025

• Capital expenditures in 2025 expected to be moderately higher than 2024

Result Drivers

• RECORD BACKLOG - Aecon's backlog reached a record C$10.7 bln, driven by strategic acquisitions and nuclear projects

• NUCLEAR PROJECTS - Increased volume of refurbishment and engineering services work at nuclear generating stations boosted revenue

• LEGACY PROJECTS - Reduction in losses from fixed price legacy projects significantly improved operating profit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Aecon Group Inc is C$22.00, about 13.6% above its July 30 closing price of C$19.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX8f7SYf