Canada's Aecon Q4 revenue beats analyst expectations on nuclear operations strength

Overview

• Canada construction firm's Q4 revenue beat analyst expectations

• Operating profit improved due to reduced losses from fixed price legacy projects

• Company completed key strategic acquisitions and expanded in U.S. and international markets

Outlook

• Aecon expects 2026 revenue to exceed 2025 levels due to strong demand and record backlog

• Company plans to increase 2026 capital expenditures to support growth initiatives

Result Drivers

• NUCLEAR AND POWER EXPANSION - Co reported increased revenue from nuclear operations due to refurbishment and new build projects in Ontario and U.S.

• LEGACY PROJECT COMPLETION - Operating profit improved due to decreased losses from fixed price legacy projects

• RECORD BACKLOG - Co reported record backlog at year-end, driven by new contract awards

Company press release: ID:nGNXg9YkC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "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$35.00, about 6.2% below its March 4 closing price of C$37.33

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

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