Canada's Aecon Group beats Q3 revenue estimates

Aecon

29/10/2025 21:02

Overview

Aecon Q3 2025 revenue grows 20%, beating analyst expectations

Operating profit for Q3 decreased due to negative gross profit from legacy projects

Company reports record backlog of $10,777 mln, highest in history

Outlook

Aecon expects 2025 revenue to exceed 2024, driven by a $10.8 bln backlog

Company anticipates further revenue growth in 2026

Aecon plans higher capital expenditures in 2025 compared to 2024

Result Drivers

NUCLEAR AND INDUSTRIAL GROWTH - Revenue growth driven by increased nuclear refurbishment and industrial construction work in Ontario, U.S., and western Canada

LEGACY PROJECTS IMPACT - Operating profit affected by negative gross profit from fixed price legacy projects

RECORD BACKLOG - Backlog reached highest level in history at $10,777 mln, driven by new contract awards and strategic acquisitions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$1.53 bln
C$1.38 bln (7 Analysts)
Q3 EPS
C$0.60
Q3 Adjusted EBITDA Margin
6.1%


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$26.00, about 12.3% below its October 28 closing price of C$29.21

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX54J2Ml

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)