Canada's Aecon Q2 revenue rises 25%, beats estimates

Aecon

30/07/2026 21:34

Overview
Canada construction and infrastructure firm's Q2 revenue rose 25%, beating analyst expectations
Adjusted EBITDA for Q2 doubled yr/yr, driven by higher volumes in key sectors
Backlog at end of Q2 stood at C$10.5 bln, slightly down from prior year

Outlook
Aecon expects double-digit revenue growth in 2026, supported by backlog exceeding C$10 bln
Company anticipates further revenue growth in 2027 as major projects enter development phases
Aecon expects higher capital expenditures in 2026 to support growth initiatives

Result Drivers
UTILITIES AND ACQUISITIONS - Revenue growth in utilities driven by higher volume of electrical transmission and distribution work in Canada and the U.S., and contributions from recent acquisitions
URBAN TRANSPORTATION AND NUCLEAR - Higher revenue from increased subway and commuter rail work and nuclear facility projects
MARGIN IMPROVEMENT IN KEY SEGMENTS - Improved gross profit margin in urban transportation solutions and civil operations supported operating profit growth

Company press release: ID:nGNX6dSvmx

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$1.63 bln
C$1.46 bln (8 Analysts)
Q2 Loss Per Share
 
C$1.58
 
Q2 Adjusted EBITDA Margin
 
5.1%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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$60.00, about 35.1% above its July 29 closing price of C$44.41
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
July 29 - Canada's FLINT Q2 revenue rises 37% on contract wins
July 30 - Quanta Services Q2 revenue jumps 41%, beats estimates
July 29 - MYR Group Q2 revenue beats estimates on C&I segment growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)