Canada's Aecon Q3 profit beats estimates; posts record backlog

Aecon

29/10/2026 20:42

Overview
Canada construction firm's Q3 revenue rose 26%, beating analyst expectations
Q3 adjusted EPS beat analyst expectations
Company backlog reached record C$14.6 bln, driven by major project awards

Outlook
Aecon expects double-digit revenue growth in 2026, supported by record backlog and acquisitions
Company anticipates further revenue growth in 2027 from major project ramp-ups and development work
Aecon expects capital expenditures in 2026 to exceed 2025 levels to support growth initiatives

Result Drivers
CONSTRUCTION SEGMENT GROWTH - Higher volume in utilities, nuclear, civil, industrial, and urban transportation drove revenue gains, with utilities and nuclear seeing the largest increases
IMPROVED MARGINS - Gross profit margin improved in civil, nuclear, and urban transportation solutions, offsetting lower margin in industrial operations
RECENT ACQUISITIONS - Revenue growth in utilities and industrial segments benefited from acquisitions completed in 2025 and early 2026

Company press release: ID:nGNX5QCjZQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$1.92 bln
C$1.77 bln (8 Analysts)
Q3 Adjusted EPS
Beat
C$0.86
C$0.74 (7 Analysts)
Q3 EPS
 
C$0.74
 
Q3 Adjusted EBITDA Margin
 
6.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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$60.00, about 12.6% above its October 28 closing price of C$53.27
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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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.)