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

By Reuters News


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:


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


Reuters Recommended Reads

  • Oct 29 - Granite Construction Q3 revenue beats estimates on organic growth, acquisitions

  • Oct 29 - Quanta Services Q3 revenue beats on broadening demand; raises 2026 outlook

  • Oct 29 - EMCOR Q3 revenue beats on new contract awards; raises 2026 outlook


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.)

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