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

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

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

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

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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.)