Overview

* Aecon ( AEGXF ) Q2 revenue rises 52% yr/yr, beating analyst expectations, per LSEG data

* Backlog at record C$10.7 bln, driven by strategic acquisitions and nuclear projects

Outlook

* Company anticipates improved profitability as legacy projects complete by end of 2025

* Capital expenditures in 2025 expected to be moderately higher than 2024

Result Drivers

* RECORD BACKLOG - Aecon's ( AEGXF ) backlog reached a record C$10.7 bln, driven by strategic acquisitions and nuclear projects

* NUCLEAR PROJECTS - Increased volume of refurbishment and engineering services work at nuclear generating stations boosted revenue

* LEGACY PROJECTS - Reduction in losses from fixed price legacy projects significantly improved operating profit

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$1.30 C$1.10

Revenue bln bln (8

Analysts

)

Q2 EPS -C$0.12

Q2 3.2%

Adjusted

EBITDA

Margin

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 ( AEGXF ) is C$22.00, about 13.6% above its July 30 closing price of C$19.00

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(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.)