Aecon reports third quarter 2025 results

Executive Summary

• Aecon reported Q3 2025 revenue of C$1.53 bn, a 20% YoY increase to C$1.53 bn versus C$1.28 bn in Q3 2024.
• Operating profit fell to C$61.4 m (down C$19.5 m YoY) and net profit attributable to shareholders declined to C$40.0 m (diluted EPS $0.60) from C$56.5 m (diluted EPS $0.85).
• Record backlog reached C$10.777 bn, the highest in company history, driven by a $1.4 bn Yonge North Subway Extension contract and recent U.S. acquisitions (Bodell and Trinity).

Key Details

• Revenue: C$1,530.2 m for Q3 2025 (+20% YoY).
• Operating profit: C$61.4 m vs. C$80.9 m in Q3 2024 (‑24%).
• Adjusted EBITDA: C$92.7 m (margin 6.1%) vs. C$126.9 m (10.0% margin) a decline of 27%.
• Net profit / EPS: $40.0 m; diluted EPS $0.60 vs. $56.5 m; diluted EPS $0.85 YoY.
• Backlog: C$10,777 m at Sept‑30‑2025 (up from C$5,980 m). Record level, third consecutive quarter of record backlog.
• Major contract: Aecon‑led consortium reached financial close on Yonge North Subway Extension Advance Tunnel ($1.4 bn total; Aecon’s share $477 m) – added to Construction segment backlog.
• Acquisitions:
• Bodell Construction Company (Salt Lake City, UT) – industrial construction platform in the U.S. (announced Aug 7 2025).
• Trinity Industrial Services (Beaumont, TX) – multidisciplinary services for maintenance & capital projects (announced Sep 18 2025).
• Post‑quarter developments:
• Financial close on Montreal Port Authority contract for Port of Montreal Expansion in‑water works ($609 m total).
• Selected partner for Energy Northwest’s Cascade Advanced Energy Facility (first four Xe‑100 SMRs) – negotiations ongoing.
• Ontario government completed Revenue Service Demonstration phase for Finch West LRT; Aecon holds 33.3% equity and construction interest, plus 50% of the 30‑year maintenance term.
• Segment performance:
• Construction segment revenue C$1,527.9 m (up 20% YoY); gross profit down to C$132.6 m from C$150.8 m.
• Concessions segment revenue flat at C$2.3 m; operating profit $1.0 m vs. $4.7 m prior year.
• Cost drivers: Negative gross profit of C$20.9 m on fixed‑price legacy projects reduced margins; acquisition‑related costs (advisory, legal, contingent consideration) netted a $6.2 m reduction in SG&A.
• Outlook: Management expects 2025 revenue to exceed 2024 levels, citing record backlog, continued U.S. expansion, and pipeline of nuclear & infrastructure projects. Capital expenditures projected modestly higher than 2024.

Notable Quotes

“Aecon achieved 20% revenue growth, added to record backlog, and is strategically positioned to support the delivery of critical infrastructure projects in nuclear, energy generation, storage, distribution and transmission…” – Jean‑Louis Servranckx, President & CEO.