Aecon reports year-end 2025 results

Executive Summary

• Aecon reported record full-year 2025 revenue of $5.435 billion (up 28% YoY) and returned to profitability with an operating profit of $87.1 million, reversing a $60.1 million operating loss in 2024.
• The company achieved record new contract awards of $9.487 billion in 2025, driving reported backlog to a record $10.714 billion at year-end.
• The Board approved a quarterly dividend increase to 19.25 cents per share, while the company highlighted substantial completions of major LRT projects, strategic acquisitions, and strong demand across nuclear, industrial, and infrastructure sectors.

Key Details

• Financial Performance (Year Ended Dec 31, 2025): Revenue of $5,435M (+28% YoY); Operating profit of $87.1M (vs. $60.1M loss in 2024); Adjusted EBITDA of $234.6M (margin 4.3% vs 1.9%); Profit attributable to shareholders of $15.2M (Diluted EPS $0.23 vs $0.95 loss); Gross profit of $394.1M (margin 7.3%); MG&A of $234.0M (4.3% of revenue).
• Backlog & Contract Awards: Record new contract awards of $9,487M in 2025 (vs $4,747M in 2024); Reported backlog at Dec 31, 2025 reached $10,714M (vs $6,662M); Construction segment backlog stood at $10,694M; Concessions segment backlog at $20M.
• Construction Segment Results: Revenue of $5,421M (+28%); Operating profit of $127.4M (vs $55.0M loss); Adjusted EBITDA of $220.4M (margin 4.1%); Revenue growth driven by nuclear (+$559M), industrial (+$337M), urban transportation (+$128M), civil (+$111M), and utilities (+$65M).
• Legacy Project Improvements: Fixed price legacy projects contributed negative gross profit of $94.4M in 2025, a significant improvement from $272.8M in 2024 (a $178.4M year-over-year reduction in losses). Two of three remaining legacy projects achieved substantial completion in 2025, with the final expected in H1 2026.
• Concessions Segment Results: Revenue of $7.6M (down from $12.0M); Operating profit of $3.2M (down from $24.2M, primarily due to 2024 gains/recoveries); Adjusted EBITDA of $56.8M.
• Dividend Declaration: Quarterly dividend increased to 19.25 cents per share (from 19.0 cents); payable April 2, 2026 to shareholders of record on March 23, 2026.
• M&A Activity: Completed acquisition of K.P.C. Power Electrical Ltd. and K.P.C. Energy Metering Ltd. (KPC) on Jan 6, 2026; previously acquired Bodell Construction Company and Trinity Industrial Services in Q3 2025, contributing $42M to backlog.
• Project Completions & Awards: Finch West LRT substantially completed Nov 12, 2025 (opened Dec 7); Aecon holds 33.3% equity/construction interest and 50% 30-year maintenance. Eglinton Crosstown LRT substantially completed Dec 5, 2025 (opened Feb 8, 2026); Aecon holds 25% interest in equity, development, construction, and 30-year maintenance. Darlington Nuclear Refurbishment completed Feb 2, 2026, under budget and 4 months ahead of schedule.
• New Contract Wins & Pipeline: Awarded $205M contract for RSR Wastewater Treatment Facility Phase 1 in Manitoba; 50% lead partner interest in Arctic Over-the-Horizon Radar Program Stage 1 in Ontario; reached commercial close on Scarborough Subway Extension; reached financial close on Yonge North Subway Extension Advance Tunnel; awarded definition phase for Pickering Nuclear Generating Station refurbishment; awarded execution phase for Darlington New Nuclear Project.
• 2026 Outlook: Expects 2026 revenue to exceed 2025 levels; anticipates stabilization and gradual improvement of Adjusted EBITDA margins in the Construction segment; plans for capital expenditures to exceed 2025 levels to support growth and systems investments.

Notable Quotes

• “2025 was a transformative year marked by the completion of key strategic acquisitions, growth as a nuclear and power company, expansion in U.S. and international markets, and the substantial completion of legacy projects including two modern LRT systems,” said Jean-Louis Servranckx, President and Chief Executive Officer. “Aecon expects 2026 revenue to exceed 2025 levels on the strength of its record backlog, strategic positioning in sectors with attractive demand profiles, robust recurring revenue programs, and a healthy pipeline of project opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defence.”