Aecon Group Inc.

Aecon reported Q2 revenue of $1.6 billion, up $129 million or 25% year over year, adjusted EBITDA of $82 million versus $41 million last year, operating profit of $36 million versus $2 million, and gross profit of $78 million. Reported diluted loss per share was $1.58, driven by an approximately $128 million fair value adjustment on Aecon Utilities preferred shares; adjusted diluted EPS was $0.33 versus an adjusted diluted loss per share of $0.10 a year ago. Construction segment adjusted EBITDA was $90 million, up from $40 million, with margin at 5.5% versus 3.1%; concessions adjusted EBITDA was $11 million versus $16 million. Backlog ended at $10.5 billion, compared with $10.7 billion a year ago, and cash from operations/free cash flow commentary included $129 million of core cash, $672 million of net debt, and $301 million of trailing 12-month free cash flow. Management reiterated full-year 2026 double-digit revenue growth and said 2027 should also see further revenue growth, with construction margins expected to stabilize and gradually improve.

Jean-Louis Servranckx emphasized that Aecon is growing through a balanced, diversified portfolio across nuclear, civil, utilities, industrial, and urban transportation, with a deliberate shift toward more risk-adjusted work and collaborative delivery models. He highlighted strong demand, recurring revenue growth, and major project wins in areas like power, data centers, battery storage, and nation-building infrastructure. His tone was confident and disciplined, repeatedly stressing execution quality, risk balance, and long-term visibility rather than chasing growth at any cost.

Jerome Julier focused on the financial step-up in the quarter: revenue of $1.6 billion, adjusted EBITDA of $82 million, operating profit of $36 million, and adjusted diluted EPS of $0.33 after excluding the preferred-share fair value adjustment. He noted construction adjusted EBITDA margin of 5.5%, core cash and cash equivalents of $129 million, committed revolving credit facilities of $1 billion, total committed credit facilities of $2 billion including EDC guarantees, and net debt of $672 million, which includes the $320 million preferred-share repayment agreement. He also said trailing 12-month free cash flow improved to $301 million from negative $10 million a year ago, and that the quarterly dividend was set at $0.1925 per share, or $0.77 annualized.

Analysts pressed management on how quickly large nation-building projects will convert from development into executable work, and whether Aecon can staff the opportunities; management said many of these projects have 12- to 24-month development phases and that it is carefully balancing geography, sector, and timing to avoid overloading the organization. Questions also focused on margins, the fixed-price risk profile of the Green Light project, labor availability, and the new ERP-related costs. Management said the Green Light gas-turbine project was underwritten with a long development phase, partner expertise, and limited scope uncertainty, that trades are not currently a constraint, and that ERP spending is meant to strengthen project management, data, and AI capabilities; the company said the spending is not being guided separately and should stay in roughly the same range.