Aecon reports third quarter 2025 results
Press Release
Toronto, Ontario – October 29, 2025: Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Company”) today reported results for the third quarter of 2025.
“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, as well as other essential infrastructure verticals,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “Aecon was pleased to expand its expertise and footprint in the U.S. through two strategic acquisitions and has been selected to partner in the delivery of one of the first small modular reactor (SMR) projects in the U.S. through Energy Northwest’s Cascade Advanced Energy Facility, while executing and pursuing a growing set of nuclear opportunities globally.”
HIGHLIGHTS
All quarterly financial information contained in this news release is unaudited.
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Revenue for the three months ended September 30, 2025 of $1,530 million was $255 million, or 20%, higher compared to the same period in 2024.
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Operating profit of $61.4 million for the three months ended September 30, 2025 decreased by $19.5 million compared to an operating profit of $80.9 million in the same period in 2024.
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Adjusted EBITDA(1)(2) of $92.7 million for the three months ended September 30, 2025 (Adjusted EBITDA margin(3) of 6.1%) compared to Adjusted EBITDA of $126.9 million (Adjusted EBITDA margin of 10.0%) in the same period in 2024. The decrease in the quarter was largely due to negative gross profit on the fixed price legacy projects of $20.9 million in the third quarter of 2025 compared to gross profit of $nil in the third quarter of 2024. The fixed price legacy projects are discussed in Section 5 “Recent Developments” and Section 10.2 “Contingencies” in the Company’s September 30, 2025 Management’s Discussion and Analysis (“MD&A”), and Section 13 “Risk Factors” in the 2024 Annual MD&A.
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Profit attributable to shareholders of $40.0 million (diluted earnings per share of $0.60) for the three months ended September 30, 2025 compared to profit attributable to shareholders of $56.5 million (diluted earnings per share of $0.85) in the same period in 2024.
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Reported backlog at September 30, 2025 of $10,777 million compared to backlog of $5,980 million at September 30, 2024. The September 30, 2025 backlog represents the highest reported backlog in the history of Aecon and the third consecutive quarter reporting a record backlog level.
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An Aecon-led consortium reached financial close with Infrastructure Ontario and Metrolinx on the Yonge North Subway Extension Advance Tunnel project in Ontario. The contract is valued at $1.4 billion, and Aecon’s $477 million share of the contract was added to its Construction segment backlog in the third quarter of 2025.
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Aecon appointed Thomas Clochard as Executive Vice President and Chief Operating Officer, effective September 2, 2025. In this role, Thomas will work closely with Aecon’s operational leadership teams across North America and internationally to drive enhanced operational and financial performance.
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On August 7, 2025, Aecon announced that it acquired Bodell Construction Company (“Bodell”), an industrial construction company headquartered in Salt Lake City, Utah. Bodell specializes in oil and gas, mining, water and wastewater, and power generation projects.
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On September 18, 2025, Aecon announced that it acquired the business of Trinity Industrial Services (“Trinity”), headquartered in Beaumont, Texas. Trinity provides multidisciplinary services supporting maintenance, capital projects, turnarounds, and fabrication for core industrial clients.
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Subsequent to quarter end:
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An Aecon partnership completed the collaborative development phase and reached financial close on a design-build contract with the Montreal Port Authority for the Port of Montreal Expansion in-water works project in Contrecoeur, Québec. Finalized under a progressive design-build approach, the contract is valued at $609 million and Aecon’s share of the contract will be added to its Construction segment backlog in the fourth quarter of 2025.
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An Aecon partnership was selected to deliver Energy Northwest’s Cascade Advanced Energy Facility in Washington State. The partnership is finalizing negotiations to collaboratively complete the design, planning and construction of the first four of 12 Xe-100 small modular reactors under a progressive design-build model through the first phase of the project.
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On October 23, 2025, the Ontario government announced the successful completion of the Revenue Service Demonstration phase for the Finch West Light Rail Transit (“Finch West LRT”). Aecon, through a consortium, holds a 33.3% interest in equity and construction of Finch West LRT and a 50% interest in the 30-year maintenance term.
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CONSOLIDATED FINANCIAL HIGHLIGHTS(1)
| Three months ended | Nine months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $ millions (except per share amounts) | September 30 | September 30 | ||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenue | $ | 1,530.2 | $ | 1,275.3 | $ | 3,893.5 | $ | 2,975.7 | ||||
| Gross profit | 131.3 | 150.4 | 250.0 | 75.3 | ||||||||
| Marketing, general and administrative expense | (54.7) | (55.8) | (171.1) | (156.1) | ||||||||
| Income from projects accounted for using the equity method | 2.1 | 5.8 | 5.8 | 19.6 | ||||||||
| Other income | 7.0 | 3.5 | 14.4 | 33.2 | ||||||||
| Depreciation and amortization | (24.4) | (23.0) | (76.1) | (61.6) | ||||||||
| Operating profit (loss) | 61.4 | 80.9 | 22.9 | (89.6) | ||||||||
| Finance income | 1.9 | 1.4 | 5.0 | 6.7 | ||||||||
| Finance cost | (13.6) | (4.5) | (38.4) | (16.8) | ||||||||
| Profit (loss) before income taxes | 49.7 | 77.8 | (10.5) | (99.7) | ||||||||
| Income tax (expense) recovery | (9.3) | (21.3) | 4.9 | 26.1 | ||||||||
| Profit (loss) | 40.4 | 56.5 | (5.6) | (73.6) | ||||||||
| Non-controlling interests | (0.4) | – | – | – | ||||||||
| Profit (loss) attributable to shareholders | $ | 40.0 | $ | 56.5 | $ | (5.6) | $ | (73.6) | ||||
| Gross profit margin(4) | 8.6% | 11.8% | 6.4% | 2.5% | ||||||||
| MG&A as a percent of revenue(4) | 3.6% | 4.4% | 4.4% | 5.2% | ||||||||
| Adjusted EBITDA(2) | $ | 92.7 | $ | 126.9 | $ | 137.3 | $ | 6.3 | ||||
| Adjusted EBITDA margin(3) | 6.1% | 10.0% | 3.5% | 0.2% | ||||||||
| Operating margin(4) | 4.0% | 6.3% | 0.6% | (3.0)% | ||||||||
| Adjusted profit (loss) attributable to shareholders(2) | $ | 35.7 | $ | 57.5 | $ | (3.8) | $ | (78.0) | ||||
| Earnings (loss) per share – basic | $ | 0.63 | $ | 0.90 | $ | (0.09) | $ | (1.18) | ||||
| Earnings (loss) per share – diluted | $ | 0.60 | $ | 0.85 | $ | (0.09) | $ | (1.18) | ||||
| Adjusted earnings (loss) per share – basic(2) | $ | 0.56 | $ | 0.92 | $ | (0.06) | $ | (1.25) | ||||
| Adjusted earnings (loss) per share – diluted(2) | $ | 0.53 | $ | 0.86 | $ | (0.06) | $ | (1.25) | ||||
| Backlog (at end of period) | $ | 10,777 | $ | 5,980 | ||||||||
(1) This press release presents certain non-GAAP and supplementary financial measures, as well as non-GAAP ratios to assist readers in understanding the Company’s performance (GAAP refers to Canadian Generally Accepted Accounting Principles). Further details on these measures and ratios are included in the “Non-GAAP and Supplementary Financial Measures” and “Reconciliations and Calculations” sections of this press release.
(2) This is a non-GAAP financial measure. Refer to the “Non-GAAP and Supplementary Financial Measures” and “Reconciliations and Calculations” sections of this press release for more information on each non-GAAP financial measure.
(3) This is a non-GAAP ratio. Refer to the “Non-GAAP and Supplementary Financial Measures” section of this press release for more information on each non-GAAP ratio.
(4) This is a supplementary financial measure. Refer to the “Non-GAAP and Supplementary Financial Measures” section of this press release for more information on each supplementary financial measure.
Revenue for the three months ended September 30, 2025 of $1,530 million was $255 million, or 20%, higher compared to the third quarter of 2024. In the Construction segment, revenue was higher by $255 million from increases in nuclear ($145 million), industrial ($74 million), urban transportation solutions ($24 million), utilities ($9 million), and civil operations ($3 million). This higher revenue was driven primarily by an increased volume of refurbishment, new build, and engineering services work at nuclear generating stations in Ontario and the U.S., and a higher volume of field construction work at industrial facilities in western Canada. In the Concessions segment, revenue of $2 million for the three months ended September 30, 2025 remained unchanged compared to the same period last year.
Operating profit of $61.4 million for the three months ended September 30, 2025 decreased by $19.5 million compared to an operating profit of $80.9 million in the same period of 2024. This lower operating profit was largely driven by a decrease in quarterly gross profit of $19.1 million compared to the same period in 2024. In the Construction segment, gross profit in the third quarter of 2025 decreased by $18.1 million primarily from negative gross profit related to the fixed price legacy projects of $20.9 million compared to gross profit of $nil in the third quarter of 2024. The fixed price legacy projects are discussed in Section 5 “Recent Developments” and Section 10.2 “Contingencies” in the Company’s September 30, 2025 MD&A, and Section 13 “Risk Factors” in the 2024 Annual MD&A. Partially offsetting the impact of the fixed price legacy projects in the third quarter of 2025 was higher gross profit in the balance of the Construction segment of $2.8 million. This increase in gross profit was primarily driven by higher volume in the nuclear, industrial, and utilities operations, and partially offset by lower gross profit margin in civil from weaker gross profit margin in western operations, and in and urban transportation solutions where the impact of higher volume was more than offset by lower gross profit margin on mass transit projects nearing completion or completed. In the Concessions segment, gross profit increased by $0.3 million.
Marketing, general and administrative expense (“MG&A”) for the three months ended September 30, 2025 decreased by $1.1 million compared to the same period in 2024. The decrease in MG&A was primarily due to lower acquisition related costs of $6.7 million (i.e. costs related to advisory, legal, and other transaction fees, as well as contingent consideration classified as compensation) which more than offset the impact of higher MG&A required to support revenue growth in the current period, and an increase in MG&A from the operations of recent acquisitions.
Reported backlog at September 30, 2025 of $10,777 million compares to backlog of $5,980 million at September 30, 2024. The September 30, 2025 backlog represents the highest reported backlog in the history of Aecon. New contract awards of $1,561 million and $8,008 million were booked in the third quarter and year-to-date, respectively, in 2025 compared to $1,069 million and $2,798 million in the same periods in 2024.
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