TORONTO, April 28, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Company”) today reported results for the first quarter of 2026.
“Driven by record backlog of $10.9 billion, growth in new geographies and markets, robust recurring revenue programs, and backed by strong opportunities tied to power generation, critical resource development, transit, water, and defence, Aecon expects 2026 revenue to exceed 2025 levels,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “Aecon is focused on delivering shareholder value through a disciplined capital allocation approach, an ongoing shift towards projects with appropriate risk-adjusted returns, and a continued emphasis on operational excellence.”
HIGHLIGHTS
All quarterly financial information contained in this news release is unaudited.
- Revenue for the three months ended March 31, 2026 of $1,257 million was $195 million, or 18%, higher compared to the same period in 2025.
- Operating loss of $8.0 million for the three months ended March 31, 2026 was favourable by $32.7 million compared to an operating loss of $40.7 million in the same period in 2025.
- Adjusted EBITDA(1)(2) of $32.0 million for the three months ended March 31, 2026 (Adjusted EBITDA margin(3) of 2.5%) compared to Adjusted EBITDA of $3.6 million (Adjusted EBITDA margin of 0.3%) in the same period in 2025.
- Loss attributable to shareholders of $17.9 million (diluted loss per share of $0.28) for the three months ended March 31, 2026 compared to loss attributable to shareholders of $37.9 million (diluted loss per share of $0.60) in the same period in 2025.
- Reported backlog at March 31, 2026 of $10,854 million represents the highest reported backlog in the history of Aecon, compared to backlog of $9,696 million at March 31, 2025.
- An Aecon partnership executed an agreement with Defence Construction Canada to deliver the Arctic Over-the-Horizon Radar Program Stage 1 project in Ontario under a collaborative Integrated Project Delivery model. Aecon holds a 50% interest and is the lead partner in the joint venture responsible for project delivery. A validation phase commenced in the first quarter of 2026. Construction is expected to begin upon validation and the completion of a design development phase.
- On March 9, 2026 Aecon’s subsidiary, Aecon Utilities Group Inc., acquired Duna Services, LLC for a base purchase price of US$60 million with the potential for additional contingent proceeds. Duna Services and its subsidiaries provide underground and overhead electrical distribution, transmission, substation maintenance, and emergency restoration construction services across the Midwest and Eastern United States.
- On January 6, 2026, Aecon Utilities Group Inc. completed the previously announced acquisition of K.P.C. Power Electrical Ltd. and K.P.C. Energy Metering Solutions Ltd. (collectively, “KPC”).
- An Aecon joint venture finalized a US$691 million contract with the U.S. Army Corps of Engineers for the Howard A. Hanson Dam Facility project in Washington State. Aecon’s share of the contract was added to its Construction segment backlog in the first quarter of 2026. Completion of the collaborative development phase and the commencement of construction are expected in the second quarter of 2026.
- On March 27, 2026, Aecon announced the closing of an offering announced on March 11, 2026, consisting of 4,395,300 common shares, including 573,300 common shares pursuant to the exercise of the over-allotment option granted to the underwriters. The common shares were offered at a price of $39.25 per common share for gross proceeds to Aecon of $172.5 million.
CONSOLIDATED FINANCIAL HIGHLIGHTS(1)
| Three months ended | |||||||||
| $ millions (except per share amounts) | March 31 | ||||||||
| 2026 | 2025 | ||||||||
| Revenue | $ | 1,257.0 | $ | 1,061.7 | |||||
| Gross profit | 100.5 | 41.8 | |||||||
| Marketing, general, and administrative expense | (81.0 | ) | (56.9 | ) | |||||
| Loss from projects accounted for using the equity method | (2.2 | ) | (0.4 | ) | |||||
| Other income | 0.7 | 0.8 | |||||||
| Depreciation and amortization | (26.0 | ) | (26.0 | ) | |||||
| Operating loss | (8.0 | ) | (40.7 | ) | |||||
| Finance income | 2.2 | 1.6 | |||||||
| Finance cost | (13.1 | ) | (10.0 | ) | |||||
| Loss before income taxes | (18.9 | ) | (49.2 | ) | |||||
| Income tax recovery | 0.9 | 11.1 | |||||||
| Loss | (18.0 | ) | (38.1 | ) | |||||
| Non-controlling interests | 0.1 | 0.1 | |||||||
| Loss attributable to shareholders | $ | (17.9 | ) | $ | (37.9 | ) | |||
| Gross profit margin(4) | 8.0 | % | 3.9 | % | |||||
| MG&A as a percent of revenue(4) | 6.4 | % | 5.4 | % | |||||
| Adjusted EBITDA(2) | $ | 32.0 | $ | 3.6 | |||||
| Adjusted EBITDA margin(3) | 2.5 | % | 0.3 | % | |||||
| Operating margin(4) | (0.6 | )% | (3.8 | )% | |||||
| Adjusted loss attributable to shareholders(2) | $ | (13.3 | ) | $ | (34.6 | ) | |||
| Loss per share – basic | $ | (0.28 | ) | $ | (0.60 | ) | |||
| Loss per share – diluted | $ | (0.28 | ) | $ | (0.60 | ) | |||
| Adjusted loss per share−basic(3) | $ | (0.21 | ) | $ | (0.55 | ) | |||
| Adjusted loss per share−diluted(3) | $ | (0.21 | ) | $ | (0.55 | ) | |||
| Backlog (at end of period) | $ | 10,854 | $ | 9,696 | |||||
| (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 March 31, 2026 of $1,257 million was $195 million, or 18%, higher compared to the same period in 2025. Revenue was higher in the Construction segment by $197 million driven by increases in nuclear ($104 million), utilities ($38 million), civil ($29 million), industrial ($15 million), and urban transportation solutions ($11 million). Higher revenue in the Construction segment was largely driven by an increased volume of refurbishment, new build, and engineering services work at nuclear generating stations located in Ontario and the United States. In the Concessions segment, revenue of $2 million in the first quarter of 2026 was unchanged compared to the same period of 2025.
Operating loss of $8.0 million for the three months ended March 31, 2026 was favourable by $32.7 million compared to an operating loss of $40.7 million in the same period in 2025. The improvement in the period was driven by higher gross profit of $58.7 million. In the Construction segment, gross profit increased by $57.8 million, largely from the impact of higher volume in nuclear and utilities operations, and from higher volume and an improvement in gross profit margin in civil operations and urban transportation solutions. In the Concessions segment, gross profit increased by $1.4 million primarily from an increase in net development fees.
Marketing, general and administrative expense (“MG&A”) increased by $24.1 million in the first quarter of 2026 compared with the same period in 2025, primarily due to higher personnel costs reflecting ongoing investments in organizational capacity to support revenue growth and the integration of recent business acquisitions including Bodell Construction, Trinity Industrial Services, KPC, and Duna Services. MG&A as a percentage of revenue increased to 6.4% in the first quarter of 2026 from 5.4% in the same prior-year period.
Reported backlog at March 31, 2026 of $10,854 million compares to backlog of $9,696 million at March 31, 2025. The March 31, 2026 balance represents the highest reported backlog in the history of Aecon. New contract awards of $1,397 million were booked in the first quarter of 2026 compared to $4,096 million in the same period in 2025. The reported awards in the first quarter of 2026 include $19.2 million of backlog acquired at the time of the acquisitions of KPC and Duna Services.
REPORTING SEGMENTS
Aecon reports its financial performance on the basis of two segments: Construction and Concessions, which are described in the Company’s March 31, 2026 Management’s Discussion and Analysis (“Q1 2026 MD&A”).
CONSTRUCTION SEGMENT
Financial Highlights
| Three months ended | |||||||||
| $ millions | March 31 | ||||||||
| 2026 | 2025 | ||||||||
| Revenue | $ | 1,254.4 | $ | 1,057.4 | |||||
| Gross profit | $ | 100.8 | $ | 43.0 | |||||
| Adjusted EBITDA(1) | $ | 41.9 | $ | (1.1 | ) | ||||
| Operating profit (loss) | $ | 12.0 | $ | (29.9 | ) | ||||
| Gross profit margin(3) | 8.0 | % | 4.1 | % | |||||
| Adjusted EBITDA margin(2) | 3.3 | % | (0.1 | )% | |||||
| Operating margin(3) | 1.0 | % | (2.8 | )% | |||||
| Backlog (at end of period) | $ | 10,833 | $ | 9,677 | |||||
| (1) | 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. |
| (2) | This is a non-GAAP ratio. 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 ratio. |
| (3) | 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 in the Construction segment for the three months ended March 31, 2026 of $1,254 million was $197 million, or 19%, higher compared to the same period in 2025. Construction segment revenue was higher in all sectors, with the largest increase occurring in nuclear operations ($104 million) from a higher volume of refurbishment, new build, and engineering services work at nuclear generating stations located in Ontario and the United States. Revenue was also higher in utilities operations ($38 million) primarily from an increase in electrical transmission and distribution work in Canada and the United States, with the acquisitions of KPC and Duna Services in the first quarter of 2026 contributing to this increase, and from higher telecom and gas distribution work. In civil operations, revenue was higher ($29 million) primarily from an increase in the civil infrastructure component of power and rail projects, and from major project work performed internationally, partially offset by a lower volume of foundations work and highway, road, and bridge building activity. In industrial operations, revenue was higher ($15 million) from an increase in field construction work at industrial manufacturing and wastewater treatment facilities, driven by operations in the United States with most of the revenue growth from the Bodell Construction and Trinity Industrial Services businesses acquired in the third quarter of 2025, and from an increase in the industrial component of power generation related projects. The higher revenue in urban transportation solutions ($11 million) resulted largely from an increase in subway and commuter rail system projects, partially offset by a lower volume of work from Light Rail Transit (“LRT”) projects in Ontario and Québec that achieved substantial completion in 2025 or are approaching substantial completion.
Operating profit in the Construction segment of $12.0 million in the first three months of 2026 increased by $41.9 million compared to an operating loss of $29.9 million in the first three months of 2025. This increase resulted primarily from a volume driven increase in gross profit in nuclear operations, and from an improvement in gross profit margin in civil operations and urban transportation solutions. In addition, in utilities, operating profit increased slightly from higher gross profit that was mostly offset by higher MG&A, whereas in industrial, operating profit was down primarily due to higher MG&A. In addition, costs related to business acquisitions and amortization of acquisition-related intangible assets were $8.2 million in the first quarter of 2026 compared to $7.7 million in the same period of 2025, for an unfavourable impact to operating profit of $0.5 million in the current period.
Construction backlog at March 31, 2026 was $10,833 million compared to $9,677 million at the same time in 2025. Backlog increased period-over-period in civil ($1,288 million), utilities ($214 million), and industrial operations ($44 million), while backlog decreased in urban transportation solutions ($385 million) and nuclear operations ($5 million). New contract awards of $1,393 million in the first quarter of 2026 were $2,700 million lower than the same period in 2025. During the first three months of 2026, an Aecon joint venture was awarded a contract for the Howard A. Hanson Dam Facility project in Washington State.
CONCESSIONS SEGMENT
Financial Highlights
| Three months ended | |||||||||
| $ millions | March 31 | ||||||||
| 2026 | 2025 | ||||||||
| Revenue | $ | 2.4 | $ | 1.6 | |||||
| Gross profit (loss) | $ | 0.3 | $ | (1.2 | ) | ||||
| Income from projects accounted for using the equity method | $ | (1.9 | ) | $ | 0.2 | ||||
| Adjusted EBITDA(1) | $ | 6.2 | $ | 12.8 | |||||
| Operating loss | $ | (3.6 | ) | $ | (1.7 | ) | |||
| Backlog (at end of period) | $ | 21 | $ | 19 | |||||
| (1) | 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. |
Aecon currently holds a 50.1% interest in Skyport, the concessionaire responsible for the Bermuda airport’s operations, maintenance, and commercial functions, and the entity that will manage and coordinate the overall delivery of the Bermuda International Airport Redevelopment Project over a 30-year concession term that commenced in 2017. Aecon’s participation in Skyport is accounted for using the equity method. Aecon’s concession participation in the Eglinton Crosstown LRT, Finch West LRT, Gordie Howe International Bridge, Waterloo LRT, and the GO Expansion On-Corridor Works projects are joint ventures that are also accounted for using the equity method.
For the three months ended March 31, 2026, revenue in the Concessions segment of $2 million was unchanged compared to the same period in 2025.
Operating loss in the Concessions segment was $3.6 million for the three months ended March 31, 2026 compared to an operating loss of $1.7 million in the first three months of 2025 for a decrease in operating profit of $1.9 million. This decrease was primarily due to lower management and development fees on LRT projects that achieved substantial completion in 2025, partially offset by an improvement in operating results at Skyport.
OUTLOOK
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.
In the Construction segment, demand for Aecon’s services across Canada and in select U.S. and international markets continues to be strong with opportunities across all sectors. Development phase work is ongoing in consortiums in which Aecon is a participant to deliver several significant long-term projects of various sizes. Aecon expects revenue in 2026 to increase from work on the Howard A. Hanson Dam Facility project in Washington State which was awarded to an Aecon joint venture in the first quarter of 2026, as well as ongoing work from projects that were awarded during 2025, some of which include the implementation phase by an Aecon-led consortium on the Scarborough Subway Extension progressive design-build transit project under a target price contract, the definition phase work by an Aecon joint operation for the retube, feeder and boiler replacement of four units at the Pickering Nuclear Generating Station in Ontario, the execution phase by an Aecon-led partnership of the Darlington New Nuclear Project in Ontario under an alliance construction contract, and the construction of the Port of Montreal Expansion in-water works project in Contrecoeur, Québec by an Aecon partnership under a progressive design-bid structure. Revenue is also expected to increase from businesses acquired in 2025 and early 2026 in the industrial and utilities sectors.
In the Concessions segment, there are several opportunities to add to the existing portfolio of Canadian and international concessions in the next 6 to 12 months to support trends in aging infrastructure, mobility, connectivity, energy, and population growth.
Operating profitability in recent years was negatively impacted by the fixed price legacy projects. Two of the remaining three legacy projects achieved substantial completion in 2025, and construction on the remaining legacy project is significantly progressed but substantial completion has not been achieved due to delays relating to subcontracted work and operational commissioning. The remaining project is expected to be substantially complete in the first half of 2026. Until all projects are complete and the related claims have been resolved, there is a risk that profitability could also be negatively impacted by these projects in future periods – see Section 5 “Recent Developments”, Section 10.2 “Contingencies”, and Section 13 “Risk Factors” in the Company’s Q1 2026 MD&A regarding the risk on certain large fixed price legacy projects entered into in 2018 or earlier by joint operations in which Aecon is a participant. As such, the completion and satisfactory resolution of claims on the three remaining fixed price legacy projects with the respective clients remains a critical focus for the Company and its partners. The finalization of these projects is anticipated to lead to improved profitability and margin predictability going forward.
Beyond the legacy projects, Aecon’s deliberate shift towards a greater weighting of improved risk-adjusted programs, in combination with a strong focus on operational excellence, is anticipated to support a stabilization and gradual improvement of Adjusted EBITDA margins in the Construction segment in 2026.
Management will continue to monitor the impact of a dynamic geopolitical environment as well as announced or threatened tariffs and non-tariff measures on the Company’s operations. Higher fuel costs and the introduction of tariffs and non-tariff measures could cause increased purchased material costs and/or reduced availability, downward or upward changes to the level of demand for Aecon’s services, as well as delays by some private clients in moving forward with projects.
Aecon plans to maintain a disciplined capital allocation approach focused on long-term shareholder value through acquisitions and divestitures, organic growth, dividends, capital and operational investments, and share repurchases on an opportunistic basis. Aecon is also focused on making strategic investments in its operations and systems to provide entry into and greater access to attractive markets, increase operational effectiveness, and support the growth of its concessions portfolio. Aecon expects capital expenditures in 2026 to exceed 2025 levels to support growth initiatives and investments designed to enhance execution resiliency and enable the ambitions of key sectors in a disciplined manner.
CONSOLIDATED RESULTS
The consolidated results for the three months ended March 31, 2026 and 2025 are available at the end of this news release.
CONSOLIDATED BALANCE SHEET
| March 31 | December 31 | |||||
| $ thousands | 2026 | 2025 | ||||
| Cash and cash equivalents | $ | 506,648 | $ | 486,019 | ||
| Other current assets | 2,342,422 | 2,388,844 | ||||
| Property, plant and equipment | 442,134 | 399,910 | ||||
| Other long-term assets | 753,773 | 715,453 | ||||
| Total Assets | $ | 4,044,977 | $ | 3,990,226 | ||
| Current portion of long-term debt | $ | 44,539 | $ | 43,903 | ||
| Preferred Shares of Aecon Utilities | 189,600 | 188,840 | ||||
| Other current liabilities | 2,227,072 | 2,374,027 | ||||
| Long-term debt | 119,026 | 110,560 | ||||
| Other long-term liabilities | 388,462 | 344,141 | ||||
| Total Equity | 1,076,278 | 928,755 | ||||
| Total Liabilities and Equity | $ | 4,044,977 | $ | 3,990,226 | ||
CONFERENCE CALL
A conference call and live webcast has been scheduled for 9 a.m. (Eastern Time) on Wednesday, April 29, 2026. A live webcast of the conference call can be accessed using this link and will be available at www.aecon.com/InvestorCalendar. Participants can also dial-in to the conference call and pre-register using this link. After registering, an email will be sent, including dial-in details and a unique access code required to join the live call. Please ensure you have registered at least 15 minutes prior to the conference call time.
An accompanying presentation of the first quarter 2026 financial results will also be available after market close on April 28, 2026 at www.aecon.com/investing. For those unable to attend, a replay will be available within one hour following the live webcast and conference call at the same webcast link above.
ABOUT AECON
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600
ir@aecon.com
Nicole Court
Vice President, Corporate Affairs and Communications
416-297-2600
corpaffairs@aecon.com
NON-GAAP AND SUPPLEMENTARY FINANCIAL MEASURES
The 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 IFRS Accounting Standards). These measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Throughout this press release, the following terms are used, which do not have a standardized meaning under GAAP.
Non-GAAP Financial Measures
A non-GAAP financial measure: (a) depicts the historical or expected future financial performance, financial position, or cash flow of the Company; (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most comparable financial measure presented in the primary consolidated financial statements; (c) is not presented in the financial statements of the Company; and (d) is not a ratio.
Non-GAAP financial measures and ratios presented and discussed in this press release are as follows:
- “Adjusted EBITDA” represents operating profit (loss) adjusted to exclude depreciation and amortization, the gain (loss) on sale of assets and investments, costs related to business acquisitions including: costs related to advisory, legal, and other transaction fees; changes in the fair value of contingent consideration; and contingent consideration classified as compensation per IFRS Accounting Standards; costs associated with the remediation of properties sold; Enterprise Resource Planning (“ERP”) implementation costs; and net income (loss) from projects accounted for using the equity method, but including “Equity Project EBITDA” from projects accounted for using the equity method (refer to the “Reconciliations and Calculations” section of this press release for a quantitative reconciliation to the most comparable financial measure). The most directly comparable measure presented in the consolidated statements of income is operating profit.
- “Equity Project EBITDA” represents Aecon’s proportionate share of the earnings or losses from projects accounted for using the equity method before depreciation and amortization, finance income, finance cost and income tax expense (recovery) (refer to the “Reconciliations and Calculations” section of this press release for a quantitative reconciliation to the most comparable financial measure).
- “Adjusted Profit (Loss) Attributable to Shareholders” represents profit (loss) attributable to shareholders adjusted where applicable to exclude unrealized gains or losses on derivative financial instruments, costs related to business acquisitions including: amortization of acquisition-related intangible assets; costs related to advisory, legal, and other transaction fees; changes in the fair value of contingent consideration; and contingent consideration classified as compensation per IFRS Accounting Standards; costs associated with the remediation of properties sold; ERP implementation costs; and where applicable the income tax effect of these adjustments (refer to the “Reconciliations and Calculations” section of this press release for a quantitative reconciliation to the most comparable financial measure). The most comparable IFRS Accounting Standards measure for Adjusted Profit (Loss) Attributable to Shareholders is Profit (Loss) Attributable to Aecon Shareholders.
Management uses the above non-GAAP financial measures to analyze and evaluate operating performance. Aecon also believes the above financial measures are commonly used by the investment community for valuation purposes, and are useful complementary measures of profitability, and provide metrics useful in the construction industry. These non-GAAP financial measures exclude items which management believes will allow investors a consistent way to analyze Aecon’s financial performance, allow for better analysis of core operating income and business trends, and improve comparability of companies within the industry.
Primary Financial Statements
Primary financial statement means any of the following: the consolidated balance sheets, the consolidated statements of income, the consolidated statements of comprehensive income, the consolidated statements of changes in equity, and the consolidated statements of cash flows.
Key financial measures presented in the primary financial statements of the Company and discussed in this press release are as follows:
- “Gross profit” represents revenue less direct costs and expenses. Not included in the calculation of gross profit are marketing, general and administrative expense (“MG&A”), depreciation and amortization, income (loss) from projects accounted for using the equity method, other income (loss), finance income, finance cost, income tax expense (recovery), and non-controlling interests.
- “Operating profit (loss)” represents the profit (loss) from operations, before finance income, finance cost, income tax expense (recovery), and non-controlling interests.
The above measures are presented in the Company’s consolidated statements of income and are not meant to be a substitute for other subtotals or totals presented in accordance with GAAP, but rather should be evaluated in conjunction with such measures.
- “Backlog” (Remaining Performance Obligations) means the total value of work that has not yet been completed that: (a) has a high certainty of being performed as a result of the existence of an executed contract or work order specifying job scope, value and timing; or (b) has been awarded to Aecon, as evidenced by an executed binding letter of intent or agreement, describing the general job scope, value and timing of such work, and where the finalization of a formal contract in respect of such work is reasonably assured. Operations and maintenance (“O&M”) activities are provided under contracts that can cover a period of up to 30 years. In order to provide information that is comparable to the backlog of other categories of activity, Aecon limits backlog for O&M activities to the earlier of the contract term and the next five years.
Remaining Performance Obligations, i.e. Backlog, is presented in the notes to the Company’s annual consolidated financial statements and is not meant to be a substitute for other amounts presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measures.
Non-GAAP Ratios
A non-GAAP ratio is a financial measure presented in the form of a ratio, fraction, percentage or similar representation, and that has a non-GAAP financial measure as one of its components and is not disclosed in the financial statements of the Company.
A non-GAAP ratio presented and discussed in this press release is as follows:
- “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue.
- “Adjusted Earnings Per Share – Basic” and “Adjusted Earnings Per Share – Diluted” are calculated by dividing Adjusted Profit (Loss) Attributable to Shareholders (defined above) by the basic and diluted weighted average number of shares outstanding, respectively.
Management uses the above non-GAAP ratio to analyze and evaluate operating performance.
Supplementary Financial Measures
A supplementary financial measure: (a) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company; (b) is not presented in the financial statements of the Company; (c) is not a non-GAAP financial measure; and (d) is not a non-GAAP ratio.
Key supplementary financial measures presented in this press release are as follows:
- “Gross profit margin” represents gross profit as a percentage of revenue.
- “Operating margin” represents operating profit (loss) as a percentage of revenue.
- “MG&A as a percent of revenue” represents marketing, general and administrative expense as a percentage of revenue.
RECONCILIATIONS AND CALCULATIONS
Set out below is the calculation of Adjusted EBITDA by segment for the three months ended March 31, 2026 and 2025:
$ millions
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||
| Construction | Concessions | Other costs and eliminations | Consolidated | Construction | Concessions | Other costs and eliminations | Consolidated | |||||||||||||||||||
| Operating profit (loss) | $ | 12.0 | $ | (3.6 | ) | $ | (16.4 | ) | $ | (8.0 | ) | $ | (29.9 | ) | $ | (1.7 | ) | $ | (9.1 | ) | $ | (40.7 | ) | |||
| Depreciation and amortization | 25.7 | - | 0.2 | 26.0 | 25.0 | 0.1 | 0.9 | 26.0 | ||||||||||||||||||
| (Gain) on sale of assets | (0.6 | ) | - | - | (0.6 | ) | (1.1 | ) | - | - | (1.1 | ) | ||||||||||||||
| Costs related to business acquisitions(2) | 2.8 | - | - | 2.8 | 2.7 | - | - | 2.7 | ||||||||||||||||||
| (Income) loss from projects accounted for using the equity method | 0.3 | 1.9 | - | 2.2 | 0.5 | (0.2 | ) | - | 0.3 | |||||||||||||||||
| Equity Project EBITDA(1) | 1.7 | 7.9 | - | 9.6 | 1.8 | 14.6 | - | 16.4 | ||||||||||||||||||
| Adjusted EBITDA(1) | $ | 41.9 | $ | 6.2 | $ | (16.2 | ) | $ | 32.0 | $ | (1.0 | ) | $ | 12.8 | $ | (8.2 | ) | $ | 3.6 | |||||||
| (1) | This is a non-GAAP financial measure. Refer to the “Non-GAAP and Supplementary Financial Measures” in this press release for more information on each non-GAAP financial measure |
| (2) | Costs (gains) related to business acquisitions includes costs related to advisory, legal, and other transaction fees; changes in the fair value of contingent consideration; and contingent consideration classified as compensation per IFRS Accounting Standards |
Set out below is the calculation of Equity Project EBITDA by segment for the three months ended March 31, 2026 and 2025:
| $ millions | ||||||||||||||||||||||||||
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||
| Aecon's proportionate share of projects accounted for using the equity method (1) | Construction | Concessions | Other costs and eliminations | Consolidated | Construction | Concessions | Other costs and eliminations | Consolidated | ||||||||||||||||||
| Operating profit | $ | 1.7 | $ | 3.9 | $ | - | $ | 5.6 | $ | 1.8 | $ | 10.5 | $ | - | $ | 12.3 | ||||||||||
| Depreciation and amortization | - | 4.0 | - | 4.0 | - | 4.1 | - | 4.1 | ||||||||||||||||||
| Equity Project EBITDA(2) | $ | 1.7 | $ | 7.9 | $ | - | $ | 9.6 | $ | 1.8 | $ | 14.6 | $ | - | $ | 16.4 | ||||||||||
| (1) | Refer to Note 11 “Projects Accounted for Using the Equity Method” in the March 31, 2026 interim condensed consolidated financial statements |
| (2) | This is a non-GAAP financial measure. Refer to the “Non-GAAP and Supplementary Financial Measures” section in this press release for more information on each non-GAAP financial measure. |
Set out below is the calculation of Adjusted Profit (Loss) Attributable to Shareholders and Adjusted Earnings (Loss) per Share for the most recent eight quarters:
$ millions
| 2026 | 2025 | 2024 | ||||||||||||||||||||||||
| Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 | |||||||||||||||||||
| Profit (loss) attributable to shareholders | $ | (17.9 | ) | $ | 20.7 | $ | 40.0 | $ | (7.6 | ) | $ | (37.9 | ) | $ | 14.0 | $ | 56.5 | $ | (123.9 | ) | ||||||
| Unrealized (gain) loss on derivative financial instruments | (1.5 | ) | 18.8 | (4.5 | ) | (4.2 | ) | (2.4 | ) | (4.3 | ) | (7.3 | ) | (3.7 | ) | |||||||||||
| Amortization of acquisition related intangible assets | 5.4 | 5.3 | 4.8 | 4.8 | 5.1 | 3.1 | 3.0 | 0.3 | ||||||||||||||||||
| Costs (gains) related to business acquisitions(2) | 2.8 | (9.4 | ) | (6.2 | ) | 2.3 | 2.7 | 4.3 | 5.6 | - | ||||||||||||||||
| Income tax effect of the above items | (2.1 | ) | (0.8 | ) | (1.0 | ) | (1.8 | ) | (2.0 | ) | (1.9 | ) | (2.3 | ) | (0.1 | ) | ||||||||||
| Adjusted profit (loss) attributable to shareholders (1) | $ | (13.3 | ) | $ | 34.6 | $ | 33.1 | $ | (6.6 | ) | $ | (34.6 | ) | $ | 15.2 | $ | 55.6 | $ | (127.4 | ) | ||||||
| Adjusted earnings (loss) per share - basic(2) | $ | (0.21 | ) | $ | 0.54 | $ | 0.52 | $ | (0.10 | ) | $ | (0.55 | ) | $ | 0.24 | $ | 0.89 | $ | (2.04 | ) | ||||||
| Adjusted earnings (loss) per share - diluted(2) | (0.21 | ) | 0.52 | 0.49 | (0.10 | ) | (0.55 | ) | 0.23 | 0.83 | (2.04 | ) | ||||||||||||||
| (1) | This is a non-GAAP financial measure. Refer to the “Non-GAAP and Supplementary Financial Measures” in this press release for more information on each non-GAAP financial measure. |
| (2) | This is a non-GAAP ratio. 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 ratio. |
| (3) | Costs (gains) related to business acquisitions includes costs related to advisory, legal and other transaction fees; changes in the fair value of contingent consideration; and contingent consideration classified as compensation per IFRS Accounting Standards. |
STATEMENT ON FORWARD-LOOKING INFORMATION
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial, and economic data and operating plans but are subject to known and unknown risks, assumptions and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, the payment of dividends, the repurchase of shares, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding: expectations regarding the financial risks and impact of the fixed price legacy projects, the expected timelines of such projects and the expected impact the completion of these projects will have on profitability and margin predictability of the Company; the delivery of critical infrastructure projects; backlog and estimated duration; the impact of certain contingencies on Aecon (see: Section 10.2 “Contingencies” in the Company’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025 (the “2025 MD&A”) and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026); the uncertainties related to the unpredictability of global economic conditions; expectations regarding the impact of announced or threatened tariffs; the sufficiency of its current liquidity position its strategy of seeking to differentiate its service offering and execution capability and the expected results therefrom; expectations regarding revenue, recurring revenue programs, and future revenue growth and the impact therefrom; expectations regarding the stabilization and improvement of Adjusted EBITDA margins; expectations regarding operational and financial performance; expectations regarding profitability and margin predictability; expectations regarding capital expenditures; expectations regarding capital allocation and the expected benefits therefrom; expectations regarding the shift towards projects with appropriate risk-adjusted returns; expectations regarding the pipeline of opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defence available to Aecon; infrastructure commitments; statements regarding the various phases of projects and expectations regarding project timelines; expectations regarding increased operational effectiveness, the growth of its Concessions portfolio, and access to new markets through strategic investments; expectations regarding systems investments and the impact therefrom; expectations regarding opportunities to add to the existing portfolio of Canadian and international concessions in the next 6 to 12 months; expectations regarding the continuing growth of the industrial, nuclear and power markets; and expectations regarding growth, and the acceleration thereof, of Aecon in Canada and the U.S. Forward-looking statements may in some cases be identified by words such as “will,” “plans,” “schedule,” “forecast,” “outlook,” “completing,” “mitigating,” “potential,” “possible,” “maintain,” “seek,” “cost savings,” “synergies,” “strategy,” “goal,” “indicative,” “may,” “could,” “might,” “can,” "believes," "expects," "anticipates," “aims,” “assumes,” “upon,” “commences,” "estimates," "projects," "intends," “prospects,” “targets,” “occur,” “continue,” "should" or the negative of these terms, or similar expressions. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance, or achievements to differ materially from those expressed or inferred herein including, but not limited to: the risk of not being able to drive a higher margin mix of business by participating in more complex projects, achieving operational efficiencies and synergies, and improving margins; the risk of not being able to meet contractual schedules and other performance requirements on large, fixed priced contracts; the risks associated with a third party’s failure to perform; the risk of not being able to meet its labour needs at reasonable costs; possibility of gaps in insurance coverage; the risk of not being able to address any supply chain issues which may arise and pass on costs of supply increases to customers; the risks associated with international operations and foreign jurisdiction factors; the risks associated with a dynamic geopolitical environment; the risks associated with announced or threatened tariffs on operations; the risk of higher fuel costs and the impact therefrom on material costs and/or reduced availability, changes in the demand for Aecon’s services, as well as delays in project timelines; the risk of not being able, through its joint ventures or joint operations, to enter into implementation or construction phases of certain projects following the successful completion of the relevant development phase; the risk of not being able to achieve substantial completion on the remaining legacy project; the risk of not being able to execute its strategy of building strong partnerships and alliances; the risk of not being able to execute its risk management strategy; the risk of not being able to grow backlog across the organization by winning major projects; the risk of not being able to maintain a number of open, recurring, and repeat contracts; the risk of not being able to identify and capitalize on strategic operational investments; the risk of not being able to oversee, and where appropriate, respond to known and unknown environmental risks; the risks of nuclear liability; the risks of cyber interruption or failure of information systems; the risks associated with the strategy of differentiating its service offerings in key end markets; the risks associated with undertaking initiatives to train employees; the risks associated with the seasonal nature of its business; the risks associated with changing levels of demand for Aecon’s services; the risks associated with being able to participate in large projects; the risks associated with legal proceedings to which it is a party; the ability to successfully respond to shareholder activism; the risk the increase in energy demand does not continue; risks associated with future pandemics, epidemics and other health crises and Aecon’s ability to respond to and implement measures to mitigate the impact of such pandemics or epidemics; the risk that the strategic partnership with Oaktree Capital Management, L.P. (“Oaktree”) will not realize the expected results and may negatively impact the existing business of Aecon Utilities Group Inc. (“Aecon Utilities”); the risk that Aecon Utilities will not realize the anticipated balance sheet flexibility with the completion of the Oaktree investment; the risk that Aecon Utilities will not realize opportunities to expand its geographic reach and range of services in the U.S; the risk of the anticipated benefits and synergies from strategic acquisition transactions not being fully realized or taking longer than expected to realize; the risk of being unable to retain key personnel; the risk of being unable to maintain relationships with customers, suppliers or other business partners; and various other risk factors described in Aecon’s filings with the securities regulatory authorities, which are available under Aecon’s profile on SEDAR+ (www.sedarplus.ca), including the risk factors described in Section 13 - “Risk Factors” in the 2025 MD&A, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, and in other filings made by Aecon with the securities regulatory authorities in Canada.
Forward-looking statements are presented for the purpose of helping investors and others in understanding certain key elements of Aecon’s current objectives, strategic priorities, expectations and plans, and to gather a better understanding of Aecon’s business and operating environment. These forward-looking statements are based on a variety of factors and assumptions including, but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions and no significant events occur outside the ordinary course of business and assumptions regarding the outcome of the outstanding claims in respect of the fixed price legacy projects being performed by joint ventures in which Aecon is a participant. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While the Company believes that such third-party sources are reliable sources of information, the Company has not independently verified the information. The Company has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
| CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (in thousands of Canadian dollars, except per share amounts) | |||||||
| For the three months ended | |||||||
| March 31 | March 31 | ||||||
| 2026 | 2025 | ||||||
| Revenue | $ | 1,256,994 | $ | 1,061,650 | |||
| Direct costs and expenses | (1,156,447 | ) | (1,019,860 | ) | |||
| Gross profit | 100,547 | 41,790 | |||||
| Marketing, general and administrative expense | (81,014 | ) | (56,917 | ) | |||
| Depreciation and amortization | (26,030 | ) | (25,956 | ) | |||
| Income from projects accounted for using the equity method | (2,173 | ) | (354 | ) | |||
| Other income | 651 | 751 | |||||
| Operating profit (loss) | (8,019 | ) | (40,686 | ) | |||
| Finance income | 2,238 | 1,576 | |||||
| Finance cost | (13,119 | ) | (10,048 | ) | |||
| Profit (loss) before income taxes | (18,900 | ) | (49,158 | ) | |||
| Income tax (expense) recovery | 909 | 11,080 | |||||
| Profit (loss) for the period | $ | (17,991 | ) | $ | (38,078 | ) | |
| Profit (loss) attributable to: | |||||||
| Aecon shareholders | (17,921 | ) | (37,931 | ) | |||
| Non-controlling interests | (70 | ) | (147 | ) | |||
| (17,991 | ) | (38,078 | ) | ||||
| Basic earnings (loss) per share | $ | (0.28 | ) | $ | (0.60 | ) | |
| Diluted earnings (loss) per share | $ | (0.28 | ) | $ | (0.60 | ) | |
