Aecon Group Inc. reported its first-quarter financial results on April 22 after market close. The construction company revenue and adjusted EBITDA both increased slightly from a year ago.
Aecon’s (ARE) revenue came in at C$754 million for the quarter ended March 31, an increase of 1% from C$747.5 million last year.
Meanwhile, adjusted EBITDA was C$20.8 million in 1Q 2021, an improvement of C$1.6 million from C$19.2 million in 1Q 2020. Operating loss increased from C$9.7 million to $C$10.2 million.
As of March 31, 2021, the reported backlog was C$5,913 million, compared to an order backlog of C$6,454 million as of December 31, 2020.
Aecon’s President and CEO Jean-Louis Servranckx said, “Aecon’s first-quarter results illustrate consistent performance with steady growth in revenue and Adjusted EBITDA. Over a year into the global pandemic, Aecon continues to harness the resiliency and agility embedded in our diverse business to navigate a challenging operating environment successfully. The overall outlook for 2021 remains positive as we safely and sustainably continue our drive to be the number one Canadian infrastructure company.”
While Aecon’s overall outlook is positive for the year, the COVID-19 pandemic is expected to continue to have some impact in moderating the overall forecast for revenue growth and profitability in 2021. (See Aecon Group stock analysis on TipRanks)
Yesterday, Canaccord Genuity analyst Yuri Lynk reiterated a Buy rating on the stock with a C$21.00 price target (12% upside potential).
Overall, the consensus on the Street is that Aecon is a Moderate Buy based on 4 Buys and 2 Holds. The average analyst price target of C$20.60 implies an upside potential of approximately 10% from current levels. Shares have jumped by about 15% since the start of the year.