EarningsQ3 2026 Earnings Report
DE:2AE Q3 2026 EPS Results
Actual EPS€0.55
Consensus EPS€0.47
Beat/MissBeat by +€0.08
One Year Ago EPS€0.34
DE:2AE Q3 2026 Revenue Results
Actual Revenue€1.23B
Expected Revenue€1.13B
Beat/MissBeat by +€97.37M
YoY Revenue Growth+25.51%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
DE:2AE Upcoming Earnings
Aecon Group Inc.'s next earnings date is estimated for March 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Aecon reported record revenue, EBITDA, backlog, contract awards, recurring revenue, and free cash flow, while highlighting improved construction margins, a lower-risk contract mix, nuclear and power-sector positioning, and double-digit 2026 revenue growth. The main challenges were continuing legacy-project losses, lower concessions EBITDA, higher SG&A, moderating working-capital benefits, and tight labor markets, but these issues were presented alongside improving execution and a favorable long-term outlook.Company Guidance
Record Quarterly Revenue and EBITDA Growth
Aecon delivered record quarterly revenue of CAD 1.9 billion, up 26% year over year, with 71% of the growth organic. Adjusted EBITDA increased 40% to CAD 130 million from CAD 93 million, driven by strong revenue growth and year-over-year margin improvement in construction. Operating profit rose to CAD 83 million from CAD 61 million, and adjusted diluted EPS increased to CAD 0.86 from CAD 0.49.
Record Backlog and Strong Contract Awards
Backlog reached a record CAD 14.6 billion at September 30, up 39% from the prior quarter and compared with CAD 10.8 billion at the same time last year. New contract awards of CAD 6 billion were booked in the quarter, while CAD 10.1 billion was booked over the trailing 12 months.
Largest Nuclear Award in Aecon History
Aecon was awarded contracts and joint ventures with an aggregate value of CAD 3 billion for the Pickering Nuclear Generating Station refurbishment execution phase. Aecon's CAD 1.75 billion share was added to backlog during the quarter, representing the largest nuclear award in the company's history.
Broad-Based Construction Revenue Growth
Construction revenue increased 27% to CAD 1.9 billion, with 72% organic growth and higher revenue across all sectors. Utilities revenue increased CAD 184 million, nuclear revenue increased CAD 130 million, civil revenue increased CAD 45 million, industrial revenue increased CAD 42 million, and urban transportation solutions revenue increased CAD 9 million.
Improved Construction Segment Margins
Construction segment adjusted EBITDA increased to CAD 132 million from CAD 88 million, while the adjusted EBITDA margin improved to 6.8% from 5.8%. The improvement was primarily driven by higher gross profit margins in civil and nuclear operations, stronger execution, a shift toward lower-risk work, and the gradual wind-down of legacy project exposure.
Long-Term, Lower-Risk Contract Mix
Approximately 64% of backlog was comprised of variable-price contracts, while close to half of the remaining 36% fixed-price backlog was booked following collaborative and fully integrated development phases. Overall, approximately 81% of the CAD 14.6 billion backlog was derived from collaborative or non-fixed-price work. Construction trailing 12-month adjusted EBITDA margin increased from 3.7% in the third quarter of 2025 to 5.6% in the current quarter.
Strong Backlog Visibility Beyond Reported Backlog
Approximately two-thirds of reported backlog extends beyond the next 12 months, with about 40%, or CAD 6 billion, extending beyond 24 months. Aecon also identified 10 major projects in development or collaborative delivery phases where significant future scope is not yet reflected in backlog, including additional nuclear, hydroelectric, port, defense, and regional rail opportunities.
Recurring Revenue Expansion
Trailing 12-month recurring revenue exceeded CAD 1.1 billion. Recurring utility-services revenue increased 42% to CAD 987 million from CAD 695 million last year. Master service agreement programs have a weighted average contract term of approximately three years and a near 100% renewal rate, according to the prepared remarks.
Positive Full-Year and 2027 Revenue Outlook
Aecon reinforced its expectation for double-digit revenue growth in 2026 and further revenue growth in 2027. Management cited secure backlog exceeding CAD 14 billion, recurring revenue programs, recent acquisitions, and project opportunities across nuclear and conventional power, critical resource development, mass transit, water, defense, and digital infrastructure.
Significant Near-Term Revenue Visibility
Management expects roughly CAD 5 billion of the CAD 14.6 billion backlog to be executed over the next 12 months, in addition to approximately CAD 1.1 billion of recurring revenue programs. Management also described a historical range of CAD 750 million to CAD 1.2 billion from additional work programs, awards, change orders, and scopes on projects already in progress.
Improved Cash Flow and Balance Sheet
Aecon generated CAD 645 million of free cash flow in the trailing 12 months ended September 30, compared with negative free cash flow of CAD 41 million in the same period last year. Management attributed the improvement to working-capital management and contract structure. Core cash was CAD 529 million, net debt was CAD 338 million, and net debt-to-trailing-12-month adjusted EBITDA was 1x.
Significant Liquidity and Credit Capacity
Aecon had CAD 1 billion of committed revolving credit facilities, of which CAD 342 million was drawn and CAD 4 million was used for letters of credit. Together with its CAD 960 million EDC performance-security guarantee facility, Aecon said it could access approximately CAD 2 billion of committed credit facilities, working capital, and letter-of-credit capacity.
Expansion of Nuclear Fabrication Capacity
Aecon agreed to acquire additional nuclear fabrication capacity in Ontario, with the transaction expected to close in the fourth quarter for approximately CAD 50 million. The new facility is expected to add roughly 100,000 to 120,000 square feet, bringing Aecon's pro forma fabrication capacity to just over 400,000 square feet across its network in Canada and the United States.
Technology-Agnostic Nuclear Positioning
Management stated that Aecon is positioned across CANDU refurbishment, GE Hitachi's 300 MW boiling-water small modular reactor, Westinghouse nuclear-qualified modules, and the X-energy Cascade project. Aecon expects its technology-agnostic position, nuclear workforce, and fabrication capabilities to support multiple potential nuclear technology outcomes.
Growth in U.S. Nuclear Operations
Aecon said it has more than 1,500 workers in the U.S. nuclear industry and is expanding its participation in extended power uprate and reactor life-extension work. Management described this market as a significant opportunity in addition to new nuclear construction.
Expansion Across Power Infrastructure
Power and utility services represented 58% of Aecon's CAD 6.4 billion of trailing 12-month construction revenue. Management highlighted capabilities in nuclear, conventional and hydroelectric generation, transmission and distribution, battery storage, and data-center electrical infrastructure. Aecon expects to have installed approximately 1,000 MW of battery-storage capacity in Canada by year-end.
Maple Fibre Concessions Alliance
Aecon launched Maple Fibre, a majority-controlled strategic alliance with a Tier-1 telecommunications operator to finance, design, build, and own next-generation network infrastructure. Aecon Concessions owns the majority interest, and Aecon Utilities has commenced construction for Maple Fibre in Ontario.
Greenlight Electricity Centre Progressing as Expected
The Greenlight project was described as being a few percent complete in execution and approximately 40% to 50% complete in detailed engineering. Management said the startup was progressing in line with expectations and highlighted its partnership with Técnicas Reunidas and the project's fit with Aecon's industrial capabilities near Edmonton.
Indigenous Relations Recognition
Aecon achieved Gold Partnership Accreditation in Indigenous Relations, becoming the first construction company with nationwide operations to achieve the highest level of certification. Management said the recognition reflected its relationships with Indigenous communities, businesses, and partners.
Execution Capacity and Workforce Initiatives
Management said Aecon has been investing in operational excellence, recruiting, training, and workforce retention. The company had more than 14,000 team members across its operating sectors, and management said it did not currently see a danger in being able to execute its backlog.
Improving Project Approval Environment
Management said changes to Canada's regulatory framework, including efforts toward a one-year rule and a single approval gate, were improving authorizations to proceed, environmental assessments, and preparatory work. Management said it was less concerned about project-deferral risk than it had been a few years earlier.
DE:2AE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed