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Aecon reports strong year-to-date revenue growth

DCN-JOC News Services
Aecon reports strong year-to-date revenue growth

TORONTO — Aecon Group has reported results for the third quarter of 2022 that include 19 per cent year-to-date revenue growth and a backlog of $6.3 billion as at Sept. 30.

According to the firm’s Q3 report, new contract awards of $991 million were booked in the third quarter of 2022 compared to $682 million in the same period in 2021. Year-to-date new awards of $3.507 billion increased by $1.030 billion, or 42 per cent, compared to $2.477 billion in the 2021 year-to-date period.

During the quarter Aecon was awarded two contracts with an aggregate value of $127 million for the Savannah River Nuclear Solutions Demolition and Removal and SRNS Temporary HVAC projects in Aiken, S.C.

Revenue in Aecon’s construction segment for the three months ended Sept. 30 of $1.299 billion was $156 million, or 14 per cent, higher compared to the same period in 2021. Revenue was higher in civil operations ($167 million) driven by an increase in both major projects and roadbuilding construction work; in utilities operations ($22 million) primarily due to an increase in telecommunications and high-voltage electrical transmission work; and in nuclear operations ($9 million) driven by a higher volume of refurbishment work at nuclear generating stations located in Ontario.

Partially offsetting the increases was lower revenue in industrial operations ($29 million) driven primarily by decreased activity on mainline pipeline work in Western Canada and in urban transportation works ($13 million) primarily from a decrease in LRT work in Ontario.

In addition, earlier this year, an Aecon consortium was selected to deliver the multibillion-dollar long-term GO Rail Expansion On-Corridor Works project in Ontario under a progressive design, build, operate and maintain contract model. The contract begins with a two-year development phase leading into the main construction scope and a 25-year operations and maintenance component, none of which is yet reflected in backlog.

“Aecon continues to see strong demand for its services across Canada, particularly in smaller and medium-sized projects,” stated Jean-Louis Servranckx, Aecon president and CEO, in a statement. “With strong and diversified backlog in hand, as well as the GO Rail Expansion On-Corridor Works project which is not yet in backlog, robust demand for recurring revenue programs driven by the utilities sector, and ongoing recovery in airport traffic in Bermuda, Aecon is well positioned for ongoing growth.”  

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