CIBC's Jacob Bout DJ Aecon Group's Legacy Projects Still A Drag -- Market Talk
Monday, September 25, 2023, 11:47 AM ET
1147 ET - Aecon Group has a number of fixed-price legacy projects and write-downs associated with them, weighing on the company, and CIBC's Jacob Bout says there may be more to come. "While the company has already taken write-downs associated with the CGL and Finch West projects, we believe further write-downs associated with Eglinton (in H2/23) and Gordie Howe (in 2024) are a possibility," he says. Excluding the legacy projects, Bout believes the rest of the business is displaying positive revenue and profitability trends, with "recent infrastructure and nuclear project awards that are set to add billions to backlog." But he adds that the risk of further legacy write-downs will likely have investors taking a more mode