A page is turning. Revenue dropped compared to Q3 2023 which was
loaded with LSTK billing. Aecon's involvement in LSTK contracts namely CGL's pipeline (industrial) and the two problematic Eglinton and Finch LRT (urban transport) + the sale of road building business is reflected here with lower revenue and higher EBITDA.
Revenue in the Construction segment for Q1 2024 of $844 million was $247 million, or 23%, lower compared to the same period in 2023. Construction segment revenue was lower in industrial operations ($181 million) primarily due to : 1) decreased activity on mainline pipeline work in western Canada following the : 2) achievement of substantial completion on a project in the third quarter of 2023, in urban transportation solutions ($41 million) from a lower volume of light rail transit work in Ontario, 3) in civil operations ($36 million) primarily from a lower volume of roadbuilding construction work in eastern Canada of $31 million as a result of the sale of Aecon Transportation East (“ATE”) in the second quarter of 2023, and in utilities operations ($13 million) from a decreased volume of telecommunication and oil and gas distribution work, partially offset by an increased volume of high-voltage electrical transmission and battery energy storage system work. Partially offsetting these decreases was higher revenue in nuclear operations ($24 million) driven by an increased volume of refurbishment work at nuclear generating stations in Ontario and the U.S.