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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Comment by Meesha1on Sep 28, 2023 9:26am
193 Views
Post# 35658948

RE:RE:Aecon valuation

RE:RE:Aecon valuationYes, I wasn't clear on the backlog. The problematic L4 projects make up 10% of the backlog (If it was 50% we wouldn't be having this conversation...the stock would be under $5). What I meant is that of the current $6,851MM backlog, 50% is fixed price and 50% is Cost Plus/Unit Price. Only a portion of the fixed price contracts (the L4) have been impacted. Some investors may be concerned that other shoes could drop in the other fixed price contracts. I'm not concerned, because if those projects didn't experience problems during the pandemic, then they have been stress-tested enough for me.

More importantly as we go forward, any new fixed price contracts will be structured to reduce the risk from Aecon's perspective. The demand for their services is such that they can be more selective on which projects they take on.
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