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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

Post by Kupoteaon Apr 26, 2024 8:33am
186 Views
Post# 36008898

FY25 EBITDA Projections

FY25 EBITDA Projections

I've seen some informed posters in this board suggesting a rough range of $400M EBITDA for FY25.

the new CFO commented that revenue should be flat for this year then increase nicely in FY25 from the 5 large contracts moving from design to build. With TTM Adjusted EBITDA being $365M ex: Legacy/divested businesses you could keep margins flat and pretty easily hit the $400M EBITDA mark.

What confuses me is you have a few Analysts calling the company already fully valued. I believe one recently suggested the company was trading at a 6.1x EV/EBITDA multiple compared to their FY25 projections. The only way that makes sense is if gross margins plummet. Ignoring cash on hand, FCF for FY24 and the likelyhood of future settlements to Aecon that's about $172M in projected EBITDA for FY25. What is that analyst smoking to come up with those projections or am I missing something very important?
 

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