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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 Gabrielon Apr 27, 2024 5:06pm
124 Views
Post# 36011183

RE:RE:RE:Legacy Projects Impact on FY24

RE:RE:RE:Legacy Projects Impact on FY24

Yes. The CEO said the majority of the LSTK backlog was associated to the GHB and then he said 2/3 so you are correct. Below is the excerpt for reference. LSTKs represent less than 5% of the backlog, two-third of which is doing great - see below. They said last quarter that another 90m is associated to CGL which will never be performed - second excerpt at the bottom of this post.

The challenge now for Aecon is talent acquisition and retention, and thorough project management. 

So on the 330m, the majority now is on Gordie Howe. I mean around two-third of the backlog is on Gordie Howe, forecasting to be substantially completed in September 2025. In terms of execution, it is going quite right. Just to give you an example, this bridge, which is the longest span in North America, 851 meters across the river North to South, is made of 53 segments of 15 meters each, with 3 segments remaining. Then we have the acceses/entry, I mean, Canadian side and the American side and the link to interstate I-35 -on the Michigan site. Everything is on time. So I would say I'm rather happy with the execution of this project.

Excerpt from the March 6 conference call

CEO: Okay. We still have our full legacy project on our shoulders, but the situation is getting better and better. I mean, you have noticed, we have something like 420 million of backlog, which represents 7%. So it's a steep decrease. On this 420 million of backlog, I mean, 60% is about Gordie Howe, which is not the most difficult one. There's something like 90 to 95 on CGL, but most probably we are not going to execute it, because the client has other alternative to finalize a cleanup. So it's remaining rather weak on Egglinton and on Finch.

 

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