RE:SNC Q2 They have a net cash outflow of $88.7 million from operating activities during Q2 meaning day-to-day operations are not generating enough cash to cover expenses, which might be a concern depending on the context and the reasons:
1. Temporary Issue: The negative cash flow could be due to temporary factors such as higher-than-usual expenses (compensation being one of them that they said, LSTK losses the other, what are the others?), investments?, or delayed receivables that may reverse in future periods?
2. SG&A or other expenses: If this trend continues over multiple periods, it could indicate underlying issues with the company’s profitability or cash managemen
US and LA has\ve barely increased in revenue. The increase is in low-margin Canada.
EPS H1 is 74 cents. So we are trading at 38 x earnings. Compare to Aecon with more stable earnings ahead.