Aecon Group Inc T.ARE

Alternate Symbol(s): AEGXF

Industrials Conglomerates

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.

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Post by retiredcfon Nov 15, 2024 8:34am

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Post# 36314508

Ink Research

Morning Report: Aecon helps the INK CIN Index build a decade of outperformance

November 15, 2024

November 14th marked the 10-year live anniversary of the INK Canadian Insider (CIN) Index. The 50-stock rules-based Index serves as the institutional track record of the INK Edge Outlook process (micro-cap stocks and low-volume stocks are excluded from index consideration). Including dividends, the Index has more than tripled over the past decade and is up 11.74% on an annualized basis. By our estimate, that is about 3.1% better than the S&P/TSX Composite Index including dividends. Outperforming the broad market benchmark by three percent annually is a respectable showing by most measures, and INK would like to give a shout out to our Index administrator Solactive who calculates the Index live for us intra-day and implements the quarterly rebalancings. On that front, today marks the fall rebalancing, and Aecon Group (ARE) is one stock that will remain as a constituent. In fact, Aecon entered the Index during last fall's rebalancing and has been a meaningful contributor to Index performance with the stock advancing 167% over the past year. Importantly, insiders kept buying after we last featured it here on August 2nd.

Aecon reported Q3 revenue of $1.275 billion, up 3% from Q3 2023. Profit attributable to shareholders came in at $0.85 per diluted share, down from $1.63 in the comparable period, but adjusted EBITDA was $126.9 million, up from $32.0 million in Q3 2023. It reported a backlog as of Q3 end of $5.98 billion, down from $6.202 billion at the end of Q3 2023. However, new contract awards booked in Q3 were $1.069 billion, up from $591 million in the comparable period. Based on its backlog, Aecon believes it is positioned to achieve further revenue growth beginning in 2025 and over the next few years.