RE:RE:High frequency train In my opinion, Aecon holds today the better portion of the stick like it never has before. Below is why.
The collaborative alliance model is a game changer both in terms of risks and in terms of volume
(we are doubling our backlog as the designs of these projects are approved in 2025).
One key piece of information you may be aware of is that contractors increase their profit margins as their backlog increases.
When the backlog doubles like in this case, estimators are asked to substantially increase margins on additional projects.
So it is likely our involvement on the high frequency train is very profitable and our EBITDA beats 500m possibly in 2025 or in 2026. When we do, 50$ will look cheap.