Aecon Group Inc T.ARE

Collaborative projects

[Gabriel]

Mark my words, contractors involved in collaborative projects will trade at the same multiple as engineering services firms as the variability in their earnings will be comparable. Give it 5 years. So let me see here :

EBITDA construction : > 500m * 12x = 6B
EBITDA concessions : > 200m * 12x 2= 2.4B

< 60m shares left after 2 NCIB programs.

> 140$ per share.

[Henrye]

I can easily see and comprehend this  comparable. This is so significantly logical therefore many of us will adopt your opinion in advance as this is so incredibly clever. Nice twist and food for thought! Great future ahead for Aecon! For non believers, respectfully mark Gabriel's words!

[LCcapital]

That is a strong claim - I am not sure I totally agree. The gap should close I agree with collaborative pricing and  also general improvements to construction firms and their processes, but ultimately isn't engineering a business with a less variable cost structure, and therefore will have a higher multiple? 

[Gabriel]

If the variability in earnings is identical they will definitely trade at the same multiple. That is precisely what I wrote. I beg to ask what is unclear. Thanks LC. Mark my words, contractors involved in collaborative projects will trade at the same multiple as engineering services firms as the variability in their earnings will be comparable.   Mark my words, contractors involved in

[Gabriel]

  In the broader engineering services industry, contracts typically vary between time and materials (T&M) and lump sum (fixed price) structures, depending on the nature of the project.   • Time and materials contracts are more common when the scope of work is not fully defined at the start, allowing for flexibility. These contracts allow clients to reimburse all costs plus a

[LCcapital]

Merci Gabriel - this is very useful. And thank you for continuing to share your expertise. Cheers my friend.

[Henrye]

This post " mark my words " turned my light bulb instantly, before I even finished reading your factual post. Your post should inspire current and new shareholders and want to be shareholders to continue to add to their investments.  Those in the know, know it!!! Especially the insider buyer of all people the NEW CFO . His purchases clearly confirm Gabriela  assumptions! CFO

[LCcapital]

I must have misread and misunderstood your point.  I agree: if construction firms (Aecon in particular) can show consitent earnings, the multiple should re-rate towards engineering firms.  To get there, it is I believe a combination of collaborative pricing which smooths results over the project lifecycle, and also good senior management. Aecon is moving in the right direction in both