October 26, 2018 by David Kennedy
TORONTO—Canadian construction firm Aecon Group Inc. has a built up a record project backlog nine months into 2018.
The contractor credited a “robust” infrastructure market, as well as its “diverse” capabilities, for the $7 billion in work currently on its books.
The figure is a 65 per cent increase from the beginning of 2018, when it appeared the company would be taken over by state-owned Chinese firm CCCC International Holding Ltd. Ottawa ultimately blocked the acquisition on national security grounds, forcing Aecon to regroup. It brought on Jean-Louis Servranckx as its new president and CEO after the deal fell through.
Along with disclosing the record backlog and financial earnings for the third quarter, Servranckx added that the company expects another year of strong growth in 2019.
“Our current backlog coupled with a robust pipeline of future opportunities is expected to support the goals of revenue growth and improving Adjusted EBITDA margin,” he said in a statement.
Aecon reported earnings of 60 cents per share for Q3 on revenue of just over $1 billion. This compares to earnings of 37 cents and revenue of $759.7 million for the same quarter last year.
Investors sent the company’s share price up nearly 12 per cent in trading Oct. 26 following the earnings announcement Thursday afternoon.
New additions to the company’s multibillion-dollar business backlog include its share of the $5.7 billion contract to build the Gordie Howe International Bridge and a $248 million deal to rehabilitate part of Toronto’s Gardiner Expressway.