Aecon beats analyst expectations on higher revenues; backlog boosted by major contract wins

TORONTO—Aecon Group Inc. beat analyst expectations as its net loss was cut by more than half in the first quarter on a 20-per-cent growth in revenues and a higher backlog.

The Toronto-based construction firm says it lost $9.8 million or 16 cents per diluted share for the period ended March 31, compared with a loss of $19.2 million or 32 cents per share a year earlier.

Revenues increased by $107 million to reach $650 million. The increase would have been 35 per cent excluding the contract mining business sold last November from the prior-year results.

The operating loss of $10.8 million was about half the $22.2-million operating loss in the first quarter of 2018.

Aecon says its backlog grew 46 per cent to $6.7 billion from $4.6 billion a year ago. It cited contracts for major projects, such as the Montreal REM, Finch West LRT and the Gordie Howe International Bridge, for much of the increase. However, the value of new contracts awarded in the quarter fell to $578 million from $910 million in the same period in 2018.

The company was expected to lose 25 cents per share on $505.9 million in revenues, according to analysts polled by Thomson Reuters Eikon.