Aecon revenue rises in first quarter, but backlog dips
Aecon Group Inc. reported earnings for the first quarter of 2021, delivering “consistent performance with steady growth in revenue and adjusted EBITDA” compared to the same quarter last year, according to president and CEO, Louis Servranckx.
“Over a year into the global pandemic, Aecon continues to harness the resiliency and agility embedded in our diverse business to successfully navigate a challenging operating environment,” Servranckx said in the earnings release. “The overall outlook for 2021 remains positive as we safely and sustainably continue our drive to be the number one Canadian infrastructure company.”
The contractor’s revenue for the first quarter of 2021 came in at an even $754 million, compared to $747.5 million last year. Adjusted EBITDA of $20.8 million compared to $19.2 million in 2020.
Fewer major contract awards, however, drove Aecon’s backlog down to $5.91 billion — versus $6.5 billion at the end of 2020 and $6.95 billion at the close of the first quarter of 2020. It pointed to COVID-19 delaying the bidding processes for certain projects as part of the reason for the decline.
Nevertheless, the company said its outlook remains positive despite the ongoing pandemic.
“Backlog, recurring revenue programs, and the pipeline of bidding opportunities for new work, remain at strong levels,” the company noted in the release, pointing to federal and provincial infrastructure investments as encouraging. The company said it is also pre-qualified for “a number of large project bids” expected to be awarded during 2021 and 2022.