The Toronto based contractor reported a record backlog of $10.7 billion as of June 30, up sharply from a year earlier, while reiterating that only 3 legacy fixed price projects remain and are expected to reach substantial completion by the end of 2025.
Second quarter revenue rose to about $1.30 billion, Aecon still posted a small loss attributable to shareholders of $7.6 million, but the result marked a dramatic improvement from last year as losses tied to the fixed price projects narrowed.
Management said operating profit benefited from higher gross profit in nuclear and utilities and from a steep drop in losses on the legacy jobs.
The backlog mix continues to tilt toward long cycle energy and transport programs. In the quarter, an Aecon-led partnership moved into the execution phase on Ontario Power Generation’s Darlington New Nuclear Project, adding roughly $1.3 billion to the Construction segment backlog.
An Aecon consortium reached commercial close on the Scarborough Subway Extension’s stations, rail and systems package, which transitioned into a target price implementation phase.
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Together these wins deepen exposure to collaborative delivery models that can reduce pricing risk relative to hard-bid fixed price contracts.
Rail and transit remain in focus as Canadian National maps C$3.4B push to expand rail capacity, and energy transition spending spans grid upgrades to a new mega battery plant.
Aecon emphasized that the legacy projects continue to carry risk until work is finished and associated claims are resolved, but the company expects completion by year end 2025 to lift profitability and margin predictability.
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This guidance matters for investors who have discounted the stock for cost overruns and schedule slippage on older lump-sum jobs.
As the mix shifts toward nuclear, utilities and progressive design-build or alliance models, the earnings profile should become less volatile.
The company ended the quarter with more than $460 million in cash and equivalents, according to the press release.
The board approved a quarterly dividend of 19 cents per share payable Oct. 2, maintaining a cautious but steady capital return while prioritizing disciplined investment in equipment, selective acquisitions and bid pursuits.
