Ontario Construction News staff writer
Aecon Group Inc. announced a 3% increase in revenue for the third quarter of 2024, reaching $1,275 million compared to the same period in 2023. The company attributed the growth to strong demand for its services and a backlog of $6.0 billion.
Operating profit for the quarter decreased to $80.9 million, representing a 6.3% operating margin, compared to $140.1 million and an 11.3% operating margin in the third quarter of 2023. Aecon explained that the decrease was primarily due to a gain on the sale of a 49.9% interest in the Bermuda International Airport concessionaire in the third quarter of 2023.
Adjusted EBITDA for the third quarter of 2024 surged to $126.9 million, representing a 10.0% margin, compared to $32.0 million and a 2.6% margin in the same period last year. The improvement was largely attributed to better performance from four fixed-price legacy projects.
Profit attributable to shareholders for the third quarter of 2024 was $56.5 million, or $0.85 per share, compared to $133.4 million, or $1.63 per share, in the third quarter of 2023. Adjusted profit attributable to shareholders was $57.5 million, or $0.86 per share, compared to $133.7 million, or $1.63 per share, in the same period last year.
Aecon reported a strong backlog of $5,980 million at the end of the third quarter of 2024, compared to $6,202 million at the end of the third quarter of 2023. The company secured $1,069 million in new contract awards during the quarter, surpassing the $591 million secured during the same period last year.
Jean-Louis Servranckx, President and CEO of Aecon Group Inc., expressed confidence in the company’s future prospects, stating, “With backlog of $6.0 billion and strong demand for Aecon’s services, Aecon is well-positioned to achieve revenue growth commencing in 2025 and over the next few years.”
He highlighted the company’s focus on energy transition opportunities, select U.S. and international markets, and collaborative project delivery models.