Ontario Construction News staff writer
Toronto-headquartered Aecon Group Inc. reported its financial results for the first quarter of 2024 last Wednesday (April 24), reporting revenue growth on the back of a strong bid pipeline and a backlog of $6.3 billion.
The company achieved a net loss of $6.1 million in the three months ended March 31, 2024, compared to a net loss of $9.4 million recorded in the same period in 2023. Adjusted EBITDA margin fell to 3.9% in the quarter, compared to 2.2% in the previous fiscal year.
Aecon said it expects to achieve further revenue growth over the next few years by focusing on established markets and new opportunities in the energy transition and select US and international markets.
“With backlog of $6.3 billion, a strong bid pipeline, and recurring revenue programs continuing to see robust demand, Aecon is focused on achieving improved profitability and margin predictability, and believes it is positioned to achieve further revenue growth over the next few years,” Jean-Louis Servranckx, the company’s president and Chief Executive Officer, said in a statement.
“Moving forward, Aecon will continue to pursue and deliver the majority of its work in established markets and under more collaborative project delivery models, while embracing new opportunities to grow in areas linked to the energy transition and in select U.S. and international markets.”
The backlog to be worked off on four legacy projects stood at $330 million as of March 31, 2024, compared to $420 million at Dec. 31, 2023 and $801 million at March 31, 2023. New contract awards of $963 million were booked in the first quarter of 2024 compared to $812 million in the same period in 2023.
The company also appointed Jerome Julier to the position of executive vice-president and Chief Financial Officer, effective April 8.