Toronto-based Aecon Group Inc. on Thursday reported strong results for the second quarter of 2019, with year-over-year growth in revenue, Adjusted EBITDA and operating profit, and quarter end backlog of $6.8 billion .
“Aecon’s second quarter results illustrate the strength of our market position and sustained progress made to deliver growth, operational excellence, and consistent performance through scale, end-market diversity, and financial strength,” president and CEO Jean-Louis Servranckx said in a statement.
“Aecon’s current strong backlog is diversified across multiple sectors, geographies and duration, and we expect this to drive future growth and profitability in 2019 and into 2020. We remain focused on successfully executing Aecon’s current roster of projects and we are well positioned to capitalize on a significant pipeline of future opportunities.”
The company reported revenues of $867 million for the three months ended June 30, 15 per cent higher ($113 million) than the same period in 2018.. On a like-for-like basis, excluding the contract mining business sold in November 2018 , growth in revenue was 22 per cent in the quarter.
Other notes include:
- Adjusted EBITDA for the second quarter of 2019 of $57.3 million (margin of 6.6 per cent) improved by $15.9 million compared to Adjusted EBITDA of $41.4 million (margin of 5.5 per cent) for the second quarter of 2018, and compared to Adjusted EBITDA of $45.4 million (margin of 6.4 per cent) on a like-for-like basis in the prior year.
- Operating profit of $28.1 million for the three months ended June 30, 2019 , improved by $15.3 million compared to an operating profit of $12.8 million in the same period in 2018, and compared to an operating profit of $23.9 million on a like-for-like basis in the prior year.
- Reported backlog as at June 30, 2019 of $6,755 million compares to backlog of $6,443 million a year earlier.
- A consortium in which Aecon has a 50 per cent interest, announced financial close in the second quarter on the $640 million Highway 401 Expansion project in the Greater Toronto Area .
- GrandLinq Contractors, the construction consortium for which Aecon was the lead design-build partner, reached substantial completion and turnover for Revenue Service for the ION Stage 1 Light Rail Transit (LRT) project in Waterloo on June 21. The GrandLinq consortium, in which Aecon Concessions has a 10 per cent interest, will now manage operations and maintenance over the 30-year concession period.
- Subsequent to quarter end, Aecon was awarded a $111 million design-build contract by the Comox Valley Regional District to construct the Comox Valley Water Treatment Project in British Columbia. Work on the project will commence in the third quarter and is expected to be complete in May 2021.