Aecon Revenue Jumps 26% to C$1,920.6 Million in Third Quarter
Key Facts
Aecon Group announced its third-quarter 2026 results on October 29, reporting revenue of C$1,920.6 million, up 26% from the same period in 2025. The company said its backlog reached the highest level in its history, putting contracted project volume alongside revenue growth at the forefront of its results. Reported diluted earnings were C$0.74 per share, compared with C$0.60 a year earlier. Adjusted diluted earnings rose to C$0.86 per share from C$0.49. The official statement did not cite the revenue surprise percentage mentioned in an earlier draft; the company compared results with the same period last year.
Improvement extended to operating metrics: operating profit rose to C$83.1 million from C$61.4 million in the third quarter of 2025. Adjusted EBITDA increased to C$130.2 million, compared with C$92.7 million a year earlier. Aecon attributed construction revenue growth mainly to higher volumes of electricity transmission and distribution work in the utilities sector in Canada and the United States. By segment, construction revenue increased C$410 million year over year, including C$184 million from utilities and C$130 million from nuclear activities. This reflects the weight of energy and utilities work in quarterly growth, alongside an expansion in nuclear activity.
Backlog stood at C$14,559 million on September 30, compared with C$10,777 million on the same date a year earlier, a level the company described as a record. Aecon also reported record quarterly operating cash flow of C$417 million. Chief Executive Jean-Louis Servranckx said the C$14.6 billion backlog diversifies risk, explaining that more than 80% is tied to collaborative or non-fixed-price contract models. He added that growth opportunities are based on recurring revenue programs, long-term projects and strategic markets. The company sees these models, together with the duration of its projects, as supporting backlog diversification.
The company booked C$5,988 million in new contracts during the quarter, compared with C$1,561 million in the same period of 2025. Among the awards was a contract to refurbish the Pickering nuclear station, with a total value of C$3 billion. Aecon’s share of the contract is C$1.75 billion, which the company said represents the largest nuclear contract in its history. The contract adds substantial scale to the record backlog the company reported at the end of September. It also aligns with increased revenue from nuclear activities, which contributed to construction revenue growth during the quarter.
A comparison of the first and second quarters shows continued year-over-year revenue growth: second-quarter 2026 revenue was C$1,631 million, up 25% from the same period in 2025. But backlog on June 30 was C$10,492 million, compared with C$10,746 million a year earlier, before reaching a record at the end of September. Meanwhile, general and administrative and marketing expenses rose C$43.6 million year over year in the third quarter. Those expenses climbed to 5.1% of revenue, compared with 3.6% in the third quarter of 2025. The company attributed the increase mainly to employee and incentive costs, organizational investments and the addition of expenses from acquired companies.
On investment, Aecon expects its capital expenditures in 2026 to exceed 2025 levels, supporting growth initiatives and investment in execution and key segments. The company had scheduled a call to discuss its third-quarter results for October 30, 2026, at nine a.m. Eastern time. In October 30 trading, EL7 data showed AEGXF shares closing at 35.27, with no price currency specified. The company’s Toronto-listed shares closed at C$49.23, down 7.91% on the day, according to Google Finance data. The market move followed the results announcement, in which the company reported growth in revenue and profitability and a record backlog, alongside expectations for higher capital spending.