Aecon Group (ARE) Investor Presentation summary

Strategic positioning and business model

• $4.5B in total revenue and $9.7B backlog as of March 31, 2025, with 59% of 2024 revenue tied to sustainability projects.

• Diversified business model with ~1,000 projects in progress and a growing concessions portfolio.

• 63% of Q1 2025 TTM revenue from non-fixed price contracts, up from 58% in Q1 2024.

• 12 acquisitions in energy transition over five years, supporting growth in utilities, nuclear, power, and industrial sectors.

• Oaktree's $150M investment in Aecon Utilities values the unit at $750M, supporting U.S. expansion.

Financial performance and capital structure

• Q1 2025 adjusted revenue rose 34% YoY to $1,035M; adjusted EBITDA was flat at $32.2M.

• Q1 2025 TTM adjusted revenue up 16% to $4,423M; adjusted EBITDA stable at $348.8M.

• Operating loss of $40.7M in Q1 2025, mainly due to legacy fixed price projects.

• Net debt at $419.2M and debt-to-capitalization at 12%; no major debt maturities until 2027.

• Free cash flow for Q1 2025 TTM was $1.7M, down from $91.6M in Q1 2024 TTM.

Backlog, project pipeline, and recurring revenue

• Backlog reached a record $9.7B at March 31, 2025, up 55% YoY.

• 73% of backlog is cost-plus/unit price contracts, up from 55% a year earlier.

• Recurring revenue (as adjusted) for Q1 2025 TTM was $1,008M.

• Major collaborative and progressive design-build projects in development, including Scarborough Subway Extension and Darlington New Nuclear Project.

• Concessions portfolio includes long-term airport, LRT, bridge, and energy storage contracts with stable, availability-based payments.