Aecon Group (ARE) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of CAD 1.3 billion ($1,257 million), up 18% year-over-year, with growth across all operating sectors, led by nuclear operations.

• Record backlog of CAD 10.9 billion ($10.9 billion) at March 31, 2026, supported by diversified long-term projects and major new awards, including the Howard Hanson Dam Facility project.

• Adjusted EBITDA rose to CAD 32 million ($32 million, 2.5% margin) from CAD 4 million ($3.6 million, 0.3% margin) last year, driven by margin improvement in Construction.

• Strategic acquisitions in Canada and the U.S. enhanced utility services capabilities and expanded geographic reach.

• Positive outlook with strong demand, recurring revenue growth, and a robust bid pipeline.

Financial highlights

• Revenue for Q1 2026 was CAD 1.3 billion ($1,257 million), up 18% from Q1 2025.

• Gross profit increased 140% to $100.5 million, with gross profit margin rising to 8.0% from 3.9% year-over-year.

• Adjusted EBITDA improved to CAD 32 million ($32 million), up from CAD 4 million ($3.6 million) year-over-year.

• Operating loss narrowed to CAD 8 million ($8.0 million) from CAD 41 million ($40.7 million) last year.

• Free cash flow for the trailing 12 months was CAD 212 million ($211.8 million), up from CAD 2 million.

Outlook and guidance

• 2026 revenue expected to exceed 2025, driven by record backlog, recurring revenue, and a robust project pipeline in power, infrastructure, and defence.

• Recurring revenue from utility services increased 23% year-over-year to CAD 763 million.

• Focus on improved profitability, margin predictability, and risk profile as legacy fixed price projects are completed.

• Capital expenditures in 2026 expected to surpass 2025 to support growth and operational resiliency.