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TSE:ARE

Aecon Group Inc (ARE.TO)

44.08
+0.43 (0.99%)
as of Jun 18, 2026, 8:00:01 pm Market Open.
427 watching
0
Investor Insights
star iconJun 18, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Aecon Group Inc (ARE-T) has shown significant growth potential, particularly in the context of Canada's infrastructure needs, as reflected in its record backlog of $10.9 billion and an 18% revenue increase last quarter. While the stock has recently gained attention for its favorable financials and exposure to nuclear projects, there are concerns about its high valuation and potential overbought status, with some experts suggesting caution in the short term. The transition to variable-cost contracts appears to bolster cash flow stability, alleviating risks from past fixed-price contracts. Overall, while many analysts see positive long-term growth driven by infrastructure spending, the stock exhibits volatility, and its recent performance may warrant a closer watch before making further investments.

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Consensus
Hold
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Valuation
Fair Value
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PAST TOP PICK
(A Top Pick Dec 7/10. Up 7.61%.) Winning good contracts.
BUY
(He owns the convertible debentures on this.) He likes it as a debt holder as they have a very good balance sheet. Had a real misstep in Alberta and went through a lot of cost overruns. Management has now cleaned up their bidding process and they have a full order book. Expect there will be some outperformance over the next 3-4 years.
COMMENT
Every time they get a contract, it seems that the stock drops? The reason is that when they get a contract, the stock temporarily goes up and investors who own use that as an advantage to sell. They have also had some very poor years in the past, which doesn't help.
BUY
Have had some problems over the last few years but recently had a few positive announcements. There have been improvements in operations and some new contracts.
BUY ON WEAKNESS
Haddock acquired a company that had a pretty low margin business. Started to get better and get out of the low margin businesses. Traditionally very conservatively run. At this point you have to look at economic growth and how much it could help or hurt.
COMMENT
Up 47% since their October low. Has been a tough story for a long time. He avoided this because it has disappointed so many times. It may be that they have finally got everything aligned. Seem to be getting new contracts with some margin improvement.
COMMENT
Just reported and profit was up 85% compared to last year. Have a growing backlog. Dividend is safe. (See Top Picks.)
COMMENT
Has to be a lot of spending on infrastructure and this company will get its fair share but governments are reining in their spending, so is now the time to buy construction company. Fairly small and will bounce around a lot.
DON'T BUY
Feels there are some good things going on in this company. Have made some shifts in management to address their problems. Expect they would do better going forward. Has a ways to go to prove itself with investors again. 2% yield.
BUY
They are starting to get through their older contracts with lower margins. They are really well positioned out west and getting a lot of business in Ontario. Could easily trade into the low teens. Pushing through the old unprofitable contracts.
BUY
Positive fundamentals have a positive impact on the stock. It broke the downward trend line and went through a resistance level. It is the season for this sector right now. $10.50 and $12 are resistance levels.
HOLD
Announced a slew of contracts in the last week. It is quite cheap. 26% of expected backlog announced in the last 5 days. With upcoming results he expects large increase.
SELL
Chart shows a distinct 2 year downward trend. There are a lot better technical patterns than this one.
HOLD
In the penalty box. Stumbled on a fixed price contract and lost money. With any kind of an up tick in infrastructure, they should do well. If you own, he would be tempted to hold on.
TOP PICK
7% bonds due 2014. Pristine balance sheet. Almost have no debt. Not looking to have it converted into equity.
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