TSE:ARE

Aecon Group Inc (ARE.TO)

52.95
-0.03 (0.06%)
as of Nov 6, 2026, 9:00:00 pm Market Closed.
426 watching
0
HOLD
Has gone under a great deal of stress over the last couple of years. Didn't make their objectives or their earnings. Also had some management turnover, which may correct some of their underlying problems. He is looking for earnings to recover.
DON'T BUY
Last quarter was mixed. Profits weren’t so good and backlog was just OK. Their problem has not been getting new business, but making money on the business. He will hold for another quarter to see how their half year is.
BUY
There has been no particular news. It is going down on low volume. It doesn’t need economic growth because it has an excellent backlog. It depends on your patience whether you hang on. He is going to buy it soon.
DON'T BUY
Sold off in 2008 and then did a double base formation in 2009. Now falling back and should find support around $8.60. Below $8 would be a buying opportunity, but be sure it is not falling below the 200 day moving average.
DON'T BUY
Wants to see some changes in the earnings profile before he goes in. Looking at the economic backdrop, they should be very well positioned. Have been struggling in some of their divisions, have had some management changes and struggling with earnings growth.
PAST TOP PICK
(Top Pick May 17/10, Down 16.84%) This is an execution problem. They have a record backlog. All they have to do is deliver profitably on the backlog. Last two quarters they didn’t. He is hanging on. Thinks it will come back.
BUY
They had disappointed last year and pre-announced a contract loss. Now, have a better outlook and a record outlook. Under $10 is a good entry point.
WAIT
Were very comfortable with the investment. Recently they fell on hard times due to profitability. They bid too aggressively in projects. Usually new management comes into the business and turns it around but it will take some time. 2 – 3 quarters.
HOLD
Starting to look like fairly good value. Had a change of management. Take on a lot of the construction risks with their projects. (See Top Picks.)
BUY
Took over a Suncor (SU-T) project of $200 million and ended up losing about $52 million. Thinks they have learned. President resigned. At $9 and lower it is back in value territory. Doesn’t see the 2% dividend at risk.
PAST TOP PICK
(A Top Pick Match 15/10. Down 32.87%.) Engineering and construction. Have a record backlog. Did a fixed price bid on oil sands and ended up losing money. Revenues are going to be there. Extremely cheap valuation.
PAST TOP PICK
(A Top Pick Feb 8/10. Down 35.86%.) Strength has been in winning bids but apparently winning by bidding too low. Got killed on the Suncor (SU-T) contract because of unforeseen extras and difficulties. Now trading at book value and have a lot of business with variable price contracts on the books. If he sees any more flaws in execution, he will be selling.
COMMENT
Stock fell when they announced a loss on an oil sands project. If you like the infrastructure space, this is not particularly expensive now.
DON'T BUY
Sold his holdings when it disappointed as a stock. Company seems to do well. Prefers Churchill (CUQ-T).
DON'T BUY
Industrial products sector has seasonality from October through until May. This one has had that seasonality in the past but technicals right now are not looking that great. Chart is showing a downward trend. Trying to show signs of support that would seem to imply that downside risk is relatively low.
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