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TSE:ARE

Aecon Group Inc (ARE.TO)

45.99
-1.24 (2.63%)
as of Aug 19, 2026, 8:00:00 pm Market Open.
423 watching
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Investor Insights
star iconAug 19, 2026, 12:00 am

This summary was created by AI, based on 17 opinions in the last 12 months.

Aecon Group Inc (ARE-T) has garnered a favorable outlook from various experts despite challenges within the construction and engineering sectors. The company boasts a record backlog of over $10 billion, primarily driven by infrastructure spending and a strong focus on nuclear projects in Canada. Analysts appreciate the transition towards variable-price contracts, which has led to improved cash flow and earnings stability. The stock has exhibited significant growth recently but is also viewed as overbought in the short term by some reviewees, suggesting potential pullbacks. Overall, there is a sense of cautious optimism surrounding Aecon's future performance, particularly with the anticipated increase in infrastructure investments and the clearing of legacy projects that have burdened the company.

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Consensus
Hold
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Valuation
Overvalued
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Similar
Atkins, ATK
BUY ON WEAKNESS
Done well lately within the infrastructure group. Announced a number of contracts. He owns Stantec because it only does the engineering, diversified throughout North America. But Aecon is a well managed company, a little expensive and could be bought during a pull back.
BUY ON WEAKNESS
Had a big pop on the announcement by Suncor (SU-T) of starting up of Firebag #3 and #4 which will be done by their acquisition earlier this year.
TOP PICK
It is the new SNC. Emerging as one of the leading Canadian construction companies. It has a record backlog. It’s bidding on an unprecedented level of infrastructure and oil sands contracts. It looks very cheap. Wants to own this for many years.
PAST TOP PICK
(A Top Pick Nov 20/08. Up 150%.) Cheap at 5X operating cash flow. Infrastructure projects are key. Acquired Lockerbie & Hole at the bottom of the oil hole was great. Well positioned.
BUY
Signed a new contract sooner and larger than expected, which is why people are excited. Ranks 209. Not keen near term because recent earnings were down 22% and coming quarter is supposed to be down 25%. However earnings growth for 2010 is expected to be 23% against a 14 PE, which is attractive.
STRONG BUY
A major Canadian company in heavy construction, which has been a very good sector over the last 6-7 years. Has broken out of its base in the $13 range and is now off to the races.
WATCH
Fell through support on the 50-day level but then managed to rally above it. Stock could be on the verge of a breakout and if it goes above $13 double your position. Use a stop-loss of $10.80.
BUY
This is his favourite infrastructure play. Well capitalized and are continuing to win a lot of contracts. With their recent acquisition they are now a national player.
BUY
Likes it because it’s infrastructure and engineering services. Nice play on infrastructure.
PAST TOP PICK
(Top Pick Nov 20/08, Up 115.8%) Still holds it.
COMMENT
A number of the infrastructure stocks have reacted to the improving economy and the prospect of more infrastructure build out. Well managed and well capitalized. His Top Pick he feels has more growth potential over the next few years.
PAST TOP PICK
(Top Pick Nov 20/08, Up 107%) Management says next year is going to be one of their best years yet. No one is better positioned for infrastructure projects. Badly beaten up last year. Preferred over SNC
HOLD
Construction engineering company. Involved in a lot of construction around Toronto and highways as well as having concessions in Ecuador and Israel. Big driver currently is the stimulus program in Canada. Could be a bit of a correction in the next few months.
BUY
(Market Call Minute.) Plays all the Junior E&C’s in Canada. Big beneficiary of Ontario road and infrastructure spending. Also oil sands coming back is a positive.
DON'T BUY
Largest infrastructure company in Canada as well as being a large road builder. Missed their estimates in the last quarter so it is in the penalty box. Next report is at the end of October. Long-term it will be fine but over the short term, there are more interesting names. Would prefer SNC-Lavalin (SNC-T) or Stantec (STN-T).
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