TSE:ARE

Aecon Group Inc (ARE.TO)

48.86
-1.43 (2.84%)
as of Jul 28, 2026, 8:00:01 pm Market Open.
426 watching
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Investor Insights
star iconJul 28, 2026, 12:00 am

This summary was created by AI, based on 18 opinions in the last 12 months.

Aecon Group Inc (ARE-T) has garnered positive attention from various analysts, highlighting its strong involvement in Canada's infrastructure and nuclear projects. The company boasts a record backlog of $10.9 billion, indicating significant future revenue potential. Analysts noted a shift towards more sustainable variable-price contracts, reducing risks associated with fixed-price contracts from the pandemic era. Despite the challenging construction environment, Aecon's growth trajectory and steady dividend yield of around 2.70% to 3.10% have attracted investor interest. However, some experts suggest caution regarding potential pullbacks and short-term volatility, calling for careful monitoring of the stock's performance as they navigate through legacy projects and capitalize on new opportunities in the infrastructure sector.

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Consensus
Hold
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Valuation
Fair Value
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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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