Aecon Group Inc (ARE.TO) Buy, Sell or Hold

Home

Daily Stock Opinions and Ratings

Aecon Group Inc (ARE.TO)

43.58

-0.07 (0.16%)

as of Jun 18, 2026, 4:54:23 pm Market Open.

427 watching

Investor Insights

Jun 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) is currently navigating a landscape shaped by significant infrastructure investment in Canada, reflected in a record backlog of $10.9 billion. Despite strong revenue growth of 18% last quarter, experts advise caution due to prevailing market volatility and concerns over cost overruns from legacy fixed-price contracts. Many analysts highlight the company's shift towards more sustainable fee-for-service contracts and variable pricing, which enhance cash flow predictability and earnings stability. With ongoing projects in nuclear power and increasing demand for infrastructure, Aecon is poised for potential growth, although some perceive the stock as overbought at its current levels. Overall, experts remain optimistic about its long-term prospects while acknowledging near-term market pressures and volatility.

Consensus

Hold

Valuation

Fair Value

Similar

WSP

PAST TOP PICK

(A Top Pick Jan 26/22, Down 30%)

Cost overruns on projects entered into a decade ago, a much different economic environment. Nuclear expertise. Would benefit from increased mining development. At steal at these levels. Nice total return for 5-10 years. Yield is 7%, shouldn't have to cut.

DON'T BUY

Am engineering construction company, so margins are lower than WSP's or Stantec's. Have suffered cost overruns and project lays, like many in their sector. They have a backlog, but you don't know the quality of if it. Are better opportunities elsewhere. Doesn't like the sector.

RISKY

Owns it in the aggressive equity platform. It is at the support level of 2015 but may not bounce back. It is a buy only for risk takers.

DON'T BUY

Tough year for the entire space. A lot has to do with fixed-price contracts. Rampant inflation hits profitability. Better opportunities out there. Very well run.

PAST TOP PICK

(A Top Pick Feb 01/22, Down 45%) It has had cost over-runs and some legal suits. It is looking for recovery in some projects - two should be completed next year. Since there are inflationary pressures, it will de-emphasize fixed price contracts which make up about 60% of its backlog. It is quite inexpensive since infrastructure spending should increase at some point.

DON'T BUY

It is more of an engineering and construction company rather than a consulting one. He prefers the consulting type such as Stantec and WSP since there is less risk.

BUY

~7% dividend yield is sustainable. Several good quarters in a row (aside from last quarter). Positive on business in the long term (infrastructure business not going anywhere) Nuclear business will be valuable going forward.

COMMENT

Not that familiar with the company but is with the industry. Prefers WSP and Stantec for global infrastructure rather than engineering construction.

HOLD

Top Pick in February, and he hasn't changed his mind. Hit by rising rates, valuation down. Projects on the go, solid backlog. Bermuda project hasn't worked that well and won't until tourism resumes. Trading under book value.

HOLD

Is a good long term investment (~ 5 year) with large infrastructure projects going forward. Once interest rates cool and inflation decreases, expects increased spending in building. Would advise holding the stock if already hold shares.

COMMENT

Question was on comparing Aecon to Bird. They have good yields of 5%. Backlogs are not as meaningful in this environment. Construction costs are up and there are still supply chain issues. Bird is in a better situation since it has fewer fixed costs.

WATCH

Have been impacted by inflation. Their profit got hit hard last quarter. Watch this more for coming quarters to see how contracts are re-pricing (how much is fixed price?).

DON'T BUY

Great infrastructure play. Huge backlog. You can feel governments starting to spend. Biggest problems are wage increases, input costs, and labour shortages. Many contracts are fixed. Margins compressed. Stay away.

TOP PICK

They had a tough quarter after many of solid results. They had to take write-downs on some fixed-price contracts. However, they signed their biggest-ever contract (with Metrolinx). They are the only qualified constructor of nuclear plants, which are seeing a renaissance now amid the energy shortage. ARE pays a 6% dividend, though shares have plunged. (Analysts’ price target is $14.23)

DON'T BUY

The price came off a lot, because of cost overruns on some construction projects. Not an owner of this. Look elsewhere.

Showing 46 to 60 of 452 entries

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Most Recent Experts

Chris Blumas

at Raymond James Investment Counsel Ltd.

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Jim Cramer - Mad Money

CNBC

John Zechner

J. Zechner & Assoc

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Aecon Group Inc (ARE.TO)