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

Aecon Group Inc (ARE.TO)

52.95

-0.03 (0.06%)

as of Nov 6, 2026, 9:00:00 pm Market Closed.

426 watching

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.

DON'T BUY

Ton of demand in the space. Some of its deals were less profitable than originally thought. Big fan of WSP or STN, which focus on the engineering rather than the risk of contract pricing.

BUY

As stocks come off, lots of companies get forgotten. Earnings a bit weak, analysts reduced targets. Price reasonable, dividend safe. Infrastructure pretty inflation resistant. At these levels around $12.50, you'll be a winner.

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They reported a loss of $0.29 vs the expected $0.3. Revenues were up 31% compared to last year at $986 million. Backlog of $6.4B was up nicely from $5.9 a year ago. Saw some good contracts and expansion. Results are fine but cash flows were negative and this trend needs to reverse. Unlock Premium - Try 5i Free

BUY ON WEAKNESS

Does not own shares in company. Company has faced challenges in the past few quarters. Coastal Gas Link disputes has created uncertainty with cash flows. Appears agreement is approaching with Coastal Gas Link which will help share price. Good exposure to construction market and Provincial/Federal projects. Wait to buy on improved earnings.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has strong market share. Likes it for income although growth is less attractive than WSP. The valuation is at 19x earnings right now. Pays a 4% dividend. Unlock Premium - Try 5i Free

WEAK BUY

Prefers to own the concessions, not the builders. But if you're set on owning E&C, he likes the growth profile and position in the US and globally. Would benefit from increased activity in the US. Also likes WSP, with its strong growth and good margin profile relative to competitors.

PAST TOP PICK

(A Top Pick Jan 11/21, Up 7%) Never bet on the government. Infrastructure bill has sputtered. Stock's on the cheap side, so he's not worried about it.

TOP PICK

There's more infrastructure spending coming. They're the top candidate to build rapid transit to Trudeau Airport. They won a water project in BC. They got a contract from Bruce Nuclear. They scored a big contract in Washington DC near I-95. Aecon is reasonably priced. (Analysts’ price target is $22.19)

TOP PICK

Good run last year, now has come off. Financial results show they've been steadily increasing dividend, earnings, and backlog. Need for services continues to grow. First deal in the US is potentially transformational. Strong fundamental business outlook. Yield is 4.23%. (Analysts’ price target is $22.27)

COMMENT

Likes infrastructure sector especially with USA "build back better" program. Margins under pressure with Aecon. Believes there are better infrastructure investments out there.

BUY

The stock came off because their backlog has been weaker than expected, and the cost overruns of their coastal gaslink. Their future is strong. Well-run and pays a good dividend, but shares will be lumpy and cyclical. You'll be fine buying at the bottom and holding long term.

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Aecon Group Inc (ARE.TO)