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

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Aecon Group Inc (ARE.TO)

43.58

-0.07 (0.16%)

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

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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

DON'T BUY

She doesn't own this space, because these companies suffer cost overruns on the construction side. Also, government pledges to build infrastructure a few years ago have been slow to ramp up. These companies also need to make acquisitions to grow. She is watching WSP Global which is purely in services--and she prefers WSP.

PAST TOP PICK

(A Top Pick Oct 11/18, Up 18%) Also a top pick today. Still more upside coming, moving more into recurring revenue. In their last report, sales 22% better than expected and earnings were 50% better than expected.

TOP PICK

Great opportunities here. Also a past top pick today. It pays a 3% dividend yield. Cash flow is up 77% in the past year; a great 10.2% free cash flow yield. Last week's report said that sales were 22% better than expected and EPS were up 47% YOY. (Analysts’ price target is $23.36)

PARTIAL BUY

He likes how they look, but is not holding it yet. He was happy to see the takeover was blocked and that it is remaining in Canada. The new CEO has a global reach and will be a good asset for when the company bids outside of Canada. The valuation is back down and it has a 3.4% dividend, trading at 16 times earnings. You could start to build a long position here.

DON'T BUY

Very well-run and he likes it. Last year, a Chinese company tried to take over ARE. Since then, ARE has rebuilt. There are problems with SNC that could benefit peers like ARE. ARE's valuation is too high for him. He may step in if that valuation were 10-15% lower.

WEAK BUY

3-5-year horizon, given Ontario government planning $30-billion infrastructure spending A good company that will do well in that time horizon. Caveat: Capex projects like the one Ontario is announcing take a long time to get going. Instead, look at an infrastructure's backlog of projects--buy when that backlog is going up.

WEAK BUY

The offer to take them out was blocked. It is rebounding after the selloff. The stability is there. The new CEO brings global experience. It should bode well for them expanding well outside of Canada. It has a strong balance sheet. This would be his pick in the space.

COMMENT

ARE-T, WSP-T or SNC-T? He owns SNC-T, which has had its issues alongside the Canadian-Saudi Arabia situation. Fundamentally the company performs well. He owns STN-T. He was expecting this space to see better investment following the Canadian government plans to add to infrastructure. He has grown cold to the space as a whole.

BUY

We are off our highs. Our lows are higher and that is good. Seasonally it is a good time. This is the time of year they do well and technically they look good.

PAST TOP PICK

(A Top Pick Oct 25/17, Up 9%) It's been a rollercoaster, given the Chinese bid that Ottawa struck down earlier this year. He sold at $19. He'd look at re-buying it. In this sector, he'd look at this and Stantec.

TOP PICK

It had a rough ride lately, because Ottawa killed a Chinese deal earlier this year. It now scores in the top 2% of his valuation. It's picked up strong price momentum. They have a huge backlog of projects. Well-positioned. (Analysts’ price target is $22.15)

BUY

Was his top pick 3 months ago. Their Q3 earnings were up YOY , beating consensus by 10%. Infrastructure margins were up with room to run. Their backlog is up from $4 billion last year to $7 billion. Trades at a cheap 14x. He sees growth with a $23 price target. He likes it.

COMMENT

They reported a good number lately, but failed to go private. It's too energy-centric for him. It's fully valued now after failing to go private.

BUY

STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet, but will.

TOP PICK

There is great value in the company. Earnings are expected to grow 33% in 2019 and 25% in 2020. They announced an agreement to sell their contract mining business. They should be in a net cash positive position afterwards. It is a buying opportunity. (Analysts’ target: $20.50).

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Aecon Group Inc (ARE.TO)