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Highlights

  • Aecon Group has been witnessing soaring demand under the recurring revenue programs.
  • Recently, ARE raised USD 128.5 million by giving away 49.9% stake in Bermuda International Airport.
  • In the third quarter of the year 2023, ARE’s revenue dropped to CAD 1,239.5 million, a decrease of 6.1% over the previous corresponding period.

Canada-based Aecon Group Inc (TSX: ARE) runs its business across two segments, namely Construction and Concessions. The company believes that it is well positioned at the end of the September quarter to achieve higher growth in top-line business in the coming years. This is possible because ARE has been witnessing soaring demand under the recurring revenue programs, due to the utilities sector and ongoing recovery in airport traffic in Bermuda. The firm is following a disciplined bidding strategy for long-term margin development in the market.

Recently, the Aecon Group raised USD 128.5 million by giving away 49.9% stake in Bermuda International Airport. Notably, Oaktree Capital Management, L.P. has made a convertible preferred stock investment of CAD 150 million in Aecon Utilities Group Inc. to gain a minority position.

In the third quarter of the year 2023, ARE’s revenue dropped to CAD 1,239.5 million, a decrease of 6.1% over the previous corresponding period. This was because of lower contribution from Construction segment. However, operating profit of the company registered a period-over-period improvement because of surge in other income and lower expenses.

For the reporting period, ARE secured profit before income taxes of CAD 125.8 million, as compared to CAD 46.5 mn in Q3 2022. Its net income was recorded at CAD 133.4 million in Q3 2023, versus CAD 34.4 mn in pcp.

 

Top 10 Shareholders

Around 22% of the total shareholding is held by its top ten shareholders. While Mackenzie Financial Corporation holds maximum stake of approximately ­­5.66%, Mirae Asset Global Investments (USA) LLC owns around 4.96% shareholding.

Stock Price Performance

ARE’s stock price has gained over 6.25% over the last one week. It has dropped by approximately 4.95% in the last one month. The stock’s 52-week high and low price stand at CAD 14.04 and CAD 8.29, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 6, 2023. The reference data in this report has been partly sourced from EODHD/Others.