In This Article:
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Revenue: $4.2 billion for 2024, $401 million or 9% lower compared to 2023.
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Adjusted EBITDA: $83 million in 2024 compared to $143 million in 2023; negatively impacted by $273 million in legacy project losses.
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Operating Loss: $60 million in 2024 compared to an operating profit of $241 million in 2023.
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Diluted Loss Per Share: $0.95 in 2024 compared to diluted earnings per share of $2.10 in 2023.
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Backlog: $6.7 billion at the end of 2024 compared to $6.2 billion a year ago.
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New Contract Awards: $4.7 billion in 2024 compared to $4.5 billion in 2023.
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Construction Revenue: $4.2 billion in 2024, $352 million or 8% lower than the previous year.
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Cash and Cash Equivalents: $123 million at the end of 2024.
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Dividend: Next quarterly dividend of $0.19 per share to be paid on April 2, 2025.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aecon Group Inc (AEGXF) reported a backlog of $6.7 billion at the end of 2024, up from $6.2 billion a year ago, indicating strong demand for its services.
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The company successfully reached a settlement for the coastal gasoline pipeline project, which is expected to improve profitability and margin predictability.
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Aecon Group Inc (AEGXF) has diversified its revenue streams, with 45% of construction revenue in 2024 coming from the utilities and nuclear sectors, up from 39% in 2023.
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The company has made strategic acquisitions, including Xtreme Power Line, Ainsworth Power Construction, and United Engineers and Constructors, to strengthen its operations in the utilities, nuclear, and conventional power sectors.
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Aecon Group Inc (AEGXF) is embracing new opportunities in the energy sector and international markets, aiming to diversify its geographic presence and provide consistent earnings through economic cycles.
Negative Points
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Revenue for the year was $4.2 billion, which is $401 million or 9% lower compared to 2023.
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Adjusted EBITDA decreased to $83 million from $143 million last year, impacted by $273 million in legacy project losses.
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The company reported an operating loss of $60 million compared to an operating profit of $241 million in 2023.
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Diluted loss per share for the year was $0.95, compared to diluted earnings per share of $2.10 in 2023.
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The concession segment's adjusted EBITDA was $87 million, down from $90 million last year, with operating profit significantly lower at $24 million compared to $174 million last year.
Q & A Highlights
Q: Your EBITDA from concession came in a bit lighter than expected. How should we think about the expected EBITDA contribution from this segment in 2025? A: Jerome Julier, CFO, explained that 2024 benefited from development and construction fees. As projects complete, there will be headwinds in 2025. The USVI projects might offset this slightly, but overall, a decrease is expected due to the transition from construction to operational phases.