Earnings call transcript: Aecon Group Inc. Q2 2025 misses EPS forecasts, stock rises

Aecon Group Inc. (ARE) reported its Q2 2025 earnings, revealing a significant miss on earnings per share (EPS) estimates but surpassing revenue expectations. The company posted an EPS of -$0.09, falling short of the forecasted $0.1188, marking a 175.76% negative surprise. Despite this, revenue came in at $1.3 billion, exceeding the anticipated $1.1 billion by 18.18%. In the wake of these results, Aecon’s stock rose by 2.4%, closing at $19.20. According to InvestingPro analysis, ARE currently appears undervalued, with a "FAIR" overall financial health rating.

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Key Takeaways

• Aecon reported a record backlog of $10.7 billion, the highest in its history.
• The company completed the Oneida energy storage project, the largest in Canada.
• Aecon’s stock price increased by 2.4% following the earnings release.
• The company is expanding its nuclear capabilities in Canada and the US.

Company Performance

Aecon Group Inc. demonstrated strong revenue growth in Q2 2025, achieving a 52% increase from the same quarter in 2024. The company’s strategic focus on non-fixed price contracts, which now account for 76% of its backlog, has contributed to more predictable margins and risk management. Aecon’s ongoing projects in nuclear and power infrastructure, including the construction of North America’s first commercial grid-scale small modular reactor at Darlington, underscore its leadership in the sector.

Financial Highlights

• Revenue: $1.3 billion, up from $448 million in Q2 2024.
• Earnings per share: -$0.09, compared to a forecast of $0.1188.
• Adjusted EBITDA: $41 million, a significant improvement from a negative $154 million in 2024.
• Operating profit: $2 million, reversing a $166 million operating loss in 2024.

Earnings vs. Forecast

Aecon’s Q2 2025 EPS of -$0.09 missed the forecast of $0.1188 by a wide margin, reflecting a significant earnings surprise of -175.76%. However, the company’s revenue of $1.3 billion surpassed expectations by 18.18%, indicating strong operational performance despite the earnings miss.

Market Reaction

Following the earnings announcement, Aecon’s stock price rose by 2.4%, closing at $19.20. This increase suggests that investors are focusing on the company’s robust revenue growth and strategic initiatives, despite the EPS shortfall. Analyst consensus from InvestingPro shows mixed sentiment, with price targets ranging from $71 to $144. The stock has experienced a -29.69% total return over the past year, suggesting potential recovery opportunities for value investors.

Outlook & Guidance

Looking ahead, Aecon anticipates continued revenue growth in 2025, driven by its strong position in the power infrastructure and nuclear sectors. InvestingPro data indicates a -3% revenue growth forecast for FY2025, though analysts expect the company to return to profitability this year. The company is exploring opportunities in defense and infrastructure projects, with a focus on strategic mergers and acquisitions to enhance its market presence.

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Executive Commentary

Jean Louis Servranck, President and CEO, highlighted the company’s strategic shift, stating, "76% of our backlog was non-fixed price at 06/30/2025." He also emphasized the growing demand for electricity, noting, "Electricity demand is expected to double by 2050," which positions Aecon well for future growth in the energy sector.

Risks and Challenges

• Market uncertainties could impact project timelines and profitability.
• Supply chain disruptions may affect project costs and delivery schedules.
• Fluctuations in energy demand could influence revenue projections.
• Regulatory changes in the nuclear sector might pose compliance challenges.

Q&A

During the earnings call, analysts inquired about Aecon’s labor and staffing strategies, the timeline for completing legacy projects, and potential market uncertainties. The company addressed these concerns, emphasizing its focus on strategic growth in the nuclear and power sectors and its readiness to capitalize on emerging opportunities.

Full transcript - Aecon Group Inc. (ARE) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the Second Quarter twenty twenty five Aecon Group Inc. Earnings Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session.

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Brigetti, Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.: Thank you, Gigi. Good morning, everyone, and thanks for participating in our second quarter results conference call. This is Adam Bregatti speaking. Joining me today are Jean Louis Servranck’s, President and CEO Jerome Jullier, Executive Vice President and CFO and Alastair McCallum, Senior Vice President, Finance. Our earnings announcement was released yesterday evening and we posted a slide presentation on our website, which we’ll refer to during this call.

Following our comments, we’ll be glad to take questions from analysts, and we ask that the analysts keep to one question and a follow-up before getting back into the queue. As noted on Slide two of the presentation, listeners are reminded that the information we’re sharing with you today includes forward looking statements and that these statements are based on assumptions subject to significant risks and uncertainties. Although Aecon believes the expectations reflected in these statements are reasonable, we can give no assurance that the expectations will prove to be correct. And with that, I’ll hand the call over to Jerome.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: And good morning, everyone. I’ll now speak to Aecon’s consolidated results, review results by segment and address Aecon’s financial position before turning the call over to Jean Louis. Additional information has been provided to help clarify the underlying results, excluding impacts from the fixed price legacy projects and divestitures. Detailed reconciliation tables are included on Slides 13 through 15 in the conference call presentation. Turning to Slide three.

On a reported basis, revenue for the three months ended 06/30/2025

Speaker 3: of

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: $1,300,000,000 was $448,000,000 or 52% higher compared to the same period in 2024. Revenue grew across all operating sectors with strong performances in industrial, nuclear and civil operations. Revenue growth also benefited from the impact of the acquisitions of Extreme PowerLine Construction, Ainsworth Power Construction and United Engineers and Constructors that occurred in the 2024. Adjusted EBITDA of $41,000,000 compared to a negative $154,000,000 last year, an operating profit of $2,000,000 in the quarter compared to an operating loss of $166,000,000 last year. Adjusted EBITDA and operating profit in the 2024 were negatively impacted by $237,000,000 project losses versus $39,000,000 in losses on legacy projects in the 2025.

Excluding the impacts from legacy projects and divestitures, as adjusted revenue for the three months ended 06/30/2025 of $1,300,000,000 compared to $975,000,000 in the same period in 2024. Adjusted EBITDA as adjusted of $80,000,000 compared to $78,000,000 last year, driven by stronger contribution from core construction activities, which more than offset the anticipated normalization in Concessions EBITDA, which benefited from incremental proceeds from the partial sale of Skyport and additional management and development fees in the prior period. Adjusted diluted loss per share in the quarter of zero nine dollars compared to a loss of $2.03 last year. Taycom’s reported backlog of $10,700,000,000 at the end of the second quarter was the highest reported backlog in its history, surpassing the previous record of $9,700,000,000 set in the last quarter. The increase in backlog is a result of significant efforts through collaborative models with our clients, and Aecon anticipates a moderation in backlog growth given current levels.

New contract awards of $2,400,000,000 were booked in the quarter, primarily from the alliance contract awarded for the execution phase of the Darlington new nuclear project in Ontario, where ACON is leading the construction of North America’s first commercial grid scale small modular reactor, or SMR, for Ontario buyer generation. Now looking at results by segment. Turning to Slide four. Construction revenue of $1,300,000,000 in the second quarter was $447,000,000 or 52% higher than in the same period last year. Revenue was higher in industrial operations driven primarily by an increased volume of field construction work in Western Canada and the impact on revenue of the Coastal GasLink pipeline project settlement agreement in 2024.

And nuclear operations from an increased volume of refurbishment and engineering services work at nuclear generating stations in Ontario and The United States. Revenue is also higher in civil operations from a higher volume of major projects, road building construction and foundation work in urban transportation solutions, primarily from an increase in mass transit project work in Ontario and utility operations from a higher volume of gas distribution work in Canada electrical transmission work in The U. S. Following the acquisition of Extreme in the 2024, partially offset by a lower volume of telecommunication work. On an as adjusted basis, construction revenue was $1,300,000,000 compared to $973,000,000 in the period last year, representing a 31% increase.

New contract awards of $2,300,000,000 in the 2025 more than doubled the $764,000,000 in new awards booked in the same period last year. Turning now to Slide five. Adjusted EBITDA of $40,000,000 compared to a negative $173,000,000 last year and operating profit of $15,000,000 compared to an operating loss of $185,000,000 last year. On an as adjusted basis, adjusted EBITDA for the three months ended 06/30/2025 of $79,000,000 compared to $64,000,000 in the same period in 2024, with improved performance driven by higher volume and gross profit margin in nuclear and utility operations and higher volume in industrial operations, offset in part by lower operating profit in civil from western operations and urban transportation solutions from lower gross profit on mass transit projects that are now nearing completion. Turning to Slide six.

Concessions revenue for the second quarter was $2,000,000 compared to $2,000,000 in the same period last year. Adjusted EBITDA in the Concessions segment was $16,000,000 in the quarter compared to $30,000,000 last year and operating profit of $3,000,000 compared to $17,000,000 last year. Lower adjusted EBITDA and operating profit in the quarter were primarily driven by last year’s gain on sale related to incremental proceeds from the partial sale of Skyport and last year’s onetime recovery in Skyport. Otherwise, the as adjusted EBITDA of the Concessions segment was aligned with expectations. On Slide seven, we’ve brought together the as adjusted information to exclude impacts of the legacy projects and divestitures to provide insight into the underlying performance of the business.

On a non as adjusted basis, revenue for the twelve month period ending 06/30/2025 was $4,700,000,000 compared to $3,800,000,000 for the same period last year. Adjusted EBITDA was $351,000,000 in the trailing twelve month period compared to $337,000,000 in the prior period. For the Construction segment, on an as adjusted basis, adjusted EBITDA was $321,000,000 for the trailing twelve month period, representing a 6.8% margin. Adjusted EBITDA margin was impacted by weaker gross profit in Western Civil projects and in urban transportation solutions from lower gross profit on mass transit projects that are nearing completion. Over three quarters of Aecon’s record backlog at June 30 is non fixed price.

This compares to 50% non fixed price last year and just 30% non fixed price in the second quarter back in 2021. Aecon has continued to shift the nature of our backlog and our business over time, including to more collaborative and progressive procurement models while seeking to reduce risk in our performance and target greater profitability and margin predictability. Turning

Speaker 4: to

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Slide eight. At the end of the second quarter, Aecon held core cash and equivalents $123,000,000 which excludes $339,000,000 of cash, representing Aecon’s proportionate share held in joint operations. In the 2025, Aecon renewed both its committed revolving credit and performance security guarantee facilities. At 06/30/2025, Aecon had a committed revolving credit facility of $600,000,000 an increase of $150,000,000 from its previous credit facility and a separate committed credit facility for Aecon Utilities of $40,000,000,336,000,000 dollars was drawn across both facilities and $8,000,000 was utilized for letters of credit. Both revolving facilities now mature in June 2029.

Aecon has no debt or working capital credit facility maturities until 2029 except equipment loans and leases in the normal course. At this point, I’ll turn the call over to Jean Louis to address our business performance and outlook.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Thank you, Jerome. Turning to slide nine, Aecon continues to build resiliency through a balanced and diversified work portfolio. Over the trailing twelve months period, 46 of AECOM’s construction revenue was generated from the utilities and nuclear sectors, compared to 41% for the comparative period in 2024. In the second quarter, the Oneida energy storage project officially commenced commercial operations, becoming the largest grid scale battery energy storage facility in operation in Canada and one of the largest globally. Balancing growth and opportunity with proper risk management is key to Aecon’s future success.

We continue to maintain balance in our Construction and Concessions segments, as we embrace new opportunities to grow in areas linked to the energy and power sectors and in U. S. And international markets. Turning to slide 10, demand for ACOM services across our markets continues to be strong. With record backlog of 10,700,000,000.0 at 06/30/2025, recurring revenue programs continuing to see robust demand and a strong bid pipeline, Aecon believes it’s positioned to achieve further revenue growth in 2025 and over the next few years and is focused on achieving improved profitability and margin predictability.

76% of our backlog was non fixed price at 06/30/2025, compared to 50% at the same time last year. Additionally, our trailing twelve months revenue at 06/30/2025, was 65% non fixed price, up from 58% in the same period last year. Failing twelve months recurring revenue of $1,000,000,000 was comparable to the previous period. Recurring revenues are typically executed on a non fixed price basis, with the majority being over and above our reported backlog figures. Turning to outlook on slide 11, development phase work is ongoing in consortiums, in which Aecon is a participant to deliver several significant long term progressive design build projects of various sizes.

These projects are being delivered using collaborative, progressive design build models, with the majority expected to move into the construction phase in 2025 and 2026. Aecon is focused on achieving solid execution on its projects and selectively adding to its record backlog through a disciplined bidding approach that supports long term margin improvement in the Construction segment. Revenue in 2025 is expected to be stronger than 2024, due to a record backlog of 10,700,000,000.0 the impact of business acquisitions completed in the 2024, solid recurring revenue and a strong bid pipeline. Revenue growth is expected in most of the construction sectors. In the Concessions segment, there are several opportunities to add to the existing portfolio of Canadian and international concessions in the next twelve twenty four months.

The three remaining legacy projects are expected to reach substantial completion by the 2025 and this is anticipated to lead to improved profitability and margin predictability. The remaining backlog to be worked off on the three remaining legacy projects was $76,000,000 or less than 1% of total backlog at 06/30/2025. We are now very close and are dedicating all necessary resources to drive the remaining legacy product to completion, while pursuing fair and reasonable settlement agreements with the respective clients in each case. Until the three remaining projects are complete and the related claims have been resolved, there is a risk that profitability could also be negatively impacted in future periods. As such, the completion and satisfactory resolution of claims on this project with the respective clients remains a critical focus for Aecon and its partners.

We are excited about the momentum we have built and remain focused on executing our strategy to drive long term shareholder value. We thank our dedicated team members for their contributions and for reflecting our Safety Always culture. Thank you. We’ll now turn the call over to analysts for questions.

Conference Operator: Thank you. Our first question comes from the line of Yuri Lynk from Canaccord Genuity Inc.

Speaker 6: Hey, good morning, guys.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.: Hi, Yuri.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Good morning.

Speaker 6: Good morning. When we think about next year with respect to legacy projects, are there any lingering costs associated with these projects? Like I’m thinking associated overhead, not so much, you know, asking if there’s gonna be any cost reforecast in ’26 because we don’t know that, but, know, any overhead costs that we should be including in our model as we think about how these things finally roll off?

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Okay, I’m going to take this one Yuri and describe where we are with our three legacy projects. As you know, Eddington Finch and Golihao are P3 projects and the way they are structured is that construction has its life, but finished with substantial completion. From this moment, we go to another phase, which is maintenance of the assets that we have been building. So the issue for us at the moment is getting to substantial completion. As you have noticed, I mean 76,000,000 of backlog on those three jobs, which is less than 0.7% of our cumulative backlog, is of the essence.

If I want to be a little more specific, on Eglinton and Finnish, we are now working hand in hand with Metrolinx, TTC and all our partners to begin what we call revenue service demonstration, which is the last phase before substantial completion. It’s a period contractually fixed at thirty days with a high number of trains running twenty one hours per day, seven days a week. We have been training, testing, and commissioning all our system for the last two to three years to go there. This should begin between August and September and last for one month. Once this is achieved, which is a final exam, the owner has a few weeks to declare substantial completion.

For Gordie Howe, the Canadian point of entry is over, the main bridge is over, I-seventy 5 is practically over, there’s just a pedestrian bridge that remains to be finished. The US point of entry is a little more complex, we are putting all our efforts on it and we are also expecting to have substantial completion before the end of the year. What does it mean? It means that from the moment we are at substantial completion, the construction part of those schemes is over. And the consequence for us is that an eventual variance on cost at completion is now extremely limited on those projects.

This being said, as you have noticed from what I’ve been saying a few minutes ago, the way we are going to settle our disputes, our claims, way we are going to negotiate with our clients is our critical focus for the five to six months to come. This is a problem of revenue. What I can also add is that those three projects really represent an astonishing technical performance for Aecon, and our clients know it perfectly. I hope I’ve answered your question, Yuri.

Speaker 6: Yeah. Maybe just a quick follow-up. I mean, in terms of pursuing the claims and and stuff like that, like, that is that gonna be a noticeable overhead cost next year? Or

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Not that much. Not that much. I mean, most of our claims are on the table now. There is just a few adjustments because of the few weeks remaining. The idea is to find a fair and reasonable resolution and not to go to lengthy procedures, so there’s no real overhead affected by this resolution.

And then after a substantial completion, we’ll go to maintenance. You probably remember that none of those P3 has a risk of traffic. I mean, it’s just pure maintenance and availability issue on which we have been working now for the last two to three years on all projects.

Speaker 6: Okay. So that’s my last one. Not to belabor the point, but the the underlying margins that that you’ve been reporting the last couple of quarters, you know, excluding the legacy charges. That’s a would you say that’s a good proxy for what your margins might look like in construction in 2026?

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Hey, Yuri. It’s, Jerome speaking. Yeah. Look. There’s a couple of things that are informing the evolution of the margin profile.

So I’ll touch on those briefly because I’m sure it’s a question that others probably are in the queue have been asked as well. So number one, I’m on page seven of the conference call presentation. We we note there the trailing twelve month June 30 EBITDA margin for the and I’m focused on the construction business, was 8% last year, and this year it’s 6.8%. And so informing that that shift is a is a number of items. One was last year, the teams were furiously at work on, you know, progressive elements of some of our PDB projects, working on design implementations, and we had several other, you know, relatively strong margin projects that were being executed and closed out at that point, which were positive.

So the the absence of those, has an impact on the margins today. Number two is we’ve we’ve called out that, you know, the performance in, some of the western areas of our civil practice are just not up to standards today. That’s being addressed. Our expectation is that we’ll close out, you know, roughly by the end of the year. This isn’t kind of like a a massive piece, but just an explanatory factor that, you know, ties into it.

And then, the final piece is a lot of the work that we’re executing today has a much more appropriate risk balance in terms of conditions that are more aligned with a contract risk appetite. And, you know, I I remind everyone that, you know, the the counterparties that we procure for, you know, that that procure from us are very sophisticated, very capable, and very intelligent. So there’s there’s no free lunch in the world where we operate and kind of massive project delivery landscape. Right? Like, we’re talking about OPG, Metrolinx, you know, major global mining corporations.

They’re smart partners. They they know how this works, and they also understand that there needs to be an appropriate balance, between profitability and risk. And that’s also informing an element of the decline in that margin profile. So we’re we we always wanna see more, but, know, the like, for instance, the 6.2 that we posted in this quarter specifically, is, you know, acceptable, but nothing to to kinda be excited about. But that being said, helps inform where where the margin profile is going.

We’re we’re very happy at Aecon to trade a little bit of margin, right? Like I think in the quarter, we’re down 46 basis points, in order to take off the table some of the risks that we’ve historically seen with regards to legacy projects. Hopefully, gives a little bit of context.

Speaker 6: Yeah. Very helpful. I’ll turn it over. Thanks.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Chris Murray from ATB Capital Markets.

Speaker 8: Thanks, folks. Along those lines, I was wondering if you could talk a little bit about the Concessions business and maybe some of the expectations that we should think of over the next little while. Jean Louis, know you alluded to the fact that there’s some interesting project pursuits, but also just trying to maybe have an idea on how some of those pursuits might flow through either in pursuit costs or anything like that as we go through the next year.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Hey. I’ll hey, Chris. It’s Jerome. I’ll I’ll tackle that one. On on the concessions business, I mean, look, we’re we’re very much focused on the the value, that that portfolio represents.

Right? So in in in broad numbers, there’s a quarter billion dollars of equity invested in that portfolio today. These are high value, you know, long term cash flowing assets that are generally untied to to certain economic profiles, and we see a lot of benefit from that perspective. You know, in in the comparative periods and in the historical periods, one of the things that’s benefited the accounting EBITDA associated with our concessions business is really just, you know, management fees and some of the kind of success fees tied to certain projects that have strengthened those results. As we close out the legacy projects, those management fees will fall off.

And I promise you economically for Aecon, this is a good thing. But I know when when that falls away, think we’ll we’ll see a more, you know, normalized levelized level of performance from an accounting EBITDA standpoint. Our perspective is economic value is is certainly maintained and preserved and, you know, probably augmented as as Jean we mentioned, these legacy projects will move from the construction phase, where they’re paying a management fee into the concessions business to effectively a maintenance phase where it’s a little bit more solidly performing. The next part is, we have mentioned in the past, a number of pursuits that are quite interesting and uniquely aligned to our capability set. One of them being the USVI airports, The the two airports that we’re currently in negotiations with to to finalize that that output.

The thing that’s interesting on that one, and like, you know, I I we’re trying to caution people not to kind of assume that the accounting EBITDA will have, you know, an uplift when those deals close. The economic value is preserved, the DCF is unchanged, but the way that the, you know, airport concessions practice works in different markets, whether it’s Caribbean state or US territory or, you know, different region, the the way that the concession fees kick in vary depending on when the project’s delivered. So in some instances, it might be a project signing, some instances, it would be during construction, some instances would be when the airports are actually delivered. And so on that basis, we’re just taking a little more of a cautious stance on the accounting EBITDA, economic output of the business remains consistent and strong.

Speaker 8: Okay. That’s that’s helpful. My other question was just sort of thinking about, you know, kind of the revenue stack, all in as we go into as we go into next year. I mean, the bookings have been remarkable and whether or not they can maintain at this stage. I mean, we’re now at backlog levels.

Even when I think, I start looking at the next twelve months of revenue, you think about recurring revenue and everything you’re there. Any thoughts on and I want to be careful about making sure that we get the backlog duration kind of the right place. But is there anything to believe that you wouldn’t see some pretty substantial revenue growth as we go into next year? Is there something that maybe is longer duration in the mix? Any color you can give us on to think about next year’s revenue stack would be probably appreciated.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Yes, Chris, so as you can see there is a math calculation on all this. Our backlog is around 11,000,000,000. Our recurring revenues are stable. Our big pipeline and we may come back to this after we think that the turbulences that we can see between US and Canada will create quite a number of opportunities, quite interesting for Aecon. Just means that we are on a growing path, I mean, which is more important for us and what is totally in line with our strategy, and this is why we are very happy about it, is that 76% of this backlog is under collaborative contracting mode.

It’s variable pricing. You probably remember that five to six years ago, we were a little below 30%. We have totally inversed the situation. So this gives us obviously a much better margin predictability. And I know some questions that have been asked for the last few months is, yes, those jobs give probably less capacity of write ups, but evidently there’s much less capacity of write downs and this is what was our strategy about.

In this £11,000,000,000 we still do not have until a few other progressive design build, quite nice, like the Port Of Contrequer or all the elements of the GO Transit area project that is going to be phased. But that will happen. I mean you probably have seen that one month and a half ago was inaugurated by the Government of Ontario, would buy the first bundle of work under Oncor. So yes, it’s a path for growth and it’s perfectly aligned with our strategy and for us it’s a path toward much better margin predictability.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Okay, I’ll leave it there. Thanks folks.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Ashul Agarwal from CIBC Capital Markets.

Speaker 9: Hi, good morning. Thanks for taking my question. So my first question is around your margins. So you have talked about that your Western Canada operations has weighed on your margins. And so and you have also talked about some of your urban transport solutions from mass transit projects.

That has also impacted the margins. Can you all please talk about this, what these mass trans transit projects are?

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Sure. Yeah. Hey, hey, Shaul. It’s Jerome. The Western Civil projects I mean, there’s several projects.

We we we don’t call out at Aecon, specific projects, for for a variety of commercial reasons. But what I’ll say is the the the projects in question, have have similar themes to them. They’re ones that were entered into several years ago. They’re fixed price in nature, and then the execution associated with them just isn’t up to the standards to which we wanna hold ourselves to. So, it has a negative impact on the overall margin pool associated with our civil practice, which is a strong practice.

And so, you know, we we just think it’s prudent to to call it out. The projects in question, we anticipate to to be finalized by the end of the year. Again, we don’t think it’s, like, pretty constructive to put too much of a spotlight on it. It’s just, you know, one of a couple of factors that that inform the overall profitability of the business, you know, for everything that we wanna talk about Western Civil. We can talk about strong performance of of nuclear across markets, not just in Ontario.

We can talk about utilities practice continuing to grow. So we try to be balanced with that. And then finally, on on the UTS side, look, we’re we’re executing projects in a couple of jurisdictions. Today, the the big ones on the road map are the the two LRTs in Ontario. We’re doing we’re working on the REM project in Montreal.

And, you know, there’s Scarborough is the other one, which was signed in February and we’ve already begun operations on it. That’s a pretty significant one. And so just the the nature of of those projects just have a a more attenuated margin profile. And then also probably worth noting, we actually have one in Western Canada as well that we were out visiting not long ago, which was the Surrey Langley stations, project, which is an extent extension of the Skytrain in Vancouver. So long way of saying, we’re we’re really proud of our urban transportation solutions practice area.

I think the teams are doing a really good job. The projects that are closer to the very end or very start tend to have, you know, slightly different margin profile than those who are in kind of the middle of the belly.

Conference Operator: Thank you.

Speaker 9: Thanks for clarifying that. I have another question on your capital allocation priorities. So you did three acquisitions last year, and we are yet to hear any acquisitions for this year. So are you do you have any plans to get active on the M and A market again? And also your NCIB is expiring at the end of this month.

So do you have any plans to renew your NCIB?

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Yep. Maybe yeah. I’ll take a step back and answer that question Maybe with kind of a first principles approach, which is, in the normal course, our business is is quite cash generative. Where where we stand today is when you’re taking project losses, like what we’re taking on the legacy projects, that actually involved us cash financing the the projects to completion. So it’s, that’s a drain on capital resource as it stands today.

Normalizing for that, I e, when when the projects close out, we we won’t have that drain. We probably think about it in this way. So number one is, our business is growing. So if you think about LTM revenue last year on a as adjusted basis, so excluding legacy and divestitures, we did about 3,800,000,000.0 of revenue and we’re currently sitting at around 4.7. So there’s been significant growth, roughly 25% growth in the business.

That growth involves investment in working capital, people, processes, efficiency, systems, all tied towards increasing the resiliency of how we do our work. The next thing we look at is making sure that we have a really strong balance sheet. And in this case, I put the plural on it. So we have balance sheet for Aecon and then we have the balance sheet for Aecon utilities. Part of that, you know, part of that focus, was the evidence in the quarter where we increased the Aecon side of the house from $450,000,000 credit facility to $600,000,000 credit facility, just to reflect the overall increase, and, you know, the size of the enterprise and and work programs that we have in front of us.

So, you know, feed

Speaker 9: the

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: machine, keep the balance sheet strong, support the dividend program. Clearly, that’s an important, part of our capital allocation process. And then we actually have, you know, effectively a competition for capital between three growth streams. You know, one of them are just general growth capital investments and equipment opening up new regions. The next one will be growth capital with regards to m and a, which was your question.

And then the third one’s, you know, growth capital, which is really kind of like value per share growth from the NCIB program. So I’ll say, NCIB program expires, you know, back half of the month here in August. Our expectation is that we would look for a renewal through the TSX, and we’ll look to kind of continue tactically approach that program based on capital availability. And then from an m and a front, look, we remain active, but we’re also we’re very particular. Like, we’re we’re fussy purchasers.

We really care about the teams that we’re onboarding into the Econ ecosystem. There needs to be an appropriate value for the businesses that we’re looking to. We need have the right type of operating ethos for those teams. They need to have the same focus on safety. They need to care for their clients.

They need to be additive to our overall profile. And so it ends up being quite tactical. So And that, you know, you gotta kiss a lot of frauds before you find a prince. And so that’s that’s a bit of the reason why we haven’t seen a ton of activity from an m and a perspective. And then the other part of the rule is m and a can be, you know, there’s there’s integration that’s required afterwards.

You have to be thoughtful about how these teams are onboarded and brought on to kind of like the Aecon systems and then, you know, how their approach and processes are recognized. And and that just takes a little bit of time. We you know, you don’t wanna kind of rush and swamp the entire environment, and then find yourself not extracting the the value and benefits from, you know, the onboarding of these teams that you thought you were gonna get. Hopefully, gives you a little bit more context.

Conference Operator: Alright.

Speaker 9: Thank you. I’ll get back in the queue.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Benoit Poirier from Desjardins Securities.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.0: Yes. Good morning, gents. And yes, first question, obviously when we look on the nuclear side, strong expertise with a lot of excitement around the globe. Could you maybe provide an update on the discussion you’re having and what you’re seeing in terms of bidding pipeline for nuclear work?

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Yes, Benoit. I’m going to do it on nuclear. We are very happy with our nuclear sector. As you have noticed, I mean, are now refurbishing 100% of the Canadian fleet, maybe at Darlington with the last unit at Bruce, and we have begun now at Pickering. In addition, at Pickering, we have turned into the turbine rehabilitation, which is very interesting for us.

It’s going to be an add in our competency, and we are here in partnership with Siemens. Regarding new build, you have noticed we have added a little more than $1,000,000,000 It was $1,300,000,000 for our share of the small modular reactor in Darlington. This is the first of a series We just have to be good with the first one, and we are extremely focused with these jobs that fit perfectly with our capacity. But obviously for OPG, for the province of Ontario and for us, what we want to do is just for SMRs.

There’s also a lot of movement and preparation on the 1,000 size reactor in Ontario. It’s going to be with Bruce Power, it’s going to be with OPG. So at this stage, we are working with both our clients in pre definition, pre constructability, close. I tend to say we are totally technology agnostic and we can work with any technology. SMR is a GI patchy technology.

The actual reactors in Canada are can do technology. It’s not a problem for us. In The US we are growing extremely nicely. You probably remember a few years ago we acquired a very small specialised welding company, which then was WORKS, which is now ramping up in terms of activity, profitability, knowledge, quality of the team quite nicely. We work for the Federal Department of Energy, We work for Dominion on a major component replacement.

We have now opened and strengthened our offices in Charlotte. The future of nuclear in The United States, you have probably followed during the last two months everything that has happened on the other side of the border. The future of nuclear in The United States is extremely interesting, we are ideally positioned with Aecon at this stage.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.0: That’s great color, Jean Louis. And maybe quickly on the financial front, obviously with the strong backlog, upcoming growth, how should we be looking at 2026 in terms of working capital movement?

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: Benoit, it’s Alastair. You’d see through the first half of the year, we’ve increased our working capital because of higher revenue. The expectation for the back half of the year is that we’ll continue with the back half of working capital being up slightly. And then 2026, it’s hard to view it at this stage. I mean, in construction that working capital can be kind of lumpy.

I would say, it tends to follow our typical path where we build working capital in the first half of the year and then unwind working capital in Q4. I think the expectation now is kind of hard to predict because it’ll also depend on how some of these settlements go. So at this stage, I think we’ll hold off on giving any guidance on it and we can talk about it later in the year as things unfold.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.0: Thank you very much, Lester.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: You’re welcome.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Maxim Sychev from National Bank Financial.

Speaker 3: Hi, good morning gentlemen.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.: Hi, Max.

Speaker 3: Actually, I was wondering if it’s possible to get a bit of an update around the power business in The US and the transmission opportunity. So anything you can provide color on that would be great. Thanks.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Yeah, mean, what’s happening in power is extremely interesting. In Canada, but also in The US, it’s now obvious that the electricity demand is expected to double by 2000 50. Mean, there’s a lot of parameters there, but it’s about population growth, it’s about electrification of systems, I mean more electrical vehicle, more mass transit and transportation going to electricity, heat pumps, and also industry growth. I mean, is one of the biggest parts in Ontario. Energy intensive, I would say industrial activity, IA and data centres, also a lot of advanced manufacturing that requires more and more electricity.

So new generation capacity, that is important, new transmission capacity, not only within a province in Canada, but also between provinces. It’s evident that at the national level we need more consistency in our grid. It’s also about storage. We told you about Omeida, two fifty MW, but we have also finalized during the quarter two other battery storage, each one around 100 MW. Aecon is ideally positioned.

When we speak more specifically about United States energy, I mean we are growing nicely with our nuclear activity. You remember that utilities two years ago began to work in The United States. It’s a mix of acquisition and of organic growth with partners. There’s a lot to do. To finish with The United States, can hear some noises about what is going to happen, but at the end of the day, the vocabulary can change.

I mean, speak less about climate change and more about extreme weather events, we speak less about renewable energy, but more about energy security and resiliency. But at the end of the day, the works remain, and it’s it’s a very high load. Once again, I mean, we have been preparing the Aecon during the last three years about it. It’s coming, and we are ideally positioned.

Speaker 3: Okay, that’s a color. And you’re not seeing any slippage in terms of kind of contract allocations as there is some pushback around, you know, the ability to pass on rate base increases to sort of the ultimate consumers? Like what is your, I guess sense around how quickly these projects actually do ramp up in The US?

Jean Louis Servranck, President and CEO, Aecon Group Inc.: What we can see obviously, the last decision at the presidential level in The US have created some uncertainty, but there’s not one single week where you don’t have a deal or an agreement that is getting signed. It means that I think it’s coming, I would say surely, back to a kind of new normal. Yes, we have seen during last year some of our projects that were under pursuit being pushed to the right. My opinion is that it’s going to quieten down. In front of I mean, a question about our eventual vulnerability in front of all this, mean I’d just remind you that our backlog is 76 flexible price, so we are covered about tariffs and all those kind of stuff.

Aecon is more and more American. We are extremely prudent, but we have more boots on the ground, more capacity to produce, more capacity to execute. Our works are essential in nature. So I just think that it’s going to settle down and come back to the reality, which is that there is a huge need for power infrastructure in The US and in Canada.

Speaker 3: Yeah. That’s great color. And then one quick follow-up for Jerome, if I may. And I realize, obviously, you cannot talk about, you know, the commercial terms, etcetera. But can you remind us the contract structure or the risk profile on the new kind of nuclear bills, etcetera, that you’re underwriting right now?

Thank you.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Yeah. Generally speaking, variable target price stock contracts with incentives associated with them. Right? And we’ve been working with the clients on these for for quite a while. And so we have a, you know, pretty pretty good handle on, you know, schedule performance required.

These things are huge. Right, Max? Like, it’s not it’s not just like a, you a couple of one men and women who are just kind of putting around in in Darlington, like, it’s full mobilization effort. There’s there’s a lot of white collar work that’s happening, design, know, off-site fabrication happening at Aecon facilities that are, you know, in South Southwestern Ontario. So overall, yeah, target price contract style, not fixed price.

Speaker 3: Okay, wonderful. Thank you so much.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Michael Tupholme from TD Securities.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Thank you. Good morning. Good morning.

Speaker 4: Jean Louis, you gave a lot of very good detail earlier on the call about the status of your three legacy projects in terms of, you know, the stage you’re at with with those three. I guess the the question I have is with your having pushed out the expected date for substantial completion for all three of these to year end from September 30, can you just speak to your level of confidence that all of these projects will in fact be done by year end? I mean, sounds the way you laid it out as though there’s a very sort of organized fashion here in which this work will be completed and it frankly didn’t sound like there is much risk of further slippage, but just trying to get a sense from you as to how we should think about that risk.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: What is important to know is that we are not the only party in this story, especially on Eglinton and Sage. I mean, you probably remember we build, then we maintain, but we don’t operate. I mean, TTC is operating and the fleet, for example, has been bought directly by Metrolinx, I mean, the train. So we are not alone, but there has been for the last few months an absolute alignment between all parties to get it done now, and to have the parameters of substantial completion being much clearer, the way we are going to bed in all the operation periods, way we are going to transition between construction, testing and commissioning, and operation and maintenance is much clearer. So I would tend to say yes, it may fluctuate by a few weeks and what you have seen on our write down on those two projects, Eglinton and Fitch, is just a consequence of this situation.

But I really think we are now at the end of the game on this one. Gordie Howe is a little different. Are not yet, I would say, completed on The US point of entry. The relation with the US border agency, as you may imagine, is not extremely easy. And also a wonderful tool for trade between US and Canada, but it’s probably not the best moment for this bridge to be open.

So there may be some fluctuation during the weeks to come. This being said, I do not see any reason for Aecon and for the construction and capacity to maintain this infrastructure tool, I do not see any reason that this may be pushed after the end of the year.

Speaker 4: That’s very good color. Thank you for all that. Second question is around some opportunities specifically in the defense area. I mean, you have an incredibly strong backlog, a lot of strength in a variety of end markets you’re targeting, but we’ve heard a lot about increased defense spending. Just wanted to get your sense as to how you see Aecon is potentially positioned for any work in that particular area.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Yeah, this is what we call sovereignty and defense future business. We think it’s not going to come from Friday night to Monday morning. That what is going to come, I mean, probably very quickly is a lot of rehabilitation of existing bases and a lot of additional allocation for people and education of people, preparation of people. This being said, we are getting ready for the step further. The step further are new bases in the North, new way of interception.

I mean, it may be the Golden Dome part for Canada or some different system, but they will be, we are convinced in terms of defense. And also in terms of sovereignty with a special metal, special mineral capacity to trade better horizontally than vertically, we can see quite a number of interesting work to come. It will be in a few years, but that’s not a problem. Mean, as I have said, we have prepared ourselves for the power wave that we are seeing at the moment three years ago. We are just preparing AECOM for what is going to happen in defence in two, three, four years ago, and with the backlog that we have at the moment on the table, I’m not worried at all about the top line for Aecon.

Speaker 4: Thank you. I’ll leave it there.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Frederic Bastien from Raymond James Limited.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: Good Friday, everyone.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Hey, Frederic. Hello.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: Yes. Would you mind sharing, maybe presenting somewhat of a report card on the Extreme and United deals and just wondering whether these acquisitions are meeting your expectations.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Yeah. I’ll I’ll I’ll take that I’ll take that one, Fred. I’ve been told I have really long answers, so I’ll try to keep it short. So the answer is yes. We’re really pleased with the operational performance of Extreme.

The team there, the level of integration that we’ve pursued is appropriate for the structure. We have mixed teams. We’ve kind of cross deployed resources for things like storm response. They continue to have very strong position with their primary client DTE, who has expanded capital budgets. And so we’re really happy with what what that team’s done.

We’re really happy with what the utilities team has done on our side and any side of the border, to to support them as well. Like, it’s it’s worked quite cohesively. You know, United, we’re we’re kind of in month seven of of of kind of the the partnership, and it’s going well. Like, the it’s it’s clear that, you know, that was a carve out of a carve out. So that that team now being part of a, you know, a focused enterprise, then being core to the execution that we undertake and, you know, obviously, the privileged position that we have within the the nuclear space just affords the entire, you know, nuclear envelope that we have with an Aecon to to leverage, you know, revenue and capability synergies.

So overall, like, we’re we’re really happy. Again, all of these things were, you know, softly sought out. They’re both part of non competitive processes where we spend a lot of time really getting to understand their teams, and so far it’s kind of it’s worked really well. So, you know, overall, we’re we’re pleased with it. You know, like with anything, we hold ourselves to account to certain areas where we could probably, you know, refine some of the approaches that we have from a integration standpoint and, you know, continue to make sure that we’re, you know, cross selling and and and, you know, maximizing our revenue opportunities, but that’s kind of like at the margin, I’d say, overall, you know, we we grade ourselves relatively well from that standpoint.

We we also had the power constructor, acquisition, that that was folded in very quickly, and I think the team’s very happy to be part of, you know, business that’s, you know, uniquely focused on that outdoor electrical. And so yeah. I’ll try

Speaker 3: to stop there. I could talk

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: for hours about the stuff. Okay.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: I appreciate it. And then just to building on this, are you actively pursuing other deals right now or or or, just pausing and just trying to really get to focus on the legacy projects and get them past completion? Just wondering where your mindset is on m and a.

Jerome Jullier, Executive Vice President and CFO, Aecon Group Inc.: Yeah. I mean, look, the focus on the legacy projects is is a critical a one priority for for the entire Aecon team, but that’s that doesn’t excuse us from being able to operate the business in the normal course. Right? So if if the focus was uniquely on trying to close out the legacy projects, we wouldn’t have expanded our backlog by, you know, $5,000,000,000, on that basis. Right?

So I think we’re, we can this is one where we’re walking and chewing gum. No problem. Adam Borgatti, who’s who’s here and the head of IR also head of corporate development, remains very active. We’ve got pretty, you know, particular parameters when it comes to acquisitions. It needs to tie into our overall strategy.

They need to be aligned from, you know, a whole bunch of operational safety, cultural factors and then valuation is is a huge focus for us. What we’ve seen is in some areas, we’ve had to wave off just because the level of froth in the market and private equity involvement has just made it kind of uneconomic to to pursue transactions in those spaces. And then in other spots, people see maybe a little bit of a longer term, partnership with with Acon and our teams and the ability to really expand, you know, their end of their business using private companies, and that’s where we’re we’re currently focused. So when we think about that, we think about things that are aligned with our expertise. We think about businesses that allow us to expand services within existing markets, and we think about businesses that allow us to expand existing services in new markets, which is our land and expand approach.

So from that front, we’re spending time in, you know, across North America on on exactly those two those two vertices. And and not big stuff. Right? Like, it’s like, again, we’re we’re we we we can get we can get more kind of, appropriately sized acquisitions and and then expand them afterwards, right, we don’t need to pay big multiples to buy businesses that we’re already quite good at.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: Great. Thanks, Jerome. That’s all I have.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Ian Gellies from Stifel GMP.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: Good morning, everyone. Just wanted to sneak in here quickly at the end and fully acknowledge revenue growth is going to be pretty robust given the backlog. But are you seeing any signs of slippage with your private customers on the industrial side or in any other facets just given some of the tariff related headaches they’re probably having in and around project costing?

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Yeah, I will take this one. As I’ve told you, we’ve seen that the tariffs it’s not a distraction. I mean, the tariff turbulences will just settle down in the weeks or months to come and the reality of the strength of the power business and the need for new infrastructure is going to be a main driver. In terms of industrial projects, yes, you probably have heard, for example, that Dow Chemical is just pushing to the right part of its investment. So this may happen when there is uncertainty about the market price and the quantity for those products that can be sold in the near future.

On another hand, you have also heard that LNG Canada Phase two is now coming into a much more active phase. You have seen that the energy, mean Bruce Power, is going full speed ahead to be able to generate more power. So all in all, I’m not that much worried about the top line in terms of civil works. You probably have imagined that and you can see the trend for the last year we are decreasing our exposure to civil works and increasing the one to pure power, as I’ve explained. So all in all, I would say the balance of activity of Aecon, the balance of our kind of clients, the balance of the type of contract we can take with our different business centres just makes that we are extremely resilient and the global trend is good.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.2: Understood. Thanks very much. I’ll turn the call back over.

Conference Operator: Thank you. One moment for our next question. Our next question comes from the line of Subahat Khan from RBC Dominion Securities.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: Great. Thanks and good morning. Just positive if it was discussed earlier, but just want to get a bit of perspective on with the backlog being materially higher than it’s been over the last few years. Can you just walk us through the kind of the cadence of the burn down versus what we may have seen historically? Obviously, there’s some very large projects in there.

But just want to understand, should the burn rate call it not just 26, but just call it 26, 27, would that differ? And then do these larger projects change the quarterly cadence at all versus what we may have seen in the past years? Thanks.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: I would tend to say not really. The reason at which you develop this progressive design build and collaborative model is slower at the beginning, but at the end of the day, those are big amounts and you just have to execute and to build them. So rather than having an ultra sophisticated model, I think what has happened in the past is still valid. We have 11,000,000,000 pounds of backlog, you know more or the maturity, and with this you can have quite an interesting view of what our activity is gonna be in in in the next two years.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: And how are you thinking about, I guess, both on this side, mean, just given the scale of this backlog, the nuclear commentary you shared earlier, how are you just thinking about staffing on both fronts? Nuclear, I think it sounds like one of the refurbishments ends and the next one begins. But just walk us through how you’re staffing to ensure that you’re meeting some

Speaker 9: of this demand that’s in the backlog?

Jean Louis Servranck, President and CEO, Aecon Group Inc.: Obviously, there is a competition for talent at every level. But I have to say that as a trade and team leader, supervisor. I mean, we have I would tend to say we have an extremely loyal group of people, very happy to work with Aecon. Aecon is a Canadian company, it’s strong, it has been living for the last one hundred years and we all think that it will be better and better and grow during the next one hundred years. So yes, there is competition, we are extremely careful.

I also remind you that what I was telling a few minutes ago about our balance of activity, mean you don’t use the same people to build a concrete wall and to weld pipeline on a steam generator in nuclear or to lay power overhead lines. I mean, these are not the same kind of people. We don’t have 11,000,000,000 pounds of backlog in the same activity. It’s quite balanced and this is the way we can go can go through this increase of backlog.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: And then maybe just as you were talking, kind of just thinking through this out loud, you know, maybe there isn’t a right answer to this, but with the macro backdrop being as uncertain as it is, you know, you got the big backlog. Is it possible to get a bit of labor arbitrage, maybe get staffing at lower rates than you might have thought maybe six, twelve months ago, or are the wages more structured among the workforce or there might

Speaker 9: be some element of unionisation?

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: Just curious if there’s an ability to maybe get a bit of arbitrage on labour in this environment. Thanks.

Jean Louis Servranck, President and CEO, Aecon Group Inc.: First of all, remember that 76% of the backlog is flexible price. It means we are covered if there are high sufficiency. On the other hand, most of our agreements with the trade unions are multiple years agreements. So we have very interesting discussions and negotiations with our trade union partners, not only about the cost, but about the quality and about the quality depending on our backlog. And we don’t go on every job, I would say, with the same appetite, taking care of this issue of labour availability.

We are extremely careful with this. For the moment, I do not see any real complicated issue. I say for the moment.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.1: Thanks very much.

Conference Operator: Thank you. At this time, I would now like to turn the conference back over to Adam Bragetti for closing remarks.

Adam Bregatti, Senior Vice President of Corporate Development and Investor Relations, Aecon Group Inc.: Thanks, Gigi, and thank you all for participating. Enjoy the rest of the summer. And as always, feel free to reach out with further questions to the Investor Relations team here. Thanks.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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