Aecon Group (ARE) investor relations material

Executive summary

• Record backlog of $10.7B at June 30, 2025, the highest in company history, driven by strong contract awards and strategic acquisitions.

• Q2 2025 revenue rose 52% year-over-year to $1.3B, with growth across all sectors and boosted by acquisitions.

• Adjusted EBITDA for Q2 2025 was $80M, up 3% year-over-year, with margin improvement and a return to operating profit.

• Loss attributable to shareholders narrowed significantly, with adjusted diluted loss per share improving to $(0.09) from $(2.03) year-over-year.

• Major milestones include the launch of the Oneida Energy Storage Project and the start of North America's first commercial grid-scale SMR.

Financial highlights

• Q2 2025 adjusted revenue was $1.3B, up from $975M year-over-year; trailing twelve-month revenue reached $4.7B.

• Adjusted EBITDA for Q2 2025 was $80M (6.2% margin); trailing twelve-month adjusted EBITDA was $351M (7.4% margin).

• Adjusted loss per share improved to $(0.09) in Q2 2025 from $(2.03) in Q2 2024.

• Free cash flow for Q2 2025 TTM was $(10.1)M, reflecting higher capital expenditures and acquisitions.

• Net debt at June 30, 2025 was $224M, with a net debt to TTM adjusted EBITDA ratio of 0.6x.

Outlook and guidance

• 2025 revenue expected to exceed 2024, supported by record backlog, recurring revenue, and acquisitions.

• Construction demand remains strong in Canada, U.S., and select international markets, with major projects advancing.

• Completion of three remaining fixed price legacy projects by end of 2025 is expected to improve profitability and margin predictability.

• Concessions segment anticipates new opportunities in Canadian and international markets over the next 12–24 months.

• Capital expenditures in 2025 projected to be moderately higher than 2024, with a focus on disciplined allocation and shareholder value.