Q: Aecon reported last night. Revenue down but a pretty good backlog.
Trades at a cheap valuation. Is there a light at the end of the tunnel?
Trades at a cheap valuation. Is there a light at the end of the tunnel?
5i Research Answer:
EPS beat estimates of a loss of 21c coming in at a loss of 10c. Revenue missed estimates of $985.99M coming in at $846.59M and declining 24% year-over-year. Despite the big miss on revenue and yearly decline, management commentary was quite positive on the strength of the backlog (which increased from the year prior), recurring revenue programs, and the potential for improved profitability and margin expansion. We continue to think it is worth holding and analyst outlook for 2025 and 2026 predicts significant EPS growth.