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Released March 07, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy construction services company Aecon Group Incorporated (Toronto, Ontario) is optimistic about 2025. The company, which handles some of Canada's highest-valued construction and infrastructure-development projects, saw strong results from its nuclear and utilities businesses, and expects a strong backlog will drive business in Canada and the U.S. in 2025. Industrial Info is tracking more than US$28 billion worth of active and proposed projects featuring Aecon's services, more than US$16.5 billion of which is attributed to projects in the power-generation sector.
Click on the image at right for a graph detailing active projects featuring Aecon, by project type.
"Driven by robust year-end backlog, significant new contract awards, contributions from strategic acquisitions, solid recurring revenue, and a strong bid pipeline, revenue in 2025 is expected to be stronger than 2024," said Jean-Louis Servranckx, the chief executive officer of Aecon, in a quarterly earnings-related press release. "Aecon is actively engaged in delivering several major long-term projects under more collaborative models and is focused on advancing them to the construction phase in 2025 and 2026."
Overall revenues and profits for full-year 2024 were down from the previous year, largely due to major construction projects reaching completion during that time. But Aecon reported higher revenues in its nuclear-energy business, driven in part by refurbishment work at nuclear plants in Ontario, and in its utilities business, which saw an increase in work related to battery energy-storage system (BESS) projects.
Among Aecon's nuclear projects under construction is the US$4.2 billion life extension of Unit 4 at the Darlington Nuclear Power Station in Bowmanville, Ontario. Started in mid-2023, the years-long project involves refurbishing a Canada Deuterium Uranium (CANDU) pressurized water reactor and an Alstom steam turbine generator, as well as replacing fuel channels, tubes, pipes and other equipment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can learn more from a detailed plant profile and project report.
Aecon's BESS projects include one of the most closely watched energy developments in Canada: Northland Power Incorporated's (Toronto) standalone, US$450 million Oneida BESS in Jarvis, Ontario, which is designed to store 250 MW. Northland says the facility has a 20-year contract with the Ontario Independent Electric System Operator (IESO) to double the amount of energy storage on Ontario's clean-energy grid. It will be located on a right-of-way managed by Hydro One (Toronto), and it will use Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) "Megapack" large-scale energy-storage model. Subscribers can read more in Industrial Info's plant profile and project report. Aecon also is preparing to begin work on a US$110 million replacement of three spillway gates at the Ladore Hydro Station in Campbell River, British Columbia, to meet dam safety requirements and operating standards. The project is expected to run into 2028. Subscribers can learn more from a detailed plant profile and project report.
For full-year 2024, Aecon reported a net loss of US$59.5 million, compared with net profits of US$161.9 million for 2023. Revenues stood at US$4.2 billion, compared with $4.6 billion from 2023. The company attributed the declines partly to high-value projects reaching completion during the 2023-24 timeframe.
Aecon's total backlog, however, stood at US$6.66 billion, compared with US$6.16 billion at the end of 2023. The company complemented its stronger backlog with fourth-quarter acquisitions of Ainsworth Power Construction, an electrical services and power systems business formerly held by Ainsworth Incorporated (Toronto, Ontario), and United Engineers & Constructors, an engineering, procurement and construction (EPC) specialist.
Regarding U.S. President Donald Trump's tariffs on Canadian goods, Servranckx said in the earnings call that Aecon would strive not "to react every day due to the flaunting of information, left and right and up and down." As the company does not export goods, Servranckx was optimistic that any impacts on Aecon would be "quite limited."
"All of this is playing out in real time, and we're just watching where it's going to land," said Jerome Julier, the chief financial officer of Aecon, in the earnings call. "In general, the uncertainty that this is causing potential inflationary impacts could have impacts on our labor force. So, there's the way that this impacts operations, it's kind of multifaceted. And so, we're being kind of cautious from that perspective."
For more information on the turmoil around tariffs, see March 5, 2025, article - Trump Tariffs Take Effect, and Retaliation Ramps Up, and March 4, 2025, article - Canada Braces for Tariff Impacts.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed projects involving Aecon.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active projects featuring Aecon, by project type."Driven by robust year-end backlog, significant new contract awards, contributions from strategic acquisitions, solid recurring revenue, and a strong bid pipeline, revenue in 2025 is expected to be stronger than 2024," said Jean-Louis Servranckx, the chief executive officer of Aecon, in a quarterly earnings-related press release. "Aecon is actively engaged in delivering several major long-term projects under more collaborative models and is focused on advancing them to the construction phase in 2025 and 2026."
Overall revenues and profits for full-year 2024 were down from the previous year, largely due to major construction projects reaching completion during that time. But Aecon reported higher revenues in its nuclear-energy business, driven in part by refurbishment work at nuclear plants in Ontario, and in its utilities business, which saw an increase in work related to battery energy-storage system (BESS) projects.
Among Aecon's nuclear projects under construction is the US$4.2 billion life extension of Unit 4 at the Darlington Nuclear Power Station in Bowmanville, Ontario. Started in mid-2023, the years-long project involves refurbishing a Canada Deuterium Uranium (CANDU) pressurized water reactor and an Alstom steam turbine generator, as well as replacing fuel channels, tubes, pipes and other equipment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can learn more from a detailed plant profile and project report.
Aecon's BESS projects include one of the most closely watched energy developments in Canada: Northland Power Incorporated's (Toronto) standalone, US$450 million Oneida BESS in Jarvis, Ontario, which is designed to store 250 MW. Northland says the facility has a 20-year contract with the Ontario Independent Electric System Operator (IESO) to double the amount of energy storage on Ontario's clean-energy grid. It will be located on a right-of-way managed by Hydro One (Toronto), and it will use Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) "Megapack" large-scale energy-storage model. Subscribers can read more in Industrial Info's plant profile and project report. Aecon also is preparing to begin work on a US$110 million replacement of three spillway gates at the Ladore Hydro Station in Campbell River, British Columbia, to meet dam safety requirements and operating standards. The project is expected to run into 2028. Subscribers can learn more from a detailed plant profile and project report.
For full-year 2024, Aecon reported a net loss of US$59.5 million, compared with net profits of US$161.9 million for 2023. Revenues stood at US$4.2 billion, compared with $4.6 billion from 2023. The company attributed the declines partly to high-value projects reaching completion during the 2023-24 timeframe.
Aecon's total backlog, however, stood at US$6.66 billion, compared with US$6.16 billion at the end of 2023. The company complemented its stronger backlog with fourth-quarter acquisitions of Ainsworth Power Construction, an electrical services and power systems business formerly held by Ainsworth Incorporated (Toronto, Ontario), and United Engineers & Constructors, an engineering, procurement and construction (EPC) specialist.
Regarding U.S. President Donald Trump's tariffs on Canadian goods, Servranckx said in the earnings call that Aecon would strive not "to react every day due to the flaunting of information, left and right and up and down." As the company does not export goods, Servranckx was optimistic that any impacts on Aecon would be "quite limited."
"All of this is playing out in real time, and we're just watching where it's going to land," said Jerome Julier, the chief financial officer of Aecon, in the earnings call. "In general, the uncertainty that this is causing potential inflationary impacts could have impacts on our labor force. So, there's the way that this impacts operations, it's kind of multifaceted. And so, we're being kind of cautious from that perspective."
For more information on the turmoil around tariffs, see March 5, 2025, article - Trump Tariffs Take Effect, and Retaliation Ramps Up, and March 4, 2025, article - Canada Braces for Tariff Impacts.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed projects involving Aecon.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
