How Investors May Respond To Aecon Group (TSX:ARE) Securing CA$609 Million Montreal Port Expansion Contract

• The Montreal Port Authority recently announced that the Contrecoeur Terminal Constructors General Partnership, comprised of Aecon Group (40%) and Pomerleau (60%), reached financial close on a CA$609 million design-build contract for the Port of Montreal Expansion project in Contrecoeur, Québec, with construction expected to begin in 2026 and conclude in 2030.
• This high-profile project marks one of the largest container port expansions in Eastern Canada and will directly add to Aecon’s Construction segment backlog in the fourth quarter of 2025.
• We’ll explore how this significant contract win and backlog addition could shape Aecon’s investment outlook and long-term revenue potential.

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Aecon Group Investment Narrative Recap

To be a shareholder in Aecon Group, you have to believe in the company's ability to deliver large-scale infrastructure projects, leverage a record-high backlog, and capitalize on robust public and energy transition spending. The recent Port of Montreal contract strengthens Aecon’s backlog and order visibility, but it does not materially alter the short-term catalyst of margin recovery or the most pressing risk of margin compression amid rising project delivery costs.

The most relevant recent announcement tied to this news is the $1.3 billion Darlington New Nuclear Project win in Ontario, another major addition to Aecon's Construction segment backlog. Together with the Port of Montreal expansion, these awards underscore the strong demand for Aecon’s core capabilities but reinforce the central question: can the company convert record backlog into profit growth without sacrificing margins or operational discipline?

Yet, despite momentum, the persistent strain on construction EBITDA margins signals a risk investors should be keenly aware of...

Read the full narrative on Aecon Group (it's free!)

Aecon Group's outlook anticipates CA$5.8 billion in revenue and CA$184.9 million in earnings by 2028. This is based on an annual revenue growth rate of 5.9% and an increase in earnings of CA$160 million from the current CA$24.9 million.

Uncover how Aecon Group's forecasts yield a CA$24.82 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members see fair value estimates for Aecon Group spanning from CA$15.62 to CA$174.95, based on three different perspectives. While backlog growth looks reassuring, concerns about squeezed profit margins may weigh on your outlook, see how other investors are thinking differently.

Explore 3 other fair value estimates on Aecon Group - why the stock might be worth over 7x more than the current price!

Build Your Own Aecon Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Aecon Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Aecon Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Aecon Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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