Q4 2025 Aecon Group Inc Earnings Call

March 6, 2026

At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again.

Please be advised that stays conference is being recorded. I would now like to hand the conference over to your speaker today, Eden Bugatti, senior vice president of corporate development and investor relations. Please go ahead.

Thank you, Dey, good morning, everyone. And thanks for participating in our year end 2025 results conference call joining me. Today are John Lewis servants, president and CEO, Jerome Juliet, Executive Vice, President, and CFO and Alistair McCallum, senior vice, president Finance.

Our earnings announcement was released yesterday evening and we've posted a slide presentation on our website, which will refer to, during this call, following our call.

We'll be glad to take questions from the analysts and we asked analysts to keep to 1 question and a follow-up before getting back into the queue.

Operator: To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Borgatti, Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Speaker #1: And to ask your question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Borgatti, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

As noted on slide 2 of the presentations, listeners are reminded that the information we're sharing with you today includes forward-looking statements. These statements are based on assumptions that are subject to significant risks and uncertainties although aeon believes the expectations reflected in these statements are reasonable. We can give no assurance that the expectations will prove to be correct.

Before moving to our financial results, I'll first turn the call over to Jean Lee to highlight a few of aoins important accomplishments in 2025.

Thanks Adam.

Speaker #2: Thank you, DeeDee. Good morning, everyone, 2025 results conference and thanks for participating in our year-end Julier, Executive Vice President and CFO; and Alistair McCallum, Senior Vice President and call.

Adam Borgatti: Thank you, Dee Dee. Good morning, everyone, and thanks for participating in our year-end 2025 results Conference Call. Joining me today are Jean-Louis Servranckx, President and CEO, Jerome Julier, Executive Vice President and CFO, and Alistair MacCallum, Senior Vice President, Finance. Our earnings announcement was released yesterday evening, and we've posted a slide presentation on our website, which we'll refer to during this call. Following our call, we'll be glad to take questions from the analysts, and we ask analysts to keep to one question and a follow-up before getting back into the queue. As noted on slide 2 of the presentation, listeners are reminded that the information we're sharing with you today includes forward-looking statements. These statements are based on assumptions that are subject to significant risks and uncertainties.

On slide 3, 2025 was a transformative year of growth and significant milestones for Akon.

Speaker #2: Joining me today are Jean-Louis. We posted a slide presentation on our website, which was released yesterday evening, and we've also got Finance. Our earnings announcement, which we'll refer to during this call.

With record revenue of 5.4 billion.

And backlog editions of 9.5 billion. So supported by a balance and decrease.

Backlog profile.

Speaker #2: Following our call, we'll analysts. And we ask analysts to keep to one question and a follow-up before getting back into the queue. As noted on slide 2 of the presentation, listeners are be glad to take questions from the reminded that the information we're sharing with you today includes forward-looking statements.

Revenue, grew 28% over 2024.

With 84% of the 1.2 billion increase in Revenue through organic growth.

Revenue from us and international markets. Also increase.

Speaker #2: These statements are based on assumptions that are subject to significant risks and uncertainties. Although Aecon believes the expectations reflected in these statements are reasonable, we give no assurance that the expectations will prove to be accurate. Moving to our financial results, I'll first turn the call over to Jean-Louis to highlight a few of Aecon's 2025 priorities.

by 386 million or 87% in 2025 over 2024,

Adam Borgatti: Although Aecon believes the expectations reflected in these statements are reasonable, we can give no assurance that the expectations will prove to be correct. Before moving to our financial results, I'll first turn the call over to Jean-Louis to highlight a few of Aecon's important accomplishments in 2025.

Speaker #2: important accomplishments in

We delivered our strongest safety performance in over 5 years while maintaining discipline risk management across major projects and programs.

Speaker #3: Thanks, Adam. As noted on slide 3,

Jean-Louis Servranckx: Thanks, Adam. As noted on slide 3, 2025 was a transformative year of growth and significant milestones for Aecon, with record revenue of CAD 5.4 billion and backlog additions of CAD 9.5 billion, supported by a balanced and de-risked backlog profile. Revenue grew 28% over 2024, with 84% of the CAD 1.2 billion increase in revenue through organic growth. Revenue from US and international markets also increased by $386 million or 87% in 2025 over 2024. We delivered our strongest safety performance in over 5 years while maintaining disciplined risk management across major projects and programs. We further advanced our nuclear leadership in North America with our partnership selection to deliver the G7's first grid scale small modular reactor or SMR at the Darlington Nuclear Generating Station.

Speaker #3: 2025 was a transformative significant milestones for Aecon. With record revenue billion, and backlog additions of $9.5 de-risked backlog a balanced and 2024, with 84% of the $1.2 billion, supported by year of growth and 28% over growth.

We further Advanced our nuclear leadership in North America with our partnership selection to deliver the g7's first grid, scale. Small modular reactor or SMR at the Darlington Nuclear Generating Station.

We also commenced the definition phase of the Pickering refurbishment program.

Speaker #3: profile. Revenue grew Revenue 2025 $386 5 years, while maintaining disciplined risk management revenue through organic further advanced our nuclear over across major projects our partnership selection to leadership in North America with deliver the G7's first 2024.

And an aeon partnership was awarded a development phase contract at energy. Northwest Cascade SMR project in the US.

Backlog gross was also highlighted by akums largest contract award to date.

The Scarborough Subway extension Progressive design build project.

Adding approximately 2.8 billion and under a collaborative, Target price Model.

We expanded strategically through the Acquisitions of bottle Construction.

Trinity Industrial Services and KPC power, and electrical services.

with trained in our leadership team, with the appointment of Thomas cloer, as Chief Operating Officer,

Speaker #3: grid-scale small modular refurbishment program and an awarded a development phase contract Cascade, SMR project in the the Darlington Nuclear Generating at Energy Northwest Aecon's largest contract award to collaborative target price expanded strategically through the acquisitions of Bodell Construction, Trinity Industrial Services, and KPC Power and Electrical Services, Clochard as Chief Operating Officer, and received industry recognition with gold stages on Renew Canada's top 100 infrastructure projects list, reflecting our involvement in 17 ranked projects including 4 of the top And as noted on slide 4, we achieved significant with the appointment of Thomas with strengthened our leadership team 2026.

And received industry recognition with gold stages. On renew Canada's top, 100 infrastructure projects list.

Reflecting our involvement in 17 ranked project.

Jean-Louis Servranckx: We also commenced the definition phase of the Pickering refurbishment program, and an Energy Northwest Cascade SMR project in the US was awarded a development phase contract to an Aecon partnership. Backlog growth was also highlighted by Aecon's largest contract award to date, the Scarborough Subway Extension Progressive Design-Build project, adding approximately CAD 2.8 billion under a collaborative target price model. We expanded strategically through the acquisitions of Bodell Construction, Trinity Industrial Services, and KPC Power and Electrical Services. We strengthened our leadership team with the appointment of Thomas Clochard as Chief Operating Officer and received industry recognition with gold status on ReNew Canada's Top 100 Infrastructure Projects list, reflecting our involvement in 17 ranked projects, including four of the top five.

Including 4 of the top 5.

And as noted on slide 4, we achieved significant operational Milestones, including completing the world's largest nuclear refurbishment program at the Darlington, nuclear site ahead of schedule, and Below budget in early 2026.

Providing a model for major nuclear projects on a global scale.

Substantial completion was achieved on the finch West and Eggleston cross town lrts.

Which we are 2 of the 3 remaining Legacy projects.

With battery energy storage facility. The Ona energy storage project.

I will now turn the call over to Jerome for our financial results and we'll return to address our Outlook at the end of the call.

Speaker #3: 5. Providing a model for major nuclear, Eglinton Crosstown, and Oneida Energy Project. I will now turn the call over to Jerome for our financial results, and will return to address our outlook at the end of the call.

Thanks, John, Louie, and good morning everyone. I'll speak to a Consolidated results review results by segments and address a con financial position.

Jean-Louis Servranckx: As noted on slide four, we achieved significant operational milestones, including completing the world's largest nuclear refurbishment program at the Darlington nuclear site ahead of schedule and below budget in early 2026, providing a model for major nuclear projects on a global scale. Substantial completion was achieved on the Finch West and Eglinton Crosstown LRTs, which were two of the three remaining legacy projects. We delivered Canada's largest battery energy storage facility, the Oneida Energy Storage Project. I will now turn the call over to Jerome for our financial results, and will return to address our outlook at the end of the call.

Additional information has been provided to help clarify the underlying results. Excluding impacts from the Legacy projects and the vestures

detailed reconciliation tables are included on slides 15, through 17 in the conference call presentation,

Turning now, to slide 5 on a reported basis record revenue for the year of 5.4 billion dollars was 1.2 billion dollars or 28% higher compared to 2024.

adjusted Eva dub, 235 million compared to 83 million last year and operating profit of 87 million compared to an operating loss of 60 million in 2024,

Adjusted, Evita and operating profit in 2025 were negatively impacted by 94 million in Legacy project losses.

Speaker #3: Storage

Compared to Legacy project. Losses of 273 million in 2024.

Speaker #2: Thanks, Jean-Louis, and good morning, everyone. I'll speak to Aecon's consolidated results, review results by segment, and address Aecon's financials that have been provided to help clarify the underlying results, excluding impacts from the legacy projects and divestitures.

Adjusted diluted earnings per share for the year was 40 cents compared to adjusted delude loss per share of 99 cents in 2024.

Adam Borgatti: Thanks, Jean-Louis, good morning, everyone. I'll speak to Aecon's consolidated results, review results by segment, and address Aecon's financial position. Additional information has been provided to help clarify the underlying results, excluding impacts from the legacy projects and divestitures. Detailed reconciliation tables are included on slides 15 through 17 in the conference call presentation. Turning now to slide 5. On a reported basis, record revenue for the year of $5.4 billion was $1.2 billion or 28% higher compared to 2024. Adjusted EBITDA, $235 million compared to $83 million last year. An operating profit of $87 million compared to an operating loss of $60 million in 2024.

Jerome Julier: Thanks, Jean-Louis, good morning, everyone. I'll speak to Aecon's consolidated results, review results by segment, and address Aecon's financial position. Additional information has been provided to help clarify the underlying results, excluding impacts from the legacy projects and divestitures. Detailed reconciliation tables are included on slides 15 through 17 in the conference call presentation. Turning now to slide 5. On a reported basis, record revenue for the year of $5.4 billion was $1.2 billion or 28% higher compared to 2024. Adjusted EBITDA, $235 million compared to $83 million last year. An operating profit of $87 million compared to an operating loss of $60 million in 2024.

As long we noted.

Reported backlog of 10.7 billion. At the end of 2025, was a record year, end level and compared to backlog of 6.7 billion a year ago.

New contract Awards of 9.5 billion were booked in the year compared to 4.7 billion in the previous year.

Speaker #2: Detailed reconciliation tables are included on slides 15 through 17 in the conference call presentation. Turning now to slide 5, on a reported basis, record revenue for the year of $5.4 billion was $1.2 billion, or 28%, higher compared to 2024.

now looking at results by second,

Turning the slide 6 construction, Revenue 5.4 billion in 2025, with 1.2 billion or 28% higher than the previous year.

Revenue was higher in all sectors, with the largest increase in nuclear operations, driven by a higher volume, would be refurbishment and new build and Engineering, Engineering Services, work in Ontario and the United States.

Higher Revenue in industrial was driven by an increase in Seal construction. Work on critical mineral facilities and western Canada.

Adam Borgatti: Adjusted EBITDA and operating profit in 2025 were negatively impacted by CAD 94 million in legacy project losses, compared to legacy project losses of CAD 273 million in 2024.

Jerome Julier: Adjusted EBITDA and operating profit in 2025 were negatively impacted by CAD 94 million in legacy project losses, compared to legacy project losses of CAD 273 million in 2024.

And incremental Revenue.

The us from the bodal and Trinity.

2025.

Jerome Julier: Adjusted diluted earnings per share for the year was CAD 0.40 compared to adjusted diluted loss per share of CAD 0.99 in 2024. As Jean-Louis noted, reported backlog of CAD 10.7 billion at the end of 2025 was a record year-end level and compared to backlog of CAD 6.7 billion a year ago. New contract awards of CAD 9.5 billion were booked in the year compared to CAD 4.7 billion in the previous year. Now looking at results by segment. Turning to slide six. Construction revenue CAD 5.4 billion in 2025 was CAD 1.2 billion or 28% higher than the previous year. Revenue was higher in all sectors, with the largest increase in nuclear operations, driven by a higher volume of refurbishment, new build and engineering services work in Ontario and the US.

Speaker #2: Per share for the year was $0.40, compared to $0.99, in adjusted diluted loss per share. As noted, reported backlog of $10.7 billion at the end of 2025 was a record year-end level, compared to backlog of $6.7 billion a year ago.

Revenue was also higher in urban Transportation Solutions, primarily from an increase in Subway, and commuter rail system projects,

Speaker #2: As Jean-Louis said, construction revenue of $5.4 billion in 2025 was up $1.2 billion year over year. Revenue was higher in all sectors, with the largest increase in nuclear operations driven by a higher volume of refurbishment, new build, and engineering services work in Ontario and the United States.

And civil operations, higher Revenue was mainly due to an increase in power and rail projects. And for major project work performed internationally partially offset by lower volume of Highway Road and Bridge building activity.

Speaker #2: New contract awards of $9.5 billion were booked in the year, compared to $4.7 billion in the previous year. Now, looking at results by 2024.

Speaker #2: Segment, turning to slide Higher, critical mineral facilities in Western revenue in the U.S. from the Bodell and Trinity acquisitions completed in the third quarter of 2025.

In utility operations, higher revenue is due to a higher volume of gas distribution, work in Canada and electrical work in the United States.

Partially offset by lower volume of telecommunications work and battery energy storage systems and as our team successfully, delivered 3 grid scale projects in the year.

And that adjusted basis. Construction Revenue was 5.3 billion in 2025 compared to 4.1 billion last year.

Previous slide 7.

Jerome Julier: Higher revenue in industrial was driven by an increase in field construction work on critical mineral facilities in Western Canada and incremental revenue in the US from the Bodell and Trinity acquisitions completed in Q3 2025. Revenue was also higher in urban transportation solutions, primarily from an increase in subway and commuter rail system projects. In civil operations, higher revenue was mainly due to an increase in power and rail projects and from major project work performed internationally, partially offset by a lower volume of highway, road, and bridge building activity. In utility operations, higher revenue was due to a higher volume of gas distribution work in Canada and electrical work in the United States, partially offset by a lower volume of telecommunications work and battery energy storage systems work as our team successfully delivered 3 grid scale projects in the year.

Just to be of 220 million compared to 34 million last year.

The primary driver of the increase was lower losses from fixed price Legacy projects in the year.

On that deducted basis. The adjusted Eva was 315 million in 2025.

Speaker #2: Revenue was also higher in urban transportation solutions, primarily from an increase in subway and commuter rail systems, or 28% higher than the previous operations. Higher revenue was mainly due to an increase in power and rail projects, and from major project work performed internationally.

According to slide 8.

In sessions adjusted e, but that for the year was 57 million compared to 87 Million last year.

Speaker #2: Partially offset by a lower volume of highway, road, and bridge building activity. In utility operations, higher revenue was due to a higher volume of gas distribution work in Canada and electrical work in the United States.

Driven by lower income from home and M activities and a decrease in management and development. Fees, delayed to concession projects and yearing or achieving substantial completion of construction activity in 2025.

The book value of equity of our concessions portfolio at year end was 251 million.

Up 7% versus the end of 2024.

Speaker #2: Partially offset by a lower volume of telecommunications work and battery energy storage systems work as our team successfully delivered three grid-scale projects this year. On an adjusted basis, construction revenue was $5.3 billion in 2025 compared to $4.1 billion last year.

Speaker #2: Turning to slide 7, adjusted EBITDA of $220 million compared to $34 million last year. The primary driver of the increase was lower losses from fixed price legacy projects in the year.

On slide 9, we brought together, the average adjusted information to exclude impacts of the Legacy projects and the vests to provide insight into the underlying performance of the business.

Jerome Julier: On an as adjusted basis, construction revenue was CAD 5.3 billion in 2025 compared to CAD 4.1 billion last year. Turning to slide seven. Adjusted EBITDA of CAD 220 million compared to CAD 34 million last year. The primary driver of the increase was lower losses from fixed-price legacy projects in the year. On an as adjusted basis, the adjusted EBITDA was CAD 315 million in 2025. Turning to slide eight. Concessions adjusted EBITDA for the year was CAD 57 million compared to CAD 87 million last year, driven by lower income from O&M activities and a decrease in management and development fees related to concession projects nearing or achieving substantial completion of construction activity in 2025. The book value of equity of our concessions portfolio at year-end was CAD 251 million, up 7% versus the end of 2024.

For the construction segment on as adjusted basis. Just, I was 315 million in 2025, representing a 6% margin and 8 million increase over 2024

on slide 10.

Speaker #2: On an adjusted basis, the adjusted EBITDA was $315 million in 2025. Turning to slide 8, concessions adjusted EBITDA for the year was $57 million compared to $87 million last year, driven by lower income from O&M activities and a decrease in management and development fees, achieving substantial completion of construction activity in 2025.

At the end of 2025 Akon held core cash and cash equivalents of 94 million which excludes 393 million of cash.

Representing. Aoins proportionate share held in joint operations.

In addition at December 31st, 2025 aeon had committed revolving credit facilities of 1 billion dollars.

4 million was utilized for letters of credit.

Speaker #2: The book value of equity of our concessions portfolio at year-end was $251 million, up 7% versus the end of 2024. On slide 9, we brought together the adjusted information to exclude impacts of the legacy projects and divestitures to provide insight into the underlying performance of the business.

Aion has no debt or working Capital Credit facility maturities until 2029.

Except equipment loans and leases in the normal course.

Jerome Julier: On slide nine, we 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. For the construction segment, on an as-adjusted basis, adjusted EBITDA was CAD 315 million in 2025, representing a 6% margin and CAD 8 million increase over 2024. On slide 10, at the end of 2025, Aecon held core cash and cash equivalents of CAD 94 million, which excludes CAD 393 million of cash, representing Aecon's proportionate share held in joint operations. In addition, at 31 December 2025, Aecon had committed revolving credit facilities of CAD 1 billion, of which CAD 257 million was drawn and CAD 4 million was utilized for letters of credit.

Speaker #2: For the Construction segment, adjusted EBITDA was $315 million in 2025, representing a 6% margin and an $8 million increase over 2024. On slide 10, at the end of 2025, Aecon held core cash and cash equivalents of $94 million, which excludes $393 million of cash representing Aecon's proportionate share held in joint operations.

Take on the board of directors approved, an annualized increase to the dividend of 1% per share resulting. In a quarterly dividend of 19.25 cents per share. The dividend will be paid on April 2nd 2026 to shareholders of record on March 23rd 2026.

at this point, I'll turn the call back over to Jean Lee to address our business performance and our

thank yous are all

Turning now to slide 11 aeon continues to build resiliency through a balanced and diversified work portfolio.

In 2025.

Roughly 55% of acorns construction, Revenue was related to power and Utility Services.

Speaker #2: In addition, at December 31, 2025, Aecon had committed revolving credit facilities of $1 billion, of which $257 million was drawn and $4 million was utilized for letters of credit.

Across the nuclear civil, utilities and Industrial sectors with nuclear representing the largest share.

This represents a purposeful transition in our business.

Speaker #2: Aecon has no debt or working capital credit facility maturities until 2029, except equipment loans and leases in the normal course. Aecon's Board of Directors approved an annualized increase to the dividend of $0.01 per share, resulting in a quarterly dividend of $0.1925 per share.

Jerome Julier: Aecon has no debt or working capital credit facility maturities until 2029, except equipment loans and leases in the normal course. Aecon's board of directors approved an annualized increase to the dividend of CAD 0.01 per share, resulting in a quarterly dividend of CAD 0.1925 per share. The dividend will be paid on 2 April 2026 to shareholders of record on 23 March 2026. At this point, I'll turn the call back over to Jean-Louis to address our business performance and outlook.

With a percentage of power activity, increasing significantly, over the past 5 years.

Approximately 30% of acorns construction Revenue was derived from power and utility services in 2020.

Speaker #2: The dividend will be paid on April 2, 2026, to shareholders of record on March 23, 2026. At this point, I'll turn the call back over to Jean-Louis to address our business performance and outlook.

Through our growth and diversification.

Acorn is a profoundly different company. Now,

Than we were several years ago.

Speaker #2: Thank you, Jerome. Turning now to slide 11, Aecon continues to build resiliency through a balanced and diversified work portfolio. In 2025, roughly 55% of Aecon's construction revenue was related to power and nuclear, civil, utilities, and industrial sectors, with nuclear representing the largest share.

Jean-Louis Servranckx: Thank you, Jerome. Turning now to slide 11. Aecon continues to build resiliency through a balanced and diversified work portfolio. In 2025, roughly 55% of Aecon's construction revenue was related to power and utility services across the nuclear, civil, utilities, and industrial sectors, with nuclear representing the largest share. This represents a purposeful transition in our business, with the percentage of power activity increasing significantly over the past 5 years. Approximately 30% of Aecon's construction revenue was derived from power and utility services in 2020. Through our growth and diversification, Aecon is a profoundly different company now than we were several years ago. Turning to slide 12. Demand for Aecon services continues to be strong.

Turning to slide 12 event for AECOM Services, continues to be strong.

With backlog of 10.7 billion at the end of 2025, recurring Revenue programs seeing robbers demand and a strong bit pipeline.

Akon believe its position to achieve further. Revenue growth in 2026.

And his focused on achieving improved profitability and margin predictability.

Speaker #2: This represents a purposeful transition in our business, with the percentage of power activity increasing significantly over the past five years. Approximately 30% of Aecon's construction revenue was derived from power and utility services in 2020.

All while improving the risk profile of our business.

Repairing Revenue was 926 million in 2025, and the proportion of recurring revenue from Utility Services increased from 610 million to 728 million.

Speaker #2: Through our growth and diversification, Aecon is a profoundly different company now than we were several years ago. Turning to slide 12, demand for Aecon services continues to be strong.

An increase of 19% over 2024.

Recurring revenues are typically executed on a non-fixed price basis with a majority being over and above our reported backlog figures.

Turning to slide.

Speaker #2: With a backlog of $10.7 billion at the end of 2025, recurring revenue programs seeing robust demand, and a strong bid pipeline, Aecon believes it is positioned to achieve further revenue growth in 2026 and is focused on achieving improved profitability and margin predictability.

Jean-Louis Servranckx: With backlog of CAD 10.7 billion at the end of 2025, recurring revenue programs seeing robust demand and a strong bid pipeline, Aecon believes it is positioned to achieve further revenue growth in 2026 and is focused on achieving improved profitability and margin predictability, all while improving the risk profile of our business. Returning revenue was CAD 926 million in 2025. The proportion of recurring revenue from utility services increased from CAD 610 million to CAD 728 million, an increase of 19% over 2024. Recurring revenues are typically executed on a non-fixed price basis, with the majority being over and above our reported backlog figures. Turning to slide 13.

13.

Aeon expects to 2026 Revenue to exceed 2025 levels.

Based on Akon strategic positioning in sectors with attractive demand profiles.

And a healthy pipeline of project opportunities tied to power generation.

Critical resource development.

Speaker #2: All while improving the risk profile of our business. Recurring revenue was $926 million in 2025, and the proportion of recurring revenue from utility services increased from $610 million to $728 million.

Mass transit infrastructure.

Water and defense.

In the concessions segment.

A con continues to focus on opportunities to add to the existing portfolio of Canadian and international concessions.

Speaker #2: An increase of 19% over 2024. Recurring revenues are typically executed on a non-fixed price basis, with a majority being over and above our reported backlog figures.

To support Trends in aging infrastructure, Mobility connectivity, energy, and population growth.

Beyond the fixed price Legacy projects, we believe that the deliberate shift towards a greater waiting of improved risk adjusted programs.

Speaker #2: Turning to slide 13, Aecon expects 2026 revenue to exceed 2025 levels based on Aecon's strategic positioning in sectors with attractive demand profiles and a healthy pipeline of project opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defense.

In combination with a strong focus on operational excellence.

Jean-Louis Servranckx: Aecon expects 2026 revenue to exceed 2025 levels based on Aecon's strategic positioning in sectors with attractive demand profiles and a healthy pipeline of project opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defense. In the Concessions Segment, Aecon continues to focus on opportunities to add to the existing portfolio of Canadian and international concessions to support trends in aging infrastructure, mobility, connectivity, energy, and population growth. Beyond the fixed price legacy projects, we believe that the deliberate shift towards a greater weighting of improved risk-adjusted programs in combination with a strong focus on operational excellence, is anticipated to support a stabilization and gradual improvement of adjusted EBITDA margins in the Construction Segment in 2026.

Is anticipated to support the stabilization and gradual Improvement of adjusted epiderm margins in the construction segment in 2026.

Akon plans to maintain a disciplined Capital allocation approach.

Focused on long-term shareholder value.

Through Acquisitions and divestitures.

Organic growth.

Speaker #2: In the concessions segment, Aecon continues to focus on opportunities to add to the existing portfolio of Canadian and international concessions to support trends in aging infrastructure, mobility, connectivity, energy, and population growth.

Dividends Capital Investments and share repurchases on an opportunistic basis.

We are focused on making strategic Investments to support our strong growth.

Whether through the concession portfolio to provide access and entry into new markets,

Effectiveness.

Speaker #2: Beyond the fixed-price legacy projects, we believe that the deliberate shift towards a greater weighting of improved risk-adjusted programs, in combination with a strong focus on operational excellence, is anticipated to support a stabilization and gradual improvement of adjusted EBITDA margins in the construction segment in 2026.

Our overall look for 2026 is very positive.

We are extremely excited about the momentum. We have built and remain focused on executing our strategy to drive long-term shareholder value.

I want to express my sincere. Thanks.

To our growing team for their resilience.

High professionalism.

Jean-Louis Servranckx: Aecon plans to maintain a disciplined capital allocation approach focused on long-term shareholder value through acquisitions and divestitures, organic growth, dividends, capital investments, and share repurchases on an opportunistic basis. We are focused on making strategic investments to support our strong growth, whether through the concessions portfolio to provide access and entry into new markets or to increase operational effectiveness. Our overall look for 2026 is very positive. We are extremely excited about the momentum we have built and remain focused on executing our strategy to drive long-term shareholder value. I want to express my sincere thanks to our growing team for their resilience, high professionalism, and safety always mindset that has positioned Aecon for what comes next. Thank you. We'll now turn the call over to analysts for questions.

Speaker #2: Aecon plans to maintain a disciplined capital allocation approach focused on long-term shareholder value through acquisitions and divestitures, organic growth, dividends, capital investments, and share repurchases on an opportunistic basis.

And safety always mindset.

The last position Akon.

For what comes next?

Thank you. We'll now turn the call over to analyst for questions.

Speaker #2: We are focused on making strategic investments to support our strong growth, whether through the concessions portfolio to provide access and entry into new markets, or to increase operational effectiveness.

Thank you as a reminder, to ask a question. Please press star 1, 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star 1 1, again please, stand by while we compile the Q&A roster.

And our first question comes from sibaja Khan of RBC Capital markets. Your line is open.

Speaker #2: Our overall look for 2026 is very positive. We are extremely excited about the momentum we have built and remain focused on executing our strategy to drive long-term shareholder value.

Speaker #2: I want to express my sincere thanks to our growing team for their resilience, high professionalism, and safety-always mindset that has positioned Aecon for what comes next.

Great thanks and good morning. Um just uh provided a bit of color on the sort of the the opportunities ahead. I was hoping to dig a little bit into some of the announcements we've been seeing from the Canadian government on the infrastructure side. Just hoping to provide a bit of color on, you know, behind all these headlines. Where are we in? Maybe some of these projects hitting the the bidding process? Are you bidding on some of these already? And then maybe you could just tie in the announcement from the other day related to NORAD as well. Just curious to get some more color on that project. Thanks.

Yeah, I I will check this 1 um,

Speaker #2: Thank you. We will now turn the call over to the analysts for questions.

first of all, as an introduction,

Where we are today?

Speaker #1: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Sabahat Khan of RBC Capital Markets. Your line is open.

Is the result of being extremely serious.

And focused.

About our strategy.

Speaker #1: Please stand by while we compile the Q&A roster. And our first question comes from Sabahat Khan of RBC Capital Markets. Your line is open.

We are extremely disciplined with this. We are now following our plan 2024 to 2027,

and we had an an update be 2025.

Basically.

Where we are today?

Speaker #3: Great, thanks, and good morning. You just provided a bit of color on the sort of opportunities ahead. I was hoping you could dig a little bit into some of the announcements we've been seeing from the Canadian government on the infrastructure side.

Sabahat Khan: Great. Thanks, and good morning. Just, you provided a bit of color on the sort of the opportunities ahead. I was hoping you could dig a little bit into some of the announcements we've been seeing from the Canadian government on the infrastructure side. Just hoping you could provide a bit of color on, you know, behind all these headlines, where are we in maybe some of these projects hitting the bidding process? Are you bidding on some of these already? Then maybe if you could just tie in the announcement from the other day related to NORAD as well. I was just curious to get some more color on that project. Thanks.

Belongs to 4.

Vectors. The first 1 was

Econ has to become a Powerhouse.

and as

Speaker #3: Just hoping you could provide a bit of color on, behind all these headlines, where are we in maybe some of these projects hitting the bidding process?

I've noted during my speech. We are now a little more than 55% related with power. It's a, it's an incredibly

Speaker #3: Are you bidding on some of these already? And then maybe if you could just tie in the announcement from the other day related to NORAD as well.

important shift for our company that was before much more Broad and bridges.

Speaker #3: Just curious to get some more color on that project. Thanks.

Point number 2.

Econ.

Speaker #4: Yeah, I will take this one. First of all, as an introduction, where we are today is a result of being extremely serious and focused about our strategy.

Jean-Louis Servranckx: Yeah. I will take this one. First of all, as an introduction, where we are today is a result of being extremely serious and focused about our strategy. We are extremely disciplined with this. We are now following our plan 2024, 2027, we had an update mid-2025. Basically, where we are today belongs to four vectors. The first one was Aecon has to become a powerhouse. As I've noted during my speech, we are now a little more than 55% related with power. It's an incredibly important shift for our company that was before much more road and bridges. Point number two, Aecon had to become what we call a sovereignty champion, we are coming to your questions.

Because what we call a sovereignty champion and we're coming to your question.

A, you probably have noticed that.

we were among the first,

5 project.

Speaker #4: We are extremely disciplined with this. We are now following our plan 2024–2027. And we had an update mid-2025. Basically, where we are today belongs to four vectors.

Of national important to verify with the caller port in Montreal and the SMR construction. I mean, in Darlington

But we also announced a few days ago.

That we had been awarded this article Over the Horizon.

Project. This project was a target for econ. I mean we wanted to

Speaker #4: The first one was Aecon has to become a powerhouse. And as I've noted during my speech, we are now a little more than 55% related with power.

come back to defense construction Canada. We had not been there for quite a number of years because the jobs were much more refurbishments of buildings Hangar and not that much infrastructure.

We decided that we had.

Be back.

Speaker #4: It's an incredibly important shift for our company that was before much more road and bridges. Point number two, Aecon had become what we call a sovereignty champion.

We have been awarded the first.

2 pieces of this job.

Ultimately, they will be several others.

For what has been announced.

Speaker #4: And we are coming to your questions. You probably have noticed that we were among the first five projects of national importance that were defined, with the Contrecoeur port in Montreal and the SMR construction—I mean, in Darlington.

Total size that could.

Jean-Louis Servranckx: You probably have noticed that we were among the first five project of national importance that were defined with the Contrecœur port in Montreal and the SMR construction, I mean, in Darlington. We also announced a few days ago that we had been awarded this Arctic Over the Horizon project. This project was a target for Aecon. I mean, we wantedCome back to Defence Construction Canada. We have not been there for quite a number of years because the jobs were much more refurbishments of buildings, hangars, and not that much infrastructure. We decided that we had to be back. We have been awarded the first two pieces of this job. Ultimately, there will be several others for what has been announced as a total size that could hit CAD 3 to 5 billion. It's a complex project. We are leader.

It's a complex project.

We are leader. We want it with an outstanding.

Speaker #4: But we also announced a few days ago that we had been awarded this Arctic Over the Horizon project. This project was a target for Aecon.

Speaker #4: I mean, we wanted to come back to Defense Construction Canada. We had not been there for quite a number of years because the jobs were much more refurbishments of buildings, hangars, and not that much infrastructure.

Scoring result. It's a purely collaborative job. It means that we first have a validation phase. Then we have a development or a detailed definition phase. Then we have constructions that should begin in 2027. It was very important for us and we got it third point of our strategy will come back to this.

Aion has to be a national and a local strong player in the US will come back to it.

And number 4, Aion has to become more International.

What we also have been doing.

Speaker #4: We decided that we had to be back. We have been awarded the first two pieces of this job. Ultimately, there will be several others.

I hope I've answered your question.

Speaker #4: For what has been announced, as a portal site that could exceed three to five billion dollars. It's a complex project. We are a leader.

Just tell maybe a bit more. If I could follow up there on just, you know, behind some of these initial projects. Have you seen an uptick in bidding activity or are these projects still initial phases? Just wondering sort of when some of the other larger projects or some of this investment might hit the ground.

Speaker #4: We want it with an outstanding scoring result. It's a purely collaborative job. It means that we first have a validation phase. Then we have a development, or a detailed definition phase.

Jean-Louis Servranckx: We want it with an outstanding scoring result. It's a purely collaborative job. It means that we first have a validation phase, we have a development or a detailed definition phase, we have construction that should begin in 2027. It was very important for us, and we got it. Third point of our strategy, we'll come back to this. Aecon has to be a national and a local strong player in the US. We'll come back to it. Number four, Aecon has to become more international, what we also have been doing. I hope I've answered your question.

When when you discuss with the different construction Canada, or you also can go to their website, I mean, obviously the number of project.

That are now on the list and that will uh, be put on the market.

Speaker #4: Then we have constructions that should begin in 2027. It was very important for us, and we got it. Third point of our strategy—we'll come back to this—Aecon has to be a national and a local strong player in the US.

Speaker #4: We'll come back to it. And number four, Aecon has to become more international—which we also have been doing. I hope I've answered your question.

During the few years to come has been multiplied by quite an interesting Factor. So, we, we are tracking this. And of course, you have also, for example, uh, learn about Alto. I mean, the, the high speed train. We, we the first phase between Montreal, and and Ottawa. I mean, this is a pure kind of project for which aeon is is excellently positioned now.

Speaker #3: Yeah, just maybe a bit more if I could follow up there—just behind some of these initial projects, have you seen an uptick in bidding activity, or are these projects still at the initial phases?

Sabahat Khan: Yeah, just, maybe a bit more, if I could follow up there on just, you know, behind some of these initial projects, have you seen an uptick in bidding activity, or are these projects still initial phases? Just wondering sort of when some of the other larger projects or some of this investment might hit the ground.

Great. And then just my last question. Um you know obviously you're talking a bit about the power opportunity and the business here. Can you maybe just

Speaker #3: Just wondering, sort of, when some of the other larger projects or some of this investment might hit the ground.

So we have sort of the the utility strategy um, is that something that you know, you're going to is it more growing it via some of these power project opportunities. How big of a role would I make playing that? Um, maybe it's a little bit of color there and I'll pass along. Thank you.

Jean-Louis Servranckx: When you discuss with Defence Construction Canada, or you also can go to their website, I mean, obviously, the number of projects that are now on the list and that will be put on the market, I mean, during the few years to come, has been multiplied by quite an interesting factor. We are tracking this. Of course, you have also, for example, learned about Alto, I mean, the high-speed train with the first phase between Montreal and Ottawa. I mean, this is a pure kind of project for which Aecon is excellently positioned now.

Speaker #4: When you discuss with the defense construction—their website, I mean—obviously, the number of projects that are now on the list and that will be put on the market, I mean, during the few years to come, has been multiplied by quite an interesting factor.

Yeah. I mean obviously um,

Speaker #4: So, we are tracking this. And of course, you have also, for example, learned about ALTO—I mean, the high-speed train with the first phase between Montreal and Ottawa.

The power part of utilities is growing and is, is is growing well, uh, our utility sector is also about gases. It's, it's also about Telecom. It's also about fiber to the home and and and those kind of activities. But power is what is growing at the same time.

In United States.

And in Canada. I mean basically uh the main topic of today is about electricity Edition

Speaker #4: I mean, this is a pure kind of project for which Aecon is excellently positioned now.

Speaker #3: Great. And then just my last question. Obviously, you're talking a bit about the power opportunity and the business here. Can you maybe just sort of rehash the utility strategy?

Sabahat Khan: Then just my last question. Obviously, you're talking a bit about the power opportunity and the business here. Can you maybe just rehash sort of the utility strategy? Is that something that, you know, is it more growing it via some of these power project opportunities? How big of a would M&A play in that? Maybe just a little bit of color there, and I'll pass along. Thank you.

this is a wave and and we were not wrong 3 years ago when we just uh caught this and decided to focus our efforts on on, on this part of the of the business

This being said, as I've always told you, Aion has to stay balanced.

Speaker #3: Is that something that you're going to—is it more growing it via some of these power project opportunities? How big of a role would M&A play in that?

Speaker #3: Maybe it's a little bit of color there, and I'll pass the line. Thank you.

To stay balanced between the different core competencies that we have. It's about Urban Transportation. It's it's about industrial, it's about nuclear. It's about utilities, and it's about civil.

Jean-Louis Servranckx: Yeah, I mean, obviously, the power part of utilities is growing and is growing well. Our utility sector is also about gas. It's also about telecom. It's also about fiber to the home and those kind of activities. Power is what is growing. At the same time, in United States and in Canada, I mean, basically, the main topic of today is about electricity addition. This is a wave, and we were not wrong three years ago when we just called this and decided to focus our efforts on this part of the business. This being said, as I've always told you, Aecon has to stay balanced. It has to stay balanced between the different core competencies that we have.

Speaker #4: Obviously, the power part of Utilities is growing, and it's growing well. Our Utility sector is also about gas; it's also about telecom. It's also about fiber to the home and those kinds of activities.

Is about power.

Maybe and Gerald you want to add something. Sure. And so I just to close the loop on it on the utility services side of the business.

Speaker #4: But power is what is growing. At the same time, in the United States and in Canada—I mean, basically, the main topic of today is about electricity addition.

The the capability, uh, that we have both in in Canada and the United States centers around, you know, Goods, scale battery storage.

Substations.

Speaker #4: This is the wave. And we were not wrong three years ago when we just called this and decided to focus our efforts on this part of the business.

Distribution transmission. Um, and so that, and then now, you know, increasingly um, electrical testing verification meter replacement with, uh, the new team that's joined us. So, our our perspective is we want to continue to build capacity to serve these end markets. Uh, there's an undeniable growth trend.

Speaker #4: That being said, as I've always told you, Aecon has to stay balanced between the different core competencies that we have. It's about urban transportation.

uh even in the in the more bearish case for power demand, uh,

Jean-Louis Servranckx: It's about urban transportation, it's about industrial, it's about nuclear, it's about utilities, and it's about civil. We have to keep balance, but we know that the wave is about power. Jerome, you want to add something?

Speaker #4: It's about industrial, it's about nuclear, it's about utilities, and it's about civil. We have to keep balanced, but we know that the wave is about power.

We just see an enormous opportunity for us to continue to to build out that that area. Um we'll do it organically uh we'll do that through m&a to the extent, the opportunities fit, our our buy box, our culture and um, you know, our safety record. And I we we continue to view it as an area of of of opportunities for Capital deployment for sure.

Great. Thanks very much.

Speaker #4: Maybe.

Speaker #3: And Jerome, do you want to add something?

Speaker #5: Sure. And so, just to close the loop on it, on the utility services side of the business, the capability that we have both in Canada and the United States centers around grid-scale battery storage, substations, distribution, and transmission.

Jerome Julier: Sure. Just to close the loop on it, on the utility services side of the business, the capability that we have both in Canada and the United States centers around, you know, grid-scale battery storage, substations, distribution, transmission. Now, you know, increasingly, electrical testing, verification, meter replacement with the new team that's joined us. Our perspective is we wanna continue to build capacity to serve these end markets. There's an undeniable growth trend, even in the more bearish case for power demand. We just see an enormous opportunity for us to continue to build out that area. We'll do it organically. We'll do that through M&A to the extent the opportunities fit our buy box, our culture, and our safety record.

Thank you.

And our next question comes from Yuri link of canaccord community. Your line is open.

Hey, good morning.

Speaker #5: And so, that, and then now increasingly electrical testing, verification, meter replacement with the new team that's joined us. So our perspective is, we want to continue to build capacity to serve these end markets.

Um, morning morning, just want to dig in a little bit, on the, the outlook for, um, cons construction. Uh, segment adjusted IBA margin calling calling for some stabilization here.

Um,

Speaker #5: There's an undeniable growth trend. Even in the more bearish case for power demand, we just see an enormous opportunity for us to continue to build out that area.

Speaker #5: We'll do it organically. We'll do that through M&A to the extent the opportunities fit our buy box, our culture, and our safety record. And we continue to view it as an area of opportunity for capital deployment, for sure.

After you know, a number of quarters of of decline um and and then maybe some improvement in the back half of the year. So maybe just what what are the the puts and takes um, that get a stable here and then what could possibly Drive some, some upside in the back half of the year in the margin. Thanks.

For sure. The the message is simply that the direction of travel.

Jerome Julier: We continue to view it as an area of opportunity for capital deployment for sure.

Speaker #3: Great. Thanks very much.

Sabahat Khan: Great. Thanks very much.

Speaker #1: Thank you. And our next question comes from Yuri Link of Canacorp Community. Your line is open.

Operator: Thank you. Our next question comes from Yuri Lynk of Canaccord Genuity. Your line is open.

Very much consistent um is stabilization on the direction of travel with the potential for improvement and and that's largely a function of through 2025 uh the business has moved the type of execution that's flowing through it and being recognized into Revenue.

Speaker #6: Hey, good morning.

Yuri Lynk: Hey, good morning.

Jean-Louis Servranckx: Yuri.

Speaker #4: Good morning.

Away from some of the progressive elements and fixed price contracts. With generally

Speaker #6: Good morning. Just want to dig in a little bit on the outlook for construction segment adjusted EBITDA margin. You're calling for some stabilization here after a number of quarters of decline, and then maybe some improvement in the back half of the year.

Jerome Julier: Morning.

Yuri Lynk: Morning. Just wanna dig in a little bit on the outlook for construction segment adjusted EBITDA margin, calling for some stabilization here, after, you know, a number of quarters of decline, and then maybe some improvement in the back half of the year. Maybe just what are the puts and takes that get us stable here? Then what could possibly drive some upside in the back half of the year on the margin? Thanks.

Carry higher emergence. But, you know, in some ways on fixed price, certainly higher risk.

Speaker #6: So maybe just, what are the puts and takes that get us stable here? And then, what could possibly drive some upside in the back half of the year in the margin?

Speaker #6: Thanks.

Speaker #4: For sure. The message is simply that the direction of travel for the construction margin, whether you look at it on a reported or as-adjusted basis, the message is very much consistent.

Jerome Julier: For sure. The message is simply that the direction of travel for like the construction margin, whether you look at it on a reported or adjusted basis, that the message is very much consistent, is stabilization on the direction of travel with the potential for improvement. That's largely a function of through 2025, the business has moved the type of execution that's flowing through and being recognized into revenue away from some of the progressive elements and fixed price contracts, which generally carry higher margins. You know, in some ways on fixed price, certainly higher risk to a much more stable risk-adjusted return that we view as very attractive from an Aecon perspective. We've now reached that point where we've stabilized that transition.

Speaker #4: Stabilization on the direction of travel, with the potential for improvement. And that's largely a function of, through 2025, the business has moved the type of execution that's flowing through it and being recognized into revenue away from some of the progressive elements and fixed price contracts, which generally carry higher margins.

To a much more stable risk adjusted return that we view as very, um, attractive from an income perspective. And so we've, we've now reached that point where we're we we've stabilized that transition. Uh, you know, the the vast majority of our work is done under more appropriate contract structures, the risk, adjusted merge and profile that we're recognizing is is strong. Uh, given given the contract structures that were in front of. And uh, the Improvement is going to stem, largely from operational, efficiency gains, um, improved cost and schedule performance on our jobs and then, as well as the drop off of, you know, Legacy and then the, the Western civil area that's, um, that's, you know, added a dilutive impact to the overall margin profile at 25 and, and late 24. So, I think from from that perspective, it's, um, you know, it's, it's, it's a, it's a mix of factors. But I think, you know, all of this is in the context of a business that's continues to grow, uh, quite well and so we we think there's good, there's good torque. Uh,

That message.

Speaker #4: But in some ways, on fixed price, certainly higher risk—to a much more stable, risk-adjusted return that we view as very attractive from an Aecon perspective.

And are those Western civil contracts. Um,

Still dragging or they're finished or stable.

Speaker #4: And so, we've now reached that point where we've stabilized that transition. The vast majority of our work is done under more appropriate contract structures.

Jerome Julier: You know, the vast majority of our work is done under more appropriate contract structures. The risk-adjusted margin profile that we're recognizing is strong, given the contract structures that we're in front of. The improvement is gonna stem largely from operational efficiency gains, improved cost and schedule performance on our jobs, and then as well as the drop off of, you know, legacy and then the Western Civil area that's, you know, added a dilutive impact to the overall margin profile in 25 and then late 24. I think from that perspective, it's, you know, it's a mix of factors, but I think, you know, all of this is in the context of a business that's continues to grow quite well.

Speaker #4: The risk-adjusted margin profile that we're recognizing is strong, given the contract structures that we're in front of. And the improvement is going to stem largely from operational efficiency gains, improved cost and schedule performance on our jobs, and then as well as the drop-off of legacy, and then the Western Civil area that's added a dilutive impact to the overall margin profile in '25 and late '24.

There are are are view is we we have a handle on on their completion and and finalization, and we're going to continue to, to just to close them out, right? They're they're effectively, I think backlog wise, we're we're probably talking kind of sub hundred million dollars here. Um, same thing on the Legacy side, so 100 million dollars in the context of, you know, 5.4% where we're feeling better about it.

Uh, last 1 for me, just on the bookings. I mean, a huge bookings year 2025. Um,

Speaker #4: So, I think from that perspective, it's a mix of factors, but I think all of this is in the context of a business that continues to grow quite well.

Speaker #4: And so, we think there's good torque in that message.

Jerome Julier: We think there's good torque in that message.

Speaker #6: And are those Western Civil contracts still dragging, or are they finished, or stable?

Yuri Lynk: Are those Western Civil contracts still dragging or they're finished or stable?

Safe assumption that, that we're not going to get to, to that level of bookings, uh, in in 26. And can you just remind us of any Progressive contracts that might come up for? That might be suitable to, to be booked in 26, like I'm thinking Pickering, uh, is probably 1, but, but any help on just how we think about the new Awards Outlook this year.

Jerome Julier: Our view is we have a handle on their completion and finalization, and we're gonna continue to just close them out, right? They're effectively I think backlog wise, we're probably talking kind of sub CAD 100 million here. Same thing on the legacy side, sub CAD 100 million in the context of, you know, CAD 5.4 billion of overall rev. We're feeling better about it.

I I will check this 1. Yes, you're right. I mean the

Speaker #4: Our view is we have a handle on their completion and finalization, and we're going to continue to just close them out, right? They're effectively, I think backlog-wise, we're probably talking kind of sub-$100 million here; same thing on the legacy side, sub-$100 million.

the increases in our backlog, I mean in

Speaker #4: In the context of $5.4 billion of overall revenue. And so we're feeling better about it.

Speaker #6: Okay, last one for me. Just on the bookings—I mean, a huge bookings year in 2025. Is it a safe assumption that we're not going to get to that level of bookings in '26?

Yuri Lynk: Yeah. Last one for me, just on the bookings, I mean, a huge bookings year, 2025. Safe assumption that we're not gonna get to that level of bookings, in 2026. Can you just remind us of any progressive contracts that might come up that might be suitable to be booked in 2026? Like I'm thinking Pickering is probably one, but any help on just how we think about the new awards outlook this year.

Some 5 is mainly due to Big chat. I mean, of job. I mean, we we we told you about Scarborough and so what is coming? Now there are I mean I mean, obviously, Pickering is an important 1, we are also on Winnipeg on a very interesting.

Speaker #6: And can you just remind us of any progressive contracts that might come up that might be suitable to be booked in '26? I'm thinking Pickering is probably one, but any help on just how we think about the new awards outlook this year?

Wastewater treatment plant where we are finishing the development phase. We are also working. You probably remember, on, on a fish passage and, and, and a civil job in the United States. I mean, our ancient name that

should most probably come to our construction. Um, backlog. And, and we are waiting, I mean, for a few result.

uh,

Jean-Louis Servranckx: I will take this one. Yes, you're right. I mean, the increase in our backlog, I mean, in 2025 is mainly due to big chunk, I mean, of job. I mean, we told you about Scarborough. What is coming now, I mean, obviously Pickering is an important one. We are also on Winnipeg on a very interesting wastewater treatment plant where we are finishing the development phase. We are also working, you probably remember, on a fish passage and a civil job in the United States, I mean, over Howard A. Hanson Dam, that should most probably come to our construction backlog.

and eventual Awards on on some uh UDS project of which we have been bidding during the last months is

Speaker #4: I will take this one. Yes, you're right. I mean, the increase in our backlog, I mean, in 2025, is mainly due to a big chunk.

Okay, that's helpful. I'll turn it over there guys. Thanks.

Thank you.

Speaker #4: I mean, of job. I mean, we told you about Scarborough. And so, what is coming now—there are, I mean, obviously, Pickering is an important one.

Our next question comes from Chris Murray of ATB cormark, Capital markets through line is open.

Speaker #4: We are also on Winnipeg on a very interesting wastewater treatment plant where we are finishing the development phase. We are also working, you probably remember, on a fish passage and a civil job in the United States.

Yeah, thank you folks. Good morning. Um, maybe kind of following on, uh, kind of what to expect in 2026 especially on the revenue line. Um, certainly, you know, really strong Revenue growth through this year, um, you know, there's a few projects that you know, we've been in actually, I was thinking of uh you know the the Ontario go electrification project as well.

Speaker #4: I mean, Owad, Anson, Dave—that should most probably come to our construction backlog. And we are waiting, I mean, for a few results and eventual awards on some UDS projects on which we have been bidding during the last months.

Jean-Louis Servranckx: We are waiting, I mean, for a few results and eventual awards on some US projects on which we have been bidding during the last months.

Maybe if you can characterize it a little bit better, that would help us kind of shape our view.

sure thing, Chris

Speaker #3: Okay, that's helpful. I'll turn it over there, guys.

Yuri Lynk: Okay. That's helpful. I'll turn it over there, guys. Thanks.

The, the growth in 25.

Speaker #3: Thanks.

Speaker #1: Thank you. And our next question comes from Chris Murray.

Operator: Thank you.

Jean-Louis Servranckx: Sure.

We would we'd likely described as exceptional um rather than just very good. Uh,

Operator: Our next question comes from Chris Murray of ATB Capital Markets. Your line is open.

80 plus percent of that was organic, which is roughly a billion dollars.

Speaker #1: Markets. Your line is open.

Speaker #5: Yeah, thanks, folks. Good morning. Maybe kind of following on what to expect in 2026, especially on the revenue line. Certainly, really strong revenue growth through this year.

Chris Murray: Yeah. Thanks, folks. Good morning. Maybe kind of following on, kind of what to expect in 2026, especially on the revenue line. Certainly, you know, really strong revenue growth through this year. You know, there's a few projects that, you know, we've been in. Actually, I was thinking of, you know, the Ontario GO Electrification project as well. You gave the indication that you expect revenues to be higher in 2026 than 2025, which, you know, given up where the backlog is, that's I guess probably what we should have been expecting. I'm just trying to gauge how you think the magnitude's gonna show up, because I can't believe that this 20% clip on year-over-year growth is gonna continue.

Speaker #5: There’s a few projects that we’ve been in. Actually, I was thinking of the Ontario GO electrification project as well. You gave the indication that you expect revenues to be higher in '26 and '25, which, given where the backlog is, I guess is probably what we should have been expecting.

Um, you know, just the growth that aeon produced in 20125 that was its own business, uh, would have been a top 20 construction, uh, you know, company in Canada. Uh, that was, that was formed out of out of Aion. So the we are not anticipating that level next year, um, our, our commentary in the Outlook is formed on the basis of number 1. Uh, the backlog number 2, a really strong recurring Revenue programs uh across the business but you know, in particular the utilities group

Speaker #5: I think the magnitude is going to show up, because I can't believe that this 20% clip on year-over-year growth is going to continue. But maybe if you can characterize it a little bit better, that would help us kind of shape our view.

At number 3, the all sectors are really well positioned for for demand Trends exist today.

Chris Murray: Maybe if you can characterize it a little bit better, that would help us kind of shape our view.

And if we look 2025 was effectively a flat or down year and Construction in North America except for a select few sectors and those sectors were the biceps in which were involved.

Speaker #4: Sure thing, Chris. The growth in '25, I mean, we'd likely describe as exceptional. Rather than just—

Jerome Julier: Sure thing, Chris. The growth in 2025, I mean, we'd likely describe as exceptional, rather than just very good. 80+% of that was organic, which is roughly CAD 1 billion. You know, just the growth that Aecon produced in 2025, if that was its own business, would have been a top 20 construction, you know, company in Canada, that was formed out of Aecon. The-- we are not anticipating that level next year. Our commentary in the outlook is formed on the basis of, number one, the backlog, number two, really strong recurring revenue programs across the business, but, you know, in particular the utilities group.

Uh, 2026, we continue to see good outlook, you know, overall General Industry Trends, people are calling for something in the order of, you know, low mids single-digit growth. Uh, and again we think we can we

can handle the

Speaker #4: Dollars. Just the growth that Aecon produced in 2025, if that was its own business, would have been a top 20 construction company in Canada.

But we're not going to get to the level we gotten 2025. I just I don't anticipate that absent some significant m&a. So um, we're expecting another good year after an excellent year, but not, uh, you know, we have to temper expectations, right? We can't uh,

Speaker #4: That was formed out of Aecon, so we are not anticipating that level next year. Our commentary in the outlook is formed on the basis of, number one, the backlog.

We can't expand our human capacity and deliver the amount of skill trades. Um, that we, we use as the basis for business, uh, at that clip on a continual basis, right? We need to be smart about it.

Speaker #4: Number two, really strong recurring revenue programs across the business, but in particular, the Utilities group. Number three, all sectors are really well positioned for the demand trends that exist today.

Jerome Julier: Number three, all sectors are really well positioned for where demand trends exist today. If we look, 2025 was effectively a flat or down year in construction in North America, except for a select few sectors. Those sectors were the five sectors in which we're involved. 2026, we continue to see good outlook. You know, overall general industry trends, people are calling for something in the order of, you know, low mid-single digit growth. Again, we think we can handily beat that, we're not gonna get to the level we got in 2025. I don't anticipate that absent some significant M&A. We're expecting another good year after an excellent year, not, you know, we have to temper expectations, right?

Speaker #4: If we look, 2025 was effectively a flat or down year in construction in North America, except for a select few sectors. And those sectors were the five sectors in which we're involved.

Okay, maybe maybe. If I asked a question in a different way, if I think, you know, if I look at your backlog kind of characteristics today, you've got about 3.6 billion and that looks like delivered or planned for the next 12 months. A billion of, uh, probably recurring Revenue. That's, that's in the pipeline. Um, and then, how should we think about, you know, the at least even what the project demand in here?

Speaker #4: 2026, we continue to see a good outlook. Overall, general industry trends—people are calling for something in the order of low to mid-single-digit growth. And again, we think we can handily beat that, but we're not going to get to the level we got in 2025.

Is it fair to think? Like, what would be about the right, number to think about stuff that you can actually book and execute in the same year kind of on a normal run rate. Maybe that's a different way to think about this.

Speaker #4: I don't anticipate that absent some significant M&A. So we're expecting another good year after an excellent year, but now we have to temper expectations, right?

Speaker #4: We can't expand our human capacity and deliver the amount of skilled trades that we use as the basis for business at that clip on a continual basis, right?

Jerome Julier: We can't expand our human capacity and deliver the amount of skill trades that we use as a basis for business at that clip on a continual basis, right? We need to be smart about it.

Speaker #4: We need to be smart about it.

Speaker #3: Okay, maybe if I ask the question a different way. If I look at your backlog characteristics today, you've got about $3.6 billion that looks like it's delivered or planned for the next 12 months.

Chris Murray: Okay. Maybe if I ask the question a different way. If I think, you know, if I look at your backlog kind of characteristics today, you've got about CAD 3.6 billion that looks like delivered or planned for the next 12 months, CAD 1 billion of probably recurring revenue that's in the pipeline. How should we think about, you know, the at least even with the project demand in here, is it fair to think, like, what would be about the right number to think about stuff that you can actually book and execute in the same year, kind of on a normal run rate? Maybe that's a different way to think about this.

Yeah, if I gave you that, we'd be plugging to the uh, the revenue number that we have in our business plan, which we're not going to disclose, um, so the the opportunity set is is strong at both procurement. Go get change orders. Ability to expand an existing projects and secure additional work packages. Um, there's if you go back. Historically it's it's a relatively broad range that we've been able to pull together uh across the years, you know, 2025 if you look at where we were in 2024, obviously that kind of go get element was, was quite strong. Uh, I don't think it'll be as strong in in 26 if you want to try to track back against that.

Speaker #3: A billion of probably recurring revenue that's in the— but I'm just trying to gauge how you pipeline. And then, how should we think about the— at least, even with the project demand in here, is it fair to think— what would be about the right number to think about, stuff that you can actually book and execute in the same year, kind of on a normal run rate?

Okay. Um, next question really quick. Um, you know what, it just we're starting to see you know, another 1 of these uh kind of Legacy issues uh getting solved. I guess in the quarter, can you just give us any color uh, around the solution and if it had any material impact, um uh, on the numbers in the quarter.

and maybe I

Speaker #3: Maybe that's a different way to think about this.

Jerome Julier: Yeah. If I gave you that, we'd be plugging to the revenue number that we have in our business plan, which we're not gonna disclose. The opportunity set is strong at both procurement, go get change orders, ability to expand in existing projects, and secure additional work packages. If you go back historically, it's a relatively broad range that we've been able to pull together across the years. You know, 2025, if you look at where we were in 2024, obviously that kinda go get element was quite strong. I don't think it'll be as strong in 2026, if you wanna try to track back against that.

Speaker #4: The revenue number that we have in our business plan— which we're not going to disclose in this opportunity set— so both procurement, go-get, change orders, ability to expand in existing projects, and secure additional work packages.

Physically on those job. Uh, and then uh, Jerome will will will add a few figures that are all in our report. So as you have noticed, we are now substantially completed on Finch and eggington LRT following what we call the Revenue Service demonstration which is an an an an extremely uh, complex demonstration of the capabilities of all

Speaker #4: If you go back historically, it’s a relatively broad range that we’ve been able to pull together across the years. 2025, if you look at it, obviously, that kind of go-get element was quite strong.

All the systems we have been building. This is done on those 2 LRT.

Speaker #4: where we were in 2024,

Our maintenance and uh, the TTC operation is going quite well. So we are very happy about it.

Speaker #4: I don't think it'll be as strong in '26 if you want to try to track back against that.

Gy. How we are nearing substantial completion and it's about.

Speaker #3: Okay, next question—really quick. And just, we're starting to...

Chris Murray: Okay. Next question really quick. You know, just we're starting to see, you know, another one of these, kind of legacy issues, getting solved, I guess, in the quarter. Can you just give us any color, around the solution and if it had any material impact on the numbers in the quarter?

Speaker #3: see another one of these kind of legacy issues getting solved, I guess, in the impact on the numbers in the

Finalizing operational Readiness of all our systems and finalizing the onboarding of all border agencies and installation in their office.

I've, I've read a few, a few comments. So just to be clear. Uh,

Speaker #3: quarter? any material

Speaker #4: I mean, maybe I

Jean-Louis Servranckx: Maybe I just begin with where are we physically on those job, and then Jerome will add a few figures that are all in our report. As you have noticed, we are now substantially completed on Finch and Eglinton LRT, following what we call the revenue service demonstration, which is an extremely complex demonstration of the capabilities of all the systems we have been building. This is done on those two LRT. Our maintenance and the TTC operation is going quite well, so we are very happy about it. Gordie Howe, we are nearing substantial completion. It's about finalizing operational readiness of all our systems and finalizing the onboarding of all border agencies and installation in their office.

Substantial completion is totally separated from opening of the bridge.

In that we are now.

Speaker #4: Now substantially completed on Finch and on those jobs. And complex demonstration of the capabilities of all the systems we have will add a few figures that are all in our— we are nearing substantial, which is agencies and installation is going quite well.

Last centimeters to go to substantial completion. The opening of the bridge is a is a different is a different topic.

We are on.

3 job.

With all our clients. I mean,

we have no disputes, we are under discussion and we think

That within the next few months.

We will be over with that.

Speaker #4: So, we are systems. And onboarding of all border jobs, finalizing operational readiness of all our commercial discussions with all our clients. I mean, we have no bridge.

Speaker #4: it. Gordie Howe,

Few figures.

Jean-Louis Servranckx: I've read a few comments. Just to be clear, substantial completion is totally separated from opening of the bridge. It means that we are now in the last centimeters to go to substantial completion. The opening of the bridge is a different topic. We are on those three job finalizing our commercial discussion with all our clients. I mean, we have no disputes. We are under discussion. We think that within the next few months, we will be over with that. Few figures.

Financially um the Legacy projects had a negative impact of of 6 million dollars. Uh in a quarter Chris um total for the year was 94. Uh it's obviously substantially less than what we had last year. The the big focus in in 2026 is only mentioned is uh you know, the successful delivery of the the final project and then the the clothes out of the commercial time associated with all 3

Speaker #4: It means that we are figures? That. A few.

Given where we stand today, I'm not sure it's actually added or constructed for the overall aeon discussion to to zoom in too much on on these items. Like we're getting basically narrowing down the level of outcomes so you know not immaterial but like less material levels and so what we might likely do in 26 is just report everything all together and um and then close out this chapter like we're in the Twilight phase of the Legacy. Uh we're focused on on what comes next. Uh around

Some pretty stellar opportunities that were in execution and procurement on. And I think we're, uh, we're going to want to talk a lot about that in 26 and a lot less about, you know, this very difficult phase that I think

Seems an extraordinary job managing through.

Speaker #5: Financially, the legacy projects had a negative impact—$94 million. It's obviously substantially less than what we had last year of $6 million, Chris. Total for the year was the successful delivery of the final project.

Jerome Julier: Financially, the legacy projects had a negative impact of $6 million in the quarter, Chris. Total for the year was CAD 94. It's obviously substantially less than what we had last year. The big focus in 2026, as Jean mentioned, is, you know, the successful delivery of the final project and then the closeout of the commercial terms associated with all three. Given where we stand today, I'm not sure it's actually additive or constructive for the overall Aecon discussion to zoom in too much on these items. Like, we're basically narrowing down the level of outcomes to, you know, not immaterial, but like, less material levels. What we might likely do in 2026 is just report everything all together and then close out this chapter.

Okay, great thanks. Thanks. I, I probably asked the questions a little bit wrong. I was actually more curious about the Rio Tinto, uh, agreement. And just if that had any material impact on the quarter,

Speaker #5: 2026, as Jerome mentioned, year. The big focus in—and then the closeout of the commercial terms associated with all three. Given where we stand of outcomes, too, not too much on these items.

Speaker #5: We're discussing to zoom in levels. And so what we might likely do in getting, basically, narrowing down the level.

if it was material, we would just close it. No, it was that. That's just another successful completion by our our operational legal team to, um, you know, settle, uh, you know, sell a dispute or claim situation with a, with a client and, uh, it's it's closed off. And I think from, uh, macro level if you kind of take it out a little bit, the, the real message here is, you know, a con doesn't really, um, a really good job at managing risk, exposures and, uh, reducing the overall Enterprise level of risk that we're

Speaker #5: Altogether, and then close out this chapter. We're in the twilight phase of the legacy. We're focused on what comes next, around some pretty stellar opportunities that we're in execution and procurement on.

Jerome Julier: Like, we're in the twilight phase of the legacy. We're focused on what comes next, around some pretty stellar opportunities that we're in execution and procurement on. I think we're gonna wanna talk a lot about that in 2026 and a lot less about, you know, this very difficult phase that I think, you know, the team's done an extraordinary job managing through.

Speaker #5: And I think we're going to want to talk a lot about that in '26, and a lot less about this very difficult phase that I think the team has done an extraordinary job managing through.

Putting forward. So and 24 to 25, the business has been in a better position and a 25 to 26. Again, we think we're in a better risk adjusted position. So there's uh, the idea is creating a, a more boring, you know, stable more predictable um Akon from a financial perspective and then a a more exciting uh more thrilling Akon from a perspective of the people who uh who work and uh and you know, a very dependable aeon for the perspective of our clients. So I think we're we're advancing along all 3 of those.

Speaker #3: Okay, great, thanks. I probably asked the question a little bit wrong. I was actually more curious about the Rio Tinto agreement and just if that had any material impact on the quarter.

Chris Murray: Okay, great. Thanks. I probably asked the question a little bit wrong. I was actually more curious about the Rio Tinto agreement and just if that had any material impact on the quarter.

All right, I'll leave you there. Thanks for the caller.

Thank you.

Next question.

Jerome Julier: If it was material, we would have disclosed it. No, that's just another successful completion by our operational legal team to, you know, settle, you know, settle a dispute or claim situation with a client, and it's closed off. I think from a macro level, if you kinda take it out a little bit, the real message here is that, you know, Aecon does a really good job at managing risk exposures and reducing the overall enterprise level risk that we're putting forward. In 2024 to 2025, the business has been in a better position.

Michael to Palm of TD Cowen, your line is open.

Good morning.

Speaker #5: Closed off. And I think from a macro level, if you kind of take it out a little bit, the real message here is that Aecon does a really good job at managing risk exposures.

Nuclear, uh, the nuclear business. So, obviously a key growth area for Akon in 2025 and it was your your most important growth area.

Speaker #5: And reducing the overall enterprise-level risk that we're putting forward. So again, '24 to '25, the business has been in a better position. And in '25 to '26, again, we think we're in a better risk-adjusted position.

In the year. I guess, as we look to 2026 the the question is, um, Beyond executing on the substantial, volume of nuclear work that you already have in hand.

Jerome Julier: In 2025 to 2026, again, we think we're in a better risk-adjusted position. The idea is creating a more boring, more stable, more predictable Aecon from a financial perspective, and then a more exciting, more thrilling Aecon from a perspective of the people who work and, you know, a very dependable Aecon from the perspective of our clients. I think we're advancing along all three of those.

Speaker #5: So there's the idea is creating a more boring, more stable, more predictable Aecon from a financial perspective. And then a more exciting more thrilling Aecon from a perspective of the people who work and a very dependable Aecon from the perspective of our clients.

What should we be watching for and expecting as far as nuclear developments and progression in terms of new nuclear opportunities uh in 2026.

Great. Um, as an introduction.

I just want to come back.

Speaker #5: So I think we're advancing along all three of those.

To this incredible new about Darlington refurbishment. I mean, in, in February of 2026,

Speaker #3: All right. I'll leave you there. Thanks for the color.

Jean-Louis Servranckx: All right. I'll leave it there. Thanks for the color.

Chris Murray: All right. I'll leave it there. Thanks for the color.

we just finalized the refurbishment of the 4 reactor.

Speaker #1: Thank you. And our next question comes from Michael Tupom of TD Cowan. Your line is open.

Operator: Thank you. Our next question comes from Michael Tupholme of TD Cowen. Your line is open.

And the budget and 4 months is ahead of schedule. I mean, it's extraordinary. You cannot imagine the number of calls and question that we are receiving. I mean

Michael Tupholme: Thank you. Good morning. My first question is just about the nuclear, the nuclear business. Obviously a key growth area for Aecon in 2025, I think it was your most important growth area in the year. I guess as we look to 2026, the question is, beyond executing on the substantial volume of nuclear work that you already have in hand, what should we be watching for and expecting as far as nuclear developments and progression in terms of new nuclear opportunities in 2026?

Speaker #6: Thank you. Good morning. My first question is just about the nuclear business. So obviously, a key growth area for Aecon in 2025, I think, was your most important growth area.

Speaker #6: In the year, I guess, as we look to 2026, the question is: beyond executing on the substantial volume of nuclear work that you already have in hand, what should we be watching for and expecting as far as nuclear developments and progression in terms of new nuclear opportunities in 2026?

Something like this is the first time we have good news on a big nuclear project for the last 20 years. How did you do it? And we are extremely proud because Akon during the last 8 years of this project was on the critical path of its execution. So it's a it's a very good news for for the nuclear industry to have been able to demonstrate that when it is well organized it works.

So obviously I mean on on the refurbishment we are we are still on 2 major programs. I mean Bruce with

4 reactors to

complete.

32.

Speaker #5: Great. As an introduction, I just want to come back to this incredible news about the Darlington refurbishment. I mean, in February of 2026, we just finalized the refurbishment of the four reactors.

Jean-Louis Servranckx: Great. As an introduction, I just want to come back to this incredible news about Darlington refurbishment. I mean, in February of 2026, we just finalized the refurbishment of the four reactor under budget and four months ahead of schedule. I mean, it's extraordinary. You cannot imagine the number of calls and questions that we are receiving. I mean, something like this is the first time we have good news on a big nuclear project for the last 20 years. How did you do it? We are extremely proud because Aecon, during the last 8 years on this project, was on the critical path of its execution. It's a very good news for the nuclear industry to have been able to demonstrate that when it is well organized, it works.

Reactors, we have just begun the development phase and turbine up to 20035.

Speaker #5: And the budget, and four months ahead of schedule. I mean, it's extraordinary. You cannot imagine the number of calls and questions that we are receiving.

Regarding new construction in, um, in in Canada. So, we are working on the first unit of the small modular reactors. The 300

that she a

population.

forecasted around 2030 a

Speaker #5: I mean, something like this is the first time we have good news on a big nuclear project for the last 20 years. How did you do it?

Is going well.

Speaker #5: And we are extremely proud because Aecon, during the last eight years on this project, was on the critical path of its execution. So it's a very good news for the nuclear industry to have been able to demonstrate that when it is well organized, it works.

We have at this stage something like 1,100 people, I mean between staff and uh and workers. Um,

Nothing has yet been decided regarding

big nuclear in, uh, in Canada, in terms of Technology, uh, from OPG, or from Bruce, but we are working with the student

Speaker #5: So obviously, I mean, on refurbishment, we are still on two major programs: I mean, Bruce with four reactors, to complete up to 2032, and Pickering, I mean, four reactors.

Jean-Louis Servranckx: Obviously, I mean, on refurbishment, we are still on two major programs. I mean, Bruce with four reactors to complete up to 2032, and Pickering, I mean, four reactors, we have just begun the development phase and turbine up to 2035. Regarding new construction in Canada, we are working on the first unit of the small modular reactor, the 300 megawatt from GE Hitachi. A completion forecasted around 2030. It's going well. We have, at this stage, something like 1,100 people, I mean, between staff and workers on-site. Nothing has yet been decided regarding new big nuclear in Canada in terms of technology from OPG or from Bruce, but we are working with those two utilities on the development phase with various options.

development phase with various options.

In United States. I mean, uh,

Speaker #5: We have just begun the development phase. And Turbine, up to 2035. Regarding new construction in Canada, so we are working on the first unit of the small modular reactors, the 300-megawatt from GI Tachy.

we are, we are working on on 3 different topics, major component replacement mainly with Dominion. Uh, but also now with energy Northwest,

Speaker #5: Completion forecasted around 2030. It's going well. We have at this stage something like 1,100 people, I mean, between staff and workers on site. Nothing has yet been decided regarding new big nuclear in Canada, in terms of technology, from OPG or from Bruce.

Second Vector is a department of energy on on their National Lab in, in 7A River. And and the third 1, you, you have noticed, we we have been, uh, worried for Energy, North West. I mean, the the

Collaborative de development.

To to complete at the planning, the design and the construction.

Of a 12-time, 80 megawatt x energy. Uh, Reactor with kiwit and black invit. It's just beginning, we are planning and and pure definition phase, but it's it's a new build. What what's important with this is to say that aeon is technology agnostic.

Speaker #5: those two utilities on the development phase. With various options. In the United States, I mean, we are working on three different topics: major component replacement, mainly with Dominion.

Jean-Louis Servranckx: In United States, we are working on 3 different topics. Major component replacement, mainly with Dominion, but also now with Energy Northwest. Second vector is the Department of Energy on their national lab in Savannah River. The third one you have noticed we have been awarded for Energy Northwest. The collaborative development to complete the planning, the design, and the construction of a 12 times 80 megawatt X-energy reactor with Kiewit and Black & Veatch. It's just beginning. We are at planning and then pure definition phase, but it's a new build. What's important with this is to say that Aecon is technology agnostic. We work for Candu, and we're extremely strong with Candu.

I mean we work for can do and and and we are extremely strong. I mean we can do we we work with ghee, Tachi. We we are beginning with xng we have been working in the past and we are working today uh with

Speaker #5: But also now But we are working with So I mean, We are planning and I mean, with CanDo, we

Speaker #5: with Energy Northwest. Second vector is a department of energy on their national lab in Savannah River. And the third one, you have noticed, we have been awarded for Energy Northwest.

Crafting house. It just means that we are ideally positioned.

For, for what is coming?

Uh, that's helpful. Thank you very much, maybe. Just just 1, quick follow up on on, uh, that response as far as the energy Northwest Cascade.

Speaker #5: the collaborative development to complete the planning, the design, and the construction of a 12-time 80-megawatt X-energy reactor with Kiewit and Blackenridge. It's just beginning.

Advanced Energy facility opportunity is that something that as you move through this next phase, uh, you could get to the point where you're at, where you are booking, um, you know, booking more meaningful, uh, amounts in the backlog in 2026, or is that a Beyond 2026 opportunity,

So it's it's going to be Beyond. I mean, at the moment we are in pure.

Speaker #5: pure definition phase, but it's a new build. What's important with this is to say that Aecon is technology agnostic. I mean, we work for CanDo, and we are extremely strong.

Definition phase. I mean,

it's, it's

It's a new kind of reactor.

To get it well, in the Box between the next phases will be launched.

Jean-Louis Servranckx: We work with GE Hitachi. We are beginning with X-energy. We have been working in the past, and we are working today with Westinghouse. It just means that we are ideally positioned for what is coming.

Speaker #5: work with GI Tachy. We are beginning with X-energy. We have been working in the past, and we are working today with Westinghouse. It just means that we are ideally positioned for what is coming.

Michael Tupholme: That's helpful. Thank you very much. Maybe just one quick follow-up on that response. As far as the Energy Northwest Cascade Advanced Energy facility opportunity, is that something that as you move through this next phase, you could get to the point you're at where you are booking, you know, booking more meaningful amounts into backlog in 2026, or is that a beyond 2026 opportunity?

Speaker #6: That's helpful. Thank you very much. Maybe just one quick follow-up on that response. As far as the Energy Northwest cascade, advanced energy facility, opportunity, is that something that, as you move through this next phase, you could get to the point where you are booking more meaningful amounts of tobacco in 2026?

Got it. Thank you. Um, and then, maybe for Jerome you've had a few questions about 2026, uh, Revenue Outlook. Um, I think you, you provided us some good information. I, the question is really about, as we look Beyond 2026 obviously, uh, all of the transformation that's occurred at the company and the and the focus on different vectors. You know, has been done with a longer term view. Can you talk about what sort of visibility you have into Revenue growth in 20, be on 2026 as we look to 2027? And and future years, uh, you talked a moment ago about sort of 2026 being able to hopefully do better than industry level growth. How do we think about sort of that period Beyond 26?

there's a there's a few things so 1, um,

Speaker #6: opportunity?

Jean-Louis Servranckx: It's gonna be beyond. I mean, at the moment, we are in pure definition phase. I mean, it's a new kind of reactor. This will require, I mean, some time just to get it well, in the box between the next phases will be launched.

Speaker #5: it's going to be beyond. I mean, at the moment, we are in pure definition Or is that a beyond 2026 phase. I mean, it's a new kind of reactor.

We're we've we've done a good job building out. The the stable recurring Revenue side of the business on on the utilities front.

Speaker #5: This will require, I mean, some time, just to get it well in the box between the next phases. It will be launched.

And we see opportunities to build out there. Um, the next component is if you if you look at our backlog,

Speaker #6: Got it. Thank you. And then maybe for Jerome, you've had a few questions about 2026 revenue outlook. I think you provided us some good information.

Michael Tupholme: Got it. Thank you. Then maybe for Jerome, you have a few questions about 2026 revenue outlook. I think you provided us some good information. The question is really about as we look beyond 2026. Obviously, all of the transformation that's occurred at the company and the focus on different vectors. You know, has been done with a longer term view. Can you talk about what sort of visibility you have into revenue growth beyond 2026 as you look to 2027 and future years? You talked a moment ago about sort of 2026 being able to hopefully do better than industry level growth. How do we think about sort of that period beyond 2026?

Speaker #6: The question is really about, as we look beyond 2026. Obviously, all of the transformation that's occurred at the company and the focus on different vectors has been done with a longer-term view.

Something in the order of 5 billion dollars of the backlog is executable, um, you know, effectively kind of beyond the, the 2-year period. And and the way we Define backlog, Mike, as you know, is it needs to be uh project that has been awarded with costs and scope and schedule. And so it does really kind of that are quotes. Hard, backlog, definition.

we have visibility for

Speaker #6: Can you talk about what sort of visibility you have into revenue growth beyond 2026 as you look to 2027 and future years? You talked a moment ago about 2026 and being able to hopefully do better than industry-level growth.

financials that that extend beyond based on the

we're in.

Right. So for instance, article Over the Horizon that will not enter backlog until until we exit the validation phase. Um, but we have a a pretty good handle doing the work that's been done by the Reconstruction teams.

Speaker #6: How do we think about sort of that period beyond 2026?

As to what that could look like. And so where we sit today we, you know, 1

Jerome Julier: There's a few things. One, we've done a good job building out the stable recurring revenue side of the business on the utilities front. We see opportunities to build out there. The next component is if you look at our backlog, something in the order of CAD 5 billion of the backlog is executable, you know, effectively kind of beyond the two-year period. The way we define backlog, Mike, as you know, is it needs to be a project that has been awarded with costs and scope and schedule. It does really kind of a air quotes hard backlog definition. We have visibility for, you know, financials that extend beyond based on the projects that we're in procurement on, right?

Speaker #5: There's a few things. So one, we've done a good job building out the stable recurring revenue side of the business on the utilities front.

Speaker #5: And we see opportunities to build out there. The next component is, if you look at our backlog, something in the order of 5 billion dollars of the backlog is executable effectively kind of beyond the two-year period.

Log backlog, recurring Revenue pipeline of work and then just overall Trends in the sectors where we're present and then the the inbounds that we're receiving from a demand perspective gives us a strong degree of confidence that the business is positioned where it ought to be positioned.

Speaker #5: And the way we define backlog, Mike, as you know, is it needs to be a project that has been awarded with costs and scope and schedule and so that's really kind of, air quotes, "hard backlog" definition.

Um and so that you you're probably looking for something a little bit more than that. Other than say that like we feel we feel pretty good about um the trajectory that aoins on today uh and you know an ability you know certainly in the medium-term to outpace the the overall industry.

Okay, that's helpful. I will turn it over there. Thank you.

Thank you.

Speaker #5: We have visibility for financials that extend beyond based on the projects that we're in procurement on, right? So for instance, article over the horizon, that will not enter backlog until we exit the validation phase.

Jerome Julier: For instance, Arctic Over-the-Horizon, that will not enter backlog until we exit the validation phase. We have a pretty good handle given the work that's been done by the big construction teams as to what that could look like. Where we sit today, we, you know, one, items that have been, you know, we've effectively secured but not entered into backlog, recurring revenue, pipeline of work, just overall trends in the sectors where we're present, the inbounds that we're receiving from a demand perspective gives us a strong degree of confidence that the business is positioned where it ought to be positioned.

And our next question comes from Frederick Bastion of Raymond, James. Your line is open.

Speaker #5: But we have a pretty good handle given the work that's been done by the big construction teams, as to what that could look like.

Speaker #5: And so where we sit today, one, items that have been we've effectively secured, but not entered into backlog. Backlog, recurring revenue, pipeline of work, and then just overall trends in the sectors where we're present, and then the inbounds that we're receiving from a demand perspective, gives us a strong degree of confidence that the business is positioned where it ought to be positioned.

Good morning. Um guys it's been almost 2 and a half years since oak, tree made its Strategic investment in Akon utilities. How would you grade um, yourself or Akon on a report card with respect to that investment and what can be be looking forward to in the future?

Can you tell these business has been? Um,

Performing well, in the context of a very difficult regulatory environment in Canada. So um, when when the the when OG entered into the the equity of

Jerome Julier: that, you know, you're probably looking for something a little bit more than that other than to say that, like we feel pretty good about, the trajectory that Aecon's on today, and, you know, an ability, you know, certainly in the medium term to outpace the overall industry.

Speaker #5: And so that you're probably looking for something a little bit more than that, other than, say, that we feel pretty good about the trajectory that Aecon's on today.

Of Aion utilities. We were facing some pretty good demand Tailwind. Um,

Shortly thereafter.

Telecom regulations.

Speaker #5: And an ability certainly in the medium term to outpace the overall industry.

Deregulations. Um,

Speaker #6: Okay. That's helpful. I will turn it over there. Thank you.

Michael Tupholme: Okay. That's helpful. I will turn it over there. Thank you.

Speaker #7: Thank you. And our next question comes from Frederick Bastian of Raymond James. Your line is open.

Operator: Thank you. Our next question comes from Frederic Bastien of Raymond James. Your line is open.

A lot of the core markets were aeon utilities as historically been focused. Um we're we're just spaced with uh you know, customer profile, reducing capex to redeploy to other jurisdictions based on on regulatory challenges and and those markets.

The the the team did a very good job.

Speaker #8: Good morning. Guys, it's been almost two and a half years since Oak Tree made its strategic investment in Aecon Utilities. How would you grade yourself or Aecon on a report card with respect to that investment and what can we be looking forward to in the future?

Frederic Bastien: Good morning, guys, it's been almost 2.5 years since Oaktree made its strategic investment in Aecon Utilities. How would you grade yourself or Aecon on a report card with respect to that investment, and what can we be looking forward to in the future?

Uh, reimagining where they could put their resources. And so, in the context of a business that was very heavily focused on Pipeline and Telecom what we saw in 2025 was, you know, the, the addition of the extreme group. Um,

Michigan, uh, provided you know, very strong growth.

States.

Jerome Julier: The utilities business has been performing well in the context of a very difficult regulatory environment in Canada. When Oaktree entered into the equity of Aecon Utilities, we were facing some pretty good demand tailwinds, you know, not truly thereafter. Telecom regulations, OEB regulations, a lot of the core markets where Aecon Utilities has historically been focused, were just faced with, you know, customer profile, reducing CapEx to redeploy to other jurisdictions based on regulatory challenges in those markets. The team did a very good job, you know, reimagining where they could put their resources.

Speaker #5: So the utilities business has been performing well in the context of a very difficult regulatory environment in Canada. So when the Oak Tree entered into the equity of Aecon Utilities, we were facing some pretty good demand tailwinds.

Uh, our our execution on, you know, 3 major grid scale battery projects, uh, which is an internal partnership between industrial and utilities, um, all all those got done with with, you know, just extraordinary schedule and cost performance.

Speaker #5: Not shortly thereafter, telecom regulations, OEB regulations—a lot of the core markets where Aecon Utilities has historically been focused—were just faced with customer profiles reducing CapEx to redeploy to other jurisdictions based on regulatory challenges in those markets.

And then, you know, uh, we also had KPC and then Ainsworth added to the mix as well. Oh, overall the performance, you know, in a very tough environment where we operate wasn't bad? Not wasn't bad at all. Um, like the team is, uh, we're very proud of what they've been able to produce. Uh, oh, she's a constructive partner. Um, they

got very good read on aspects of the mark of the

state, which

Speaker #5: The team did a very good job reimagining where they could put their resources and so in the context of a business that was very heavily focused on pipeline and telecom, what we saw in 2025 was the addition of the extreme group in Michigan provided very strong growth in the United States.

Um, Intel and perspectives, um, you know, gives us a very good growth algorithm for for that market. So I think that we're we're not going to give ourselves a letter grade, but we're we're happy with how it's worked out.

Jerome Julier: In the context of a business that was very heavily focused on pipeline and telecom, what we saw in 2025 was, you know, the addition of the Xtreme Group in Michigan provided, you know, very strong growth in the United States. Our execution on, you know, three major grid-scale battery projects, which is an internal partnership between industrial and utilities. All of those got done with, you know, just extraordinary schedule and cost performance. You know, we also had KPC and then Ainsworth added to the mix as well. Overall, though, the performance, you know, in a very tough environment where we operate wasn't bad. Wasn't bad at all. Like the team is. We're very proud of what they've been able to produce. Oaktree's a constructive partner.

Great. And I think 1 of the options that you would be contemplating further down the pipe is potentially, um,

Uh turning this aeon utilities into the IPO. Uh what are your thoughts there?

Speaker #5: Our execution on three major grid-scale battery projects which is an internal partnership between industrial and utilities all of those got done with just extraordinary schedule and cost performance.

Our uh, our focus with the business is to, to continue to grow and and build out the recurring revenue for in grams and uh, and, and expand, its, you know, diversification from a market client, and Geographic perspective. So first things first,

Speaker #5: And then we also had KPC and then Ainsworth added to the mix as well. Overall, the performance in a very tough environment where we operate wasn't bad.

Okay, um, we saw obviously the um, recurring revenues type to utilities go up nicely year over year. But, um,

Speaker #5: Wasn't bad at all. The team is we're very proud of what they've been able to produce. Oak Tree is a constructive partner. They've got a very good read on aspects of the market in the United States, which when combined with our own intel and perspectives, gives us a very good growth algorithm for that market.

what what's behind the um there was a drop and if you look at the other side of the recurring Revenue, um,

Jerome Julier: They've got a very good read on aspects of the market in the United States, which when combined with our own intel and perspectives, you know, gives us a very good growth algorithm for that market. I mean, we're not gonna give ourselves a letter grade, but we're happy with how it's worked out.

Uh, Pike, uh, there's, there's, uh, there's been a drop, uh, from about 50%. What, what's in that, uh,

what's in there as well?

Speaker #5: So I mean, we're not going to give ourselves a letter grade, but we're happy with how it's worked out.

So that that would that would capture a variety of items ranging from.

Speaker #8: Great. And I think one of the options that you would be contemplating further down the pipe is potentially turning this Aecon Utilities into an IPO.

Frederic Bastien: Great. I think one of the options that you would be contemplating further down the pipe is potentially turning this Aecon Utilities into an IPO. What are your thoughts there?

Speaker #8: What are your thoughts there?

Jerome Julier: Our focus with the business is to continue to grow and build out the recurring revenue programs and expand its, you know, diversification from a market client and geographic perspective. First things first.

Speaker #5: Our focus with the business is to continue to grow and build out the recurring revenue programs. And expand its diversification from a market client and geographic perspective.

Aggregate sales. But most most of the change that we've seen on that level, uh, relates primarily to some of the progressive design phases, that were more active in 2024 that have effectively flipped into into construction now. So the when we think about, you know, some of these collaborative projects that we're on. And we're we're expanding kind of design and pre-construction resources where it's not tied to backlog, but it's kind of like an ongoing. Um,

Speaker #5: So first things first.

Speaker #8: Okay. We saw, obviously, the recurring revenues tied to utilities go up nicely year over year. But what's behind the there was a drop if you look at the other side of the recurring revenue pike.

Frederic Bastien: Okay. We saw obviously the recurring revenues tied to utilities go up nicely year-over-year. What, what's behind the? There was a drop, you know, if you look at the other side of the recurring revenue pie. There's been a drop from about 50%. What, what's in that? What's in there as well?

Contact. That's good caller uh appreciate the answers. Thank you.

No problem.

Thank you.

Speaker #8: There's been a drop from about 50%. What's in that what's in there as well?

And our next question comes from Christopher of CIBC your line is open.

I can see my question and, uh, congrats on the quarter.

Speaker #5: So that would capture a variety of items ranging from aggregate sales but most of the change that we've seen on that level relates primarily to some of the progressive design phases that were more active in 2024 that have effectively flipped into construction now.

Jerome Julier: That would capture a variety of items ranging from aggregate sales, but most of the change that we've seen on that level, relates primarily to some of the progressive design phases that were more active in 2024 that have effectively flipped into construction now. When we think about, you know, some of these collaborative projects that we're on and we're

Obviously a number of opportunities. Uh, in in front of you guys, whether it's uh utilities nuclear defense, build Canada.

Speaker #5: So when we think about some of these collaborative projects that we're on and we're expanding kind of design and pre-construction resources, where it's not tied to backlog, but it's kind of like an ongoing recognition of revenue, it falls into this bucket from a kind of disclosure perspective.

How are you feeling about, uh, Your Capacity? Um, uh, maybe that's the labor force, or, or tasks at a different way. What do you feel is your limiting factor, uh, when you're looking at all of these opportunities?

Maxim Sytchev: Spending kind of design preconstruction resources where it's not tied to backlog, but it's kind of like an ongoing recognition of revenue. It falls into this bucket from a kind of disclosure perspective. As those projects have flipped into construction, it's now just moved into another part of the business. You know, it's less here but more elsewhere. Got you. That's a good color. Appreciate the answers. Thank you. No problem.

Jerome Julier: Spending kind of design preconstruction resources where it's not tied to backlog, but it's kind of like an ongoing recognition of revenue. It falls into this bucket from a kind of disclosure perspective. As those projects have flipped into construction, it's now just moved into another part of the business. You know, it's less here but more elsewhere.

obviously, um,

Construction. I mean as I used to say is is is about people and processes and here.

Speaker #5: And then as those projects have flipped into construction, it's now just moved into another part of the business. So it's less here, but more elsewhere.

Speaker #8: Gotcha. That's good color. Appreciate the answers. Thank you.

Frederic Bastien: Got you. That's a good color. Appreciate the answers. Thank you. No problem.

We have to be careful about people availability at this stage. We have no issue. I, I remind you that we have extremely strong relation with the with the, with the trades community and the trade unions. We, we have been able

Speaker #5: No problem.

Speaker #7: Thank you. And our next question comes from Christoph Friesen of CIBC. Your line is open.

Operator: Thank you. Our next question comes from Krista Friesen of CIBC. Your line is open.

Because it was part of our strategy and and and we had quite a good view about what was coming to discuss with them and to be ready.

Speaker #9: Hi. Thanks for sharing my question, and congrats on the quarter. Obviously, a number of opportunities in front of you guys, whether it's utilities, nuclear, defense, Build Canada—how are you feeling about your capacity?

Krista Friesen: Hi, thanks for taking my question, and congrats on the quarter. Obviously a number of opportunities in front of you guys, whether it's utilities, nuclear defense, build Canada. How are you feeling about your capacity? Maybe that's the labor force or to ask it a different way, what do you feel is your limiting factor when you're looking at all of these opportunities?

Do not have at this stage issue. For example, our Workforce in the nuclear to finish Bruce and and pick ring is is is extremely strong. I mean not only in Canada. I mean in in

Speaker #9: Maybe that's the labor force or task at a different way. What do you feel is your limiting factor when you're looking at all of these opportunities?

In United States, we have something like 1,500 workers in our nuclear uh, sector uh, very much loyal to the to the company. So, I would tend to say uh,

So far so good. The battle on the staff.

Speaker #5: Obviously, construction, I mean, as I used to say, is about people and processes. And here, we have to be careful about people availability. At this stage, we have no issue.

Jean-Louis Servranckx: Obviously, construction, I mean, as I used to say, is about people and processes. Here, we have to be careful about people availability. At this stage, we have no issue. I remind you that we have extremely strong relation with the trades community and the trade unions. We have been able because it was part of our strategy and we had quite a good view about what was coming to discuss with them and to be ready. We do not have, at this stage, issue. For example, our workforce in the nuclear to finish Bruce and Pickering is extremely strong.

and and uh the executives, I mean, as always existed between company uh it's an open market, the fact that Akon, I mean as a bright future is helping us a lot to be able to attract

Speaker #5: I remind you that we have extremely strong relations with the trades community and the trade unions. We have been able, because it was part of our strategy and we had quite a good view about what was coming, to discuss with them and to be ready, and we do not have at this stage an issue. For example, our workforce in the nuclear, to finish Bruce and Pickering, is extremely strong.

Train to retain uh a lot of of new and former Executives. So at this stage I will say I'm not

worried, we are extremely focused on on the

Speaker #5: I mean, not only in Canada—I mean, in the United States, we have something like 1,500 workers in our nuclear sector, very much loyal to the company.

Jean-Louis Servranckx: I mean, not only in Canada, I mean, in US we have something like 1,500 workers in our nuclear sector, very much loyal to the company. I would tend to say, so far so good. The battle on the staff and the executive, I mean, has always existed between company. It's an open market. The fact that Aecon, I mean, has a bright future, is helping us a lot to be able to attract, to train, to retain, a lot of new and former executives. At this stage, I will say I'm not that worried. We are extremely focused on the contract mode of our new project, of our backlog, and I think we have done quite a good exercise to de-risk.

The contract mode of our new project of our backlog and I think we have done quite a good exercise uh to the rescue you, you remember that? We have inverted. I mean our proportion of uh fixed lumpsum cost and collaborative Progressive variable P. So this is what I can say to you at this stage.

Speaker #5: So I would tend to say so far, so good. The battle on the staff and the executive, I mean, has always existed. Between company it's an open market.

Thank you. And maybe just thinking uh, thinking about defense specifically, um, do you feel that, uh, you have all all the capabilities that you would like to have to execute on these defense projects or are their m&a opportunities to build out your expertise in that space? Thank you.

Speaker #5: The fact that Aecon, I mean, has a bright future is helping us a lot to be able to attract to train to retain a lot of new and former executives.

I mean, for what we have,

As you rise in I mean we are ready.

Speaker #5: So at this stage, I will say I'm not that worried. We are extremely focused on the contract mode of our new project, of our backlog.

We are ready. I mean we we to all the Target and and we have been preparing these extremely carefully. Now obviously you you have heard that there there is going to be 4 new bases. I mean, for aircraft in, in the Northern Territories, we're not going to take and win those 4 with those 4 job. We don't want to

Speaker #5: And I think we have done quite a good exercise to de-risk you remember that we have inverted I mean, our proportion of fixed lump sum cost and collaborative progressive variable cost.

Jean-Louis Servranckx: You remember that we have inverted, I mean, our proportion of fixed lump sum costs and collaborative progressive variable costs. This is what I can say to you at this stage.

we are extremely careful, we are not looking at m&a to be able to

Execute.

Thank you. I'll I'll leave it there.

Speaker #5: So this is what I can say. To you at this stage.

Thank you.

Krista Friesen: Thank you. Maybe just thinking about defense specifically, do you feel that you have all the capabilities that you would like to have to execute on these defense projects, or are there M&A opportunities to build out your expertise in that space? Thank you.

Speaker #7: Thank you. And maybe just thinking about defense specifically, do you feel that you have all the capabilities that you would like to have to execute on these defense projects?

And our next question comes from maxim citro of nbcm. Your line is open.

I just want to jump in.

um,

Speaker #7: Or are there M&A opportunities to build out your expertise in that space? Thank you.

Jean-Louis Servranckx: I mean, for what we have at the moment, I mean, specifically Arctic Over the Horizon, I mean, we are ready. We are ready. I mean, we tour the target and we have been preparing this extremely carefully. Now, obviously, you have heard that there is going to be four new bases, I mean, for aircraft in the northern territories. We're not gonna take and win those four jobs. We don't want to. I mean, we are extremely careful. We are not looking at M&A to be able to execute those jobs.

Speaker #5: I mean, for what we have at the moment, I mean, specifically optical with Horizon, I mean, we are ready. We are ready. I mean, it was a target.

Speaker #5: And we have been preparing this extremely carefully. Now, obviously, you have heard that there is going to be four new bases, I mean, for aircraft in the northern territories.

Maybe first question for you. I mean, nuclear right now is, is 30% of the business and given the visibility of 4, the new build stuff that that's coming up. And I mean, obviously, the construction Revenue sort of attached to it, is it consumable will get the driving like maybe close to half of Revenue in 5 to 7 years from from nuclear for Aon or um is is is that too aggressive of a potential assumption? Thanks.

Speaker #5: We're not going to take and win those four jobs. We don't want to. I mean, we are extremely careful. We are not looking at M&A to be able to execute those jobs.

I think it's too aggressive Maxim. You know, you, we just have to realize when we speak about new build and new technology, for example, or, or or upgraded reactors, I mean, it takes quite a lot of time.

Krista Friesen: Thank you. I'll leave it there.

Speaker #9: Thank you. I'll leave it there.

Operator: Thank you. Our next question comes from Maxim Sytchev of NBCM. Your line is open.

Speaker #7: Thank you. And our next question comes from Maxim Sitchoff of NBCM. Your line is open.

The bulk of the revenue is so this will take time and that's good. That's good for us. So, uh, I think that, uh, the 50% is too much aggressive. And this being said, I come back to the fact that we're going to be balanced.

Maxim Sytchev: Hi. Good morning, gentlemen. Jean-Louis, maybe, first question for you. I mean, nuclear right now is 30% of the business. Given the visibility of all the new build stuff that's coming up, and, I mean, obviously the construction revenue sort of attached to it, is it conceivable we could be driving like maybe close to half of revenue in five to seven years from nuclear for Aecon, or, is that too aggressive of a potential assumption? Thanks.

Speaker #10: I just want to comment. Jean-Louis, maybe the first question for you. I mean, nuclear right now is 30% of the business. And given the visibility of all the new build stuff that's coming up, and I mean, obviously, the construction revenue sort of attached to it, is it conceivable we could be driving maybe close to half of revenue in five to seven years from nuclear for Aecon?

We want to be balanced because, I mean, we, we don't have, uh, in and the control of all the parameters. So, we think we have a, we have a good mix at the moment. We worked a lot to modify it. So, uh, it, it may grow, I mean, on the nuclear side but not, uh,

Speaker #10: Or is that too aggressive of a potential assumption? Thanks.

Sighting.

And then, you know, just to lay on top of it.

Jean-Louis Servranckx: I think it's too aggressive, Maxim. You know, we just have to realize when we speak about new build and new technology, for example, or new or upgraded reactors, I mean, it takes quite a lot of time to take them from definition or planning phase toward construction, where the bulk of the revenue is. This will take time, and that's good. That's good for us. I think that the 50% is too much aggressive. This being said, I come back to the fact that we want to be balanced. We want to be balanced because, I mean, we don't have in hand the control of all the parameters. We think we have a good mix at the moment. We worked a lot to modify it.

Speaker #5: I think it's too aggressive, Maxim. We just have to realize when we speak about new build and new technology, for example, or upgraded reactors, I mean, it takes quite a lot of time to take them from definition or planning phase toward construction where the bulk of the revenue is.

All all other sectors are also growing, right. And so,

we're in a dynamic where

We only have 1 shining star in the constellation. Um it probably won't be a crazy assumption, but the fact that all 5 of our our sectors in the construction segment are very well positioned. I think reduces that that impact quite quite materially.

Speaker #5: So this will take time. And that's good. That's good for us. So I think that the 50% is too much aggressive. And this being said, I come back to the fact that we're going to be balanced.

Speaker #5: We want to be balanced because I mean, we don't have in end the control of all the parameters. So we think we have a good mix at the moment.

Yeah, yeah. Okay. No, that's that's fair. And then quickly just um, in terms of potential m&a in the US, I mean, I presume anything in the utilities power, space to commands, you know, pretty pretty lofty multiple. So I'm just wondering uh, what are your thoughts there and what you are seeing on the ground while obviously benefiting from your own multiple expansion. So any comments would be great. Thanks

sure, there's

Speaker #5: We worked a lot to modify it. So it may grow, I mean, on the nuclear side. But not at up to the level you have been citing.

Jean-Louis Servranckx: It may grow, I mean, on the nuclear side, but not at up to the level you have been citing.

Multiples, um, are are are strong and it's a reflection of the dynamic in that market.

Maxim Sytchev: You have.

Speaker #10: And then just to layer on top of it, all other sectors are also growing, right? And so if we were in a dynamic where we only had one shining star on the constellation, it probably wouldn't be a crazy assumption.

Jerome Julier: Clearly on top of it. All other sectors are also growing, right?

[Analyst]: Right.

Maxim Sytchev: Right.

Jerome Julier: You know, if we were in a dynamic where we only had one shining star in the constellation, it probably wouldn't be a crazy assumption. The fact that all five of our sectors in the construction segment are very well positioned, I think reduces that impact quite materially.

Speaker #10: But the fact that all five of our sectors in the construction segment are very well positioned, I think, reduces that impact quite materially. Yeah, yeah, yeah.

[Analyst]: Yeah. Yeah. Okay. No, that's fair. Quickly, just in terms of potential M&A in the US, I mean, I presume anything in the utilities power space still commands, you know, pretty lofty multiples. I'm just wondering what are your thoughts there and what are you seeing on the ground while obviously benefiting from your own multiple expansion? Any comments would be great. Thanks.

Maxim Sytchev: Yeah. Yeah. Okay. No, that's fair. Quickly, just in terms of potential M&A in the US, I mean, I presume anything in the utilities power space still commands, you know, pretty lofty multiples. I'm just wondering what are your thoughts there and what are you seeing on the ground while obviously benefiting from your own multiple expansion? Any comments would be great. Thanks.

Speaker #10: Okay. No, that's fair. And then quickly just in terms of potential M&A in the US, I mean, I presume anything in the utilities, power space still commands pretty lofty multiples.

Um, it it's very clear, the people who have the ability to service utilities, uh, are are doing quite well. Now in the context of the capex budgets, uh, that the utilities need in order to keep Pace with the demand profile. Um, you know, part of that is clearly tied to, uh, compute consumption, whether it's for AI or or kind of Bitcoin mining, or whatever it is, that, um, is running through those the server Farms part of us also reindeer, which I, I think we shouldn't lose track of. Um, you know, the demonstrations policies are focused on on Shoring a lot of that productive capacity and that just consumes the time energy as well. So yes, um, the multiples are expanding, yes. Um, it's it's creating a acquisition. Um,

Speaker #10: I'm just wondering, what are your thoughts there, and what do you see on the ground while obviously benefiting from your own multiple expansion? So, any comments would be great.

We need to be very specific with what we want to Target. We have, you know, very particular parameters, uh, and ways that we approach it. Um,

Speaker #10: Thanks.

Jerome Julier: Sure. There's multiples are strong and it's a reflection of the dynamic in that market. It's very clear the people who have the ability to service utilities are doing quite well now in the context of the CapEx budgets that the utilities need in order to keep pace with the demand profile. You know, part of that is clearly tied to compute consumption, whether it's for AI or kind of Bitcoin mining or whatever it is that is running through those server farms. Part of it's also reindustrialization, which I think we shouldn't lose track of. You know, the administration's policies are focused on onshoring a lot of that productive capacity, and that just consumes a ton of energy as well. Yes, the multiples are expanding.

Speaker #5: Sure. The multiples are strong, and it's a reflection of the dynamic in that market. It's very clear the people who have the ability to service utilities are doing quite well now, in the context of the CapEx budgets that the utilities need in order to keep pace with the demand profile.

if we generally don't want to find ourselves in a situation where we're bidding for businesses that are, you know, mercenary or, you know, private Equity, um, roll overs. Like it's just this, it's a challenging Dynamic. We need to have businesses that will be additive to Akon, um, from a not just revenue and Heba, and, and earnings perspective, but they need to be added there from a capability standpoint.

Speaker #5: Part of that is clearly tied to compute consumption, whether it's for AI or kind of Bitcoin mining or whatever it is that is running through those server farms.

Safety standpoint team standpoint. And so, um, like our job is to find the way and so if you look at the average multiples that um, you know, we've uh, we've paid for m&a, uh over, you know, the last dozen Acquisitions that the the company's done, they they tend to be appropriate for. Um,

Speaker #5: Part of it's also reindustrialization, which I think we shouldn't lose track of. The administration's policies are focused on onshoring a lot of that productive capacity.

trade at, at

Speaker #5: And that just consumes a ton of energy as well. So yes, the multiples are expanding. Yes, it's creating acquisition. We need to be very specific with what we want to target.

Like that's that's why. Um if people want to go pay, you know whatever there's multiple that want to just trading at. They can easily go do that. Um if they want to

Find a better way of doing it. That's, that's our job.

Jerome Julier: Yes, it's creating acquisition. We need to be very specific with what we wanna target. We have, you know, very particular parameters, and ways that we approach it. You know, we generally don't wanna find ourselves in a situation where we're bidding for businesses that are, you know, mercenary or, you know, private equity rollovers. Like, it just, it's a challenging dynamic. We need to have businesses that will be additive to Aecon, from a not just revenue and EBITDA and earnings perspective, but they need to be additive from a capability standpoint, safety standpoint, and team standpoint. Like, our job is to find the way.

Okay, great call. Thank you so much.

Speaker #5: We have very particular parameters and ways that we approach it. We generally don't want to find ourselves in a situation where we're bidding businesses that are mercenary or private equity rollovers.

Thanks, bye. Thank you. I'm showing no further questions at this time. I'd like to turn it back to Adam borgatti for closing remarks.

Thanks very much, Judy, and appreciate everyone's attention and interest. Uh, we're available for follow-up calls at any time. Uh, wish you the uh, a great rest of your day to speak with you soon.

Speaker #5: It's a challenging dynamic. We need to have businesses that will be additive to Aecon from not just revenue and EBITDA and earnings perspective, but they need to be additive from a capability standpoint, safety standpoint, and team standpoint.

This concludes today's conference call, thank you for participating and you may now disconnect

Speaker #5: And so our job is to find the way. And so if you look at the average multiple that we've paid for M&A over the last dozen

Jerome Julier: If you look at the average multiples that, you know, we've, we pay for M&A, over, you know, the last 12 acquisitions that the company's done, they tend to be appropriate for, you know, what we trade at the Aecon level. Our job is to thread the needle and finesse that. Like, that's why, if people wanna go pay, you know, whatever the multiple that Fanta's trading at, they can easily go do that. If they wanna find a better way of doing it, that's our job.

Speaker #1: Acquisitions that the company has done They tend to be appropriate for us What we trade at at the Aiken level and our job is to thread the needle and finesse that .

Speaker #1: That's that's why if people want to go pay , you know , whatever the multiple that is trading at , they can easily go do that .

Speaker #1: If they want to find a better way of doing it , that's that's our job

[Analyst]: Yeah. Okay. Great call. Thank you so much, gentlemen.

Maxim Sytchev: Yeah. Okay. Great call. Thank you so much, gentlemen.

Speaker #2: Okay . Great . Thank you so much , gentlemen Thanks . Thanks .

Jerome Julier: Thanks. Bye.

Operator: Thank you. I'm showing no further questions at this time. I'd like to turn it back to Adam Borgatti for closing remarks.

Speaker #3: Thank you . I'm showing no further questions at this time . I'd like to turn it back to Adam Borgatti for closing remarks

Jerome Julier: Thanks very much, Judy, and appreciate everyone's attention and interest. We're available for follow-up calls at any time. Wish you to a great rest of your day. Speak with you soon.

Adam Borgatti: Thanks very much, Judy, and appreciate everyone's attention and interest. We're available for follow-up calls at any time. Wish you to a great rest of your day. Speak with you soon.

Speaker #4: Thank you very much , Judy , and appreciate everyone's attention and interest . We're available for follow up calls at any time . Wish you a great rest of your day .

Speaker #4: Speak with you soon .

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Good day. Thank you for standing by. Welcome to the Q4 2025 Aecon Group Inc. Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Borgatti, Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Adam Borgatti: Thank you, Dee Dee. Good morning, everyone, thanks for participating in our year-end 2025 results conference call. Joining me today are Jean-Louis Servranckx, President and CEO, Jerome Julier, Executive Vice President and CFO, and Alistair MacCallum, Senior Vice President, Finance. Our earnings announcement was released yesterday evening. We've posted a slide presentation on our website, which we'll refer to during this call. Following our call, we'll be glad to take questions from the analysts. We ask analysts to keep to one question and a follow-up before getting back into the queue. As noted on slide 2 of the presentation, listeners are reminded that the information we're sharing with you today includes forward-looking statements. These statements are based on assumptions that are subject to significant risks and uncertainties.

Jean-Louis Servranckx: Thanks, Adam. As noted on slide 3, 2025 was a transformative year of growth and significant milestones for Aecon, with record revenue of CAD 5.4 billion and backlog additions of CAD 9.5 billion, supported by a balanced and de-risked backlog profile. Revenue grew 28% over 2024, with 84% of the CAD 1.2 billion increase in revenue through organic growth. Revenue from US and international markets also increased by $386 million or 87% in 2025 over 2024. We delivered our strongest safety performance in over 5 years while maintaining disciplined risk management across major projects and programs. We further advanced our nuclear leadership in North America with our partnership selection to deliver the G7's first grid-scale small modular reactor or SMR at the Darlington Nuclear Generating Station.

Jean-Louis Servranckx: We also commenced the definition phase of the Pickering Refurbishment Program, and an Aecon partnership was awarded a development phase contract at Energy Northwest Cascade SMR project in the US. Backlog growth was also highlighted by Aecon's largest contract award to date, the Scarborough Subway Extension Progressive Design-Build project, adding approximately CAD 2.8 billion under a collaborative target price model. We expanded strategically through the acquisitions of Bodell Construction, Trinity Industrial Services, and KPC Power and Electrical Services. We strengthened our leadership team with the appointment of Thomas Clochard as Chief Operating Officer and received industry recognition with gold stages on ReNew Canada's Top 100 Infrastructure Projects list, reflecting our involvement in 17 ranked projects, including 4 of the top 5.

Jerome Julier: Thanks, Jean-Louis, and good morning, everyone. I'll speak to Aecon's consolidated results, review results by segment, and address Aecon's financial position. Additional information has been provided to help clarify the underlying results, excluding impacts from the legacy projects and divestitures. Detailed reconciliation tables are included on slides 15 through 17 in the conference call presentation. Turning now to slide 5. On a reported basis, record revenue for the year of CAD 5.4 billion was CAD 1.2 billion or 28% higher compared to 2024. Adjusted EBITDA of CAD 235 million, compared to CAD 83 million last year. An operating profit of CAD 87 million compared to an operating loss of CAD 60 million in 2024.

Jerome Julier: Adjusted EBITDA and operating profit in 2025 were negatively impacted by CAD 94 million in legacy project losses, compared to legacy project losses of CAD 273 million in 2024. Adjusted diluted earnings per share for the year was CAD 0.40, compared to adjusted diluted loss per share of CAD 0.99 in 2024. As only noted, reported backlog of CAD 10.7 billion at the end of 2025 was a record year-end level and compared to backlog of CAD 6.7 billion a year ago. New contract awards of CAD 9.5 billion were booked in the year, compared to CAD 4.7 billion in the previous year. Now looking at results by segment. Turning to slide 6. Construction revenue of CAD 5.4 billion in 2025 was CAD 1.2 billion or 28% higher than the previous year.

Jerome Julier: Revenue was higher in all sectors, with the largest increase in nuclear operations, driven by a higher volume of refurbishment, new build, and engineering services work in Ontario and the United States. Higher revenue in industrial was driven by an increase in field construction work on critical mineral facilities in Western Canada and incremental revenue in the US from the Bodell and Trinity acquisitions completed in the third quarter of 2025. Revenue was also higher in urban transportation solutions, primarily from an increase in subway and commuter rail system projects. In civil operations, higher revenue was mainly due to an increase in power and rail projects and from major project work performed internationally, partially offset by a lower volume of highway, road, and bridge building activity.

Jerome Julier: In utility operations, higher revenue was due to a higher volume of gas distribution work in Canada and electrical work in the US, partially offset by a lower volume of telecommunications work and battery energy storage systems, as our team successfully delivered 3 grid scale projects in the year. On an adjusted basis, construction revenue was CAD 5.3 billion in 2025, compared to CAD 4.1 billion last year. Turning to slide 7. Adjusted EBITDA of CAD 220 million compared to CAD 34 million last year. The primary driver of the increase was lower losses from fixed-price legacy projects in the year. On an adjusted basis, the adjusted EBITDA was CAD 315 million in 2025. Turning to slide 8.

Jerome Julier: Concessions adjusted EBITDA for the year was CAD 57 million, compared to CAD 87 million last year, driven by lower income from O&M activities and a decrease in management and development fees related to concession projects nearing or achieving substantial completion of construction activity in 2025. The book value of equity of our concessions portfolio at year-end was CAD 251 million, up 7% versus the end of 2024. On slide 9, we 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. For the construction segment, on an as-adjusted basis, adjusted EBITDA was CAD 315 million in 2025, representing a 6% margin and CAD 8 million increase over 2024. On slide 10.

Jerome Julier: At the end of 2025, Aecon held core cash and cash equivalents of CAD 94 million, which excludes CAD 393 million of cash, representing Aecon's proportionate share held in joint operations. In addition, at 31 December 2025, Aecon had committed revolving credit facilities of CAD 1 billion, of which CAD 257 million was drawn and CAD 4 million was utilized for letters of credit. Aecon has no debt or working capital credit facility maturities until 2029, except equipment loans and leases in the normal course. Aecon's board of directors approved an annualized increase to the dividend of CAD 0.01 per share, resulting in a quarterly dividend of CAD 0.1925 per share. The dividend will be paid on 02 April 2026 to shareholders of record on 23 March 2026.

Jerome Julier: At this point, I'll turn the call back over to Jean-Louis to address our business performance and outlook.

Q4 2025 Aecon Group Inc Earnings Call

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