Aecon Group Inc (ARE.TO) Buy, Sell or Hold

Aecon Group Inc (ARE.TO)

43.71

-0.37 (0.84%)

as of Jun 19, 2026, 8:00:01 pm Market Open.

277 watching

DON'T BUY

It is more of an engineering and construction company rather than a consulting one. He prefers the consulting type such as Stantec and WSP since there is less risk.

BUY

~7% dividend yield is sustainable. Several good quarters in a row (aside from last quarter). Positive on business in the long term (infrastructure business not going anywhere) Nuclear business will be valuable going forward.

COMMENT

Not that familiar with the company but is with the industry. Prefers WSP and Stantec for global infrastructure rather than engineering construction.

HOLD

Top Pick in February, and he hasn't changed his mind. Hit by rising rates, valuation down. Projects on the go, solid backlog. Bermuda project hasn't worked that well and won't until tourism resumes. Trading under book value.

HOLD

Is a good long term investment (~ 5 year) with large infrastructure projects going forward. Once interest rates cool and inflation decreases, expects increased spending in building. Would advise holding the stock if already hold shares.

COMMENT

Question was on comparing Aecon to Bird. They have good yields of 5%. Backlogs are not as meaningful in this environment. Construction costs are up and there are still supply chain issues. Bird is in a better situation since it has fewer fixed costs.

WATCH

Have been impacted by inflation. Their profit got hit hard last quarter. Watch this more for coming quarters to see how contracts are re-pricing (how much is fixed price?).

DON'T BUY

Great infrastructure play. Huge backlog. You can feel governments starting to spend. Biggest problems are wage increases, input costs, and labour shortages. Many contracts are fixed. Margins compressed. Stay away.

TOP PICK

They had a tough quarter after many of solid results. They had to take write-downs on some fixed-price contracts. However, they signed their biggest-ever contract (with Metrolinx). They are the only qualified constructor of nuclear plants, which are seeing a renaissance now amid the energy shortage. ARE pays a 6% dividend, though shares have plunged. (Analysts’ price target is $14.23)

DON'T BUY

The price came off a lot, because of cost overruns on some construction projects. Not an owner of this. Look elsewhere.

DON'T BUY

Ton of demand in the space. Some of its deals were less profitable than originally thought. Big fan of WSP or STN, which focus on the engineering rather than the risk of contract pricing.

BUY

As stocks come off, lots of companies get forgotten. Earnings a bit weak, analysts reduced targets. Price reasonable, dividend safe. Infrastructure pretty inflation resistant. At these levels around $12.50, you'll be a winner.

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They reported a loss of $0.29 vs the expected $0.3. Revenues were up 31% compared to last year at $986 million. Backlog of $6.4B was up nicely from $5.9 a year ago. Saw some good contracts and expansion. Results are fine but cash flows were negative and this trend needs to reverse. Unlock Premium - Try 5i Free

BUY ON WEAKNESS

Does not own shares in company. Company has faced challenges in the past few quarters. Coastal Gas Link disputes has created uncertainty with cash flows. Appears agreement is approaching with Coastal Gas Link which will help share price. Good exposure to construction market and Provincial/Federal projects. Wait to buy on improved earnings.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has strong market share. Likes it for income although growth is less attractive than WSP. The valuation is at 19x earnings right now. Pays a 4% dividend. Unlock Premium - Try 5i Free

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Aecon Group Inc (ARE.TO)