Ontario Construction News staff writer
Aecon Group Inc. has reported results for the third quarter of 2023.
Revenue for the three months ended Sept. 30, 2023 of $1,240 million was $81 million, or 6%, lower compared to the same period in 2022, primarily due to the impact of the sale of Aecon Transportation East (ATE) in the second quarter of 2023.
Adjusted EBITDA of $32.0 million for the three months ended Sept. 30, (Adjusted EBITDA margin of 2.6%) compared to Adjusted EBITDA of $92.6 million (Adjusted EBITDA margin of 7.0%) in the same period in 2022 and operating profit of $140.1 million compared to operating profit of $61.0 million in the same period in 2022.
Net profit of $133.4 million (diluted earnings per share of $1.63) for the three months ended Sept. 30 compared to a net profit of $34.5 million (diluted earnings per share of $0.45) during the same period in 2022.
Aecon announced that it has achieved Silver Certification in Progressive Aboriginal Relations from the Canadian Council for Aboriginal Business. Aecon was one of the four companies recognized at the silver level. As a silver-certified company, Aecon has demonstrated its Indigenous business plan through its established Indigenous business partnerships, active contributions of Indigenous Peoples across its workplace, and investments in communities and people to support a sustainable future.
Subsequent to quarter end, on October 23, Aecon announced a strategic investment by Oaktree Capital Management, L.P. in an Aecon subsidiary, Aecon Utilities Group Inc., creating an enhanced growth vehicle focused on providing utility infrastructure services across North America. The investment closed on Oct. 24.
Oaktree acquired a 27.5% ownership interest by way of a net $150 million convertible preferred equity investment in Aecon Utilities and based on an enterprise value for Aecon Utilities of $750 million.
“The investment creates a vehicle to address attractive industry growth opportunities across utility end-markets in Canada and the U.S., provides financial flexibility to accelerate Aecon Utilities’ acquisition strategy, introduces a recognized value-added partner in Oaktree with a successful track record in utilities infrastructure investing, and strengthens Aecon’s consolidated balance sheet, providing Aecon the financial flexibility to fund strategic growth initiatives,” the company said in a statement.
