Dear Shareholders,
Driven by our purpose – building what matters to enable future generations to thrive – Aecon’s 2024 results were underscored by revenue of $4.2 billion, robust year-end backlog of $6.7 billion diversified across our operating sectors, and strong recurring revenue programs. The year was marked by positive developments including the completion of key strategic acquisitions, significant new contract awards for projects linked to the energy transition and executed under more collaborative delivery models, steady growth into the U.S. and international markets, and reaching a settlement on one of Aecon’s legacy projects while making continued progress on completing and satisfactorily resolving claims with respective clients on the remaining three legacy projects.
With an unwavering focus on delivering long-term shareholder value, Aecon advanced its core strategy to differentiate its service offering and execution capabilities to secure higher-return projects with a lower risk profile. Additionally, we welcomed new teams to Aecon through the successful completion of three strategic acquisitions. These teams enhance Aecon’s position to harness significant opportunities across North America in the utilities, nuclear and conventional power sectors:
- Aecon Utilities acquired a majority interest in Xtreme Powerline Construction, an electrical distribution utility contractor based in Michigan;
- Aecon Utilities also acquired Ainsworth Power Construction, an electrical services and power systems contractor headquartered in Ontario; and
- Aecon acquired United Engineers & Constructors Inc., a nuclear and conventional power contractor headquartered in New Jersey.
In 2024, Aecon adopted its Forward Together 2024 – 2027 Strategic Plan, focused on “Where to Play” in the priority markets it will focus on to ensure a de-risked portfolio and accelerate growth, and “How we Win” by identifying three Key Focus areas it will continue to develop to secure a leading position and more predictable and increased profitability in these markets.
This past year, Aecon continued to work with its clients to develop collaborative alternative procurement and contracting models with the goal to reduce risk during construction and accelerate growth in long-term recurring revenue programs and related operations and maintenance contracts. Aecon is actively engaged in delivering several major long-term projects under more collaborative models including the GO Expansion On-Corridor Works project, the Darlington New Nuclear Project, and the Scarborough Subway Extension Stations, Rail and Systems – the most recent project to move to the execution phase under a target price contract. Aecon is focused on progressing through the collaborative development phases of these major projects and advancing to the respective construction, operations, and maintenance phases.
Aecon was also selected to advance projects under more collaborative models and through progressive phases, including the Howard A. Hanson Dam Additional Water Storage Fish Passage Facility project in Washington State, the Contrecoeur Terminal Expansion project in-water works in Quebec, the Winnipeg North End Sewage Treatment Plant Biosolids Facilities Upgrade project in Manitoba, as well as the redevelopment of the Cyril E. King Airport and Henry E. Rohlsen Airport in the U.S. Virgin Islands, in which Aecon Concessions is the development lead and is concurrently working to transition to long-term operations and maintenance.
In addition to its progress on U.S. expansion initiatives and steady growth in Canada, Aecon was also awarded the Clayton J. Lloyd International Airport Redevelopment Program Package 3 project in Anguilla and continued to advance the Kingstown Port Modernisation project in Saint Vincent and the Grenadines.
Aecon is strategically focused on projects that allow clients to mitigate and adapt to changes in the environment and harness electrification, while aiming to mitigate its own climate change impact. To-date, Aecon has achieved a 34% cumulative reduction since 2020 in Scope 1 and Scope 2 emissions based on intensity-based targets relative to revenue, surpassing its reduction target in advance of the target date of 2030.
Building on our long-standing commitment to engaging with communities while supporting economic and community prosperity, Aecon has also been designated as a Supply Change™Indigenous Procurement Champion by the Canadian Council for Indigenous Business – recognizing our commitment to setting industry standards and working collaboratively with Indigenous businesses on procurement that involves measurable actions and leaving a lasting positive impact.
Moving forward, Aecon is dedicated to a Safety Always culture and the disciplined pursuit of operational excellence and profitable growth. Aecon will maintain a disciplined capital allocation approach and remains focused on strategic investments in its operations to support access to new markets.
To continue building shareholder value, we are steadfast in our efforts to ensure that Aecon safely, profitably, and sustainably delivers integrated services, products, and solutions to meet the needs of clients while supporting our people and communities. Our continued investment in our people and capabilities has yielded clear benefits as our management and employees position Aecon to prosper in the years ahead.
Thank you for your continued support.
Sincerely,