This analyst just raised his price target on Aecon Group

Desjardins Securities analyst Benoit Poirier raised his target price on Aecon Group (Aecon Group Stock Quote, Chart, News, Analysts, Financials TSX:ARE) to $43.00 from $35.00 following stronger-than-expected fourth-quarter results and a new defence infrastructure contract.

As reported by the Globe and Mail, in a March 6 analysis, Poirier maintained a “Hold” rating on the shares, noting the updated target represents the highest on the Street compared with the current average target of $33.08.

Poirier said Aecon delivered a fourth-quarter 2025 “beat across the board” while also announcing an agreement with Defence Construction Canada to deliver Stage 1 of the Arctic Over-the-Horizon Radar program.

He also lowered the company’s risk profile in his model.

“We have updated our risk qualifier to ‘Average’ from ‘Above-average’ following the opening of the Eglinton and Finch LRTs, a reduction in fixed price exposure, two consecutive quarters of solid execution, a reduction in leverage, and improved visibility on outer year revenue,” Poirier said.

That improved visibility stems partly from the Arctic radar project and other large cost-plus contracts not yet included in backlog figures.

Despite the improved outlook, Poirier said other engineering firms currently offer stronger upside potential following a recent sector pullback.

“After the AI-driven pullback in engineering shares, we favour WSP, STN and ATRL given their stronger return potential relative to ARE,” he said.

Aecon reported fourth-quarter and full-year results on March 5, including record full-year revenue of $5.4-billion. The company also announced that its board approved a dividend increase to $0.1925 per share, up from $0.19 previously.

Aecon president and CEO Jean-Louis Servranckx said the company exited the year with strong momentum.

“2025 was a transformative year marked by the completion of key strategic acquisitions, growth as a nuclear and power company, expansion in U.S. and international markets, and the substantial completion of legacy projects including two modern LRT systems,” Servranckx said.

He added that Aecon expects revenue to grow further in 2026, supported by a record backlog, recurring revenue programs and a pipeline of projects tied to power generation, critical resource development, mass transit infrastructure, water and defence sectors.

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