It looks like Canadian investors are increasingly interested in keeping their money closer to home. With some uncertainty in global markets, Canadian stocks, especially those in the construction business, are getting a lot of attention. Two companies on the TSX that seem particularly interesting right now are Bird Construction (TSX:BDT) and Aecon Group (TSX:ARE). These are both big players in building things across Canada, from roads and bridges to buildings and industrial facilities. They’re like the backbone of Canada’s physical growth.
Source: Getty Images
Bird
Let’s start with Bird Construction. This TSX stock has been doing pretty well recently. In the third quarter of 2024, it reported that its revenue went up by a solid 15% compared to the same time the year before, reaching $898.9 million. That’s a significant jump in the amount of work they’re doing.
Its net income, which is the profit after all the expenses, also saw a nice climb to $36.2 million, or $0.66 per share. That’s up from $28.8 million, or $0.54 per share, in the third quarter of 2023. Even its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed significantly by 42% to $70.1 million.
These numbers suggest that Bird Construction is in a strong financial position, which points to a positive outlook for the future. It looks like business is booming and it’s managing operations effectively to turn that revenue into healthy profits. Overall, the TSX stock seems to be building a solid foundation for continued success.
Aecon
Now, let’s take a look at Aecon Group. This is another major TSX stock in the Canadian construction industry, with a wide range of projects across different sectors. In its third-quarter 2024 results, Aecon reported revenue of $1.3 billion. That’s a modest increase of 2.9% compared to the same period in 2023.
However, the really interesting part is its adjusted EBITDA, which showed a significant improvement, reaching $126.9 million. That’s a big jump from the $32 million it reported in the same quarter the previous year. It seems like Aecon has become much more efficient in its operations, turning more of its revenue into actual profit.
Additionally, Aecon’s backlog, which represents the total value of the projects it has secured but hasn’t yet completed, stood at a healthy $6 billion at the end of the third quarter of 2024. This indicates that Aecon has a robust pipeline of projects lined up for the future, which is a good sign for its revenue and profitability in the coming years. It’s like having a full schedule of work that will keep them busy and generating income.
Bottom line
Both Bird Construction and Aecon Group seem to be in a good position to benefit from the current trend of Canadian investors focusing on opportunities within Canada. With strong financial results in their recent earnings reports, showing solid revenue growth and improved profitability, and a healthy backlog of projects, both companies present themselves as potentially attractive options for those who are looking to invest in the Canadian construction sector.
Both are key players in building Canada’s infrastructure, from transportation networks to commercial and residential buildings, and could see continued growth as the country invests in new projects to support its growing population and economy. It looks like a good time to be in the Canadian construction business, and these two TSX stocks are right in the middle of the action. The success is closely tied to the overall health and growth of the Canadian economy and the government’s commitment to infrastructure spending. Investors looking for domestic exposure might find these stocks appealing due to their strong fundamentals and promising future prospects in a sector that is essential to Canada’s development.
