Thank you, Didi. Good morning, everyone, and thanks for participating in our Q2 26 results conference call.

Joining me are Jean-Louis Servranckx, President and CEO Jerome Julier, Executive Vice President and CFO Alistair MacCallum, senior vice president, finance. Our earnings announcement was released yesterday evening, and we posted a slide presentation on our website which we will refer to during the call.

Following our comments, we will be happy to take questions from analysts, and we ask that you keep to 1 question and a follow-up if necessary. Before getting back in the queue.

As noted on slide 2 of the presentation, listeners are reminded that the information we are sharing with you today includes forward-looking statements based on assumptions that are subject to significant risks and uncertainties. Although Aecon believes the expectations reflected in these statements are reasonable, we can give no assurance that these expectations will prove to be correct.

Turning to slide 3. I am pleased to share key highlights from the quarter.

Aecon delivered an all-time record for revenue in any quarter with second quarter revenue of $1.6 billion increasing 25% over the same period last year. Adjusted EBITDA improved significantly in the quarter to $82 million compared to $41 million last year, driven by year-over-year margin improvements in the Construction segment.

Aecon entered into an agreement to purchase the convertible preferred equity investment held by Oaktree Capital and Aecon Utilities. The $320 million purchase price implies $1.2 billion equity value and a $1.5 billion enterprise value for Aecon Utilities.

Backlog at June 30 was $10.5 billion underpinned by a diversified mix of long term projects with appropriate risk balance and does not yet include Aecon's share of significant awards including those under collaborative and progressive models, within or post-quarter, that will be added to future backlog. The Gordie Howe International Bridge reached substantial completion in the second quarter and opened to traffic earlier this week on July 27th.

A remarkable achievement by Aecon and its partners. And an amicable and mutually agreeable settlement was reached in the second quarter on 1 of the remaining legacy projects to resolve disputes fully and finally.

Aecon reinforces its positive outlook supported by the expectation for double digit revenue growth for the full year of 2026, based on our strategic positioning and sectors with attractive demand profiles growing recurring revenue programs, and a healthy pipeline of project opportunities. And with that, I will hand the call over to Jerome.

Thanks, Adam, and good morning, everyone. I will speak to Aecon's consolidated results, review results by segment, and address Aecon's financial position.

Then close with a summary of the utility's pref share purchase transaction. Turning to slide 4.

Revenue for the 3 months ended June 30, 2020, of $1.6 billion was up $129 million or 25% compared to the same period in 2025. This represents the highest recorded revenue by Aecon in any quarter in its history and approximately 80% of this revenue growth in the quarter was organically generated.

Adjusted EBITDA of $82 million doubled compared to $41 million last year. And operating profit of $36 million compared to an operating profit of $2 million in the same period last year.

The improvement in the period was driven by higher gross profit of $78 million compared to the same period in 2025. Q2 26 diluted loss per share of $1.58 is driven by a fair value adjustment on the preferred shares of Aecon utilities of approximately $128 million recorded upon reaching the agreement to purchase the shares.

This adjusted the carrying value to the agreed purchase price of $320 million. Dollars Adjusted diluted earnings per share in the quarter, excluding this fair value adjustment, was $0.33, an improvement compared to the adjusted diluted loss per share of $0.10 in the second quarter of last year.

Financial results in the quarter were impacted by negative gross profit of $4.5 million from the legacy projects. On an LTM or trailing 12 month basis, the negative impact from legacy projects was $36 million.

Dollars Backlog of $10.5 billion at the end of the second quarter compares to backlog of $10.7 billion at the same time last year. New contract awards of $1.3 billion were booked in this quarter, and $2.7 billion were booked year to date.

Now looking at the results by segment. Turning to slide 5.

Construction revenue of $1.6 billion in the second quarter was $335 million or 26% higher than the same period last year. Revenue was higher in all sectors.

The largest increase of $138 million in utility operations, driven by a higher volume of electrical, gas, and telecommunication work in Canada and The US. Including contributions from the acquisitions of KPC, and ARC.

Completed in the first quarter of 26. Urban Transportation Solutions increased by $93 million, driven by a higher volume of subway and rail system work.

As well as closeout activities on Ontario, light rail transit projects which achieved substantial completion in 2025. and are now fully operational.

Nuclear operations increased $80 million due to a higher volume of refurbishment, decommissioning, new build, and engineering services work. At nuclear generating stations across North America.

In civil operations, higher revenue of $22 million was mainly from an increase in the civil component of power and rail projects. Foundations work, and international major project work.

Turning now to slide 6. Construction segment adjusted EBITDA of $90 million compared to $40 million last year.

With an adjusted EBITDA margin of 5.5%. Compared to 3.1% in 2025.

The increase was primarily driven by an improvement in gross profit margin in urban transportation solutions, and civil, and the gross profit impact of higher volumes in utilities. These increases were partially offset by lower gross profit margin in industrial and nuclear operations, and higher MG&A to support our ongoing growth in operations.

Turning to slide 7. Concessions adjusted EBITDA for the quarter was $11 million compared to $16 million in the same period last year.

Driven by lower management and development fees on concession projects that achieved substantial completion in 2025, partially offset by improved operating results at Skyport in Bermuda. The book value of our concessions portfolio at quarter end was over $250 million.

Turning to slide 8. At June 30, 2026, Aecon held core cash and cash equivalents of $129 million which excludes $100 million of cash representing Aecon's proportionate share of cash held in joint operations.

In addition, at 06/30/2026, Aecon had committed revolving credit facilities of $1 billion, of which $302 million was drawn and $4 million was utilized for letters of credit. Combined with our $960 million EDC performance security guarantee facilities, our total committed credit facilities for working capital and letters of credit requirement total $2 billion.

Net debt at 06/30/2026 was $672 million. Dollars Aecon has proactively opted to include the $320 million repayment agreement for the preferred shares of Aecon Utilities in this figure.

Net debt to trailing 12 month adjusted EBITDA was 2.2x or 2x excluding the negative earnings impact from legacy projects. Aecon has no debt or working capital credit facility maturities until 2029 except equipment loans and leases in the normal course.

Aecon generate free cash flow of $301 million in the trailing 12 month period ending June 2026. Compared to negative $10 million in free cash flow in the same period last year a significant improvement in cash generation.

In the second quarter, Aecon's Board approved a quarterly dividend of $0.1925 per share an annualized dividend level of $0.77 per share. The dividend will be paid on October 2, 2026 to shareholders of record on September 22, 2026.

Now before I turn the call over to Jean-Louis, I would like to briefly comment on the announced buyout of the pref shares in Aecon Utilities. On slide 9.

Partnering with Oaktree in the fall of 23, Aecon Utilities has delivered significant growth through organic expansion, and 4 strategic acquisitions, strengthening our capabilities across electrical transmission and distribution, substations, metering, telecommunications, and utilities infrastructure. During that time, electrical infrastructure has grown from approximately a quarter of the revenue to nearly half today.

The business has expanded from almost exclusively operating in our core Canadian market to 25% of its revenues now being generated in The United States. Aecon utility now generates over $1.2 billion of pro forma annual revenue, with over 70% derived from recurring long term master service agreements.

And has established a platform position to benefit from long term investments in grid modernization electrification, digital infrastructure, and data center work. The transaction allows Aecon to fully participate in the future growth of Aecon Utilities while significantly simplifying our ownership structure enhancing financial flexibility, and strengthening integration across our business.

Upon closing, Aecon will have full economic and strategic control of a large and diverse utility infrastructure platform supporting our comprehensive power and utility services offering across Canada and The United States. Finally, on a personal note, I would like to thank the Oaktree Capital team for their partnership and support over the last several years.

it is been an absolute pleasure working with you, and together, we have built a stronger, larger, and more diversified services platform We are excited to continue that momentum forward. At this point, I will turn the call over to Jean-Louis to address our business performance and outlook.

Thank you, Jerome. Turning now to slide 10.

Aecon continues to drive growth through a balanced and diversified work portfolio. Across the nuclear, civil, utilities, industrial, and urban transportation sectors.

In the second quarter, 55% of Aecon's nearly $6 billion in trailing 12 months construction revenue. Our concessions portfolio also continues to grow and diversify.

The Gordie Howe International Bridge now is operational, and Aecon owns a 20% interest in its equity and 30 year operations maintenance, and rehabilitation activities. And earlier this week, an Aecon partnership announced it has executed an agreement for the 150-megawatt Oneida battery energy storage system project in Ontario in which Aecon concession is an equity partner.

Aecon will also serve as the exclusive EPC provider for the balance of Plantworks. The project complements our ownership position in the Oneida energy storage project.

And demonstrates Aecon's credentials in grid scale battery delivery. With completed and ongoing work, we have represented approximately 1 gigawatt of Ontario's delivered or plan battery energy storage capacity.

Turning to slide 11. Demand for Aecon's services remains strong.

With a strong secured backlog, growth in recurring revenue programs in utility services, and a healthy bid pipeline, Aecon maintains its focus on improved profitability and margin predictability. While continuing to improve the risk profile of our business.

Training 12 months recurring revenue was over $1 billion at 06/30/2026. With recurring revenue from utility services increasing to $868 million from $668 million last year an increase of 30%.

Turning to slide 12. I would like to take a moment to recognize a truly historic achievement for Aecon.

The Gordie Howe International Bridge Project achieved substantial completion on June 9, marking the successful delivery of 1 of the most significant infrastructure projects in North America. Just last week, Aecon had the opportunity to participate in the official opening celebrations.

Culminating with the opening of the bridge to traffic earlier this week. Together, the entire project team successfully navigated complexity and overcame challenges, including a global pandemic.

Always remaining focused on safety, perseverance, and world class execution excellence. It is the first new Canada US border crossing in more than 60 years.

spans 2.5 kilometers required over 20 million work hours by close, to 16 thousand workers, and showcases Aecon's ability to deliver complex infrastructure projects. On behalf of our leadership team, I want to thank the thousands of Aecon employees partners, suppliers, and stakeholders who contributed to making this project a success.

It is an incredible accomplishment and a significant milestone in Aecon's history. Turning to slide 13, we have recently announced several significant project awards and strategic developments that strengthen our multiyear growth profile.

And reinforce Aecon's position in some of North America's most attractive infrastructure markets spanning nation building, defense, power generation, transportation, and water infrastructure. These include the 932-megawatt green light electricity center in Alberta.

Which will support a major data center for META. The Robert Bank Terminal 2 in British Columbia, a priority nation building project that will increase container capacity at the Port Of Vancouver, the Winnipeg Biosolids facilities project, and the Mackaquac Life Achievement project in New Brunswick.

This projects align directly with our strategy of pursuing complex infrastructure programs with appropriate risk allocation long term visibility, and strong partnership structures. We continue to advance a broad portfolio of major projects including the Arctic Over the Horizon Radar program, the Pickering nuclear refurbishment, the Darlington new nuclear project, the Cascade Energy Facility in Washington State, the GO expansion civil works program, the Eglinton Crosstown LRT and urban redevelopment, and The US Virgin Island airports.

These are progressing under collaborative and progressive delivery models. That support improved risk allocation, and execution certainty.

These projects will present billions of dollars of potential work and when layered with Aecon's $10.5 billion of backlog, and recurring revenue program, provide long term growth visibility and match in Aecon's over 150-year history. Turning to slide 14, Aecon expects double digit revenue growth in 2026.

Our expectation for broad based revenue increase in 2026 and further revenue growth in 2027 is underpinned by the major projects in development that I just spoke to. Contributions from strategic acquisition in the industrial and utility sectors, ongoing strength from an extensive portfolio of small and midsized work programs, and the ramp up of projects and the multiyear lower risk contract models in new nuclear construction and mass transit and mobility.

In the concession segment, there are several opportunities to add to the existing portfolio of Canadian and international concessions in the next 6 to 12 months to support trends in aging infrastructure, mobility, connectivity, energy, and population growth. Aecon's deliberate shift.

Toward a greater weighting of improved risk adjusted work programs in combination with a strong focus on operational excellence is anticipated to support a stabilization and gradual improvement of adjusted EBITDA margins in the construction segment in 2026. Our overall outlook for 2026 continues to be very positive.

We are excited about the momentum we have built in the first half of the year and remain focused on executing our strategy to drive long term shareholder value. In closing, I want to thank our teams across all our operating sectors for their unwavering safety always mindset.

As we deliver critical infrastructure projects across Canada, The United States, and internationally. Thank you.

We now turn the call over to analysts for questions.

Great. Thanks and good morning.

Just want to get maybe starting with a high level 1. You know, you noted a lot of larger projects.

Been a lot of headlines around the Canada National Building, nation building stuff. Can you just talk about maybe as you are having discussions with these customers, are you able to get a bit of a cadence on timeline, just in terms of how those projects will come along?

Will you be able to staff for them, get the right people in right places? Like, are you starting to get some level of visibility on how that work might start to flow?

And then maybe just talk about how you know, from a preparation side, getting the right staff in the right regions, etcetera. So maybe just an update on how those bigger projects are building up for Aecon.

Thanks.

Yeah. I would take this 1.

Yes, we can. Most of these projects are progressive design build, collaborative projects So they just begin with the development phase, that can be I mean, from 12 months to 24 months.

And we have when we advance to the development phase, more and more visibility about the real execution of the work, the timeframe, the scope, the budget. So yes, we are getting--we are we are just getting more and more secure with these projects, what we call the sovereignty project.

We are extremely careful and focused on our capacity to deliver those projects. You probably have noticed that we are very careful on not having all these projects of the same geography, of the same sectors, on the same time frame.

it is a it is a balancing tactic and we think we think we are quite good about being able to execute those project perfectly.

And then just for my follow-up, I guess, maybe as you maybe might be a bit 1 more for Jerome, but just in terms the sort of margin profile as these larger projects are building up, your outlook commentary shared a bit more specifics this time. Just talk about your confidence and sort of the margin progression through H2, what you are seeing, and then what you guys are seeing in the backlog that you built around the margin profile and you know, I know it is early, but any sort of directional commentary you can share on that for 2027, I think your commentary notes, you know, growth into 2027 on the top line, but curious on the margin side as well.

And I will pass the line.

Yeah. Tons to unpack there, Sabahat.

I will before I start talking about the margin profile, I think it is always critical to reground around the risk associated with the work that is being executed because the 2 go hand in hand. So starting on that point, we are working on much better quality programs from a risk perspective than we have ever had.

If you look at the LTM period, amount of work that we have done, 7% of our work was on nonfixed price. And then the fixed price work that we are executing is increasingly under more collaborative models.

So I think the overall risk the enterprise is dropping. And what we committed to with regards to margin in our outlook started in Q4 of 25, was a stabilization.

And, you know, we had the 6 as an adjusted construction margin excluding the legacy projects, Was roughly 6% at the end of Q4. 6% on a trailing 12 month basis in Q1, and then, again, 6% on a trailing 12 month basis in Q2.

All while significantly growing revenue and all while shedding risk against the programs that we are working on. So that is, like, just a clear net positive with regard to risk adjusted returns for ACON.

As far as the guidance on gradual improvement, like, we really mean that trying to improve things in a very slow and measured way given the bulk of work that we have in front of us and where we stand on the programs that we are executing. We are very early on in programs in nuclear and urban transportation solutions.

And the traditional construction access curve means that you will generally see the benefits accrue later on in program life. I would also note that gross margins and backlog margins are improving.

And 1 of the areas that is an offset today is MG and A. We are doing as far as investments to improve our delivery capacity, which Jean-Louis mentioned.

So I will just say, margins have been stabilized. We have done a great job with that.

Revenue growth is improving. The risk is improving.

So it is just a net positive. With regards to 2027, we are not providing an outlook on that 1, so we are not going to front run it.

I think the general direction of travel is probably consistent with what we have seen in the 2026 outlook, which is stabilization followed by improvement. Just given the bulk and the size of work.

Know, we are really focused on maintaining the appropriate risk cadence, across the entire portfolio. So not perfectly direct answer on the last part of the question, but hopefully, little bit of, you know, color on where we are thinking things could go.

Thanks very much.

Hi. Good morning, everybody.

I have a couple of questions. First 1, regarding the Green Light project that you secured.

it is a fairly sizable project. Congratulations on winning it.

But was wondering if you could discuss the risk profile associated with that project. I did notice that it was an EPC project, so fixed price projects.

And love to get your comments on your comfort level around that particular project. Thank you.

Okay. Frederic, I am going to take this 1.

I imagine you are speaking about the green light project with Pembina. I mean, the combined cycle gas turbine.

that is my apologies. Yeah.

Yeah. No problem.

Power is a strategic focus at Aecon. You have noticed.

I mean, we are now a little more than 55% of our revenue. it is about distribution.

it is about transmission. it is about substation.

it is about battery storage. You have noted the Simcoe 150 megawatts that we have just disclosed a few days ago.

Power generation now. So the power generation market on 1 side, you have the nuclear.

We are extremely present and strong in nuclear. I may come back to this after.

On the other side, you have the renewable projects where we have attacked this through battery storage and some transmission. We are not in solar panels and we are not in wind machine.

We think that this has been commoditized and it was not the right time to enter it. In between nuclear and renewable, you have a spot which is gas turbine generation.

This is going to be the strong spot during the 10 years to come. And Aecon had to be within this spot.

On another hand, we are not speaking about first of a kind when we speak about gas turbine. I mean, there is something like 500 gas turbine project under construction every year.

So the contract model is EPC. So what we decided to do a few years ago when we realized that we needed to be there was to strengthen our capacity to be able to catch this kind of project.

Different way of doing it. We have acquired United in the United States, a specialist in power generation and in EPC delivery.

If you go to their track record, it is impressive. We have secured partnership with 1 of the best engineering company with combined cycle, which is Technip.

They have built more than 60 of those kind of projects. In addition, this project is in Edmonton, quite close to our industrial base.

The client, Pembina is quite well-known to us. I mean, we have been working with them.

We know them perfectly. And the output of this power plant is secured by a power purchase agreement with Meta.

Last point, long development phase, we have been working in perfect collaboration with our clients. and our engineering partner During more than 12 months.

So before we closed this job, we had a very, very good knowledge of the scope. The price, and the risk.

In addition, most of the long lead equipment have been ordered and are going to be supplied with the corresponding warranty and liability by the owner. So this was the target and the product to catch.

We have been patiently building capacity and core competency to be able to execute it securely and we just consider that it is a very good catch. for Aecon.

Have I answered your question?

Yes. Thanks for the very detailed answers, Jean-Louis.

I appreciate it. Next question's on labor availability.

Obviously, you were quite successful winning several contracts in recent months that provide good visibility into future growth. How are you thinking about scaling your workforce to meet this expected demand, and what risk do you see around labor availability going forward?

I would say there are 2 different issues: I mean, the staff and the management teams and the trades. So far, we have not seen shortages of trades.

We have a mid and long term agreement with major trade unions. When we are open shop, I mean, we also have a very strong geographical presence.

So we do not see at this stage issues so far. As I have said a few minutes ago, we are always extremely focused on the balance of our activity geographically, sector, time for execution so that we do not unduly overload 1 aspect.

Regarding staff and management, I mean, it is a constant fight. You probably remember we created Aecon University a few years ago.

We have a project management academy We are training. We are recruiting We are trying to reward as good as we can all our management it is a constant fight, but it is 1 of my most important file I mean, on my desk.

To ensure that we always have the capacity to execute this backlog that is growing. Thank you.

Thanks, Charlie. that is all I have.

I will pass it over.

Good morning, everyone. Just on the concession side, obviously, you have been successful in securing the agreement with Oneida.

So currently in a predevelopment. But I was just curious to know maybe a little bit more about the pipeline of opportunities for concessions these days.

So, you have been quite successful to grow, construction, but I am just curious whether what are the kind of the opportunities you see on the concession side to grow this segment? Thank you.

Good morning, Benoit. Jerome here.

We really the concession business continues to perform really quite well. So, you know, as noted, Oneida was successfully secured built on our expertise with regards to battery ownership.

But also execution of battery projects. You know, as Jean-Louis mentioned in his prepared notes, know, under delivery or delivered, Aecon's had roughly a gigawatt of battery storage systems in Ontario, which I think is probably something akin to a market leading position.

So we have a lot of confidence in that aspect of this you know, the execution. The team's continuing to work on the, airports, in The US Virgin Islands with regards to progressive developments.

So that is that is going, according to our expected The Additionally, you would have seen in the notes, Aecon concessions, is developing a network asset for a third-party client. And on that front, the construction side of the house will be building the asset for concessions ownership.

There will be an intercompany elimination, so there will be a negative drag on concessions EBITDA. But then, you know, concessions will be able to then onward, use that asset to generate long term income.

Against a strong credit, counterparty. So from our perspective, we are we are really pleased with the work that Concessions is doing, you know, very much aligned with the long term vision of that platform.

Platform, which is to grow, diversify, generate long term cash generating assets, be able to get development style returns all while generating all construction revenue and profitability for Aecon. Provide an additional source of capital unlock for our clients So I think overall, you know, the $250 million of book value of equity, it is obviously worth more than that.

But we will continue to look to invest in this platform because it generates you know, abnormal and unique returns for Aecon and its shareholders.

that is great color, Jerome. And maybe on the CapEx side, you mentioned that we should see a slight uptick in terms of CapEx as you grow revenue.

What about the kind of CapEx we might see going forward as you further grow construction revenue?

Yeah. So the we are we are very focused with regards to capital deployment.

So there is 2 ways to think about it. 1 is the raw dollar CapEx.

and then the other 1's the finance leases. Right?

So those are both different forms of capital. Our longer term objective is to try to maintain good capital intensity and operating leverage with regards to the capital equipment deployed.

We are very selective when we deploy CapEx and, you know, whether it is equipment, machinery, properties, fabrication facilities, that it needs to generate certain minimum return thresholds for shareholders. And so, yes, capital is going up, but when you are growing the business at a, you know, north of a 20% rate, that should not be We are also really careful about not kind of falling into the trap of just buying equipment to try to generate higher EBITDA because know, that equipment needs to be maintained.

And needs to be depreciated. And so we do think about things from a from a return standpoint.

So, capital is going up in line with revenue. it is actually a little bit less than revenue.

And, from that standpoint, I think it shows good operational discipline from our teams.

Okay. Then maybe just a quick follow-up.

You call out in the MD&A tariff and fuel also in terms of potential risk. I was curious to see if it is material these days or I suspect but any color on the tariff and fuel maybe whether it is an impact or not.

It certainly creates operating volatility. Generally speaking, we work pretty closely with our clients to understand where pricing risk exists on commodities like diesel.

You know, unleaded fuels, various input costs. We try to manage those risks contractually through purchase or through, you know, potentially hedging programs.

through our pricing. And so, look, this type of volatility, I think, is the new normal in our world.

it is increasingly been in existence since, you know, the COVID pandemic, and, it is just something that needs to be thought of carefully and managed. We call it out because there are these kind of special risks associated with, you know, momentary spikes and then, you know, the pricing mechanisms may not catch up immediately.

But right now, the 1 thing we will note is, you know, significant portion of our business is tied to construction in place. it is a very local business.

And so when we are operating in our Canadian markets, it is very much focused on Canadian supply chain, Canadian labor, right, utilizing Canadian equipment and resources. In our US, it is the same approach.

Our international operations probably have a little bit more exposure to because things need to move around in order to access the slightly more remote locations in Caribbean areas. But that is all kind of contemplated in the bid structure.

So it is a lot to think about. Candidly, the local nature of what we do makes it a little bit easier for us than some of the other companies out there.

So we are grateful for that piece, but does not mean we can take our eye off the ball. Okay.

Thank you very much for the time.

My question is regarding the nuclear business and opportunity. If you can provide a bit of an update on not only the opportunities that you have already highlighted that you that you have become involved with, such as X-energy in The US, but also some of the new opportunities that you are looking at and specifically focused here on the on the new build side.

So be that SMRs or large-scale reactors.

Yeah, I would do it. Our nuclear revenue is around 1.7 billion.

Canadian dollar. I mean, the between 70-75% in Canada.

And between 25-30% in United States. In Canada, you know where we are strong; and these are all those programs of major component replacement.

Are now full steam ahead on the third reactor of Bruce after having delivered on time on budget the first 2 ones. Pickering is also ramping up.

We are finalizing the development phase. And we should come to execution phase quite soon.

We are advanced on the small modular globally, something like 16% of progress on this job. So this is something that everyone knows, I mean, on this call.

The U.S. is a little newer.

What are we doing, and what are we going to do in the future. The real market at the moment where we are focused on it is not the new build.

I mean, it is it is still early The only new nuclear under construction in North America is Darlington, SMR Number 1. there is not at the moment in the United States.

The market is about life extension, and what they call in United States, EPU, which is extended power upgrade of the 80 to 90 reactors that exist in United States. it is about refurbishing a steam generator and major component of all those reactor to uprate the power output.

We are getting stronger and stronger in this market. On the other hand, we are working more with the Department of Energy I mean, this is federal work, and we and we like it.

We have a look at the new build. I mean, you know about this cascade project, which is the first tranche of 4 X-energy 100 reactor.

But it is just ramping up very, I would say, very slowly. The last point about the future I would like to highlight is about fabrication.

We are extremely strong about fabrication in Canada. It may be or bronze or steel composite elements for the new build to come.

I mean, for example, the SMR Number 1. it is also about module assembly.

I just remind you that we have been building some modules for Wokingham A few years ago, and we are in discussion to overhaul our processes to modernize I mean, our workshops, our tools, our robotics, This is probably 1 of the points of the future. Okay.

Perfect. Thank you for that.

Second question is regarding the updated outlook commentary specifically for revenues. So now calling for double digit revenue growth in 2026 and then additional growth in 2027.

Obviously, very strong top line growth in the second quarter and acceleration in terms of the rate of growth relative to what you saw in the first quarter. How should we think about the revenue growth opportunity in terms of rate of growth in the second half of the year And then in addition to that, as we look a little further out, as we think about 2027, what is the right way to think about that growth opportunity?

So the change in the outlook, as rightly noted, went from we said 2026 was going to exceed 2025,, and 2025 was an exceptional performance, by the way. We thought it prudent to adjust it to note the double digit, level of growth.

Particular, just with what we are seeing the backlog program that we have in place of $10.5 billion to recurring revenue The what I described as the book and burn cadence of the business is all quite positive in addition to the recent awards that we have seen. So you know, with regards to specific guidance, we always shy away from that.

We will note as it stands today in the next 12 months, there is roughly $4 billion of what we describe as secured backlog. that is executable.

In addition, we know there is been 2 additional projects that have been announced that will be added to backlog in Q3 that have been announced, which is the Green Light Electricity Center and then the Winnipeg wastewater phase 2 biosolids, program. So, you know, do not want to give, like, a specific number.

I think 1 of the items was we want to note that the where we saw, you know, street views on revenue was likely a little bit light, and so we just wanted to encourage people to really get a better understanding of you know, our conservative nature to backlog reporting and the fact that, you know, we have been very successful in organic revenue growth all tied again around, you know, being able to secure projects with really appropriate risk adjusted you know, returns. So the 1 item that is just worth noting is we remain very focused on securing work that has good risk balance to it, work that is executable.

And, you know, any given level of margin, we are going to drop risk. Any given level of risk, we are gonna take more margin.

But overall, we are pretty happy with the work that we have been securing and how that work looks to be burning off over the next, you know, call it 12 to 18 months. Thank you for that, Joe.

So just maybe following on, on that revenue question. What I am trying to understand is just to your point about the kind of the risk adjusted on some of these projects.

I am just trying to also understand a lot of these are earlier stage. So I am just trying to understand if this is kind of a function as we think about this revenue growth, but also relative to the margin.

Is there something going on with, call it, larger procurement? Or is there you know, are you just being cautious on early stage reserves?

I am just trying to understand, you know, as these things evolve, if it is just kind of phase of project that plays into what we are seeing with the dynamic or if there is something else to be kind of aware of in terms of the in terms of what is in the backlog, that quality of revenue.

and how it plays out over the next couple of years. I will begin, and maybe, Jerome, if you wanna add something.

I mean, backlog is about quality, and quantity. If we have this backlog today, it is not by chance.

I mean, we do not wait till that I come on a Friday morning to say, hey. We went from $5 billion to $10 billion, and most probably, we are going to grow it again.

We have a strategy, and we are extremely focused on delivering our strategy. This backlog is highly diversified, Again, it is not by chance.

it is because we had targets for new businesses. We add targets for US and international.

We have targets about our proportion fixed price and variable price, which makes it probably the best risk balance backlog that we ever had in the life of Aecon. There is more to come.

I mean, in 2027, you have understood that we are in the development phase on a few projects that will come to execution. I mean, we can speak about.

We can speak about Robert Bank. We can speak about Arctic over the horizon.

All this will at 1 moment of time, materialize in revenue. Most of those jobs, as I was explaining, a few minutes ago, have a very thorough development phase before we go to execution.

So we have in terms of predictability of our future margin, we are in a much better spot today. Maybe, Jerome, you wanna add something regarding profitability and margin level?

Yeah. And so on that front, you know, the I think the question, Chris, is, know, given the typical construction s curve on project delivery and how early we are on several major programs, you know, is that potentially influencing the margin cadence that we are seeing today?

The answer is yes, but not in a very material way. Right?

So, our general approach is consistent with industry best practices. Are thoughtful about the level of margin recognition that goes through our accounting system.

The amount of contingency that we have available on projects with regards to execution uncertainty when, you know, it is appropriate. And, you know, obviously, that is you know, that bulk of contingency is larger at the outset of a project than at the end of the project.

In an ideal situation, you are releasing that into profitability. So it is it is, like, a small factor but I would not say it is 1 that is kind of super material.

And then on the, you asked a question about whether, you know, procurement, is influencing things or swinging the margin profile, and, you know, the answer is not really. Right?

Like, we are you know, a counterparty and delivery partner of choice for very large major capital programs, across North America. that is always going to involve in procurement of material and subcontracts.

that is always been part of the mix for us, and that is always been part of the approach to our margin. So I would say there is nothing kind of materially shifting on either of those 2 factors.

It really is more around, you know, the approach to risk. And then the better stability and long term visibility we have on earnings and cash flow generation at Aecon.

Okay. Thank you.

My next question, just it was interesting in the notes and in the adjusted numbers. We saw some costs associated with the new ERP program.

Which is something I do not think we have seen in a while from you folks. Can you talk a little bit about what that program is all about?

What it brings to you, and what you are trying to achieve and is this some sort of new way to cost or is it good? Does it give you a different tool set So any color would be appreciated.

Yeah. it is I was wondering if that was going to come up.

So maybe I will launch off with saying that general perspective is that the systems, technology infrastructure that we have at Aecon is top tier. It enables us to deliver the vast multitude of projects that we have, on the books.

It allows us to work in, you know, the secure environments required for defense and nuclear. This you know, additional callout is really around the deployment of additional best in suite systems within the Aecon ecosystem.

To allow us to continue to, you know, not only kind of maintain that leading position, but, you know, effectively try to be actually at the top of systems with regards to project management integration, data governance, AI, and all the various items that we view as, candidly, it is going to be largely table stakes probably at some point. But it is definitely 1 where you have to you have to be part of it when you think about digital twins, integrated design delivery, scheduling, you know, the engineering work that we are doing with regards to United and how that all ties in to, you know, eventual project delivery on the programs that we are on.

The programs that are coming. Right?

So I think 1 of the things that we are very mindful at Aecon is this is a unique time in the construction market with regards to really strong demands. We understand resourcing is gonna be constrained.

We wanna make sure that we are in front of that. 1 of the ways to make sure that you get best efficiency and productivity out of your teams is to have the best tools available for them.

that is what this is tied to. I think I would also note that this was something that we started, you know, last year.

As far as the, you know, the assessment and early implementation. Now the specific reason why it is being called out as an adjustment factor, in our financials is we try to improve comparability with our results and our peers, which are largely US traded.

And in The United States, GAAP accounting effectively allows all of these costs to be capitalized. And so, here, if we were taking that approach, you know, this would have all folded into the CapEx program and no 1 would have seen it.

However, we I think, number 1, it is important to get people line of sight into where this money is being spent because it hits the M&A line. And then number 2, also helps to give confidence to, you know, our investors and our teams that, you we are investing in the future to ensure long term stability, capacity so we can deliver on, you know, what is a very meaningful amount of work that is ahead of us, you know, over and above the secured backlog.

Okay. Great.

And then just maybe just for modeling purposes then, So I guess Q2 was about just a hair over $4.2 million, so should we just be expecting that is kind of a normalized run rate what is the duration that we should be expecting these costs? And I assume that just will be over and above on your M&A spend.

I mean, it is it is the number is included in the M&A and that is why it is added back to get to the adjusted EBITDA figure. Right?

And so my standpoint, like, we are not going to provide guidance on the total program size. it is it is very reasonable.

Right? Like, we are builders, and we are constructors, and we are we are always mindful from a cost standpoint.

So we are not looking to make a meal of this whole thing. So we are not going to provide guidance on timing or quantum.

That being said, like, we are you know? The amount that we have spent in the quarter is not, you know, kind of, like, capital m material to Aecon.

Then I would say it would probably stay in that area code. Okay.

I will leave it there. Thanks, folks.

Thanks, Deani, and thanks, everyone, for joining us today. As always, welcome any follow-up questions or comments.

Feel free to reach out to the IR team. And, have a wonderful rest of your summer.