Sewage plants are not fancy. They are not sexy. Nor are they attractive. But they get a very crucial job done, and that gives Aecon Group (TSE:ARE), a major figure in construction and infrastructure, an edge. The company will now be part of upgrading a “biosolids facility” in Winnipeg, Manitoba.
In this latest move, Aecon Group has a major role in the Winnipeg North End Sewage Treatment Plant, which is currently under a development phase contract worth C$95 million. The project will run for the next five years or so, with an expected completion date of 2030. Aecon’s role will be in a biosolids facility.
Aecon has been working at this facility, also known as the North End Water Pollution Control Centre, since 2021, noted CEO Jean-Louis Servranckx. And with this project, Aecon looks forward to “…safely delivering this project and working with our client and partners to extend the operating life of this essential facility.”
More Than a Load of Biosolids
A few weeks ago, Aecon signed an agreement with GE Hitachi Nuclear Energy to support the deployment of a BWRX-300 Small Modular Reactor in the United Kingdom. With a growing interest in and acceptance of nuclear power as a “clean” energy that can meet current power needs, it is little wonder we are seeing more of this power in place.
Meanwhile, Aecon also brought in Tim Murphy to serve as its new chief strategic affairs officer. Murphy has held a range of government posts, including serving as a Chief of Staff to Canada’s Prime Minister, as well as an adjunct professor at the University of Toronto.
Is Aecon Group Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:ARE stock based on six Buy and four Hold recommendations assigned in the past three months, as indicated by the graphic below. After a 104.61% rally in its share price over the past year, the average TSE:ARE price target of C$21.50 per share implies 1.87% upside potential.
