RBC Capital analyst Sabahat Khan has adjusted the outlook for Aecon Group, maintaining a Sector Perform rating while reducing the price target. The new target is set at C$49, down from the previous C$53.

Rating and Price Action

The revision reflects a reassessment of the stock's valuation potential within the sector. Despite the lower price target, the Sector Perform rating suggests the stock is expected to perform largely in line with the broader market or sector averages.

Southland Holdings, Inc. announced that Red River Biosolids Partners, a joint venture comprised of Aecon, MWH Constructors, and Oscar Renda Contracting of Canada, has been awarded an approximately C$815 million contract by the City of Winnipeg. The contract is for the North End Water Pollution Control Centre (NEWPCC) Sewage Treatment Plant Upgrade – Biosolids Facilities progressive design-build project in Manitoba. Southland’s share of the contract value is approximately C$272 million, which will be added to its Civil segment backlog in the third quarter of 2026.

Red River Biosolids Partners, in which each partner holds a 33.3% interest, completed the collaborative development phase before the award. Stantec is providing design services for the project. The construction phase will now begin to deliver new biosolids facilities and modifications to the existing facilities. Upgraded facilities operations are expected to commence in the fourth quarter of 2030, with final construction completion anticipated in the second quarter of 2031.

The NEWPCC is Winnipeg’s largest and oldest wastewater treatment facility, responsible for treating 70% of the city’s wastewater and all biosolids. The upgrades are intended to help meet environmental regulations, protect waterways, and expand water treatment capacity, while supporting employment and economic growth.

Separately, Southland Holdings was previously awarded approximately $25 million in new projects through its subsidiaries American Bridge Company and Oscar Renda Contracting. These awards span marine infrastructure in the Caribbean and emergency water works in the Southwest.

Southland is a leading provider of specialized infrastructure construction services. Headquartered in Grapevine, Texas, the company serves the bridges, tunneling, communications, data centers, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets.