Aecon's 2024 Annual Report by Aecon Group Inc

This past year was marked by positive developments including the completion of key strategic acquisitions, signiﬁcant new contract awards, steady growth into the U.S. and international markets, and advancing Aecon’s core strategy to di erentiate its service o ering to secure higher-return projects with a lower risk proﬁle.

Cover Photo: Darlington Nuclear Refurbishment Project Clarington, ON

Dear Shareholders,

Driven by our purpose – building what matters to enable future generations to thrive – Aecon’s 2024 results were underscored by revenue of $4.2 billion,robustyear-endbacklogof$6.7billiondiversifiedacrossouroperatingsectors,andstrongrecurringrevenueprograms.Theyearwasmarked bypositivedevelopmentsincludingthecompletionofkeystrategicacquisitions,significantnewcontractawardsforprojectslinkedtotheenergytransition andexecutedundermorecollaborativedeliverymodels,steadygrowthintotheU.S.andinternationalmarkets,andreaching a settlementononeof Aecon’slegacyprojectswhilemakingcontinuedprogressoncompletingandsatisfactorilyresolvingclaimswithrespectiveclientsontheremainingthree legacyprojects.

Withanunwaveringfocusondeliveringlong-termshareholdervalue,Aeconadvanceditscorestrategytodifferentiateitsserviceofferingandexecution capabilitiestosecurehigher-returnprojectswith a lowerriskprofile.Additionally,wewelcomednewteamstoAeconthroughthesuccessfulcompletion ofthreestrategicacquisitions.TheseteamsenhanceAecon’spositiontoharnesssignificantopportunitiesacrossNorthAmericaintheutilities,nuclear and conventional power sectors:

• AeconUtilitiesacquired a majorityinterestinXtremePowerlineConstruction,anelectricaldistributionutilitycontractorbasedinMichigan;

• AeconUtilitiesalsoacquiredAinsworthPowerConstruction,anelectricalservicesandpowersystemscontractorheadquarteredinOntario;and

• AeconacquiredUnitedEngineers & ConstructorsInc., a nuclearandconventionalpowercontractorheadquarteredinNewJersey.

In2024,Aeconadoptedits Forward Together 2024 – 2027 Strategic Plan, focusedon“WheretoPlay”intheprioritymarketsitwillfocusontoensure a de-riskedportfolioandaccelerategrowth,and“HowweWin”byidentifyingthreeKeyFocusareasitwillcontinuetodeveloptosecure a leadingposition andmorepredictableandincreasedprofitabilityinthesemarkets.

Thispastyear,Aeconcontinuedtoworkwithitsclientstodevelopcollaborativealternativeprocurementandcontractingmodelswiththegoaltoreduce riskduringconstructionandaccelerategrowthinlong-termrecurringrevenueprogramsandrelatedoperationsandmaintenancecontracts.Aeconis activelyengagedindeliveringseveralmajorlong-termprojectsundermorecollaborativemodelsincludingtheGOExpansionOn-CorridorWorksproject, theDarlingtonNewNuclearProject,andtheScarboroughSubwayExtensionStations,RailandSystems – themostrecentprojecttomovetothe executionphaseunder a targetpricecontract.Aeconisfocusedonprogressingthroughthecollaborativedevelopmentphasesofthesemajorprojects andadvancingtotherespectiveconstruction,operations,andmaintenancephases.

Aeconwasalsoselectedtoadvanceprojectsundermorecollaborativemodelsandthroughprogressivephases,includingtheHowardA.HansonDam AdditionalWaterStorageFishPassageFacilityprojectinWashingtonState,theContrecoeurTerminalExpansionprojectin-waterworksinQuebec,the WinnipegNorthEndSewageTreatmentPlantBiosolidsFacilitiesUpgradeprojectinManitoba,aswellastheredevelopmentoftheCyril E.KingAirport andHenryE.RohlsenAirportintheU.S.VirginIslands,inwhichAeconConcessionsisthedevelopmentleadandisconcurrentlyworkingtotransition tolong-termoperationsandmaintenance.

InadditiontoitsprogressonU.S.expansioninitiativesandsteadygrowthinCanada,AeconwasalsoawardedtheClaytonJ.LloydInternationalAirport RedevelopmentProgramPackage 3 projectinAnguillaandcontinuedtoadvancetheKingstownPortModernisationprojectinSaintVincentandthe Grenadines.

Aeconisstrategicallyfocusedonprojectsthatallowclientstomitigateandadapttochangesintheenvironmentandharnesselectrification,whileaiming tomitigateitsownclimatechangeimpact.To-date,Aeconhasachieved a 34%cumulativereductionsince2020inScope 1 andScope 2 emissionsbased onintensity-basedtargetsrelativetorevenue,surpassingitsreductiontargetinadvanceofthetargetdateof2030.

Buildingonourlong-standingcommitmenttoengagingwithcommunitieswhilesupportingeconomicandcommunityprosperity,Aeconhasalsobeen designatedas a SupplyChange™IndigenousProcurementChampionbytheCanadianCouncilforIndigenousBusiness – recognizingourcommitment tosettingindustrystandardsandworkingcollaborativelywithIndigenousbusinessesonprocurementthatinvolvesmeasurableactionsandleaving a lastingpositiveimpact.

Movingforward,Aeconisdedicatedto a Safety Always cultureandthedisciplinedpursuitofoperationalexcellenceandprofitablegrowth.Aeconwill maintain a disciplinedcapitalallocationapproachandremainsfocusedonstrategicinvestmentsinitsoperationstosupportaccesstonewmarkets.

To continuebuildingshareholdervalue,wearesteadfastinoureffortstoensurethatAeconsafely,profitably,andsustainablydeliversintegratedservices, products,andsolutionstomeettheneedsofclientswhilesupportingourpeopleandcommunities.Ourcontinuedinvestmentinourpeopleandcapabilities hasyieldedclearbenefitsasourmanagementandemployeespositionAecontoprosperintheyearsahead.

Thankyouforyourcontinuedsupport.

Sincerely,

JohnM.Beck Jean-LouisServranckx Chairman PresidentandChiefExecutiveOfficer

2024 Sustainability Highlights

Aecon’s Purpose and Impact

Aecon’spurposeistobuildwhatmatterstoenablefuturegenerationstothrive. We buildandoperate infrastructurethatmeetstoday’sneedswhileaddressingsomeofsociety’smosturgentpriorities,suchas advancingtheenergytransitionandbuildingclimateresilientinfrastructure.Aswedothisessentialwork, we’reguidedbyourpurpose,inspiredbythepositivedifferencethatinfrastructurecanmakeforpeople,and we’recommittedtoactingresponsiblyineveryareaofourbusiness.

Aecon’s sustainability strategy is focused on two key areas:

• What we Build: Fromcleanenergyassetstosustainabletransportationandwatermanagement infrastructure, Aecon is working with its clients to advance the energy transition and lay the foundations forthriving,sustainablecommunities.

• How we Build: Aecon is working with researchers, innovators, suppliers, leading public and private sector clients,andlocalandIndigenouscommunitiestodriveprogressinsustainableconstruction.

2024 Performance

•59% of2024revenuetiedtosustainabilityprojects1

•78% shareofbacklogtiedtosustainabilityprojects1

•34% cumulativereductionto-datesince2020inScope1andScope2emissionsbasedonintensity-based targetsrelativetorevenue,surpassingourreductiontargetinadvanceofthetargetdateof2030

•$127 million inprocurementofgoodsandservicesfromtheIndigenouseconomy

•0.59 TotalRecordableInjuryFrequency

Awards and Recognition

In2024,Aeconreceivedthefollowingsustainabilityawardsandrecognition:

•SBTi Approved GHG Emission Reduction Targets

Aecon’sclimatetargetsearnedtheScience-BasedTargetsInitiative(SBTi)approvalin2024

•Gold Participation Tier

GovernmentofCanada’sNet-ZeroChallenge

•Gold Status

ReNewCanada(recognizingrolein19ofCanada’s100largestinfrastructureprojects,includingthetop5)2

•Best ESG Reporting (small cap)

IRMagazineAwards–Canada

•Platinum Winner

CorporateSocialResponsibilityPublication–AnnualReport–MarcomAwards

• Social Responsibility Award

GordieHoweInternationalBridge–InternationalBridgeCouncilTunnelandTurnpikeAssociation

Sustainability Report

Aecon’s2024SustainabilityReportwillbereleasedinApril2025. To readourlatestSustainabilityReport andviewourclimatedisclosures,pleasevisitaecon.com/sustainability.

1 Sustainability projects help to preserve and protect the environment but also help to preserve the ability of society to sustain itself. Including but not limited to projects that: reduce emissions, support the transition to a net-zero economy, support clean water use and conservation, and reduce/recycle waste. The definition of sustainability projects is based on the Sustainability Accounting Standards Board’s (“SASB”) definition of renewable energy projects and the Federal Government’s definition of Green Infrastructure under the Investing in Canada Infrastructure Program.

2 Based on confirmed project cost. Source: ReNew Canada

Management’s Discussion and Analysis of Operating Results and Financial Condition (“MD&A”)

Thefollowingdiscussionandanalysisoftheconsolidatedresultsofoperationsandfinancialconditionof AeconGroupInc.(“Aecon”orthe“Company”)shouldbereadinconjunctionwiththeCompany’saudited consolidatedfinancialstatementsandaccompanyingnotesfortheyearendedDecember31,2024.This MD&AisdatedasatMarch5,2025,whentheCompany’sBoardofDirectorsapprovedthisdocument. AdditionalinformationonAeconisavailablethroughtheSystemforElectronicDocumentAnalysisand Retrieval+(“SEDAR+”)atwww.sedarplus.caandincludestheCompany’sAnnualInformationFormand othersecuritiesandcontinuousdisclosurefilings.

1. INTRODUCTION

Aeconcurrentlyoperatesintwoprincipalsegmentswithintheinfrastructuredevelopmentindustry: ConstructionandConcessions.

TheConstructionsegmentincludesallaspectsoftheconstructionofbothpublicandprivateinfrastructure, primarilyinCanada,theUnitedStates,and,onaselectedbasis,internationally,andfocusesprimarilyon thefollowingmarketsectors:

•CivilInfrastructure;

•UrbanTransportationSolutions;

•NuclearPowerInfrastructure;

•UtilityInfrastructure;and

•IndustrialInfrastructure.

ActivitieswithintheConcessionssegmentincludethedevelopment,financing,build,andoperation ofconstructionprojects,primarilybywayofpublic-privatepartnershipcontractstructures,aswellas integratingtheservicesofallprojectparticipants,andharnessingthestrengthsandcapabilitiesofAecon. TheConcessionssegmentfocusesprimarilyonprovidingthefollowingservices:

•DevelopmentofdomesticandinternationalPublic-PrivatePartnership(“P3”)projects;

•Privatefinancesolutions;

•Developingstrategicpartnerships;

•Leadingand/oractivelyparticipatingindevelopmentteams;and

•Operationsandmaintenanceofinfrastructureassets.

TheinfrastructuredevelopmentindustryinCanadaisseasonalinnatureforcompanieslikeAeconthat performasignificantportionoftheirworkoutdoors.Asaresult,lessworkisperformedinthewinterand earlyspringmonthsthaninthesummerandfallmonths.Accordingly,Aeconhashistoricallyexperienced aseasonalpatterninitsoperatingresults,withthefirsthalfoftheyear,andparticularlythefirstquarter, typicallygeneratinglowerrevenueandprofitthanthesecondhalfoftheyear.Therefore,resultsinanyone quarterarenotnecessarilyindicativeofresultsinanyotherquarter,orfortheyearasawhole.

2. FORWARD-LOOKING INFORMATION

TheinformationinthisManagement’sDiscussionandAnalysisincludescertainforward-lookingstatements whichmayconstituteforward-lookinginformationunderapplicablesecuritieslaws.Theseforward-looking statementsarebasedoncurrentlyavailablecompetitive,financial,andeconomicdataandoperatingplans

butaresubjecttorisksanduncertainties.Forward-lookingstatementsmayinclude,withoutlimitation, statementsregardingtheoperations,business,financialcondition,expectedfinancialresults,performance, prospects,ongoingobjectives,strategies,andoutlookforAecon,includingstatementsregarding:the timing,methods,andquantityofanypurchasesundertheNCIB(definedbelow),theavailabilityofcash forrepurchasesofcommonsharesundertheNCIB,andcompliancewithapplicablelawsandregulations pertainingtotheNCIB;expectationsregardingtheimpactofthethreeremainingfixedpricelegacyprojects andexpectedtimelinesofsuchprojects;backlogandestimatedduration;theimpactofcertaincontingencies onAecon(see:Section10.2“Contingencies”);theuncertaintiesrelatedtotheunpredictabilityofglobal economicconditions;itsbeliefregardingthesufficiencyofitscurrentliquiditypositionincludingsufficiency ofitscashposition,unusedcreditcapacity,andcashgeneratedfromitsoperations;itsstrategyofseeking todifferentiateitsserviceofferingandexecutioncapabilityandtheexpectedresultstherefrom;itseffortsto maintainaconservativecapitalposition;expectationsregardingthepipelineofopportunitiesavailableto Aecon;statementsregardingthevariousphasesofprojectsforAecon;itsstrategicfocusonprojectslinked todecarbonization,energytransitionandsustainability,andtheopportunitiesarisingtherefrom;expectations regardingongoingrecoveryintravelthroughBermudaInternationalAirportandopportunitiestoaddtothe existingportfolioofCanadianandinternationalconcessionsinthenext12to24months;OaktreeCapital Management,L.P.’s(“Oaktree”)investmentinAeconUtilitiesGroupInc.(“AeconUtilities”),theexpected benefitsthereofandresultstherefrom,includingtheaccelerationofgrowthofAeconUtilitiesinCanadaand theU.S.;theexpansionofAeconUtilities’geographicreachandrangeofservicesintheU.S;thepotential foradditionalcontingentproceedspayableundertheAeconUtilitiesacquisitionofamajorityinterestin XtremePowerlineConstruction(“Xtreme”);theabilityofAeconUtilitiesandXtremetointegratesuccessfully followingtheXtremeacquisition,theexpansionintheU.S.utilityservicesmarketanddrivingcontinued growthinprioritymarkets;andtheeffectivecollaborationwithXtrememanagement;theabilityofAecon andUnitedEngineers&ConstructorsInc.(“United”)tointegratesuccessfullyfollowingtheacquisition;the expansionintheNorthAmericaandglobalnuclearservicesmarketanddrivingcontinuedgrowthinpriority markets;theabilitytoadvanceAecon’sdiversificationandgrowthwithafocusontheenergytransition; theabilitytocapitalizeon,andthecontinuedgrowthof,theincreasingdemandforclean,affordable,and reliableenergy;andtheeffectivecollaborationwithUnitedmanagement;theanticipatedgrowthofAecon’s nuclearandengineeringbusiness,andAecon’sexpansionintheU.S.andCanadianmarkets,expansion ofmarketshareandoperationalcapacity.Forward-lookingstatementsmayinsomecasesbeidentifiedby wordssuchas“will,”“plans,”“schedule,”“forecast,”“outlook,”“potential,”“seek,”“strategy,”“may,”“could,” “might,”“can,”“believes,”“expects,”“anticipates,”“estimates,”“projects,”“intends,”“prospects,”“targets,” “occur,”“continue,”“should”orthenegativeoftheseterms,orsimilarexpressions.Inadditiontoevents beyondAecon’scontrol,therearefactorswhichcouldcauseactualorfutureresults,performance,or achievementstodiffermateriallyfromthoseexpressedorinferredhereinincluding,butnotlimitedto:the riskofnotbeingabletodriveahighermarginmixofbusinessbyparticipatinginmorecomplexprojects, achievingoperationalefficienciesandsynergies,andimprovingmargins;theriskofnotbeingabletomeet contractualschedulesandotherperformancerequirementsonlarge,fixedpricedcontracts;theriskofnot beingabletomeetitslabourneedsatreasonablecosts;theriskofnotbeingabletoaddressanysupply chainissueswhichmayariseandpassoncostsofsupplyincreasestocustomers;theriskofnotbeingable, throughitsjointoperations,toenterintoimplementationphasesofcertainprojectsfollowingthesuccessful completionoftherelevantdevelopmentphase;theriskofnotbeingabletoexecuteitsstrategyofbuilding strongpartnershipsandalliances;theriskofnotbeingabletoexecuteitsriskmanagementstrategy;the riskofnotbeingabletogrowbacklogacrosstheorganizationbywinningmajorprojects;theriskofnot beingabletomaintainanumberofopen,recurring,andrepeatcontracts;theriskofnotbeingableto accuratelyassesstherisksandopportunitiesrelatedtoitsindustry’stransitiontoalower-carboneconomy; theriskofnotbeingabletooversee,andwhereappropriate,respondtoknownandunknownenvironmental andclimatechange-relatedrisks,includingtheabilitytorecognizeandadequatelyrespondtoclimate

changeconcernsorpublic,governmental,andotherstakeholders’expectationsonclimatematters;the riskofnotbeingabletomeetitscommitmenttomeetingitsgreenhousegasemissionsreductiontargets; therisksassociatedwiththestrategyofdifferentiatingitsserviceofferingsinkeyendmarkets;therisks associatedwithundertakinginitiativestotrainemployees;therisksassociatedwiththeseasonalnatureof itsbusiness;therisksassociatedwithbeingabletoparticipateinlargeprojects;therisksassociatedwith legalproceedingstowhichitisaparty;theabilitytosuccessfullyrespondtoshareholderactivism;therisk ofincreasedcostsduetotheimpositionoftariffs;theriskofnon-compliancewithgovernmentregulations, policiesorexecutiveorders;theriskthatAeconwillnotrealizetheopportunitiespresentedbyatransition toanet-zeroeconomy;risksassociatedwithfuturepandemicsorhealth-relatedoutbreaksandAecon’s abilitytorespondtoandimplementmeasurestomitigatetheimpactofsuchpandemicsorhealth-related outbreaks;theriskthatthestrategicpartnershipwithOaktreewillnotrealizetheexpectedresultsandmay negativelyimpacttheexistingbusinessofAeconUtilities;theriskthatAeconUtilitieswillnotrealizethe anticipatedbalancesheetflexibilitywiththecompletionoftheinvestment;theriskthatAeconUtilitieswill notrealizeopportunitiestoexpanditsgeographicreachandrangeofservicesintheU.S;theriskofcosts ordifficultiesrelatedtotheintegrationofAeconUtilitiesandXtremebeinggreaterthanexpected;therisk oftheanticipatedbenefitsandsynergiesfromtheacquisitionnotbeingfullyrealizedortakinglongerthan expectedtorealize;theriskofbeingunabletoretainkeypersonnel,includingXtrememanagement;and theriskofbeingunabletomaintainrelationshipswithcustomers,suppliersorotherbusinesspartnersof Xtreme.

Theseforward-lookingstatementsarebasedonavarietyoffactorsandassumptionsincluding,butnot limitedtothat:noneoftherisksidentifiedabovematerialize,therearenounforeseenchangestoeconomic andmarketconditionsandnosignificanteventsoccuroutsidetheordinarycourseofbusiness.These assumptionsarebasedoninformationcurrentlyavailabletoAecon,includinginformationobtainedfrom third-partysources.WhiletheCompanybelievesthatsuchthird-partysourcesarereliablesourcesof information,theCompanyhasnotindependentlyverifiedtheinformation.TheCompanyhasnotascertained thevalidityoraccuracyoftheunderlyingeconomicassumptionscontainedinsuchinformationfromthirdpartysourcesandherebydisclaimsanyresponsibilityorliabilitywhatsoeverinrespectofanyinformation obtainedfromthird-partysources.

RiskfactorsarediscussedingreaterdetailintheSection13-“RiskFactors”inthisMD&Awhichis availableonSEDAR+atwww.sedarplus.ca.Exceptasrequiredbyapplicablesecuritieslaws,forwardlookingstatementsspeakonlyasofthedateonwhichtheyaremadeandAeconundertakesnoobligation topubliclyupdateorreviseanyforward-lookingstatement,whetherasaresultofnewinformation,future events, or otherwise.

3. FINANCIAL REPORTING STANDARDS

TheCompany’sauditedconsolidatedfinancialstatementsandtheaccompanyingnotesfortheyearended December31,2024werepreparedinaccordancewithInternationalFinancialReportingStandardsas issuedbytheInternationalAccountingStandardsBoard(“IFRSAccountingStandards”).

AllfinancialinformationinthisMD&AispresentedinCanadiandollars,unlessotherwiseindicated.

4. NON-GAAP AND SUPPLEMENTARY FINANCIAL MEASURES

TheMD&Apresentscertainnon-GAAPandsupplementaryfinancialmeasures,aswellasnon-GAAP ratiostoassistreadersinunderstandingtheCompany’sperformance(“GAAP”referstoIFRSAccounting Standards).Thesemeasuresdonothaveanystandardizedmeaningandthereforeareunlikelytobe comparabletosimilarmeasurespresentedbyotherissuersandshouldnotbeconsideredinisolationoras asubstituteformeasuresofperformancepreparedinaccordancewithGAAP.

ThroughoutthisMD&A,thefollowingtermsareused,whichdonothaveastandardizedmeaningunder GAAP.

Non-GAAP Financial Measures

Anon-GAAPfinancialmeasure:(a)depictsthehistoricalorexpectedfuturefinancialperformance,financial positionorcashflowoftheCompany;(b)withrespecttoitscomposition,excludesanamountthatis includedin,orincludesanamountthatisexcludedfrom,thecompositionofthemostcomparablefinancial measurepresentedintheprimaryconsolidatedfinancialstatements;(c)isnotpresentedinthefinancial statementsoftheCompany;and(d)isnotaratio.

Non-GAAPfinancialmeasuresandratiospresentedanddiscussedinthisMD&Aareasfollows:

• “Adjusted EBITDA” representsoperatingprofit(loss)adjustedtoexcludedepreciationand amortization,thegain(loss)onsaleofassetsandinvestments,costsrelatedtobusinessacquisitions including:costsrelatedtoadvisory,legalandothertransactionfees;changesinthefairvalueof contingentconsideration;andcontingentconsiderationclassifiedascompensationperIFRS;costs associatedwiththeremediationofpropertiessold;andnetincome(loss)fromprojectsaccounted forusingtheequitymethod,butincluding“EquityProjectEBITDA”fromprojectsaccountedforusing theequitymethod(refertoSection9“QuarterlyFinancialData”foraquantitativereconciliation tothemostcomparablefinancialmeasure).Themostdirectlycomparablemeasurecalculatedin accordancewithIFRSisoperatingprofit.

• “Equity Project EBITDA” representsAecon’sproportionateshareoftheearningsorlossesfrom projectsaccountedforusingtheequitymethodbeforedepreciationandamortization,financeincome, financecostandincometaxexpense(recovery)(refertoSection9“QuarterlyFinancialData”fora quantitativereconciliationtothemostcomparablefinancialmeasure).

• “Adjusted Profit (Loss) Attributable To Shareholders” representsprofit(loss)attributableto shareholdersadjustedwhereapplicabletoexcludeunrealizedgainsorlossesonderivativefinancial instruments,costsrelatedtobusinessacquisitionsincluding:amortizationofacquisition-related intangibleassets;costsrelatedtoadvisory,legalandothertransactionfees;changesinthefairvalue ofcontingentconsideration;andcontingentconsiderationclassifiedascompensationperIFRS; costsassociatedwiththeremediationofpropertiessold;andwhereapplicabletheincometaxeffect oftheseadjustments(refertoSection9“QuarterlyFinancialData”foraquantitativereconciliation tothemostcomparablefinancialmeasure).ThemostcomparableIFRSmeasureforAdjustedProfit (Loss)Attributable To ShareholdersisProfit(Loss)Attributable To Shareholders.

• “Adjusted Earnings Per Share – Basic” and “Adjusted Earnings Per Share – Diluted” are calculatedbydividingAdjustedProfit(Loss)Attributable To Shareholders(definedabove)bythebasic anddilutedweightedaveragenumberofsharesoutstanding,respectively.Themostcomparable IFRSmeasureforAdjustedEarningsPerShareisearningspershare.(refertoSection9“Quarterly FinancialData”foraquantitativereconciliationtothemostcomparablefinancialmeasure).

Managementusestheabovenon-GAAPfinancialmeasurestoanalyzeandevaluateoperatingperformance. Aeconalsobelievestheabovefinancialmeasuresarecommonlyusedbytheinvestmentcommunityfor valuationpurposes,andareusefulcomplementarymeasuresofprofitability,andprovidemetricsusefulin theconstructionindustry.Thesenon-GAAPfinancialmeasuresexcludeitemswhichmanagementbelieves willallowinvestorsaconsistentwaytoanalyzeAecon’sfinancialperformance,allowforbetteranalysisof coreoperatingincomeandbusinesstrends,andimprovecomparabilityofcompanieswithintheindustry.

Primary Financial Statements

Primaryfinancialstatementmeansanyofthefollowing:theconsolidatedbalancesheets,theconsolidated statementsofincome,theconsolidatedstatementsofcomprehensiveincome,theconsolidatedstatements ofchangesinequity,andtheconsolidatedstatementsofcashflows.

KeyfinancialmeasurespresentedintheprimaryfinancialstatementsoftheCompanyanddiscussedinthis MD&Aareasfollows:

• “Gross profit” representsrevenuelessdirectcostsandexpenses.Notincludedinthecalculation ofgrossprofitaremarketing,generalandadministrativeexpense(“MG&A”),depreciationand amortization,income(loss)fromprojectsaccountedforusingtheequitymethod,otherincome(loss), financeincome,financecost,incometaxexpense(recovery),andnon-controllinginterests.

• “Operating profit (loss)” representstheprofit(loss)fromoperations,beforefinanceincome, financecost,incometaxexpense(recovery),andnon-controllinginterests.

TheabovemeasuresarepresentedintheCompany’sconsolidatedstatementsofincomeandarenot meanttobeasubstituteforothersubtotalsortotalspresentedinaccordancewithGAAP,butrathershould beevaluatedinconjunctionwithsuchGAAPmeasures.

• “Backlog” (Remaining Performance Obligations) meansthetotalvalueofworkthathasnotyet beencompletedthat:(a)hasahighcertaintyofbeingperformedasaresultoftheexistenceofan executedcontractorworkorderspecifyingjobscope,valueandtiming;or(b)hasbeenawardedto Aecon,asevidencedbyanexecutedbindingletterofintentoragreement,describingthegeneral jobscope,valueandtimingofsuchwork,andwherethefinalizationofaformalcontractinrespect ofsuchworkisreasonablyassured.Operationsandmaintenance(“O&M”)activitiesareprovided undercontractsthatcancoveraperiodofupto30years.Inordertoprovideinformationthatis comparabletothebacklogofothercategoriesofactivity,AeconlimitsbacklogforO&Mactivitiesto theearlierofthecontracttermandthenextfiveyears.

RemainingPerformanceObligations,i.e.Backlog,ispresentedinthenotestotheCompany’sannual consolidatedfinancialstatementsandisnotmeanttobeasubstituteforotheramountspresentedin accordancewithGAAP,butrathershouldbeevaluatedinconjunctionwithsuchGAAPmeasures.

Non-GAAP Ratios

Anon-GAAPratioisafinancialmeasurepresentedintheformofaratio,fraction,percentageorsimilar representation,andthathasanon-GAAPfinancialmeasureasoneofitscomponentsandisnotdisclosed inthefinancialstatementsoftheCompany.

Anon-GAAPratiopresentedanddiscussedinthisMD&Aisasfollows:

• “Adjusted EBITDA margin” representsAdjustedEBITDAasapercentageofrevenue.

Managementusestheabovenon-GAAPratiotoanalyzeandevaluateoperatingperformance.Themost directlycomparablemeasurescalculatedinaccordancewithGAAParegrossprofitandoperatingprofitthat canbeusedtocalculategrossprofitmarginandoperatingmargin.

Supplementary Financial Measures

Asupplementaryfinancialmeasure:(a)is,orisintendedtobe,disclosedonaperiodicbasistodepictthe historicalorexpectedfuturefinancialperformance,financialpositionorcashflowoftheCompany;(b)isnot presentedinthefinancialstatementsoftheCompany;(c)isnotanon-GAAPfinancialmeasure;and(d)is notanon-GAAPratio.

KeysupplementaryfinancialmeasurespresentedinthisMD&Aareasfollows:

• “Gross profit margin” representsgrossprofitasapercentageofrevenue.

• “Operating margin” representsoperatingprofit(loss)asapercentageofrevenue.

• “MG&A as a percent of revenue” representsmarketing,generalandadministrativeexpenseasa percentage of revenue.

• “Debt to capitalization percentage” representstotaldebt(excludingnon-recoursedebtand drawingsontheCompany’screditfacilitiespresentedasbankindebtedness)asapercentageof totalcapitalization.Thecalculationofdebttocapitalizationpercentageandmanagement’suseof thisratioisdescribedinSection10.5“CapitalManagement”ofthisMD&A.

5. RECENT DEVELOPMENTS

Aecon Acquires United Engineers & Constructors Inc.

OnDecember17,2024,AeconacquiredUnitedEngineers&ConstructorsInc.(“United”),anuclearand conventionalpowerengineerandcontractorheadquarteredinMountLaurel,NewJersey,fromaffiliatesof CriticalPointCapital,LLC.United’smanagementandoperationalteamsjoinedAeconuponclosingofthe acquisition.

Foundedin1905,Unitedprovidesend-to-endengineering,planning,andprogramandconstruction managementservicestonuclearandconventionalpowerclientsintheUnitedStatesandCanada.United maintainsastrategicfocusonnuclearpowerplantlifeextensionsanddevelopingsmallmodularreactor andpowergenerationprojects.ThemajorityofUnited’srevenuesareconductedundermasterservice agreementsandarerecurringinnature.AeconandUnitedarealsocollaborativelyengagedinjoint operationsinexecutingsteamgeneratorreplacementworkandfuelchannelandfeederreplacementson sixunitsattheBruceNuclearGeneratingStationinOntario.

Aecon

Utilities Acquires Ainsworth Power Construction

OnDecember2,2024,AeconUtilitiesGroupInc.(“AeconUtilities”)acquiredAinsworthPowerConstruction, anelectricalservicesandpowersystemsbusinessunitofAinsworthInc.,headquarteredinToronto,Ontario,

fromGDIIntegratedFacilityServices.AinsworthPowerConstruction’smanagementandoperationalteams joinedAeconUtilitiesuponclosingoftheacquisition,whichisbeingfinancedthroughAeconUtilities’ standalonecommittedrevolvingcreditfacility.

AinsworthPowerConstructionhasover80employeesand80yearsofexperienceasacomprehensive technicalservicescontractorforelectricalutilityclients,primarilyinOntario.ThemajorityofAinsworthPower Construction’srevenuesareconductedunderlong-termmasterserviceagreementsandarerecurringin nature.AeconUtilitiesandAinsworthPowerConstructionarecollaborativelyengagedinjointoperations deliveringprogramstoutilityandprivatesectorclientstoexpandelectricitydistributioninfrastructureacross Ontario.

Aecon Utilities Acquires Electrical Distribution Utility Contractor Xtreme Powerline

OnJuly2,2024,AeconUtilitiesGroupInc.acquiredamajorityinterestinXtremePowerlineConstruction (“Xtreme”),anelectricaldistributionutilitycontractorheadquarteredinPortHuron,Michigan.Theacquisition wasfinancedthroughAeconUtilities’standalonecommittedrevolvingcreditfacility.Xtrememanagement arecommittedtosupportingAeconUtilities’expansionintheU.S.andretainedaminorityownershipin XtremeaswellasleadershipresponsibilitiesintheXtremebusinessinpartnershipwithAeconUtilities’ managementteam.

Aprivately-ownedcompanyfoundedin2007,Xtremeisafull-servicepowerlineconstructorwith approximately300employees.Xtremespecializesinoverheaddistributionlinerepair,maintenance,and expansionservicesthroughouttheEasternUnitedStates,andprovidesemergencyrestorationservicesfor over20utilityclientsacrosstheU.S.

Normal Course Issuer Bid

OnAugust15,2024,theTorontoStockExchange(“TSX”)approvedtheCompany’snormalcourseissuer bid(the“NCIB”)pursuanttowhichtheCompanymaypurchaseforcancellationupto3,126,306common sharesofAecon,representing5%oftheissuedandoutstandingcommonsharesasofAugust7,2024.The NCIBcommencedonAugust18,2024andwillendnolaterthanAugust18,2025.SeealsoSection10.7 “NormalCourseIssuerBid”ofthisMD&A.

Update on Certain Fixed Price Legacy Projects

WithintheConstructionsegment,aspartofitsongoingreviewofcriticalaccountingestimatesinrespect oftheremainingthreelargefixedpricelegacyprojectsnownearingcompletionandbeingperformedby jointoperationsinwhichAeconisaparticipant(seeSection10.2“Contingencies”andSection13“Risk Factors”ofthisMD&A),Aeconrecognizedanoperatinglossof$35.8millioninthefourthquarterof2024 (operatinglossof$40.0millioninthesameperiodof2023)andanoperatinglossof$145.8millionin2024 (operatinglossof$215.2millionin2023)fromthesethreelegacyprojects.Theremainingthreelegacy projectscomprised4%and5%,respectively,ofconsolidatedrevenueinthefourthquarterandfullyearof 2024comparedto8%and6%,respectively,ofconsolidatedrevenueinthefourthquarterandfullyearof 2023.

Aeconanditsjointoperationspartnersarededicatingallnecessaryresourcestodrivetheremaininglegacy projectstocompletionandinthemeantimecontinuetopursuefairandreasonablesettlementagreements

withtherespectiveclientsineachcase.Oftheremainingthreeprojects,twoarecurrentlyexpectedto besubstantiallycompletebymid-year2025,andthefinalprojectbytheendofthethirdquarterof2025. Futuredownsideriskremainsintheeventthatassumptions,estimates,and/orcircumstanceschange.Such downsiderisksinclude,amongothers,thelevelofcompensationforpastandfutureimpacts,including throughthedisputeresolutionprocesswhereappropriate,productivitynotmeetingexpectations,potential forunforeseensupplychaindelaysanddisruptions,unknowncommissioningrisks,inflationrelatedrisk, and further client changes.

AtDecember31,2024,theremainingbacklogtobeworked off onthethreeprojectswas$121million comparedtobacklogof$324millionatDecember31,2023.Thethreefixedpricelegacyprojectscomprised 2%ofbacklogatDecember31,2024comparedto5%atDecember31,2023.

Coastal Gaslink Pipeline Project Global Settlement Agreement

OnJune28,2024,AeconannouncedthatSAEnergyGroup(ageneralpartnershipofAeconConstruction GroupInc.andRobertB.SomervilleCo.Ltd.)andCoastalGasLinkPipelineLimitedPartnership,by itsgeneralpartnerCoastalGasLinkPipelineLtd.,reachedanamicableandmutuallyagreeableglobal settlementtoresolvetheirdisputefullyandfinallyovertheconstructionofSections3and4oftheCoastal GasLinkPipelineProjectinBritishColumbia.

Thesettlementagreementisnotanadmissionofliabilitybyeitherpartyandthepartieshavemutually releasedtheirrespectiveclaimsinthearbitration,therebyavoidingtheexpense,burden,anduncertainty associated with arbitration.

ThetermsofthesettlementagreementdidnotresultinanyfurthercashimpactstoAecon.Froman accountingperspective,Aeconrecognizedinitsconsolidatedfinancialresultsachargeof$127millionin 2024($nilin2023)relatedtotheconstructionofSections3and4oftheCoastalGasLinkPipelineProject.

6. BUSINESS STRATEGY

Aecon’soverallstrategicgoalistobethenumberoneCanadianinfrastructurecompanythatsafely,profitably, andsustainablydeliversintegratedservices,products,andsolutionstomeetitsclients’needs.

Current Position

Foroveradecade,Aeconhasbuiltscaleincoremarkets,achieveddiversityandbalanceingeographic andend-marketsectors,andembeddedacultureofoperatingexcellence,enhancedriskmanagement, andconsistentperformanceusinga“OneAecon”approachtomeetingtheneedsofitsclients.Inrecent years,thisefforthasbeenhighlightedbythedevelopmentofagrowingportfolioofconcessioninvestments tiedtomajorCanadianandinternationalinfrastructureprojects,andtheselectionofAeconasapartner inconsortiumsdevelopinglarge,collaborative,andprogressivedesignbuildprojects.Aeconhasalso completedstrategicacquisitionsandinvestmentsincoreoperations,whiledivestingselectnon-core operations,toallowforanincreasedfocusonAecon’schosenend-markets.

Aecon’s core strategy is to differentiate its service offering and execution capability to secure higher-return projectswithalowerriskprofilebyincreasingthesophisticationandefficiencyoftheworkbeingperformed

andimprovingtheCompany’scompetitiveadvantagethroughitsabilitytoprovidevaluetoitsclients.As part of this differentiation, Aecon continues to work with its clients to develop collaborative alternative procurementandcontractingmodelswiththegoaltoreduceriskduringconstructionandacceleratethe Company’sgrowthinlong-termrecurringrevenueprogramsthroughrelatedoperationsandmaintenance contracts.Revenuefromrecurringrevenueprograms(whichcomprisesrevenueearnedundermaintenance masterservicesagreementsandfromongoingoperations)was$1,017millionin2024ascomparedto $1,134millionin2023and$896millionin2022,representingagrowthinrecurringrevenueprogramsof 14%since2022.

Aeconseekstopositionitsoperationstocaptureopportunitiesassociatedwithevolvingenergydemands. TheCompanyisstrategicallyfocusedonprojectsthatallowclientstomitigateandadapttochangesin theenvironmentandalsoharnesselectrification,throughnuclear,batterystorage,hydro-electric,power transmissionanddistribution,wasteandwaterinfrastructure,railtransit,solar,hydrogen,andgeothermal projects.In2021,theCompanyannouncedatargettoreachnet-zeroby2050,withaninitialinterimtarget toachievea30%reductioninScope1andScope2CO2emissionsby2030ascomparedto2020.Aecon’s greenhousegas(“GHG”)emissionreductiontargetsareintensity-basedtargetsbasedoneconomicoutput andrepresenttonnesofCO2permilliondollarsofrevenue.In2024,Aeconachieveda24%reductionin Scope1andScope2GHGemissionspermilliondollarsofrevenue(tCO2e/$M)comparedto2023. Todate,Aeconhasachieveda34%cumulativereductionsince2020inScope1andScope2emissionsbased on intensity-based targets relative to revenue, surpassing its reduction target in advance of the target date.

Forward Together 2024 – 2027 Strategic Plan

In2024,AeconadopteditsForwardTogether2024–2027StrategicPlan(the“StrategicPlan”)focused on“Where To Play”intheprioritymarketstheCompanywillfocusontoensureade-riskedportfolioand accelerateitsgrowth,and“How We Win”byidentifyingthreeKeyFocusareastheCompanywillcontinue todeveloptosecurealeadingpositionandmorepredictableandincreasedprofitabilityinthesemarkets. AnchoredbyAecon’spurpose–buildingwhatmatterstoenablefuturegenerationstothrive–thekey elementsoftheStrategicPlanareoutlinedbelow.

Where to Play

Aeconleveragesitsconstructionandconcessionsexperiencetopursueawidemixofprojectsacross variousmarketsectors,includingnewcollaborativealternativeprocurementprojectswithbothgovernment andprivateclientsinNorthAmericaandinternationally.Buildingonitsexperienceinthedesign,build, finance,maintenance,andoperationsofNorthAmericanandinternationalinfrastructuredevelopment, Aeconistargetingadditionalprojectopportunitiesandpartnershipsthatrequirethisspecializedexperience andcapability.Aeconremainscommittedtoexpandingitsconstructionactivitieslinkedtosustainability, withafocusonpursuingprojectsbothorganicallyandthroughstrategicacquisitionsthatfostergrowthin keyareassuchasnuclear,electricaltransmissionanddistribution,andrenewableenergy.Revenuetiedto sustainabilityprojectsrepresented59%of2024revenuecomparedto64%in2023.Theseprojectsinclude, butarenotlimitedto,projectsthatreduceemissions,supportelectrification,supportcleanwateruseand conservation,climatechangemitigationandadaptation,andreduceorrecyclewaste.

In2024,theCompanycompletedthreestrategictransactionswithafocusontheenergytransition.Aecon UtilitiesacquiredamajorityinterestinXtremePowerlineConstructionandacquiredAinsworthPower Construction,andAeconacquiredUnitedEngineers&Constructors.Theseacquisitionsenhancethe

Company’spositiontoharnesssignificantopportunitiesacrossNorthAmericaintheutilities,nuclearand conventionalpowersectors,whiledrivingcontinuedgrowthintheU.S.andprioritymarkets.

WhileAeconremainsfocusedongrowthwithinCanada,theCompanycontinuestoembracenew opportunitiesintheU.S.andinternationalinfrastructuredevelopmentandconstructionmarketstocontinue todiversifythebusinessovertime,bothorganicallyandthroughtargetedacquisitions.Theseopportunities areintendedoverthelong-termtodiversifyAecon’sgeographicpresenceandprovidegreatergrowth potentialandearningsstabilitythrougheconomiccycles.DemonstratingcontinuedprogressinitsU.S. expansioninitiatives,in2024anAecon-ledconsortium,inwhichAeconConcessionsisthedevelopment leadandwillholda50%equityinterestintheproject’s40-yearconcession,wasselectedbytheU.S. VirginIslandsPortAuthoritytoredeveloptheCyrilE.KingAirportinSt.ThomasandtheHenryE.Rohlsen AirportinSt.CroixunderacollaborativeDesign,Build,Finance,Operate,andMaintainPublic-Private Partnershipmodel.Followingtheexpectedsuccessfulcompletionofthetransitionphase,financialclose isanticipatedin2025.AnAeconconsortiumwasalsoawardedacontractbytheU.S.ArmyCorpsof EngineerstodelivertheHowardA.HansonDamAdditionalWaterStorageFishPassageFacilityproject inWashingtonStateunderanIntegratedDesignandConstructioncontractmodel.Aeconalsoadvanced thereplacementofCondensersandFeedwaterHeatersatDominionEnergy’sNorthAnnaPowerStation inVirginiaandcompletedtheDismantlementandRemovalprojectforSavannahRiverNuclearSolutions attheDepartmentofEnergy’sSavannahRiverSiteinSouthCarolinaawardedin2023.Internationally, AeconwasawardedacontractbytheGovernmentofAnguillafortheClaytonJ.LloydInternationalAirport RedevelopmentProgramPackage3projectandcontinuedtoadvancetheKingstownPortModernisation projectinSaintVincentandtheGrenadinesawardedin2022.RevenuefromU.S.andinternationalmarkets increasedby$98millionor28%in2024versus2023.

TheCompany’sgrowthinitiativesareprimarilydirectedtowardsinvestmentinareasdesignedtoreduceatriskworkandincreaseactivitieswithlowerriskprofiles,includingrecurringrevenueopportunities,long-term concessionsandrelatedoperationsandmaintenanceopportunities,renewableenergy,andotherprojects linkedtodecarbonizationinitiatives.Revenuefromnon-fixedpriceworkincreasedto61%oftotalrevenue in2024from58%oftotalrevenuein2023,andreportedbacklogatDecember31,2024wascomprisedof 58%non-fixedpriceworkversus50%attheendof2023.

How We Win

AeconisfocusedonthefollowingthreeKeyFocusareasdesignedtoprovideoperationalexcellenceand enableconsistentlyprofitablegrowthacrosstheorganizationandinsupportof“How We Win”initspriority markets:

1) Outstanding Teams

Aeconiscommittedtodevelopingitsemployeesandbuildingonitsstrongfoundationofpeopleandculture. Afocusondrivingprogressiveleadershipskilldevelopment,enhancingprojectexecutioncapabilities, maximizingcareerdevelopmentoutcomes,andhelpingpreparetheCompanytonavigateacompetitive labourenvironmentintheindustry,areallkeytofulfillingAecon’sgrowthpotential.

Equippingitsleadersandworkforcewiththenecessaryknowledge,skills,andexperiencetothriveinthe emergingworldofinfrastructureiskeytoAecon’sfuturesuccess.Developingoutstandingleadersand teamscapableofmanaginggrowthanddiversity,fosteringinnovation,enteringnewmarkets,adaptingand developingcollaborativecontractdeliverymodels,andleveragingemergingandsustainableconstruction

practicesarecriticalstrategicleversforAecon.In2024,theCompanymadefurtherstrategicenhancements tosomeofitskeylearningprogramsincludinglaunchingtheAeconExecutiveForumtofostersenior leadershipgrowth,expandingitsProjectManagementAcademyandestablishinganIndigenousMentorship Programtoprovideparticipantswithgreaterexposureandopportunities.

TheCompanyiscommittedtotakingstepstobeseenasafirst-choiceemployer,drawingtoptalentfrom withinandoutsideoftheconstructionindustry.Demonstratingacultureofsafetyandfosteringsocialimpact inourcommunitiesarecompetitivedifferentiatorsintheconstructionindustry,andAecon’sapproachon thesefactorsplacestheCompanyattheforefrontofattractingandretainingthebesttalenttosupportits strategicgoals.In2024,Aeconintroducedatargetforthenumberofhoursemployeesdedicateannually toprofessionaldevelopmentinparallelwithprovidingemployeeswithaccesstocomprehensivelearnings tools.SeveralinitiativeswerelaunchedthroughtheAeconUniversitylearningplatformtosupportoperational objectivesthrough2027,includingprogramsfornewandemergingpeopleleaders;theEnvisioncertification programlaunchedinpartnershipwithBeyond21AcademyandMcMasterUniversity;andaCarbonLiteracy ProgramofferedincollaborationwithConestogaCollege.

2) Execution Excellence

Aeconembracesprojectcomplexityandisfocusedonthesafe,on-time,on-budgetdeliveryofitsprojects. To supportoperationalteamswithindustry-provenbestpracticesthataimtoincreaseefficiencyandeffectiveness onconstructionprojects,eliminatewastefulactivities,andultimatelyaddvalueforallstakeholders,Aecon investedfurtherinitsBuildingSmarterprogramdesignedtoembedacultureofcontinuousimprovement acrosstheCompany.

BuildingSmarterhasbecomeacontinuousimprovementcentreofexcellencewithateamofexperienced professionalssupportingprojectsthroughLeanConstructionmethodsandasuiteoftools,mobile-accessible platforms,training,andresourcestailoredtoAecon’soperations.Thisapproachseekstostrengthenthe Company’sabilitytoimprovecostandschedulecertaintytomaximizevalueforclients,whichAeconbelieves canprovideacompetitiveadvantagewithrespecttobiddingandexecutingcertainconstructionprojects. ThroughkeyinitiativessuchasWasteWalksandtheuseofenhancedschedulingtools,Aeconteamshave demonstratedsuccessincompletingkeyprojectmilestonesonoraheadofscheduleandrealizingidentified savingswhileworkingtomitigatenon-value-addingactivities.Aeconbelievesthatefficienciesarealso derivedfromthedepthandbreadthofitscapabilities,allowingittoparticipateinprojectsbeyondthescope of any one discipline or business unit.

3) Risk versus Opportunity Balance

AkeypillarofAecon’sapproachtoriskmanagementistoseektomaintainbalanceintermsofsectors, clients,contractmodels,andgeographieswiththegoalofreducingtheriskofbeingover-exposedinany oneoftheseareas.Thisapproachiscomplementedbyafocusonidentifying,mitigating,andmanaging therisksinherentineveryprojecttheCompanyundertakes.Aeconcontinuestodevelopstrategiesand toolstomanagetheriskassociatedwithcomplexconstructionwork,eachofwhichareassessedand refinedonanongoingbasisasneeded.TheCompanydevelopedandimplementedaprojectriskgating assessmenttoolin2022toenhanceitsapproachtodisciplinedprojectselectionwithaviewtoensuring projectpursuitsarealignedwiththeCompany’sstrengthsanddesignedtoachievethebalanceoutlined above.In2024,theCompanyrefinedthetoolfurtheranddevelopedguidelinesonkeytermsandconditions

incollaborativecontractmodelswhileincreasingitsfocusonmonitoringandmitigatingprojectrisk–including thedevelopmentofadditionalresourcestodiagnoseandaddressvariancesonprojectsearlyinexecution.

In2024,inadditiontoaddingtheHowardA.HansonDamAdditionalWaterStorageFishPassage FacilityprojectinWashingtonStateandtheairportredevelopmentsintheU.S.VirginIslandsunder collaboratecontractmodels,anAeconconsortiumexecutedacontractwiththeMontréalPortAuthority fortheContrecoeurTerminalExpansionprojectin-waterworksunderaprogressivedesign-buildapproach inQuébec.AnAecon-ledconsortiumalsoexecutedacontractwiththeCityofWinnipegtodeliverthe WinnipegNorthEndSewageTreatmentPlantBiosolidsFacilitiesUpgradeprojectunderaprogressive design-buildmodel.Thesecollaborativeprojectsbuildonthemomentumestablishedin2022and2023, whenAeconconsortiumswereawardedprojectsinOntariodesignedtomitigateandmanagemajorproject risksthroughmorecollaborativeprocurementmodels,includingtheGOExpansionOn-CorridorWorks projectunderaprogressivedesign,build,operate,andmaintaincontractmodel,theScarboroughSubway ExtensionStations,RailandSystemsprojectunderaprogressivedesign-buildmodel,andtheDarlington NewNuclearProjectunderanIntegratedProjectDeliverymodel.

Strategic Plan Economic Goals

TheStrategicPlaniscentredaroundthegoalofcreatingaframeworkthatmotivatesacultureofsafety, innovation,sustainability,operationalexcellence,continuousimprovement,andriskmanagementtowards improvingoperatingmargins,prudentandbalancedgrowth,anddisciplineintheallocationofcapital,all ultimatelydesignedtodeliverincreasedvalueforshareholders:

•Profit:Seektoachievebest-in-classoperatingmarginintheConstructionsegmentrelativeto Canadianandinternationalpeers;

•GrowthCapacityandRiskManagement:Targetprudentbalancesheetleverageandliquidityanda balancedanddiversifiedrevenueriskprofile;

•SuccessSharing:FosteranownershipcultureacrosstheCompanyandarewardingprofit-sharing structure;and

•ShareholderReturn:Focusoncapitalallocationtodriveimprovementsinreturnoncapitalemployed, growth,efficiency,andmorepredictablecashflowandearnings.

Particular Focus for 2025 –theCompanyisfocusedonanumberofprogramsandkeyinitiativesto advanceitsoverallstrategyin2025,including:

1.advancingtheCompany’skeyEnvironment,HealthandSafety(“EHS”)priorityareasofcriticalrisk management,strengtheningEHSmanagementanddigitalsystems,andfosteringitsEHSleadership, people,andengagementculture;

2.completingandsatisfactorilyresolvingclaimsontheremainingthreelegacyprojectswiththe respectiveclients(seeSection10.2“Contingencies”andSection13“RiskFactors”ofthisMD&A);

3.strengtheningtalentpipelineswhiledifferentiatingAeconasafirst-choiceemployerbyintroducing newlearningexperiencestoaugmentAecon’sProjectManagementAcademy,includingrole-based learningprograms,structuredon-the-joblearningassignments,enhancedleadershipdevelopment programs,andcontinuingtofocusonsuccessionplanningandcareergrowth;

4.buildingontheprogressoftheBuildingSmarterprogramtoembedbestpracticesandacultureof continuousimprovementacrosstheCompany,therebydrivingoperationalexcellencetoincrease efficiency,reducewasteandimprovemargins;

5.progressingthroughthecollaborativephasesofmajorprojectsprocuredunderdeliverymodels designedtomitigateandmanageexecutionrisksandadvancingtheseprojectstotherespective construction,operations,andmaintenancephases;

6.investinginthesystems,people,andprocessestosupportanticipatedgrowthinnewregionsfrom anoperational,safety,andcomplianceperspective;

7.implementinginitiativestomeettheCompany’sinterimandlong-termsustainabilitygoalswitha focusonaddingloweremissionconstructionequipment,pilotinglowcarbonconstructionmaterials, andfurtherintegratingsustainabilityintoAecon’sstrategytosupportitsclients’needs;

8.ongoingoptimizationofAecon’sportfolioofbusinesses,whichmayincludethepursuitofstrategic acquisitionsandinvestmentsincoreoperationstoallowforanincreasedfocusonAecon’schosen end-marketsandgeographies,primarilyintheU.S.andCanada;and

9.buildingonAecon’sexperienceininfrastructureP3andconcessionprojectstopursueinnovative developmentandconcessionopportunitiesacrosssectorswhereAeconhasestablishedor expandingcapabilitiesindevelopment,construction,andoperationsandmaintenance,including marketsfocusedondecarbonizationandtheenergytransition.

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

(2)Thisisanon-GAAPratio.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthisMD&Afor moreinformationoneachnon-GAAPratio.

(3)Thisisasupplementaryfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”in thisMD&Aformoreinformationoneachsupplementaryfinancialmeasure.

RevenuefortheyearendedDecember31,2024of$4,243millionwas$401million,or9%,lowercompared to2023.RevenuewaslowerintheConstructionsegment($352million)drivenbylowerrevenueinindustrial ($460million),urbantransportationsolutions($198million),andciviloperations($14million),partially offsetbyhigherrevenueinnuclear($282million)andutilitiesoperations($38million).Thislowerrevenue wasprimarilydrivenbydecreasedactivityonmainlinepipelineworkinindustrialoperationsfollowingthe achievementofsubstantialcompletiononalargeprojectin2023,andinurbantransportationsolutions fromadecreaseinlightrailtransit(“LRT”)workasthree LRT projectsnearcompletion.IntheConcessions segment,revenuewas$61millionlowerin2024comparedtotheprioryearprimarilyduetotheuseof

theequitymethodofaccountingin2024forAecon’s50.1%retainedinterestintheBermudaInternational Airportconcessionaire(“Skyport”)followingthesaleofa49.9%interestinSkyportinthethirdquarterof 2023.TheseamountswerepartiallyoffsetbyhigherrevenueinCorporateandOtherafterinter-segment revenueeliminations($12million).

Operatinglossof$60.1millionfortheyearendedDecember31,2024comparestooperatingprofitof $240.9millionfortheyearendedDecember31,2023,adecreaseof$301.0million.

Loweryear-over-yearoperatingprofitwasdrivenbyadecreaseinotherincomeof$186.2million.This decreasewasprimarilyduetoaloweryear-over-yeargainrelatedtothesaleofa49.9%interestinSkyport of$133.1million(againof$5.9millionfromincrementalproceedsin2024comparedtoagainonsaleof $139.0millionin2023)andalowergainonthesaleofAeconTransportationEast(“ATE”)of$27.5million (againof$9.0millionfromincrementalproceedsin2024comparedtoagainonsaleof$36.5millionin 2023).Alsocontributingtothedecreaseinotherincomewerelowergainsonthesaleofproperty,buildings, andequipmentof$27.7millionandalowerfairvalueremeasurementgainonfinancialinstrumentsof$0.2 million,partiallyoffsetbyhigherforeignexchangegainsof$2.3million.

Inadditiontotheabovenoteddecreaseinotherincome,lowergrossprofitof$73.1millionalsocontributed totheyear-over-yeardecreaseinoperatingprofit.IntheConstructionsegment,grossprofitdecreasedby $49.8million.Thisdecreasewasprimarilyduetolowergrossprofitrelatedtothefourfixedpricelegacy projectsof$57.6millionfromnegativegrossprofitin2024of$272.8millioncomparedtonegativegross profitin2023of$215.2million.ThesefourfixedpricelegacyprojectsarediscussedinSection5“Recent Developments”,Section10.2“Contingencies”,andSection13“RiskFactors”inthisMD&A.Partially offsettingtheimpactofthesefourfixedpricelegacyprojectsin2024washighergrossprofitinthebalance oftheConstructionsegmentof$7.8million,drivenbyhighervolumeandgrossprofitmargininnuclearand utilitiesoperations,aswellashighergrossprofitinindustrialoperations,partiallyoffsetbylowergrossprofit margininciviloperationsandavolumedrivendecreaseingrossprofitinurbantransportationsolutions.In theConcessionssegment,grossprofitin2024decreasedby$33.9millioncomparedto2023primarilyfrom theuseoftheequitymethodofaccountingin2024forAecon’s50.1%retainedinterestinSkyportfollowing thesaleofa49.9%interestinthisprojectinthethirdquarterof2023,whileinCorporateandOther,gross profitincreasedby$10.7millionasaresultofhigherinter-segmentcostrecoveriesfromprojects.

MG&Aincreasedin2024by$35.4millioncomparedto2023.TheincreaseinMG&Awasprimarilydueto higherpersonnelcostsreflectingmoretypicallevelsinMG&A,ongoinginvestmentstosupportgrowthand acquisitions,particularlyinutilitiesoperationswiththeexpansionofitsU.S.operationsandtheXtreme acquisitionin2024,andfromhigheracquisitionrelatedtransactioncostsin2024($9.9million).Thishigher MG&Ain2024,waspartiallyoffsetbylowerMG&Arelatedtothe ATE operationswhichwassoldinthe secondquarterof2023($5.9million).MG&Aasapercentageofrevenueincreasedfrom3.8%in2023to 5.0%in2024.

Aecon’sparticipationinprojectsthatareclassifiedforaccountingpurposesasajointventureoranassociate, asopposedtoajointoperation,areaccountedforusingtheequitymethodofaccounting.Aeconreported incomeof$21.2millionin2024fromprojectsaccountedforusingthismethodofaccounting,compared to$18.7millionin2023.Higherincomein2024intheConcessionssegment($5.0million)wasdriven byincreasedoperatingresults(afterinterestandincometaxes)fromAecon’s50.1%retainedinterestin Skyportwhichisreportedusingtheequitymethodofaccountingin2024withtheyear-over-yearincrease

drivenbyone-timerecoveriesof$5.9million,partiallyoffsetbyadecreaseinmanagementanddevelopment revenueinthebalanceoftheConcessionssegment.IntheConstructionsegment,incomewaslower($2.5 million)duetoadecreasefromcivilprojects.FordetailsonAecon’sinterestinthesejointventures,see Note12“ProjectsAccountedforUsingtheEquityMethod”intheCompany’sauditedconsolidatedfinancial statementsfortheyearendedDecember31,2024.

Depreciationandamortizationexpenseof$87.8millionin2024was$8.7millionhigherthanin2023. Depreciationandamortizationexpenseincreasedyear-over-yearintheConstructionsegment($25.7 million),drivenbyanincreaseinequipmentdeployed,withashareofthisincreaserelatedtoequipment andintangibleassetsassociatedwiththeacquisitionsofXtreme,AinsworthPowerConstruction,andUnited in2024.IntheConcessionssegment,depreciationandamortizationexpensedecreased($16.7million) duetotheuseoftheequitymethodofaccountingin2024forAecon’s50.1%retainedinterestinSkyport.

Netfinancingexpenseof$16.5millionin2024,consistingoffinancecostof$25.1millionlessfinanceincome of$8.6million,was$46.8millionlowerthanin2023.Thedecreaseisprimarilyrelatedtotherepayment ofallconvertibledebenturesonDecember29,2023,areductioninreportedinterestfromSkyportwith thecommencementofequityaccountingforAecon’sretained50.1%interestintheproject,areductionin transactioncostsof$13.3millionrelatedtotheissuanceofPreferredSharesbyAeconUtilitiesin2023, lowerborrowingsonAecon’srevolvingcreditfacilities,ahigherfairvaluegainof$16.6millionrelatedto thePreferredSharesofAeconUtilities,andpartiallyoffsetbytheimpactofafullyearofaccrueddividends relatedtothePreferredSharesofAeconUtilitiesof$16.3million.

SetoutinNote21“IncomeTaxes”oftheCompany’sauditedconsolidatedfinancialstatementsfortheyear endedDecember31,2024isareconciliationbetweentheexpectedincometaxexpense(recovery)for 2024and2023basedonstatutoryincometaxratesandtheactualincometaxexpense(recovery)reported forboththeseperiods.In2024,theeffectiveincometaxratedifferedfromtheCanadianstatutoryincome taxrateof26.4%mainlyduetothegeographicmixofearnings,largelyrelatedtointernationalprojectsand inparticulartheSkyportproject,aswellastheimpactofnon-deductibleexpensesandotherpermanent items.Whilein2023,theeffectiveincometaxratewaslowerthantheCanadianstatutoryincometaxrate of26.4%mainlyduetoincometaxontransactionsrelatedtothedisposalofsubsidiariesandrelatedfair valueremeasurementgains.

ReportedbacklogatDecember31,2024of$6,662millioncomparestobacklogof$6,157millionatDecember 31,2023.Newcontractawardsof$4,747millionwerebookedin2024comparedto$4,505millionin2023. Thereported2024awardsinclude$275millionofbacklogacquiredatthetimetheacquisitionsofUnited, AinsworthPowerConstruction,andXtremeclosed.

ThetimingofworktobeperformedforprojectsinbacklogatDecember31,2024isbasedoncurrentproject schedules,takingintoaccountthecurrentestimatedimpactsfromthesupplychainandtheavailabilityof labour.Itispossiblethattheseestimatescouldchangeinthefuturebasedonchangesintheseorother factorsimpactingthescheduleoftheseprojects.

Aecondoesnotreportasbacklogcontractsandarrangementsinhandwheretheexactamountofworkto beperformedcannotbereliablyquantifiedorwhereaminimumnumberofunitsatthecontractspecified priceperunitisnotguaranteed.Examplesincludetimeandmaterialandsomecost-plusandunitpriced contractswheretheextentofservicestobeprovidedisundefinedorwherethenumberofunitscannot beestimatedwithreasonablecertainty.Otherexamplesincludethevalueofconstructionworkmanaged underconstructionmanagementadvisorycontracts,concessionagreements,multi-yearoperatingand maintenanceservicecontractswherethevalueoftheworkisnotspecified,supplierofchoicearrangements andallianceagreementswheretheclientrequestsservicesonanas-neededbasis.Noneoftheexpected revenuefromthesetypesofcontractsandarrangementsisincludedinbacklog.Therefore,Aecon’s anticipatedfutureworktobeperformedatanygiventimeisgreaterthanwhatisreportedasbacklog.

FurtherdetailforeachsegmentisincludedinthediscussionbelowunderSection8“ReportableSegments FinancialHighlights”.

8. REPORTABLE SEGMENTS

8.1. CONSTRUCTION

Financial Highlights

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

(2)Thisisanon-GAAPratio.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthisMD&Afor moreinformationoneachnon-GAAPratio.

(3)Thisisasupplementaryfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”in thisMD&Aformoreinformationoneachsupplementaryfinancialmeasure.

FortheyearendedDecember31,2024,revenueintheConstructionsegmentof$4,221millionwas$352 million,or8%,lowerthanin2023.Thelargestdecreaseinrevenueoccurredinindustrial($460million) drivenbydecreasedactivityonmainlinepipelineworkfollowingtheachievementofsubstantialcompletion onalargeprojectinthethirdquarterof2023,partiallyoffsetbyahighervolumeoffieldconstructionworkat wastewatertreatmentandindustrialfacilitiesinwesternCanadain2024,inurbantransportationsolutions ($198million)primarilyfromadecreasein LRT workinOntarioandQuébecasthree LRT projectsnear completion,andinciviloperations($14million)largelyfromadecreaseinroadbuildingconstructionwork ineasternCanadaafterthesaleof ATE inthesecondquarterof2023of$51million,partiallyoffsetinthe balanceofciviloperationsbyanincreaseinroadbuildingconstructionworkinwesternCanada.These decreaseswerepartiallyoffsetbyhigherrevenueinnuclear($282million)drivenbyanincreasedvolumeof refurbishmentworkatnucleargeneratingstationslocatedinOntarioandtheU.S.,andinutilitiesoperations ($38million)primarilyfromanincreasedvolumeofelectricaltransmissionworkintheU.S.andanincrease inbatteryenergystoragesystemwork,partiallyoffsetbyadecreasedvolumeoftelecommunicationsand gas distribution work.

OperatinglossintheConstructionsegmentof$55.0millionin2024comparestoanoperatingprofitof $59.0millionin2023forayear-over-yeardecreaseof$114.0million.Thelargestdriverofthedecrease inoperatingprofitwasnegativegrossprofitfromthefourfixedpricelegacyprojectsof$272.8millionin 2024comparedtonegativegrossprofitof$215.2millionin2023foranetnegativeyear-over-yearimpact onoperatingprofitof$57.6million.ThefourfixedpricelegacyprojectsarediscussedinSection5“Recent Developments”,Section10.2“Contingencies”,andSection13“RiskFactors”inthisMD&A.Inthebalance oftheConstructionsegment,operatingprofitwaslowerby$56.4million,ofwhich$31.6millionwaslargely

theresultoflowergrossprofitmargininciviloperationsandurbantransportationsolutions,andpartially offsetbyhigheroperatingprofitinnuclearoperationsfromhighervolumeandgrossprofitmargin,andin industrialduetohighergrossprofitmargin.Otheritemscontributingtothereductioninoperatingprofit includeanincreaseinacquisition-relatedtransactioncoststhatwereexpensedintheyear($9.9million largelyinutilities),anincreaseinamortizationexpenserelatedtoacquisition-relatedintangibleassetsfrom theXtreme,AinsworthPowerConstruction,andUnitedtransactionsin2024of$5.3million,andadecrease inotherincomeof$9.6million,drivenbylowergainsonthesaleofproperty,buildings,andequipmentof $10.9million,primarilyinutilitiesoperations.

ConstructionsegmentbacklogatDecember31,2024was$6,551million,whichwas$498millionhigherthan thesametimelastyear.Backlogincreasedyear-over-yearinnuclearoperations($493million),industrial operations($83million),andurbantransportationsolutions($139million),anddecreasedincivil($146 million)andutilitiesoperations($71million).Newcontractawardsin2024totaled$4,718millioncompared to$4,428millionin2023.Thereportedawardsin2024includebacklogof$275millionacquiredatthetime theacquisitionsofUnited,AinsworthPowerConstruction,andXtremeclosed.In2024,jointoperations inwhichAeconisaparticipantwereawardedthecontractstoreplacesteamgeneratorsatthreeunitsat BruceNuclearGeneratingStationinOntario,andacontractforthedefinitionphaseofrefurbishmentwork atfourunitsatthePickeringNuclearGeneratingStationinOntario.Aswell,aconsortium,ofwhichAecon isaparticipant,wasawardedacontracttodesignandbuildtheSurreyLangleySkyTrainStationsproject inBritishColumbia.

AsdiscussedinSection7“ConsolidatedFinancialHighlights”,theConstructionsegment’santicipated futureworktobeperformedatanygiventimeisgreaterthanwhatisreportedasbacklog.

8.2. CONCESSIONS

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

Aeconcurrentlyholdsa50.1%interestinSkyport,theconcessionaireresponsiblefortheBermudaairport’s operations,maintenance,andcommercialfunctions,andtheentitythatwillmanageandcoordinatethe overalldeliveryoftheBermudaInternationalAirportRedevelopmentProjectovera30-yearconcession termthatcommencedin2017.Aecon’sparticipationinSkyportisaccountedforusingtheequitymethod. OnSeptember20,2023,Aeconsolda49.9%interestinSkyporttoConnor,Clark&LunnInfrastructurewith

Aeconretainingthemanagementcontractfortheairport.Priortothistransaction,Aecon’sparticipationin Skyportwas100%consolidatedand,assuch,wasaccountedforintheconsolidatedfinancialstatements byreflecting,linebyline,theassets,liabilities,revenueandexpensesofSkyport.Aecon’sconcession participationintheEglintonCrosstown LRT, FinchWest LRT, GordieHoweInternationalBridge,Waterloo LRT, andtheGOExpansionOn-CorridorWorksprojectsarejointventuresthatarealsoaccountedforusing theequitymethod.

FortheyearendedDecember31,2024,revenueintheConcessionssegmentof$12millionwas$61million lowerthanin2023.ThedecreasewasprimarilyduetolowerreportedrevenuefromSkyportasaresult ofthecommencementoftheequitymethodofaccountingfortheCompany’sretained50.1%interestin Skyportfollowingtheabovenotedsaleofa49.9%interestinSkyportinthethirdquarterof2023.

OperatingprofitintheConcessionssegmentof$24.2millionfortheyearendedDecember31,2024 decreasedby$149.9millioncomparedtoanoperatingprofitof$174.1millionin2023.Theloweroperating profitwasprimarilyduetogainsrelatedtoasaleinthethirdquarterof2023ofa49.9%interestinthe BermudaInternationalAirportconcessionairewhichresultedinayear-over-yeardecreaseingainsonsale of$133.1million.InthebalanceoftheConcessionssegment,operatingprofitin2024decreasedby$16.9 million.Year-over-yearreportedoperatingprofitfromtheongoingoperationsatSkyportwasnegatively impactedbya49.9%reductioninAecon’sownershipinterestinSkyportandfromtheuseoftheequity methodofaccountingin2024whereoperatingresultsforAecon’sinterestinSkyportarereportednetof financingcostsandincometaxes.Theseunfavourableimpactswerepartiallyoffsetbyone-timerecoveries inSkyportin2024of$5.9million.

Exceptfor“O&M”activitiesundercontractforthenextfiveyearsandthatcanbereadilyquantified,Aecon doesnotincludeinitsreportedbacklogexpectedrevenuefromconcessionagreements.Assuch,while Aeconexpectsfuturerevenuefromitsconcessionassets,noconcessionbacklog,otherthanfromsuch O&Mactivitiesforthenextfiveyears,isreported.

9. QUARTERLY FINANCIAL DATA

Setoutbelowisquarterlyfinancialdataforthemostrecenteightquarters: $ millions (except per share amounts)

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

Earnings(loss)pershareandadjustedearnings(loss)pershareforeachquarterwerecomputedusing theweightedaveragenumberofsharesissuedandoutstandingduringtherespectivequarter.Anydilutive securities, which increase the earnings per share or decrease the loss per share, are excluded for purposes ofcalculatingdilutedearningspershare.Duetotheimpactsofdilutivesecurities,suchasconvertible debentures,andshareissuancesandrepurchasesthroughouttheperiods,thesumofthequarterlyearnings (losses)persharewillnotnecessarilyequalthetotalfortheyear.

SetoutbelowisthecalculationofAdjustedEBITDAforthemostrecenteightquarters:

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

(2)Costsrelatedtobusinessacquisitionsincludescostsrelatedtoadvisory,legalandothertransactionfees;changesin thefairvalueofcontingentconsideration;andcontingentconsiderationclassifiedascompensationperIFRS.

SetoutbelowisthecalculationofEquityProjectEBITDAforthemostrecenteightquarters:

$ millions 3

e on s ro or iona e share of ro e s a o n ed for sin he e i me hod (1)

(1)RefertoNote12“ProjectsAccountedforUsingtheEquityMethod”intheCompany’sauditedconsolidatedfinancial statementsfortheyearendedDecember31,2024.

(2)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

SetoutbelowisthecalculationofAdjustedEBITDAbysegmentforthethreemonthsandyearsended December31,2024and2023:

$ millions

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

SetoutbelowisthecalculationofEquityProjectEBITDAbysegmentforthethreemonthsandyearsended December31,2024and2023: $ millions

(1)RefertoNote12“ProjectsAccountedforUsingtheEquityMethod”intheCompany’sauditedconsolidatedfinancial statementsfortheyearendedDecember31,2024.

(2)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

SetoutbelowisthecalculationofAdjustedProfit(Loss)AttributabletoShareholdersandAdjustedEarnings (Loss)PerShareforthemostrecenteightquarters:

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

SetoutbelowisthecalculationofAdjustedProfit(Loss)AttributabletoShareholdersandAdjustedEarnings (Loss)PerShareforthethreemonthsandyearendedDecember31,2024and2023:

$ millions

(1)Thisisanon-GAAPfinancialmeasure.RefertoSection4“Non-GAAPandSupplementaryFinancialMeasures”inthis MD&Aformoreinformationoneachnon-GAAPfinancialmeasure.

Quarterly Financial Highlights

Theanalysisofoperatingresultsforeachofthefirstthreequartersof2024isincludedinManagement’s DiscussionandAnalysisincludedintheInterimReportstoShareholdersforeachrespectivequarter.The constructionindustryinCanadaisseasonalinnatureforcompanieslikeAeconthatperformasignificant portionoftheirworkoutdoors.Asaresult,alargerportionofthisworkisperformedinthesummerandfall monthsthaninthewinterandearlyspringmonths.

ForthethreemonthsendedDecember31,2024,revenueintheConstructionsegmentof$1,252million was$125million,or11%,higherthanthefourthquarterof2023.Constructionsegmentrevenuewashigher innuclearoperations($96million),largelyfromanincreasedvolumeofrefurbishmentworkatnuclear generatingstationslocatedinOntarioandtheU.S.;inciviloperations($34million),fromahighervolumeof roadbuildingconstructionworkinwesternCanada;inindustrialoperations($33million),fromanincrease infieldconstructionworkatwastewatertreatmentandindustrialfacilitiesinwesternCanada,partiallyoffset bydecreasedactivityonmainlinepipelineworkinwesternCanada;andinutilitiesoperations($23million), fromanincreaseinelectricaltransmissionworkintheU.S.Theseincreaseswerepartiallyoffsetinurban

transportationsolutions($61million),primarilyfromadecreasein LRT, railexpansion,andelectrification work.

OperatingprofitintheConstructionsegmentof$33.0millioninthefourthquarterof2024decreasedby $16.1millioncomparedtooperatingprofitof$49.1millioninthefourthquarterof2023.Loweroperating profitintheConstructionsegmentwaslargelyduetoadecreaseingrossprofitmargininciviloperations andavolumedrivendecreaseingrossprofitinurbantransportationsolutionsthatoffseta$4.2million favourablereductioninnegativegrossprofitrelatedtothefixedpricelegacyprojects(lossof$35.8millionin thefourthquarterof2024comparedtoalossof$40.0millioninthesameperiodof2023)(seeSection10.2 “Contingencies”andSection13“RiskFactors”ofthisMD&A).Inutilitiesoperations,theimpactofhigher volumeandgrossprofitwasoffsetbyhigherMG&Aduetoanincreaseinacquisition-relatedtransaction coststhatwereexpensedintheperiodandfromanincreaseinamortizationexpenserelatedtoacquisitionrelatedintangibleassets.Theseimpactswerepartiallyoffsetbyhighervolumeandanincreaseingross profitmargininnuclearandindustrialoperations.

RevenueintheConcessionssegmentinthefourthquarterof2024of$4millionwashigherby$1million whencomparedtothesameperiodin2023,primarilyduetoanincreaseinmaintenancerevenue.

Concessionssegmentoperatingprofitof$1.6millioninthefourthquarterof2024was$3.0millionlower thanthesameperiodin2023fromadecreaseinmanagementanddevelopmentrevenue,partiallyoffsetby improvedoperatingresultsatSkyport.

MG&Aexpenseincreasedinthefourthquarterof2024by$5.3millioncomparedtothesameperiodin 2023,largelyfromanincreaseincostsrelatedtobusinessacquisitionsof$4.3million,aswellasongoing investmentstosupportgrowth.MG&Aasapercentageofrevenuedecreasedfrom4.6%inthefourth quarterof2023to4.5%inthesameperiodin2024.

Aeconreportedincomefromprojectsaccountedforusingtheequitymethodof$1.6millioninthefourth quarterof2024comparedto$5.5millioninthesameperiodin2023.Lowerincomeinthefourthquarterof 2024wasdrivenbyadecreaseincivilprojectsintheConstructionsegment($2.1million)andadecrease inmanagementanddevelopmentrevenueintheConcessionssegment($1.9million).

Otherincomeof$4.1millioninthefourthquarterof2024was$1.5millionhighercomparedtothesame periodin2023,primarilyduetoanincreaseinforeignexchangegains($2.3million),partiallyoffsetbya lowerfairvaluegainonfinancialinstruments($0.7million).

Depreciationandamortizationexpenseof$26.2millioninthefourthquarterof2024was$11.6millionhigher thanthesameperiodin2023drivenbyincreasesintheConstructionsegment($11.1million),primarilydue toanincreaseinequipmentdeployedinciviloperationsandfromanincreaseinequipmentandintangible assetsassociatedwiththeacquisitionofXtremeinthethirdquarterof2024.

Netfinancingexpenseof$6.4millioninthefourthquarterof2024,consistingoffinancecostof$8.3million lessfinanceincomeof$1.9million,was$12.8millionlowerthanthesameperiodin2023.Thedecrease isprimarilyrelatedtolowerone-timetransactioncosts($13.3million)relatedtotheissuanceofPreferred SharesbyAeconUtilitiesinthefourthquarterof2023,therepaymentofallconvertibledebentureson December29,2023,andahigherfairvaluegain($1.3million)relatedtothePreferredSharesofAecon

Utilities,partiallyoffsetbyhigherborrowingsonAecon’srevolvingcreditfacilities,andhigheraccrued dividendsonthePreferredSharesofAeconUtilities($1.6million)comparedtothesameperiodin2023.

NewcontractawardsforthethreemonthsendedDecember31,2024were$1,942millioncomparedto $1,085millioninthesameperiodin2023.Thereportedfourthquarterawardsin2024includebacklog acquiredatthetimetheacquisitionsofUnitedandAinsworthPowerConstructionclosedof$244million.

Selected Annual Information

Setoutbelowisselectedannualinformationforeachofthelastthreeyears.

10. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

10.1. INTRODUCTION

Aecon’sparticipationinjointarrangementsclassifiedasjointoperationsisaccountedforintheCompany’s auditedconsolidatedfinancialstatementsandthenotestheretofortheyearendedDecember31,2024by reflecting,linebyline,Aecon’sshareoftheassetsheldjointly,liabilitiesincurredjointly,andrevenueand expensesarisingfromthejointoperations.

Aecon’sparticipationinjointarrangementsclassifiedasjointventures,aswellasAecon’sparticipationin projectentitieswhereAeconexercisessignificantinfluenceovertheentitybutdoesnotcontrolorjointly controltheentity(i.e.associates),isaccountedforusingtheequitymethod.

Forfurtherinformation,seeNote12“ProjectsAccountedforUsingtheEquityMethod”totheCompany’s auditedconsolidatedfinancialstatementsfortheyearendedDecember31,2024.

10.2. CONTINGENCIES

Kemano Generating Station Second Tunnel Project

Duringthesecondquarterof2020,RioTintoissuedanoticeofterminationofcontracttothejointoperation inwhichAeconholdsa40%interestwithrespecttotheKemanoGeneratingStationSecondTunnelProject. RioTintoalsoissuednoticetothejointoperations’suretiesassertingaclaimonthe50%performance bonds;thesuretiesenteredintoacooperationagreementwithRioTintobuthavenottakenapositionon

thevalidityofthisclaimonthebonds.Inthethirdquarterof2020,thejointoperationissuedanoticeofcivil claimseekingapproximately$105millionindamagesfromRioTinto.Thejointoperationalsoregistered andperfectedabuilders’lienagainstprojectlands,providingsecurityoverapproximately$97millionofthe claimeddamages.Inthefirstquarterof2021,RioTintoissuedacounterclaimagainstthejointoperationand subsequentlyamendeditspleadingstoaddthejointoperation’sparentcompaniestotheactionpursuant toparentcompanyguaranteesissuedbysaidcompanies,andalsotoarticulatecounterclaimdamages ofapproximately$428million.Whileitispossiblethatthiscommercialdisputecouldresultinamaterial impacttoAecon’searningsandcashflowifnotresolved,theultimateresultscannotbepredictedatthis time.TheaforementionednoticeofcivilclaimwascommencedintheSupremeCourtofBritishColumbia betweenFrontierKemperConstructorsandFrontierKemper–AeconJointVentureasplaintiffs/defendants bycounterclaimandRioTintoAlcanInc.andAluminumCompanyofCanadaLimited/AluminumDuCanada Limitéeasthedefendants/plaintiffsbycounterclaim.

K+S Potash Canada

Duringthesecondquarterof2018,theCompanyfiledastatementofclaimintheCourtofKing’sBenchfor Saskatchewan(the“Court”)againstK+SPotashCanada(“KSPC”)andKSPCfiledastatementofclaimin theCourtagainsttheCompany.BothactionsrelatetotheLegacymineprojectinBethune,Saskatchewan. TheCompanyisseeking$180millioninpaymentsduetoitpursuanttoagreementsenteredintobetweenthe CompanyandKSPCwithrespecttotheprojectplusapproximately$14millionindamages.TheCompany hasrecorded$141millionofunbilledrevenueandaccountsreceivableatDecember31,2024.Offsetting thisamounttosomeextent,theCompanyhasaccrued$45millionintradeandotherpayablesforpotential paymentstothirdpartiespendingtheoutcomeoftheclaimagainstKSPC.KSPCisseekinganorderthat theCompanyrepaytoKSPCapproximately$195millionalreadypaidtotheCompanypursuanttosuch agreements.TheCompanyhasalsobeenbroughtintotwootherlawsuitsinthesameCourtbetween KSPCandvariousothercontractorsinvolvedwiththeLegacymineproject,bothrelatingtomatterswhich theCompanybelievesaremateriallycoveredbyinsurancecoverage,totheextentofanyliability.Inthe fourthquarterof2022,theCourtissuedadecisionallowinganapplicationbyAecontoaddKSPC’sparent companyK+SAktiengesellschaft(“KSAG”)asadefendanttothelawsuitarisingfromKSAG’sconductin inducingKSPCtobreachitscontractwithAecon.Theseclaimsmaynotberesolvedforseveralyears. WhiletheCompanyconsidersKSPC’sclaimtobewithoutmeritanddoesnotexpectthattheresolutionof theseclaimswillcauseamaterialimpacttoitsfinancialposition,theultimateresultscannotbepredicted atthistime.

Critical Accounting Estimates – Certain Fixed Price Legacy Projects

CertainlargefixedpricelegacyprojectsbeingperformedbyjointoperationsinwhichAeconisaparticipant (seeSection13“RiskFactors”inthisMD&A),arebeingnegativelyimpactedduetoadditionalcostsfor whichthejointoperationsassertthattheownersarecontractuallyresponsible,includingfor,amongother things,unforeseeablesiteconditions,thirdpartydelays,impactsofCOVID-19,supplychaindisruptions, andinflationrelatedtolabourandmaterials.Revenueandincomefromthesecontractsaredeterminedby thepercentageofcompletionmethod,basedontheratioofcostsincurredtodateoverestimatedtotalcosts atcompletionoftheproject.TheCompanyhasaprocesswherebyprogresstocompletionisreviewedby managementonaregularbasisandestimatedcoststocompleteareupdatedasnecessary.Claimsare amountsinexcessoftheagreedcontractprice,oramountsnotincludedintheoriginalcontractprice,that therelevantjointoperationseekstocollectfromclientsfordelays,errorsinspecificationsanddesigns, contractterminations,changeordersindisputeorunapprovedastobothscopeandprice,orothercauses ofunanticipatedadditionalcoststhattheCompanyandtherelevantjointoperationbelievestheowneris

contractuallyresponsible.Duetounforeseenchangesinestimatesofthenatureorcostoftheworktobe completedand/orchangesinestimatesofrelatedrevenue,contractprofitcandiffersignificantlyfrom earlierestimates(SeeSection13“RiskFactors”:“LargeProjects”,“CertainFixedPriceLegacyProjects”, “ContractualFactors”,“LitigationandClaims”,“IncreasesintheCostofRawMaterials”,and“ForceMajeure Events”inthisMD&A).Inthefullyearof2024and2023,duetothefactorsdiscussedabovethatimpacted thesefixedpricelegacyprojectsduringtheyear,Aeconrecognizedanoperatinglossof$272.8millionand $215.2million,respectively,relatedtothesefourprojects.SeealsoSection5“RecentDevelopments”in thisMD&A.

10.3. CASH AND DEBT BALANCES

CashbalancesatDecember31,2024andDecember31,2023areasfollows:

(1)CashandcashequivalentsincludecashondepositinbankaccountsofjointoperationswhichAeconcannotaccess directly.

(2)BankindebtednessrepresentsborrowingsonAecon’srevolvingcreditfacilities.

Long-termdebtbalancesatDecember31,2024andDecember31,2023areasfollows:

Totallong-termrecoursedebtof$151.6millionatDecember31,2024comparesto$149.4millionat December31,2023.The$2.2millionnetincreaseintotallong-termrecoursedebtresultedprimarilyfrom anincreaseinequipmentleasesof$3.9million,partiallyoffsetbyadecreaseinequipmentfinancingof $1.7 million.

The$3.2millionincreaseinthePreferredSharesofAeconUtilitiesresultedfromaccrueddividendsof $19.9 millionoffsetbynetfairvaluegainstotalling$16.7millionin2024.

AtDecember31,2024,Aeconhadacommittedrevolvingcreditfacilityof$450millionandaseparate committedcreditfacilityforAeconUtilitiesof$400million.AtDecember31,2024,$153millionwasdrawn onthefacilitiesand$4millionwasutilizedforlettersofcredit.Cashdrawingsundertherevolvingcredit facilitiesbearinterestatratesbetweenprimeandprimeplus1.85%perannum.Therevolvingcredit

facilities,whencombinedwithanadditional$900millionperformancesecurityguaranteefacilitytosupport lettersofcreditprovidedbyExportDevelopmentCanada(“EDC”),bringsAecon’scommittedcreditfacilities forworkingcapitalandletterofcreditrequirementstoatotalof$1,750million.TheCompanyhasnoother debtorworkingcapitalcreditfacilitymaturitiesuntil2027,exceptequipmentandpropertyloansandleases inthenormalcourse.AtDecember31,2024,Aeconwasincompliancewithalldebtcovenantsrelatedto its credit facilities.

Aecon’sfinancialposition,liquidity,andcapitalresourcesaresubjecttotherisksanduncertaintiesdescribed inSection10.2“Contingencies”ofthisMD&AregardingcertainpendinglegalproceedingstowhichAecon isaparty.Aeconanditsjointoperationpartnersalsocontinuetoadvancenegotiationsandworktowards resolutionofclaimsforadditionalcostsrelatedtocertainfixedpricelegacyprojects,andinconjunction strengthentheCompany’sbalancesheetthroughreducingworkingcapitalrelatedtotheseprojects.While theCompanybelieveseachrelevantjointoperationhasastrongclaimtorecoveratleastasubstantial portionofthesecosts,theultimateoutcomeofthesematterscannotbepredictedatthistime(seeSection 13“RiskFactors”:“CertainFixedPriceLegacyProjects”inthe2023AnnualMD&A).Aecon’soperations alsoremainsubjecttouncertaintiesrelatedtotheunpredictabilityoffuturepotentialimpactsrelatedto globaleconomicconditions,notablyfromsupplychaindisruptions,inflationrelatedtolabourandmaterials, andavailabilityoflabour(seeSection5“RecentDevelopments”ofthisMD&A).Assuch,whiletheCompany remainssubjecttoriskswhichindividuallyorintheaggregate,couldresultinmaterialimpactstoAecon’s earnings,cashflow,liquidityandfinancialposition,theCompanybelievesthatitscurrentliquidityposition, includingitscashposition,unusedcreditcapacity,andcashgeneratedfromitsoperations,issufficientto fund its operations.

Inthefourthquarterof2024,Aecon’sBoardofDirectorsapprovedaquarterlydividendof$0.19pershare (annualdividendof$0.76pershare)tobepaidtoallholdersofAeconcommonshares.Thefourthquarterly dividendpaymentof$0.19persharewaspaidonJanuary2,2025.

10.4. SUMMARY OF CASH FLOWS

TheconstructionindustryinCanadaisseasonalinnatureforcompanieslikeAeconthatperformasignificant portionoftheirworkoutdoors.Asaresult,alargerportionofthisworkisperformedinthesummerand fallmonthsthaninthewinterandearlyspringmonths.Accordingly,Aeconhashistoricallyexperienceda seasonalpatterninitsoperatingcashflow,withcashbalancestypicallybeingattheirlowestlevelsinthe middleoftheyearasinvestmentsinworkingcapitalincrease.Theseseasonalimpactstypicallyresultin cashbalancespeakingnearyear-endorduringthefirstquarteroftheyear.

AsummaryofsourcesandusesofcashduringthethreemonthsandyearendedDecember31,2024and 2023isasfollows:

$ millions

in i i ies

ro ided ( sed in)

n es in i i ies ash ro ided ( sed in)

inan in i i ies

ro ided ( sed in)

e e de e e n n nde edne o ed

In2024,Aeconacquired,eitherthroughpurchaseorlease,property,plant,andequipmenttotaling$104.0 million(excludingproperty,plant,andequipmentacquiredatthetimeoftheXtreme,AinsworthPower Construction,andUnitedacquisitions).Ofthisamount,$19.2millionwaslargelyrelatedtoofficeand warehouseleaseswiththebalanceoftheinvestmentinproperty,plant,andequipmentprimarilyrelatedto

thepurchaseorleaseofnewmachineryandconstructionequipmentaspartofnormalongoingbusiness operationsintheConstructionsegment.In2023,Aeconacquired,eitherthroughpurchaseorlease, property,plant,andequipmenttotaling$46.4million.Ofthisamount,$11.8millionwaslargelyrelatedto officeandwarehouseleasesinOntarioandAlberta,withthebalanceoftheinvestmentinproperty,plant, andequipmentprimarilyrelatedtothepurchaseorleaseofnewmachineryandconstructionequipmentas partofnormalongoingbusinessoperationsintheConstructionsegment.

10.5. CAPITAL MANAGEMENT

Forcapitalmanagementpurposes,theCompanydefinescapitalastheaggregateofitsshareholders’equity anddebt.Debtincludesthecurrentandnon-currentportionsoflong-termdebt(excludingnon-recoursedebt anddrawingsontheCompany’screditfacilitiespresentedasbankindebtedness),convertibledebentures, andPreferredSharesofAeconUtilities.

TheCompany’sprincipalobjectivesinmanagingcapitalare:

•toensuresufficientliquiditytoadequatelyfundtheongoingoperationsofthebusiness;

•toprovideflexibilitytotakeadvantageofcontractandgrowthopportunitiesthatareexpectedto providereturnstoshareholders;

•tomaintainastrongcapitalbase;

•toprovidearateofreturninexcessofitscostofcapitaltoitsshareholders;and

•tocomplywithfinancialcovenantsrequiredunderitsvariousborrowingfacilities.

TheCompanymanagesitscapitalstructureandadjustsitinlightofchangesineconomicconditions.In ordertomaintainoradjustitscapitalstructure,theCompanymayissuenewdebtorrepayexistingdebt, issuenewshares,repurchaseshares,issueconvertibledebt,oradjustthequantumofdividendspaidto shareholders.Financingdecisionsaregenerallymadeonaspecifictransactionbasisanddependonsuch thingsastheCompany’sneeds,capitalmarkets,andeconomicconditionsatthetimeofthetransaction.

AlthoughtheCompanymonitorscapitalonanumberofbases,includingliquidityandworkingcapital,total debt(excludingnon-recoursedebtanddrawingsontheCompany’screditfacilitiespresentedasbank indebtedness)asapercentageoftotalcapitalization(debttocapitalizationpercentage)isconsideredby theCompanytobethemostimportantmetricinmeasuringthestrengthandflexibilityofitsconsolidated balancesheets.AtDecember31,2024,thedebttocapitalizationpercentagewas25%(December31,2023 -22%).IfthePreferredSharesofAeconUtilitiesweretobeexcludedfromdebtandaddedtoequityonthe basisthattheycouldbeconvertedorredeemedforequityofAeconUtilities,eitherattheCompany’soption orattheholder’soption,thentheadjusteddebttocapitalizationpercentagewouldbe12%atDecember 31,2024(December31,2023-11%).WhiletheCompanybelievesthesedebttocapitalizationpercentages are acceptable, because of the cyclical nature of its business and the uncertainties described in Section 10.2“Contingencies”,Section5“RecentDevelopments”inthisMD&A,andSection13“RiskFactors”inthis MD&A,theCompanywillcontinueitseffortstomaintainaconservativecapitalposition.

DebttocapitalizationpercentageispresentedinNote31“CapitalDisclosures”oftheCompany’saudited consolidatedfinancialstatementsfortheyearendedDecember31,2024.

SetoutbelowisthecalculationoftheCompany’sdebttocapitalizationpercentageatDecember31,2024 andDecember31,2023usingthedefinitionsprovidedintheprecedingparagraphs:

10.6. FINANCIAL INSTRUMENTS

Fromtimetotime,theCompanyentersintoforwardcontractsandotherforeignexchangehedgingproducts tomanageitsexposuretochangesinexchangeratesrelatedtotransactionsdenominatedincurrencies otherthantheCanadiandollarbutdoesnotholdorissuesuchfinancialinstrumentsforspeculativetrading purposes.Inaddition,someoftheCompany’sinvestmentsinprojectsaccountedforusingtheequitymethod enterintoderivativefinancialinstruments,namelyinterestrateswaps,tohedgethevariabilityofinterest ratesrelatedtonon-recourseprojectdebt.

TheCompanydisclosesinformationontheclassificationandfairvalueofitsfinancialinstruments,aswell asonthenatureandextentofrisksarisingfromfinancialinstruments,andrelatedriskmanagementin Note30“FinancialInstruments”totheCompany’sauditedconsolidatedfinancialstatementsandthenotes theretofortheyearendedDecember31,2024.

10.7. NORMAL COURSE ISSUER BID

OnAugust15,2024,theTorontoStockExchange(“TSX”)approvedtheCompany’snormalcourseissuer bid(the“NCIB”)pursuanttowhichtheCompanymaypurchaseforcancellationupto3,126,306common sharesofAecon,representing5%oftheissuedandoutstandingcommonsharesasofAugust7,2024.The NCIBcommencedonAugust18,2024andwillendnolaterthanAugust18,2025.Duringtheyearended December31,2024,160,600commonshareswererepurchasedforcancellationpursuanttotheNCIBat acostof$3.1million.

Aeconbelievesthattherepurchaseofcommonsharesatcertainmarketpricesisanappropriateand desirableuseofAecon’sfundsthatisinthebestinterestsofAeconandbeneficialtoitsshareholders. Aeconintendstomakepurchasesonanopportunisticbasis,takingsharepriceandotherconsiderations intoaccount.PurchasesundertheNCIBwillbefundedusingAecon’sexistingcashresourcesoritssenior creditfacility.TheactualnumberofcommonshareswhichmaybepurchasedundertheNCIBandthetiming ofanysuchpurchaseswillbedeterminedbythemanagementofAecon,subjecttoapplicablesecurities lawsandTSXrules.Aeconmayelecttosuspendordiscontinuerepurchasesofcommonsharesatany time,inaccordancewithapplicablelaws.Therecanbenoassurancesthatanysuchpurchasesofcommon sharesundertheNCIBwillbecompleted.

11. NEW ACCOUNTING STANDARDS

Note6“NewAccountingStandards”toAecon’sDecember31,2024auditedconsolidatedfinancialstatements includesnewIFRSstandardsandamendmentsthatbecameeffectivefortheCompanyonJanuary1,2024, andNote7“FutureAccountingChanges”discussesIFRSstandardsandamendmentsthatareissued,but notyeteffective.UpontheadoptionoftheamendmentstoIAS1,thePreferredSharesofAeconUtilitiesat December31,2023andJanuary1,2023werereclassifiedfromnon-currentliabilitiestocurrentliabilities andbankindebtednessatDecember31,2023andJanuary1,2023wasreclassifiedfromcurrentliabilities to non-current liabilities in the consolidated balance sheets.

Otherthanasnotedabove,thenewaccountingstandardshadnosignificantimpactonprofit(loss), comprehensiveincome(loss),orearnings(loss)persharein2024.

12. SUPPLEMENTAL DISCLOSURES

Disclosure Controls and Procedures

TheChiefExecutiveOfficer(“CEO”)andChiefFinancialOfficer(“CFO”),togetherwithmanagement, evaluatedthedesignandoperatingeffectivenessoftheCompany’sdisclosurecontrolsandproceduresat thefinancialyearendedDecember31,2024.Basedonthatevaluation,theCEOandtheCFOconcluded thatthedesignandoperationofthesedisclosurecontrolsandprocedureswereeffectiveatDecember 31,2024toprovidereasonableassurancethatmaterialinformationrelatingtotheCompany,includingits consolidatedsubsidiaries,wouldbemadeknowntothembyotherswithinthoseentitiesandthatinformation requiredtobedisclosedbytheCompanyinitsannualandinterimfilingsandotherreportssubmittedunder securitieslegislationwasrecorded,processed,summarized,andreportedwithintheperiodsspecifiedin securities legislation.

Internal Controls over Financial Reporting

TheCEOandCFO,togetherwithmanagement,evaluatedthedesignandoperatingeffectivenessof theCompany’sinternalcontrolsoverfinancialreportingatthefinancialyearendedDecember31,2024. Basedonthatevaluation,theCEOandtheCFOconcludedthatthedesignandoperationofinternal controlsoverfinancialreportingwereeffectiveatDecember31,2024toprovidereasonableassurance regardingthereliabilityoffinancialreportingandthepreparationoftheCompany’sauditedconsolidated financialstatementsandthenotestheretofortheyearendedDecember31,2024forexternalpurposesin accordancewithIFRSAccountingStandards.Indesigningandimplementingsuchcontrols,itshouldbe recognizedthatanysystemofinternalcontroloverfinancialreporting,nomatterhowwelldesignedand operated,hasinherentlimitations.Therefore,eventhosesystemsdeterminedtobeeffectivecanprovide onlyreasonableassurancewithrespecttoconsolidatedfinancialstatementpreparationandpresentation andmaynotpreventordetectallmisstatementsduetoerrororfraud.

See also the section on “Internal and Disclosure Controls” inSection13“RiskFactors”inthisMD&A.

Changes in Internal Controls over Financial Reporting

TherehavebeennochangesintheCompany’sinternalcontrolsoverfinancialreportingduringtheyear endedDecember31,2024thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,the Company’sinternalcontrolsoverfinancialreporting.

Contractual Obligations

Aeconhasobligationsforequipmentandpremisesasfollows:

ContractualobligationsrelatedtothePreferredSharesofAeconUtilitiesareasfollows:

(1)ThePreferredShareshavenofixedrepaymentterms(seeNote18“PreferredSharesofAeconUtilities”totheCompany’s auditedconsolidatedfinancialstatementsandtheaccompanyingnotesfortheyearendedDecember31,2024).The PreferredSharesareassumedtohavearemainingcontractualmaturityof6yearsinthissummary.

AtDecember31,2024,Aeconhadcontractualobligationstocompleteconstructioncontractsthatwerein progress.Therevenuevalueofthesecontractswas$6,662million.

Defined Benefit Pension Plans

Aecon’sdefinedbenefitpensionplans(the“PensionPlans”)hadacombineddeficitof$1.8millionat December31,2024(2023–acombineddeficitof$0.3million).DetailsrelatingtoAecon’sdefinedbenefit plansaresetoutinNote22“EmployeeBenefitPlans”totheCompany’sauditedconsolidatedfinancial statementsfortheyearendedDecember31,2024.

ThelatestactuarialvaluationofthePensionPlansforstatutoryandcontributionpurposeswascompletedat December31,2021.Undercurrentpensionbenefitsregulations,thenextactuarialvaluationofthePension PlansmustbeperformedwithavaluationdateofnolaterthanDecember31,2024,withanychangesin contributionsthereafterreflectingDecember31,2024marketconditions.

Thedefinedbenefitobligationsandbenefitcostlevelswillchangeasaresultoffuturechangesinthe actuarialmethodsandassumptions,themembershipdata,theplanprovisions,andthelegislativerules, orasaresultoffutureremeasurementgainsorlosses,noneofwhichhavebeenanticipatedatthistime. Emergingexperience,differingfromtheassumptions,willresultingainsorlossesthatwillberevealed infutureaccountingvaluations.Consequently,theaccountingforPensionPlansinvolvesanumberof assumptionsincludingthosethataredisclosedinNote22“EmployeeBenefitPlans”totheCompany’s auditedconsolidatedfinancialstatementsfortheyearendedDecember31,2024.Asaresultofthe uncertaintyassociatedwiththeseestimates,thereisnoassurancethatthePensionPlanswillbeable toearntheassumedrateofreturnonplanassets,andfurthermore,marketdrivenchangesmayresult inchangestodiscountratesandothervariableswhichwouldresultinAeconbeingrequiredtomake contributionstothePensionPlansinthefuturethatmaydiffersignificantlyfromestimates.Asaresult, thereisasignificantamountofmeasurementuncertaintyinvolvedintheactuarialvaluationprocess.This measurementuncertaintymayleadtopotentialfluctuationsinfinancialresultsattributabletotheselection ofactuarialassumptionsandotheraccountingestimatesinvolvedinthedeterminationofpensionexpense andobligations.AsignificantactuarialandaccountingassumptionimpactingthereportingofPension Plansisthediscountrateassumption.AtDecember31,2024,Aeconusedadiscountrateof4.5%inits PensionPlancalculationsforconsolidatedfinancialstatementpurposes.Theimpactofa0.5%decrease inthediscountrateassumptionwouldhaveresultedinanincreaseinthepensionbenefitobligationof approximately$1.4millionatDecember31,2024andanincreaseintheestimated2024pensionexpense ofapproximately$0.1million.

Foradditionaldetails,seeNote23“Contingencies”,Note30“FinancialInstruments”andNote33“Remaining PerformanceObligations”totheCompany’sauditedconsolidatedfinancialstatementsandthenotesthereto fortheyearendedDecember31,2024.

Related Party Transactions

RelatedpartytransactionsaredisclosedinNote34“RelatedParties”totheCompany’sauditedconsolidated financialstatementsfortheyearendedDecember31,2024.Otherthantransactionswithcertainequity accountedinvesteesaspartofthenormalcourseofoperations,therewerenoothersignificantrelatedparty transactions in 2024.

Critical Accounting Estimates and Judgments

Thereaderisreferredtothedetaileddiscussiononcriticalaccountingestimatesandjudgementsfoundin Note4“CriticalAccountingEstimates”totheCompany’sauditedconsolidatedfinancialstatementsforthe yearendedDecember31,2024.

13. RISK FACTORS

Aeconfacesawidevarietyofrisksacrossallofitsareasofbusiness.Identifyingandunderstandingrisks andtheirimpactallowsAecontocriticallyassesstheriskprofileofthebusinessandadoptappropriaterisk managementpractices.Definingacceptablelevelsofriskandestablishingsoundprinciples,policiesand practicesformanagingrisks,isfundamentaltoachievingconsistentandsustainablelong-termperformance. InvestorsshouldcarefullyconsidertherisksanduncertaintiessetoutbelowbeforeinvestinginAecon’s securities.Additionalrisksand/oruncertaintiesnotcurrentlyknownorthatAeconcurrentlybelievesare immaterialmayalsoimpairitsfuturebusiness,financialconditionandresultsofoperations.

1.Business and Operational Risks

a.Certain Fixed Price Legacy Projects

Fourlargefixed-pricelegacyprojectsenteredintoin2018orearlierbyjointoperationsinwhichAeconisa participantarebeingnegativelyimpactedduetoadditionalcostsforwhichthejointoperationsassertthatthe ownersarecontractuallyresponsible,includingfor,amongotherthings,unforeseeablesiteconditions,third partydelays,COVID-19,supplychaindisruptions,andinflationrelatedtolabourandmaterials.During2022 theseimpactsbecamemorepronouncedandhaveresulted,orarenowexpectedtoresult,inincreased coststotherelevantjointoperationsabovethoseoriginallyforecasted,insomecasesmaterially.Each relevantjointoperationhassubmittedclaimsforcompensationfortheseadditionalcosts.Nonearecurrently inlitigationorarbitration.ThejointoperationrelatedtotheCGLpipelineprojectreachedafullandfinal settlementinthesecondquarterof2024.Theremainingjointoperationsreachedinterimsettlementswith therespectiveownersoneachoftheremainingthreelegacyprojectsin2023,inrespectofcertainclaims made,andforsomeoftheprojects,otherclaimsforadditionalcostsremaintoberesolvedinthefuture. WhileAeconanditspartnerscontinuetoworktowardresolutionoftheseclaimsforadditionalcostswiththe respectiveownersoftheseprojects,delayedand/orunfavourableoutcomes,whetherindividuallyorinthe aggregate,couldresultinmaterialimpactstoAecon’searnings,cashflow,liquidityandfinancialposition. Thefactthattherearethreeprojects(referredtoasthethreelegacyprojects)experiencingsimilarimpacts concurrentlyelevatesthisrisk.WhiletheCompanybelieveseachrelevantjointoperationhasastrong claimtorecoveratleastasubstantialportionofthesecosts,theultimateoutcomeofthesematterscannot bepredictedatthistime.SeeSection10.2.“Contingencies”ofthisMD&AandotherRiskFactorsherein includingundertheheadings“LargeProjects”,“ContractualFactors”,“LitigationandClaims”,“Increasesin theCostofRawMaterials”,“OngoingFinancingAvailability”,“AdjustmentsinBacklog”and“ForceMajeure Events”.

b.Contractual Factors

Aeconperformsconstructionactivitiesunder a varietyofcontracttypes,includingfixedprice,unitprice,cost reimbursable,progressivedesignbuild(“PDB”),targetprice,andvariouspermutationsofdesign,build,finance, operation,maintenanceandrehabilitationresponsibilities.Someformsofconstructioncontractscarrymore

riskthanothers.Aeconattemptstomaintain a diversemixofcontracttypestopreventover-exposuretothe riskprofileofanyparticularcontractualstructure;however,conditionsinfluencingbothprivatesectorandpublic authorityclientsmayalterthemixofavailableprojectsandcontractualstructuresthatAeconundertakes.

Historically,asubstantialportionofAecon’srevenueisderivedfromcontractspursuanttowhicha commitmentisprovidedtotheownertocompletetheprojectatafixedprice.Infixedpriceprojects,in additiontotheriskfactorsofaunitpricecontract(asdescribedbelow),anyerrorsinquantityestimates, scheduledelaysorproductivitylosses,forwhichcontractedreliefisnotavailable,mustbeabsorbedwithin thefixedprice,therebyaddingafurtherriskcomponenttothecontract.Suchcontracts,giventheirinherent risks,mayinthefutureandfromtime-to-timeresultinsignificantlosses.Thefailuretoproperlyassessa wide variety of risks, appropriately execute such contracts, or reach satisfactory resolution to contractual disputesmayhaveamaterialadverseimpactonfinancialresults.

AeconisalsoinvolvedinfixedunitpriceconstructioncontractsunderwhichtheCompanyiscommittedto provideservicesandmaterialsatafixedunitprice(e.g.dollarspertonneofasphaltoraggregate).While thisshiftstheriskofestimatingthequantityofunitstothecontractowner,anyincreaseinAecon’scostover theunitpricebid,whetherduetoestimatingerror,inefficiencyinprojectexecution,inclementweather,cost escalation,orotherfactors,willnegativelyaffectAecon’sprofitability.

Incertaininstances,Aeconguaranteestoaclientthatitwillcompleteaprojectbyascheduleddateorthat afacilitywillachievecertainperformancestandards.Iftheprojectorfacilitysubsequentlyfailstomeetthe scheduleorperformancestandards,Aeconcouldincuradditionalcostsorpenaltiescommonlyreferredto asliquidateddamages,whichcertaincustomersrequiretobeincludedinsomeofAecon’scontracts.Such penaltiesmaybesignificantandcouldimpactAecon’sfinancialpositionorresultsoffutureoperations. Furthermore,scheduledelayswhicharenotcompensatedbytheclientmayalsoreduceprofitabilitybecause Aeconstaffcontinuetoincurcostsontheprojectandmaybepreventedfrompursuingandworkingonnew projects.Projectdelaysmayalsoreducecustomersatisfaction,whichcouldimpactfutureawards.

Aecon is also involved in design-build contracts under which Aecon takes responsibility for the design in additiontotheresponsibilitiesandrisksofaunitpriceorfixedpriceconstructioncontract.Thisformof contractaddstheriskofAecon’sliabilityfordesignerrorsaswellasadditionalconstructioncoststhatmight resultfromsuchdesignerrors.However,overthelastseveralyears,PDBhasemergedasaprojectdelivery modelinaneffortbyownersandcontractorstomitigatecostandschedulerisksduringtheconstruction phase.InthePDBmodel,thecontractorisinvitedtocomplete,onacostreimbursableorfixedpricebasis, asubstantialportionofthesiteinvestigationanddesignofaprojectbeforeenteringintoatargetpriceor fixedpricecontractfortheconstructionportionoftheproject.AsthePDBmodelfeaturesacollaborative approachbetweentheownerandcontractor,Aeconisactivelyengagedinandpursuingprojectsprocured underthismodeltofacilitatemoreefficientrisktransfertothepartybestplacedtomanagethatrisk.

CertainofAecon’scontractualrequirementsmayalsoinvolvefinancingelements,whereAeconisrequired toprovideoneormorelettersofcredit,performancebonds,financialguaranteesorequityinvestments.For greaterdetail,see“RiskFactors–AccesstoBonding,Pre-qualificationRatingandLettersofCredit”herein.

Changeorders,whichmodifythenatureorscopeoftheworktobecompleted,arefrequentlyissuedby clients.Finalpricingofthesechangeordersisoftennegotiatedafterthechangeshavebeenstartedor completedandcostshavebeenincurred.Assuch,disputesregardingthequantumofunpricedchange

orderscouldimpactAecon’sprofitabilityonaparticularproject,itsabilitytorecovercosts or, inaworstcasescenario,resultinsignificantprojectlosses.Untilpricinghasbeenagreed,thesechangeordersare referredtoas“unpricedchangeorders”.Revenuesfromunpricedchangeordersarerecognizedtothe extent of the costs incurred on executing the change order or, if lower, to the extent to which recovery isprobable.Consequently,profitonsuchchangeordersisrecognizedonlywhenpricingisagreed.If, ultimately,therearedisputeswithclientsonthepricingofchangeordersordisputesregardingadditional paymentsowingasaresultofchangesincontractspecifications,delays,additionalworkorchanged conditions, Aecon’s accounting policy is to record all costs for these changes, but unpriced change orders andclaimsarerecognizedinrevenueattheamounttheCompanyexpectstoreceivewithahighprobability thatasignificantreversalofcumulativerevenuerecognizedwillnotoccuroncetheuncertaintyassociated withthevariableconsiderationisresolved.Thetimingoftheresolutionofsucheventscanhaveamaterial impactonincomeandliquidityandthuscancausefluctuationsintherevenueandincomeofAeconinany one reporting period.

Aeconhaspursuedvariouscontractualentitlementmechanismstorecoverincreasedcostsand/orextend timeframestocompleteworkimpactedbytheCOVID-19pandemic.Whilethemajorityoftheseclaimshave beensettled,certainclaimsarestillongoingandwhetherAeconsucceedsinrecoveringsuchincreased costsandextendingsuchtimeframesmaydependonfactorsthatvaryonaproject-by-projectbasis, including contract type, contract language, client receptiveness, and the probability of and extent to which theCOVID-19pandemicimpactedprojectexecution.

c.Large Projects

AsubstantialportionofAecon’srevenueisderivedfromlargeprojects,someofwhichareconductedthrough jointoperations.Theseprojectsprovideopportunitiesforsignificantrevenueandprofitcontributionsbut, bytheirnature,carrysignificantriskand,assuch,canresultandhaveoccasionallyresultedinsignificant losses.Contractsforlargeprojectstypicallyinvolveatransferofriskstoacontractorbeyondthosecontained insmallerprojectcontracts.Assuch,afailuretoproperlyexecuteorcompletealargeprojectoraprotracted orunsuccessfuldisputewithaclientaboutentitlementtoextracompensationonalargeprojectmaysubject Aecontosignificantlosses.Therisksassociatedwithsuchlargeprojectsareoftenproportionatetotheir sizeandcomplexity.Forgreaterdetail,see“RiskFactors–ContractualFactors”herein.

Thecontractpriceonlargeprojectsisbasedoncostestimatesusinganumberofassumptions.Given thesizeoftheseprojects,ifassumptionsproveincorrect,whetherduetofaultyestimates,unanticipated circumstances,orafailuretoproperlyassessrisk,orthecontractsdonotappropriatelyreflectsuch assumptions,profitmaybemateriallylowerthananticipated or, inaworst-casescenario,resultina significantloss.

Therecordingoftheresultsoflargeprojectcontractscandistortrevenuesandearningsonbothaquarterly andanannualbasisandcan,insomecases,makeitdifficulttocomparethefinancialresultsbetween reportingperiods.Forgreaterdetailonthepotentialimpactofcontractualfactors,includingunpricedchange orders,see“RiskFactors–ContractualFactors”herein.

Aeconhasanumberofcommitmentsandcontingenciesaspartofitsregularoperations.TheCompanyhas guarantees,bondsandlettersofcreditasassurancethatcertainconditionsandobligationswillbefulfilled. IfAeconwascalledupontohonourthesecontingentobligations,itsfinancialresultscouldbeadversely affected.Foradditionaldetails,seeNote23“Contingencies”,Note30“FinancialInstruments”andNote33

“RemainingPerformanceObligations”totheCompany’sauditedconsolidatedfinancialstatementsandthe notestheretofortheyearendedDecember31,2024filedonAecon’sSEDAR+profileatwww.sedarplus.ca.

d.Failure to Perform by a Third Party

Aeconworkswithanumberofthirdpartiestoachieveitsstrategicobjectivesandeachoftheserelationships posesadegreeofriskofnon-performance.

Creditriskofnon-paymentwithprivateownersunderconstructioncontractsistoacertaindegreeminimized by statutory lien rights, which give contractors a high priority in the event of insolvency proceedings as wellasprogresspaymentsbasedonpercentagecompletion.However,thereisnoguaranteethatthese measureswillinallcircumstancesmitigatetheriskofnon-paymentfromprivateownersandasignificant defaultorbankruptcybyaprivateownermaysignificantlyandadverselyimpactresults.Agreaterincidence ormagnitudeofdefault(includingcashflowproblems)orbankruptcyamongstclients,subcontractorsor suppliersrelatedtoeconomicconditionscouldalsoimpactresults.Creditriskistypicallylessofaconcern withpublic(government)owners,whogenerallyaccountforasignificantportionofAecon’sbusiness,as fundshavegenerallybeenappropriatedpriortotheawardorcommencementoftheproject.See“Risk Factors–DependenceonthePublicSector”hereinforadditionaldiscussionoftherisksassociatedwith this type of contract.

Jointoperationsareoftenformedtoundertakeaspecificproject,jointlycontrolledbythepartners,andare dissolveduponcompletionoftheproject.Aeconselectsitsjointoperationpartnersbasedonavarietyof criteria, including available resources, relevant expertise, past working relationships, as well as an analysis ofprospectivepartners’financialcapacityandconstructioncapabilities.Jointoperationagreementsspread riskandresponsibilityforprojectdeliverybetweenthepartnersandgenerallystatethatcompanieswill supplytheirproportionateshareofoperatingfundsandshareprofitsandlossesinaccordancewithspecified percentages.Nevertheless,eachparticipantinajointoperationisusuallyjointlyandseverallyliabletothe clientforcompletionoftheentireprojectintheeventofadefaultbyanyofitspartners.Therefore,inthe eventthatajointoperationpartnerfailstoperformitsobligationsduetofinancialorotherdifficultiesor isdisallowedfromperformingorisotherwiseunabletoperformitsobligationsasaresultoftheclient’s determination,whetherpursuanttotherelevantcontractorbecauseofmodificationstogovernmentor agencyprocurementpoliciesorrulesorforanyotherreason,Aeconmayberequiredtomakeadditional investmentsorprovideadditionalserviceswhichmayreduceoreliminateprofit,orevensubjectAecon tosignificantlosseswithrespecttothejointoperation.Asaresultofthecomplexityandsizeofmanyof thejointoperationprojectsthatAeconundertakesorislikelytoundertakegoingforward,thefailureofa jointoperationpartneronalargeprojectcouldhaveasignificantimpactonAecon’sresultsandfinancial condition. To mitigatethisrisk,AecontypicallyrequiresthejointoperationpartnertoprovideAeconwith asecurityinstrument(suchasaparentcompanyguaranteeorcross-indemnity)toguaranteethejoint operationpartner’sperformanceoftheirobligationsunderthejointoperationagreement.

Theprofitablecompletionofsomecontractsdependstoalargedegreeonthesatisfactoryperformance ofsubcontractors,includingdesignandengineeringconsultants,whocompletedifferentelementsofthe work.Ifthesesubcontractorsdonotperformtoacceptedstandards,Aeconmayberequiredtohiredifferent subcontractorstocompletethetasks,whichmayimpactschedule,addcoststoacontract,impactprofitability onaspecificjoband,incertaincircumstances,leadtosignificantlosses.Disputeswithsubcontractorsmay alsoresultinmateriallitigation.See“RiskFactors–LitigationandClaims”herein.Amajorsubcontractor defaultorfailuretoproperlymanagesubcontractorperformancecouldmateriallyimpactresults.

ThedevelopmentofconstructionprojectsrequiresAecon’sclientstoobtainregulatoryandotherpermits, licencesandapprovalsfromvariousgovernmentallicencingbodies.Aecon’sclientsmaynotbeableto obtainallnecessarypermits,licencesandapprovalsrequiredforthedevelopmentoftheirprojects,ina timelymanneroratall.ThesedelaysaregenerallyoutsideAecon’scontrol.Themajorcostsassociated withthesedelaysarepersonnelandassociatedoverheadthatisdesignatedfortheprojectwhichcannotbe reallocatedeffectivelytootherwork.Iftheclient’sprojectisunabletoproceed,itmayadverselyimpactthe demandforAecon’sservices.Clientsmayalso,fromtimetotime,proceedtoawardaconstructioncontract whileapermitorlicenceremainspending.Whereaclientdoesnotobtainapermitorlicenceasexpectedor apermitorlicenceisrevoked,theclient’scashflowandprojectviabilitymaybeimpacted,whichmaylead toadditionalcostsorfinanciallossforAecon.

e.Litigation and Claims

Disputesarecommonintheconstructionindustryand,assuch,inthenormalcourseofbusiness,Aecon isinvolvedinvariouslegalactionsandproceedings(includingarbitrations)thatarisefromtimetotime, someofwhichmayinvolvesubstantialsumsofmoney.ThereisnoassurancethatAecon’sinsurance arrangementswillbesufficienttocoveranyparticularclaimorclaimsorthatajudgeorarbitratorwill notruleagainstAeconinaproceedingwithrespecttoasubstantialamountindisputenotwithstanding theCompany’sconfidenceinthemeritsofitsposition.Furthermore,Aeconissubjecttotheriskof:(i) claimsandlegalactionsforvariouscommercialandcontractualmatters,primarilyarisingfromconstruction disputes,inrespectofwhichinsuranceisnotavailable,including,forexample,latecompletionofaproject oradisputedterminationofacontract,and(ii)litigationorinvestigationsrelatingtoallegedorsuspected violationsofanti-corruptionlaws(see“RiskFactors–International/ForeignJurisdictionFactors”herein). TherecanbenoguaranteethatlitigationordisputeswillnotariseorwillbefinallyresolvedinAecon’sfavour which,dependingonthenatureofthelitigation,couldimpactAecon’sresults.

Climatechange-relatedlitigationcontinuestoevolveinCanadaandelsewhere.Whilemostcaseshavenot succeededduetothedifficultyofattributingclimatechangetoonespecificemitteranduncertaintyabout theextenttowhichclimatechange-relatedrisksmustbeconsideredanddisclosedpursuanttoexisting financialdisclosureobligations,thepressurecreatedbyclimatechange-relatedlitigationmayaffectthe regulatoryandoperatingenvironmentofcompanies,includingAecon.

f.Expansion Into New Markets

Enteringnewmarkets,primarilywithinNorthAmerica,theCaribbeanandLatinAmericancountriesis accompaniedbyrisksandchallenges.Theseincludedifferentlawsandregulations,politicalinstability,and culturaldifferences.Additionalcostsrelatedtomarketing,establishingsupplierandvendorrelationships andimport/exportdutiesmayaffectAecon’sprofitability.Althoughthereisnorisk-freewaytoenteranew market,Aecon’smanagementcarriesoutmarketentryplanningandinvestsindevelopingamarketentry strategy.Externaladvisorsarealsoengagedinidentifyingpotentialpartners,clients,andsupplierswhocan supportAecon’smarketentryefforts.

g.Industry Competition

AeconoperatesbusinessesinhighlycompetitivesectorsandgeographicmarketsinCanada,theUnited Statesand,onaselectbasis,internationally.Aeconcompeteswithothermajorcontractors,aswellasmany mid-sizeandsmallercompanies,acrossarangeofindustrysectors.Inaddition,thenumberofinternational companiesoperatingintheCanadianmarketplacemakesthemarketmorecompetitive.Eachcompetitor hasitsownadvantagesanddisadvantagesrelativetoAecon.Newcontractawardsandcontractmarginare dependentonthelevelofcompetitionandthegeneralstateofthemarketsinwhichtheCompanyoperates. FluctuationsindemandinthesectorsinwhichtheCompanyoperatesmayimpactthedegreeofcompetition forwork.Competitivepositionisbasedonamultitudeoffactorsincludingpricing,abilitytoobtainadequate bonding,backlog,financialstrength,appetiteforrisk,reputationforsafety,quality,timelinessandexperience. Aeconhaslittlecontroloverandcannototherwiseaffectwhatthesecompetitivefactorsare.IftheCompany isunabletoeffectivelyrespondtothesecompetitivefactors,resultsofoperationsandfinancialcondition willbeadverselyimpacted.Inaddition,aprolongedeconomicslumporslowerthananticipatedrecovery mayaffectoneormoreofAecon’scompetitorsorthemarketsinwhichitoperates,resultinginincreased competitionincertainmarketsectors,priceormarginreductionsordecreaseddemandforservices,which mayadverselyaffectresults.

h.Concessionaire

Inadditiontoprovidingdesign,construction,procurement,operation,maintenance,andotherservicesona givenproject,Aeconwillsometimesinvestasaconcessionaireinaninfrastructureasset.Insuchinstances, Aeconassumesadegreeofrisk(essentiallyequityrisk)associatedwiththeperformanceoftheasset duringtheconcessionperiod.TheBermudaInternationalAirportisacurrentexampleofsuchanasset. Thefinancingarrangementsonconcessionprojectsaretypicallybasedonasetofprojectionsregarding thecashflowtobegeneratedbytheassetduringthelifeoftheconcession.Theabilityoftheassetto generatethecashflowsrequiredtoprovideareturntotheconcessionairecanbeinfluencedbyanumber offactors,someofwhicharepartiallybeyondtheconcessionaire’scontrol,suchas,amongothers,political orlegislativechanges,trafficdemandandthusoperatingrevenues,collectionsuccessandoperatingcost levels.

Whileprojectconcessionagreementsoftenprovideadegreeofriskmitigation,andinsuranceproducts areavailabletolimitsomeoftheconcessionrisks,thevalueofAecon’sinvestmentintheseinfrastructure assetscanbeimpaired,andcertainlimitedriskguaranteescanbecalled,ifthefinancialperformanceofthe assetdoesnotmeetcertainrequirements.

i.Dependence on the Public Sector

AsignificantportionofAecon’srevenueisderivedfromcontractswithvariouslevelsofgovernmentor theiragencies.Consequently,anyreductionindemandforAecon’sservicesbythepublicsector,whether fromtraditionalfundingconstraints,thelong-termimpactofweakeconomicconditions(includingfuture budgetaryconstraints,concernsregardingdeficitsoranerodingtaxbase),changingpoliticalpriorities, changeingovernment,cancellationordelaysinprojectscausedbytheelectionprocesswouldlikelyhave anadverseeffectontheCompanyifthatbusinesscouldnotbereplacedfromwithintheprivatesector.

InJanuary2025,theU.S.Presidentissuedseveralexecutiveordersdirectedatdiversity,equityand inclusion(“DEI”)programsinthepublicandprivatesectors,includingaprohibitiononfederalgovernment contractorstooperateanyprogramspromotingDEIthatviolateapplicablefederalanti-discriminationlaws.

Fraudulentorinaccuratecompliancecertificationsprovidedbyfederalcontractorstofederalagenciesas partoftheircontractualobligationscarrypotentialcivilliabilityramifications.Aeconisreviewingitspolicies forcompliancewithUnitedStatesfederallawsandisreceivingguidancefromU.S.externalregulatory counseltomitigatetheriskassociatedsuchcertificationstotheextentofanypotentialconflictbetween suchfederallawsandthepoliciesofanyAeconentityservingasafederalgovernmentcontractorrequired tomakesuchcertification.

Largegovernment-sponsoredprojectstypicallyhavelengthyandoftenunpredictableleadtimesassociated withthegovernmentreviewandpoliticalassessmentprocess.Thetimedelaysandpursuitcostsincurred as a result of this lengthy process, as well as the often-unknown political considerations that can be part of anyfinaldecision,constituteasignificantrisktothosepursuingsuchprojects.

Moreover,aspartofitsbusinessdealingswithgovernmentalbodies,Aeconmustcomply,andmusttake measurestoensurethatthecompaniesitpartnerswithcomply,withpublicprocurementlawsandregulations aimedatensuringthatpublicsectorbodiesawardcontractsinatransparent,competitive,efficient,ethical andnon-discriminatoryway.AlthoughAeconhasadoptedcontrolmeasuresandimplementedpoliciesand procedurestomitigatesuchrisks,thesecontrolmeasures,policiesandproceduresmaynotalwaysbe sufficienttoprotecttheCompanyfromtheconsequencesofactsprohibitedbypublicprocurementlaws andregulationscommittedbyitsdirectors,officers,employeesandagents.Foradetaileddescriptionofthe Company’sexposuretocorruptionandbriberyrisks,see“RiskFactors–International/ForeignJurisdiction Factors”herein.IfAeconfailstocomplywiththeselawsandregulationsitcouldbesubjecttoadministrative orcivilliabilitiesandtomandatoryordiscretionaryexclusionorsuspension,onapermanentortemporary basis,fromcontractingwithgovernmentalbodiesinadditiontootherpenaltiesandsanctionsthatcouldbe incurredbytheCompany.

j.Weather Conditions

UnfavourableweatherconditionsrepresentoneofthemostsignificantuncontrollablerisksforAecontothe extentthatsuchriskisnotmitigatedthroughcontractualterms,insuranceorotherwise.Constructionprojects are susceptible to delays as a result of extended periods of poor weather, which can have an adverse effect onprofitabilityarisingfromeitherlatecompletionpenaltiesimposedbythecontractorfromtheincremental costsarisingfromlossofproductivity,compressedschedules,orfromovertimeworkutilizedtooffsetthe timelostduetoadverseweatherandadditionalcoststomodifymeansandmethodstoperformworkin different-than-expectedweather.See“RiskFactors–ClimateChangeFactors”hereinforthediscussionof weatherrisksrelatedtoclimatechange.

k.Labour Factors

AsignificantportionofAecon’slabourforceisunionizedand,accordingly,Aeconissubjecttothedetrimental effectsofastrikeorotherlabouraction,inadditiontocompetitivecostfactors.

TheCompany’sfutureprospectsdependtoasignificantextentonitsabilitytoattractandretainsufficient skilledworkers.Theconstructionindustryisfromtimetotimefacedwithashortageofskilledlabourersin someareasanddisciplines.TheresultingcompetitionforlabourmaylimittheabilityoftheCompanyto takeadvantageofavailableopportunities,oralternatively,mayimpacttheprofitabilityofsuchendeavours. TheCompanybelievesthatitsunionrelationships,size,andindustryreputationwillhelpmitigatethisrisk,

buttherecanbenoassurancethattheCompanywillbesuccessfulinidentifying,recruitingorretaininga sufficientnumberofskilledworkers.

l.Insurance

Aeconmaintainsinsuranceinordertobothsatisfytherequirementsofitsvariousconstructioncontracts aswellasacorporateriskmanagementstrategy.Failuretosecureadequateinsurancecoveragecould leadtouninsuredlossesorlimitAecon’sabilitytopursuesomeconstructioncontracts,bothofwhichcould impactresults.Insuranceproductsfromtime-to-timeexperiencemarketfluctuationsthatcanimpactpricing andavailability.Therefore,seniormanagement,throughAecon’sinsurancebroker,monitorsdevelopments intheinsurancemarketssothattheCompany’sinsuranceneedsaremet.IfanyofAecon’sthird-party insurersfail,refusetoreneworrevokecoverage,refusetocoverclaims,orotherwisecannotsatisfytheir requirementstoAecon,theCompany’soverallriskexposurecouldbemateriallyincreased.

Insuranceriskentailsinherentunpredictabilitythatcanarisefromassuminglong-termpolicyliabilitiesor fromuncertaintyoffutureevents.AlthoughAeconhasinthepastbeenabletomeetitsinsuranceneeds, there can be no assurances that Aecon will be able to secure all necessary or appropriate insurance on a goingforwardbasis.Insurancepremiumsordeductiblesmayalsoincrease,resultinginhighercoststothe Company.

m.Environmental and Safety Factors

Duringitshistory,Aeconhasexperiencedanumberofincidents,emissionsorspillsofanon-materialnature inthecourseofitsconstructionactivities.Althoughnoneoftheseenvironmentalincidentstodatehave resultedinamaterialliabilitytoAecon,therecanbenoguaranteethatanyfutureincidentswillalsonotbe material.

Aeconissubjectto,andcomplieswith,federal,provincial,andmunicipalenvironmentallegislationinallofits operations.Aeconrecognizesthatitmustconductallofitsbusinessinsuchamannerastobothprotectand preservetheenvironmentinaccordancewiththislegislation.Ateachplacewhereworkisperformed,Aecon developsandimplementsadetailedqualitycontrolplanastheprimarytooltodemonstrateandmaintain compliancewithallenvironmentalregulationsandconditionsofpermitsandapprovals.Givenitsmorethan one-hundred-yearhistoryintheconstructionindustry,thelargenumberofcompaniesincorporatedinto itspresentstructure,andthefactthatenvironmentalregulationstendnottohaveastatuteoflimitations, therecanbenoguaranteethatahistoricalclaimmaynotariseonagoforwardbasis.Managementisnot awareofanypendingenvironmentallegislationthatwouldbelikelytohaveamaterialimpactonanyofits operations,capitalexpenditurerequirementsorcompetitiveposition,althoughtherecanbenoguarantee thatfuturelegislation(includingwithoutlimitationtheintroductionofclimatechangeorenvironmentallyfocusedlegislationthatmayimpactaspectsofAecon’sbusiness)willnotbeproposedand,ifimplemented, mighthaveanimpactontheCompanyanditsfinancialresults.Pleasesee“RiskFactors–ClimateChange Factors”hereinforadiscussionofclimate-relatedrisks.

Aeconisalsosubjectto,andcomplieswith,healthandsafetylegislationinallofitsoperationsinthe jurisdictionsinwhichitoperates.TheCompanyrecognizesthatitmustconductallofitsbusinessinsuch a mannerastoensuretheprotectionofitsworkforceandthegeneralpublic.Aeconhasdeveloped a health andsafetyprogram;nevertheless,giventhenatureoftheindustry,accidentswillinevitablyoccurfromtime totime.Managementisnotawareofanypendinghealthandsafetylegislationorpriorincidentswhichwould belikelytohave a materialimpactonanyofitsoperations,capitalexpenditurerequirementsorcompetitive

position.Nevertheless,therecanbenoguaranteewithrespecttotheimpactoffuturelegislationoraccidents. Increasinglyacrosstheconstructionindustry,safetystandards,recordsandcultureareanintegralcomponent ofwinningnewwork.ShouldAeconfailtomaintainitssafetystandards,suchfailuremayleadtotermination ofcontractsand/orimpactfuturejobawards,andcouldthereforeimpactfinancialresults.

n.Cyclical Nature of the Construction Industry

Fluctuatingdemandcyclesarecommonintheconstructionindustryandcanhaveasignificantimpact onthedegreeofcompetitionforavailableprojects.Assuch,fluctuationsinthedemandforconstruction servicesortheabilityoftheprivateand/orpublicsectortofundprojectsinthecurrenteconomicclimate couldadverselyaffectbacklogandmarginandthusAecon’sresults.

Giventhecyclicalnatureoftheconstructionindustry,thefinancialresultsofAecon,similartoothersinthe industry,maybeimpactedinanygivenperiodbyawidevarietyoffactorsbeyonditscontrol(asoutlined herein)and,asaresult,theremaybefromtimetotime,significantandunpredictablevariationsinAecon’s quarterlyandannualfinancialresults.

o.Nuclear Liability

Aecon’sNuclearsectorsupportsclientsacrossvarioustypesofNuclearwork,whichincludesconstruction andfabricationservices,suchasreactornewbuildsandtherefurbishmentofcurrentnuclearreactors,and decommissioning.SuchservicescansubjectAecontorisksarisingoutofanuclear,radiologicalorcriticality incident, whether or not within the Aecon’s control.

IndemnificationprovisionscontainedinthedomesticlegislationofthejurisdictionsinwhichAecon’sNuclear sector operates, such as the Nuclear Liability and Compensation Act (Canada)andthe Price-Anderson Act (UnitedStates),orequivalentprotectionsaffordedunderinternationalconventions,seektoensure compensationforthegeneralpublic,whileindemnifyingnuclearindustryparticipantsagainstliabilityarising fromnuclearincidents,subjecttopossibleexclusions.

However,theselegislativeindemnificationprovisionsmaynotapplytoallliabilitiesincurredwhileperforming servicesasacontractorforthenuclearindustry.Ifanincidentorcertaindamagesresultingtherefromare notcoveredunderapplicablelegislativeindemnificationprovisions,Aeconcouldbeheldliablefordamages whichcouldhaveamaterialadverseimpactontheAecon’sfinancialconditionandresultsofoperations.In additiontolegislativeindemnificationprovisions,theCompanyseekstoprotectitselffromliabilityassociated withnuclearincidentsanddamagesresultingtherefrominitscontracts,buttherecanbenoassurancethat suchcontractuallimitationsonliabilitywillbeeffectiveinallcasesorthatAeconoritsclients’insurancewill coveralltheliabilitiesassumedunderthosecontracts.Thecostsofdefendingagainstclaimsarisingoutofa nuclearincident,andanydamagesthatcouldbeawardedasaresultofsuchclaims,couldhaveamaterial adverseimpactonAecon’sfinancialconditionandresultsofoperations.

p.Force Majeure Events

TheCompanyisexposedtovariousrisksarisingoutofextraordinaryorforcemajeureeventsbeyond theCompany’scontrol,suchasepidemicsorpandemics,actsofwar,terrorism,strikes,protestsorsocial orpoliticalunrestgenerally.SucheventscoulddisrupttheCompany’soperations,resultinshortagesof

materialsandequipment,causesupplychaindelaysordeliveryfailures,orleadtotherealizationofor exacerbatetheimpactofotherriskfactors. To theextentthatsuchrisksarenotmitigatedcontractuallythrough provisionsthatprovidetheCompanywithrelieffromitsscheduleobligationsand/orcostreimbursement, theCompany’sfinancialcondition,resultsofoperationsorcashflowsmaybeadverselyaffected.

Relianceonglobalnetworksandsupplychains,ratesofinternationaltravelandthesignificantnumberof peoplelivinginhigh-densityurbanenvironmentsincreasehumanity’ssusceptibilitytoinfectiousdisease. EpidemicsoccurringinregionsinwhichAeconoperatesandpandemicsthatposeaglobalthreatcan negativelyimpactbusinessoperationsbydisruptingthesupplychainandcausinghighabsenteeismacross theworkforce.Similarly,disastersarisingfromextraordinaryorforcemajeureeventsmayresultindisruptions resultingfromtheevacuationofpersonnel,cancellationofcontracts,orthelossofworkforce,contractorsor assets.Inaddition,adisastermaydisruptpublicandprivateinfrastructure,includingcommunicationsand financialservices,whichcoulddisrupttheCompany’snormalbusinessoperations.

Aeconhasimplementedabusinesscontinuityplantoassistwithpreparingfor,andmanagingtheimpactof, anextraordinaryorforcemajeureeventbyidentifyingcoreservices,developingacommunicationsstrategy andprotectingthehealthandsafetyofitsemployees.Whilethebusinesscontinuityplanmaymitigatethe impactofanextraordinaryorforcemajeureevent,minimizerecoverytimeandreducebusinesslosses,the plancannotaccountforallpossibleunexpectedevents.Anextraordinaryorforcemajeureeventtherefore mayhavematerialadversefinancialimplicationsfortheCompany.

q.Internal and Disclosure Controls

Inadequatedisclosurecontrolsorineffectiveinternalcontrolsoverfinancialreportingcouldresultinan increasedriskofmaterialmisstatementsinthefinancialreportingandpublicdisclosurerecordofAecon. Inadequatecontrolscouldalsoresultinsystemdowntime,giverisetolitigationorregulatoryinvestigation, fraud or the inability of Aecon to continue its business as presently constituted. Restrictions related to a hybrid workingmodelforoffice-basedemployeeshavenecessitatedmodifiedcontrolsduringtheconsolidation andfinalizationoffinancialstatements.

Aeconhasdesignedandimplementedasystemofinternalcontrolsandavarietyofpoliciesandprocedures toprovidereasonableassurancethatmaterialmisstatementsinthefinancialreportingandpublicdisclosures arepreventedanddetectedonatimelybasisandotherbusinessrisksaremitigated.Inaccordancewith theguidelinesadoptedinCanada,Aeconassessestheeffectivenessofitsinternalanddisclosurecontrols usingatop-down,risk-basedapproachinwhichbothqualitativeandquantitativemeasuresareconsidered. Aninternalcontrolsystem,nomatterhowwellconceivedandoperated,canprovideonlyreasonable–not absolute–assurancetomanagementandtheBoardregardingachievementofintendedresults.Aecon’s currentsystemofinternalanddisclosurecontrolsplacesrelianceonkeypersonnelacrosstheCompany toperformavarietyofcontrolfunctionsincludingkeyreviews,analysis,reconciliationsandmonitoring. Thefailureofindividualstoperformsuchfunctionsorproperlyimplementthecontrolsasdesignedcould adverselyimpactresults.

r. Integration and Acquisition

Aeconhasmadeacquisitionsin2024andmaycontinuetopursueacquisitionopportunitiesinaccordance withitsstrategicplan.Theintegrationofanyacquisitionraisesavarietyofissuesincluding,withoutlimitation, identificationandexecutionofsynergies,eliminationofcostduplication,systemsintegration(including

accountingandinformationtechnology),executionofthepre-dealbusinessstrategyinanuncertain economicmarket,developmentofcommoncorporatecultureandvalues,integrationandretentionofkey staff,retentionofcurrentclientsaswellasavarietyofissuesthatmaybespecifictoAeconandtheindustry inwhichitoperates.TherecanbenoassurancethatAeconwillmaximizeorrealizethefullpotentialofany ofitsacquisitions.Afailuretosuccessfullyintegrateacquisitionsandexecuteacombinedbusinessplan couldmateriallyimpactthefuturefinancialresultsofAecon.Likewise,afailuretoexpandtheexistingclient baseandachievesufficientutilizationoftheassetsacquiredcouldalsomateriallyimpactthefuturefinancial results of Aecon.

s.Reputation in the Construction Industry

Reputationandgoodwillplayanimportantroleinthelong-termsuccessofanycompanyintheconstruction industry.Negativeopinionmayimpactlong-termresultsandcanarisefromanumberoffactorsincluding perceivedcompetence,lossesonspecificprojects,questionsconcerningbusinessethicsandintegrity, corporategovernance,environmentalandclimatechangeawareness,theaccuracyandqualityoffinancial reportingandpublicdisclosureaswellasthequalityandtimingofthedeliveryofkeyproductsandservices. Aeconhasimplementedvariousproceduresandpoliciestohelpmitigatethisrisk,includingtheadoption ofAecon’sCodeofEthicsandBusinessConduct(the“Code”)whichallemployeesareexpectedtoreview and abide by, and an ethical due diligence process to vet prospective partners, international subcontractors andthird-partyintermediaries.Nevertheless,theadoptionofcorporatepolicies,trainingofemployeesand vettingofthirdpartiescannotguaranteethatafuturebreachorbreachesoftheCodeorothercorporate policieswillnotoccurwhichmayormaynotimpactthefinancialresultsoftheCompany.

t.Aecon’s Utilities Business is not Wholly-Owned

InOctober2023,AeconcompletedatransactionpursuanttowhichSpliceHoldingsS.àr.l.,anentity managedbythePowerOpportunitiesstrategyofOaktreeCapitalManagement,L.P.,(“Oaktree”)acquired 154,640preferredsharesinthecapitalofAeconUtilitiesGroupInc.(“AUGI”),asubsidiaryofAeconwhich ownsAecon’sutilitiesbusiness.ThepreferredsharesareconvertibleatanytimebyOaktreeintoafixed 27.5%ofthecommonequityofAUGI.AsdiscussedunderThree-YearHistory–Saleof27.5%Interest inAeconUtilitiesGroupInc.”herein,boththetermsofOaktree’spreferredsharesandtheshareholders’ agreemententeredintobyAecon,AUGIandOaktreeprovideOaktreewithcertaingovernanceandother rightsregardingAUGIanditssubsidiariessuchthatOaktreehastheabilitytoexertinfluenceovermany mattersaffectingAUGI’sbusiness,policiesandaffairs.Withoutlimitingtheforegoing,subjecttocertain conditions,OaktreeisentitledtotwonomineesontheboardofAUGI,pre-emptiverights,registrationrights, liquidityrightsand,intheordinarycourse,approvalrightsovercertainactivitiesofAUGIanditssubsidiaries, includingincurringindebtednessabovecertainlevelsoramalgamating,mergingwithoracquiringanother businesswithanenterprisevalueinexcessofcertainthresholds,and,incircumstancesinwhichAUGI isinbreachofitsobligationsundertheshareholders’agreement,Oaktreehasadditionalapprovalrights, includingwithrespecttothedeclarationandpaymentofdividends.Inaddition,Oaktreehascertainliquidity rightsthat,ifexercised,couldhaveanadverseeffectonAecon’scashflowsanddebtcovenantsand,in certaincircumstanceswhereAeconisunabletosatisfytheliquidityrights,couldleadtoasaleofsomeor alloftheutilitiesbusiness.Furthermore,theinterestsofOaktreemaydifferfromtheinterestsofAeconand itsshareholdersinmaterialrespects.Inthatregard,Oaktreemayfromtimetotimehaveotherinvestments thatarepermitted,subjecttocertainconditionsprovidedintheshareholders’agreement,tocompetewith thebusinessofAUGI.

2.Liquidity, Capital Resources and Financial Position Risks

a.Ongoing Financing Availability

Aecon’s business strategy involves the selective growth of its operations through internal growth and acquisitions.Aeconrequiressubstantialworkingcapitalduringitspeakbusyperiod.Aeconreliesonits cashpositionandtheavailabilityofcreditandcapitalmarketstomeettheseworkingcapitaldemands.As Aecon’sbusinessgrows,Aeconiscontinuallyseekingtoenhanceitsaccesstofundinginordertofinance theworkingcapitalassociatedwiththisgrowth.However,giventheexpecteddemandforinfrastructure servicesoverthenextseveralyearsbasedonannouncedgovernmentinfrastructureprogramsandrelated investmentcommitmentsandthesizeofmanyoftheseprojects,Aeconmaybeconstrainedinitsabilityto capitalizeongrowthopportunitiestotheextentthatfinancingiseitherinsufficientorunavailable.Further, instabilityordisruptionofcapitalmarkets,oraweakeningofAecon’scashpositioncouldrestrictitsaccess toorincreasethecostofobtainingfinancing.Aeconcannotguaranteethatitwillmaintainanadequatecash flowtofunditsoperationsandmeetitsliquidityneeds.Additionally,ifthetermsofAecon’screditfacilities arenotmetandcompliancewithitscovenantsarenotachieved,lendersmayterminateAecon’srighttouse itscreditfacilitiesordemandrepaymentofwholeorpartofalloutstandingindebtedness,whichcouldhave amaterialadverseeffectonAecon’sfinancialposition.Oneormorethirdpartiesdrawingonlettersofcredit orguaranteescouldhaveamaterialadverseeffectonAecon’scashpositionandoperations.

SomeofAecon’sclientsalsodependontheavailabilityofcredittofinancetheirprojects.Ifclientscannot arrangefinancing,projectsmaybedelayedorcancelled,whichcouldhaveamaterialadverseeffecton Aecon’sgrowthandfinancialposition.Areductioninaclient’saccesstocreditmayalsoaffectAecon’s abilitytocollectpayments,negotiatechangeorders,andsettleclaimswithclientswhichcouldhavea materialadverseeffectonAecon’sfinancialposition.

b.Access to Bonding, Pre-qualification Rating and Letters of Credit

ManyofAecon’sconstructioncontractsrequiresufficientbonding,pre-qualificationratingorlettersofcredit. Theissuanceofbondsundersuretyfacilitiesisatthesolediscretionofthesuretycompanyonaprojectby-projectbasis.Assuch,evensizeablesuretyfacilitiesarenoguaranteeofsuretysupportonanyspecific individualproject.AlthoughtheCompanybelievesitwillbeabletocontinuetomaintainsuretycapacity adequatetosatisfyitsrequirements,shouldthoserequirementsbemateriallygreaterthananticipated,or shouldsufficientsuretycapacitynotbeavailabletoAeconoritsjointoperationpartners(see“RiskFactors -LargeProjects”herein)forreasonsrelatedtoaneconomicdownturn,Aecon’sfinancialperformanceor otherwise,orshouldthecostofbondingrisesubstantially(whetherAeconspecificorindustrywide),these eventsmayhaveanadverseeffectontheabilityofAecontooperateitsbusinessortakeadvantageofall marketopportunities.TheCompanyalsobelievesthatithassufficientcapacitywithrespecttolettersof credittosatisfyitsrequirements,butshouldtheserequirementsbemateriallygreaterthananticipatedor shouldindustrycapacitybemateriallyimpactedbydomesticorinternationalconditionsunrelatedtoAecon, thismayhaveanadverseeffectontheabilityofAecontooperateitsbusiness.

c.Adjustments in Backlog

TherecanbenoassurancethattherevenuesprojectedinAecon’sbacklogatanygiventimewillberealized or, ifrealized,thattheywillperformasexpectedwithrespecttomargin.Projectsmayfromtimetotimeremain

inbacklogforanextendedperiodoftimepriortocontractcommencement,andaftercommencementmay occurunevenlyovercurrentandfutureearningsperiods.Projectsuspensions,terminationsorreductions inscopedooccurfromtimetotimeintheconstructionindustryduetoconsiderationsbeyondthecontrol ofacontractorsuchasAeconandmayhaveamaterialimpactontheamountofreportedbacklogwith acorrespondingimpactonfuturerevenuesandprofitability.Avarietyoffactorsoutlinedinthese“Risk Factors”including,withoutlimitation,thefailuretoreplacetherevenuegeneratedfromlargeprojectsona goingforwardbasis,conditionsinresourcerelatedsectorsandtheimpactofeconomicweaknesscouldlead toprojectdelays,reductionsinscopeand/orcancellationswhichcould,dependingonseverity,negatively affecttheabilityoftheCompanytoreplaceitsexistingbacklog,whichmayadverselyimpactresults.

d.Tax Accrual Risks

AeconissubjecttoincometaxesinCanadaandseveralforeignjurisdictions.Significantjudgmentisrequired indeterminingtheCompany’sworldwideprovisionforincometaxes.Intheordinarycourseofbusiness, therearemanytransactionsandcalculationswheretheultimatetaxdeterminationisuncertain.Although Aeconbelievesitstaxestimatesarereasonable,therecanbenoassurancethatthefinaldetermination ofanytaxauditsandlitigationwillnotbemateriallydifferentfromthatreflectedinhistoricalincometax provisionsandaccruals.Althoughmanagementbelievesitadequatelyprovidesforanyadditionaltaxesthat maybeassessedasaresultofanauditorlitigation,theoccurrenceofeitheroftheseeventscouldhavea materialadverseeffectontheCompany’scurrentandfutureresultsandfinancialcondition.

e.Impairment in the Value of Aecon’s Assets

NeweventsorcircumstancesmayleadAecontoreassessthevalueofgoodwill,property,plantand equipment,andothernon-financialassets,andrecordasignificantimpairmentloss,whichcouldhave amaterialadverseeffectonitsfinancialposition.Goodwillandintangibleassetswithindefinitelivesare testedforimpairmentbyapplyingafairvaluetestinthefourthquarterofeachyearandbetweenannual testsifeventsoccurorcircumstanceschange,whichsuggestthegoodwillorintangibleassetsshouldbe evaluated.Thenetcarryingamountsofproperty,plantandequipmentassetsarereviewedforimpairment eitherindividuallyoratthecash-generatingunitlevelwheneventsandchangesincircumstancesindicate thecarryingamountmaynotberecoverable.Aecon’sfinancialassets,otherthanthoseaccountedforatfair value,areassessedforindicatorsofimpairmentquarterly.Insuchcases,Aeconmayberequiredtorecord anexpectedcreditlossallowance,reducingthenetcarryingvalueofthefinancialassets.Aecon’sestimates offuturecashflowsareinherentlysubjective,whichcouldhaveasignificantimpactontheanalysis.Further, therecouldbeamaterialadverseeffectonAecon’sfinancialpositionandcomplianceunderitscredit facilitiesfromanyfuturewrite-offsorwrite-downsofAecon’sprojects,assetsorinthecarryingvalueofits investments.

f.Dependence on Subsidiaries to Help Repay Indebtedness

AsignificantportionoftheCompany’sassetsisthecapitalstockofitssubsidiaries,andtheCompany conductsanimportantportionofitsbusinessthroughitssubsidiaries.Consequently,theCompany’scash flowandabilitytoserviceitsdebtobligationsaredependenttoagreatextentupontheearningsofits subsidiariesandthedistributionofthoseearningstotheCompany,oruponloans,advancesorother paymentsmadebytheseentitiestotheCompany.

TheCompany’ssubsidiariesareseparateanddistinctlegalentitiesandmayhavesignificantliabilities.The abilityoftheseentitiestopaydividendsormakeotherloans,advancesorpaymentstotheCompanywill

dependupontheiroperatingresultsandwillbesubjecttoapplicablelawsandshareholderagreements. Inaddition,certainotheragreementsgoverningcertainsubsidiariesoftheCompanycontainrestrictions onthepaymentofdividendsanddistributions,aswellasspecifiedliquiditycovenants.Also,anumberof theCompany’smaterialsubsidiarieshaveprovidedguaranteesoftheCompany’sprimarythird-partydebt instrumentsandobligations,includingtheCompany’sCreditAgreements.

TheabilityoftheCompany’ssubsidiariestogeneratesufficientcashflowfromoperationswilldepend ontheirfuturefinancialperformance,whichwillbeaffectedbyarangeofeconomic,competitive,and businessfactors,manyofwhichareoutsideofthecontroloftheCompanyoritssubsidiaries.Thecash flowandearningsoftheCompany’soperatingsubsidiariesandtheamountthattheyareabletodistribute totheCompanyasdividendsorotherwisemaybeinsufficienttosatisfytheCompany’sdebtobligations. Accordingly,theCompanymayhavetoundertakealternativefinancingplans,suchasrefinancingor restructuringitsdebt,sellingassets,reducingordelayingcapitalinvestmentsorseekingtoraiseadditional capital.TheCompanycannotassurethatanysuchalternativeswouldbepossible,thatanyassetscouldbe sold, or, ifsold,ofthetimingofthesalesandtheamountofproceedsrealizedfromthosesales,andthat additionalfinancingcouldbeobtainedonacceptableterms,ifatall.TheCompany’sinabilitytogenerate sufficientcashflowtosatisfyitsdebtobligations,ortorefinanceitsobligationsoncommerciallyreasonable terms,wouldhaveamaterialadverseeffectonitsbusiness,financialcondition,andresultsofoperations.

g.Dividends

Thedeclarationandpaymentofdividendsoncommonsharesareatthediscretionoftheboardof directorsoftheCompany.Thecashavailablefordividendsisafunctionofnumerousfactors,includingthe Company’sfinancialperformance,dividendsandcashflowfromsubsidiaries,theimpactofinterestrates, debtcovenantsandobligations,workingcapitalrequirementsandfuturecapitalrequirements.Accordingly, thereisnoguaranteethatAeconwillbeabletopayanycashdividendsonthecommonshares.

3.International/Foreign Jurisdiction Factors

Aeconisfromtimetotimeengagedinprojectsinforeignjurisdictions,focusingonitscoremarkets,namely Canada,theUnitedStates,theCaribbeanandLatinAmericannations.Internationalprojectscanexpose AecontorisksbeyondthosetypicalforitsactivitiesinCanada,itshomemarket,includingwithoutlimitation, economic,geopolitical,geotechnical,militaryrisks,limitationsonrepatriationofundistributedprofits, currencyandforeignexchangerisks,adoptionofneworexpansionofexistingtariffsand/ortaxesorother restrictions,sanctionsrisk,partnerorthird-partyintermediarymisconductrisks,difficultiesinstaffingand managingforeignoperations,andotherrisksbeyondtheCompany’scontrol,includingthedurationand severityoftheimpactofglobaleconomicdownturns.

a. Tax

TheCompanyissubjecttoincometaxesinvariousforeignjurisdictions.Asignificantchangeintaxlawscould haveanadverseeffectonAecon’sprofitability.Morethan100foreignjurisdictionshaveagreedtoimplement anewglobalminimumtaxregime(“PillarTwo”)basedonmodelrulespublishedbytheOrganizationfor EconomicCooperationandDevelopment.TheproposedPillar Two rulesareintendedtoensurethatlarge qualifyingmultinationalenterprises(“MNE”)payaminimumtaxof15%ontheincomearisingineach

jurisdictioninwhichtheyoperate. To theextentthataqualifyingMNEs’effectivetaxrateequalsorexceeds atleast15%forthefiscalyearendingDecember31,2024,ormeetsthequalifiedsubstance-basedincome exclusion,theywillqualifyfortheTransitionalCountrybyCountrySafeHarbor(“TCSH”)forfiscalyears 2024-2026,whichprovidesanexemptionfrompreparingdetailedGLoBEcalculationsandreportingfor thejurisdiction.TheEffective Tax Ratetestrequiresaminimumof16%forfiscalyearsbeginningin2025, and17%forfiscalyearsbeginningafterDecember31,2025.TheimpactonAeconwilldependonhow eachjurisdictionimplementsthemodelrules,aswellastheprofitabilityandlocaltaxliabilitiesofAecon’s operationsinthosejurisdictions.

b.Corruption and Bribery

TheCanadian Corruption of Foreign Public Officials Act andsimilaranti-corruptionlawsinotherjurisdictions generallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstopublicofficialsor othersforthepurposeofobtainingorretainingbusiness.WhileAecon’spoliciesmandatecompliancewith theseanti-corruptionlaws,Aeconmayinthefutureoperateinpartsoftheworldthathaveexperienced corruptiontosomedegree.Aecontrainsitsemployeeswithrespecttoanti-corruptionissues,andtakes stepstorequireitspartners,subcontractors,suppliers,vendors,agentsandotherswhoworkforAeconor onitsbehalftocomplywithanti-corruptionlaws.Aeconhasproceduresandcontrolsinplacetoperform appropriateduediligenceandmonitorcompliance.However,thereisnoassurancethatAecon’sinternal controlsandprocedureswillalwaysprotecttheCompanyfrompossibleimproperpaymentsmadebyits employeesoragents.IfAeconisfoundtobeliableforviolatinganti-corruptionlaws,theCompanycould sufferfromcriminalorcivilpenaltiesorothersanctions,includingcontractcancellationsordebarmentand lossofreputation,anyofwhichcouldhaveamaterialadverseeffectonitsbusiness.

Moneylaunderingandrelatedcrimesposeathreattothestabilityandintegrityofthefinancialsectorand thebroadereconomy.Consequently,theinternationalcommunityisincreasinglyprioritizingitsfightagainst theseillegalactivities.Aeconiscommittedtoallanti-moneylaunderingregulatoryrequirementsandhas implementedprocedures,processesandcontrolswithrespecttoduediligence,recordkeeping,reporting andtraininginjurisdictionsinwhichitoperates,toattenuateexposuretosuchillegalactivities.However, therearenoassurancesthatAecon’sprocedures,processesandcontrolswillbesufficienttopreventor detecttheoccurrenceofmoneylaunderingandrelatedcrimes.

c.Contracts and Transactions

Aeconcontinuallyevaluatesitsexposuretounusualrisksinherentininternationalprojectsand,where deemedappropriateinthecircumstances,mitigatestheserisksthroughspecificcontractprovisions, insurancecoverageandforwardexchangeagreements.However,therearenoassurancesthatsuch measureswouldoffsetormateriallyreducetheeffectsofsuchrisks.Foradditionaldetails,seeNote30 “FinancialInstruments”totheCompany’sauditedconsolidatedfinancialstatementsandthenotesthereto fortheyearendedDecember31,2024.

Transactionalforeignexchangerisksareactivelymanagedandhedgedwherepossibleandconsidered costeffective,whendirectlytiedtoquantifiablecontractualcashflowsaccruingdirectlytoAeconwithin periodsofoneortwoyears.Operationsinforeignjurisdictions,includingmajorprojectsexecutedthrough jointoperations,generallyhavealongertermandresultinforeignexchangetranslationexposuresthat Aeconhasnothedged.SuchtranslationexposurewillhaveanimpactonAecon’sconsolidatedfinancial

results.Practicalandcost-effectivehedgingoptionstofullyhedgethislonger-termtranslationalexposure are not generally available.

d.Political and Social Instability

Aecon’sinternationaloperationsaresubjecttorisksrelatedtopoliticalconditionsincertainforeign jurisdictionswhereitoperates,includingembargoesandsanctions,civilunrest,expropriationofproperty andotherformsofunexpectedinstabilitywhichmayadverselyimpacttheCompany’sresults.

e.Repatriation of Funds

TherepatriationofcashintheformofdividendsfromAecon’sforeignaffiliatesisatthediscretionofthe localmanagementoftheCompany.Thecashavailablefordividendsisafunctionofnumerousfactors, includingtheCompany’sfinancialperformance,cashflowfromoperations,theimpactofdebtcovenants, warrantiesandotherobligations,withholdingtaxobligations,andworkingcapitalrequirements.Accordingly, theamountofcashAeconcanrepatriateisuncertain,andtherefore,thereisnoguaranteethatAeconwill be able to pay any cash dividends.

4.Risks Related to Information Systems, Technology and Intellectual Property

a.Cyber Interruption or Failure of Information Systems

Aeconreliesextensivelyoninformationsystems,dataandcommunicationnetworkstoeffectivelymanage itsoperations.Complete,accurate,availableandsecureinformationisvitaltotheCompany’soperations andanycompromiseinsuchinformationcouldresultinimproperdecisionmaking,inaccurateordelayed operationaland/orfinancialreporting,delayedresolutiontoproblems,breachofprivacyand/orunintended disclosureofconfidentialmaterials.Aeconhasestablishedsafeguardsandaccesscontrolstoprotectits informationsystemsandinfrastructureandhasputinplaceacyberinsurancepolicytomitigateimpactsof cyber incidents.

Aeconreliesoninformationtechnologysystemstomanageitsoperations,includingforreportingitsresults ofoperations,collectionandstorageofclientdata,personaldataofemployeesandotherstakeholders, andvariousotherprocessesandtransactions.Someofthesesystemsaremanagedbythird-partyservice providersthatareengagedandgivenaccessto,orstorageof,Aecondata.Aeconhassimilarexposureto securityrisksfacedbyotherlargecompaniesthathavedatastoredontheirinformationtechnologysystems.

WhileransomwareremainsasignificantcyberthreattoAeconandotherorganizationsonline,sincethe onsetoftheCOVID-19pandemicin2020,businesseshavealsofacedincreasedcyberrisksrelatedto employeesworkingremotely.Cybercriminalsareadaptingtheirtactics,makingremoteworkagateway tonewformsofdatatheft,includingemployees’personalinformation,corporatedata,clientandcustomer information,intellectualpropertyandkeyinfrastructure.Aeconhasalsoobservedanincreaseinfraudulent e-mails,spamandphishingattemptsthroughitscorporatee-mail.Aeconhastakenstepstomitigate ransomwarerisks,includingemployeetraining,detectionandmonitoringsystems.

Giventherapidevolutionandsophisticatedlevelofcyberincidents,securitymeasuresandcontrols implementedbyAeconmaynotbesufficienttopreventthird-partyaccessofdigitaldatafromAecon’sorits third-partyserviceproviders’systemswiththeintenttomisappropriateinformation,corruptdataorcause

operationaldisruptions.SuchincidentscouldcausedelaysintheCompany’soperationsandconstruction projects,resultinlostrevenuesduetoadisruptionofactivities,leadtotheloss,destruction,inappropriate useortheftofconfidentialdata,orresultintheftofconfidentialinformation,includingtheCompany’sor itsclients’orjointarrangementpartners’intellectualproperty.Ifanyoftheforegoingeventsoccurs,the Companymaybeexposedtoanumberofconsequences,includingpotentiallitigationorregulatoryactions andreputationaldamage,whichcouldhaveamaterialadverseeffectontheCompany.

b.Outsourced Software

Aeconreliesonthird-partyprovidersofsoftwareandinfrastructuretoruncriticalaccounting,project managementandfinancialsystems.Discontinuationofdevelopmentormaintenanceofthird-partysoftware andinfrastructurecouldcauseadisruptioninAecon’ssystems.

c.Protection of Intellectual Property and Proprietary Rights

TheCompanydepends,inpart,onitsabilitytoprotectitsintellectualpropertyrights.Aeconreliesprimarily onpatent,copyright,trademarkandtradesecretlawstoprotectitsproprietarytechnologies.Thefailureof anypatentsorotherintellectualpropertyrightstoprovideprotectiontoAecon’stechnologieswouldmakeit easierforcompetitorstooffersimilarproductsorservices,whichcouldresultinlowersalesorgrossmargin.

TheCompany’strademarksandtradenamesareregisteredinrelevantjurisdictionswhereitoperates andtheCompanyintendstokeepthesefilingscurrentandseekprotectionfornewtrademarkstothe extentconsistentwithbusinessneeds.TheCompanyreliesontradesecretsandproprietaryknow-howand confidentialityagreementstoprotectcertainofitstechnologiesandprocesses.

d.Artificial Intelligence Risk

Withrapidadvancesintechnology,AeconcontinuestoobservegrowthinapplicationsofArtificialIntelligence (“AI”).AlongsidethepotentialbenefitsofAItoolsandtechnologycomeriskssuchasAIsystemsinheriting oramplifyingbiaswhichcouldleadtoimpaireddecision-making.AeconhasadoptedanAIUsePolicyand establishedanAIGovernanceCouncil,comprisedofseveralexecutiveandseniorvicepresidentsofAecon, tooverseeAIgovernanceandriskmanagementpractices,buthumanoversightmaynotbesufficientto addresschallengesposedbytherapidevolutionofAI,includingdataprivacyandothersecurityviolations.

5.Economic and Strategic Risks

a.Economic

Factors

Aecon’sprofitabilityiscloselytiedtothegeneralstateoftheeconomyinthosegeographicareasinwhichit operates.Morespecifically,thedemandforconstructionandinfrastructuredevelopmentservices,whichis theprincipalcomponentofAecon’soperations,wouldtypicallybethelargestsingledriveroftheCompany’s growthandprofitability.Inperiodsofstrongeconomicgrowthandinsomecasesinperiodsofeconomic recovery,thereisgenerallyanincreaseinthenumberofopportunitiesavailableintheconstructionand infrastructuredevelopmentindustryascapitalspendingincreases.Inperiodsofweakeconomicgrowth, thedemandforAecon’sservicesfromprivatesectorandpublicauthorityclientsmaybeadverselyaffected.

InflationasmeasuredbytheConsumerPriceIndex(CPI)inCanadarose2.4%onanannualbasisin2024, downfrom3.9%in2023,followinga40-yearhighincreaseof6.8%in2022anda3.4%increasein2021. Thedecreaseininflationin2024hasresultedinrecentcutstointerestrates,whiletheincreaseininflation in2022and2023resultedininterestrateincreasescommencingin2022andcontinuinginto2023.Until inflationisbacktoaleveldeemedappropriateforastableeconomy,futureincreasesininterestratesare possible.HigherinflationandaresultingmonetarytighteningpolicyincreasesAecon’sborrowingcosts andcanresultinincreasedcostsforlabour,rawmaterials,andotherinputstotheextentthesecannotbe passedontoclients.Itmayalsoimpactthedecisionsofprivateandpublicsectorclientswhenconsidering whethertoproceedwithprojectsthatmightotherwisehavegoneahead.

InNorthAmerica,whichtendstohaverelativelysophisticatedinfrastructure,Aecon’sprofitabilityis dependentbothonthedevelopment,rehabilitation,andexpansionofbasicinfrastructure(suchas,among others,highways,airportterminals,transitsystemsandpowerplants)andonthetypeofinfrastructurethat flowsfromcommercialandpopulationgrowth.Commercialgrowthdemandsincrementalfacilitiesforthe movementofgoodswithinandoutsideofthecommunity,alongwithwaterandsewersystemsandheat, lightandpowersupplies.Populationgrowthcreatesaneedtomovepeopletoandfromwork,schools.and otherpublicfacilities,anddemandssimilarservicestonewhomes.Growthinbothoftheseareas,withthe possibleexceptionofroadmaintenanceandconstruction,isdirectlyaffectedbythegeneralstateofthe localeconomy.

TheongoinguncertaintiesregardingaprolongedeconomicdownturninthemarketsinwhichAecon operates,relatedconstraintsonpublicsectorfunding,includingasaresultofgovernmentdeficitsandthe ultimateabilityofgovernmentactiontocontributetoaneconomicreboundmayimpactAecon’sclientsand itsbusinessin2025andbeyondandmayhaveasignificantadverseimpactonAecon’soperations.

b.Tariffs

EffectiveMarch4,2025,theUnitedStatesimposedtariffsonimportsfromanumberofcountries,including 25%tariffsonallgoodsfromCanadaand10%tariffsonCanadianenergyimports.TheGovernment ofCanada,othernations,andsub-nationalgovernmentssubsequentlyannouncedorthreatened certainretaliatorymeasures,includingcountertariffs.Theimpactofanytariffsorothermeasures,once implemented,issubjecttoanumberoffactors,includingtheeffectivedateanddurationofsuchtariffsor measures,changesintheamount,scopeandnatureofthetariffsormeasuresinthefuture,anyfurther countermeasuresthatmaybetaken(whichcouldincreasethecostoravailabilityofmaterialsforAeconor itsclients),andanymitigatingactionsthatmaybecomeavailable.Theintroductionoftariffsornon-tariff measurescouldcausesomevolatilityforAeconandsomepurchasedmaterialscouldbeimpactedand increasecostsand/orreduceavailability,throughpriceincreasesand/orreducedavailability.Effortswould bemadetomitigatetheseimpactsbypurchasingfromalternativesourcesorbypassingtheseescalated costsontoclients.Additionally,someclientscouldbeimpactedbytariffsornon-tariffmeasures,resulting inlessspendingbycustomersonconstructionprojects.Higherrawmaterialcostsbroughtaboutbytariffs orothermeasures,ordelayedorcancelledprojectscouldhaveamaterialadverseeffectonAecon’sfuture earningsandfinancialposition.

c.Increases in the Cost of Raw Materials

ThecostofrawmaterialsrepresentsasignificantcomponentofAecon’soperatingexpenses.Ascontractors arenotalwaysabletopasssuchrisksontotheircustomers,unexpectedincreasesinthecostofraw materialsmaynegativelyimpacttheCompany’sresults.Inflationonthecostofrawmaterials,increased

demandforrawmaterialsusedinconstruction,suchasmetals,cementandwoodproducts,resultingin periodicsupplyshortagesaswellasinflationaswellassupplychaindisruptionshascontributedtoan increaseinrawmaterialpriceswithupstreamimpactsthroughglobalsupplychains.Tariffsonrawmaterials betweennationsmayalsoimpactthecostofrawmaterialsfromtimetotime.Unanticipatedfluctuationsin thecostsofrawmaterialsandperiodicsupplyshortagesmayaddasignificantrisktomanyvendorsand subcontractors,someofwhommayrespondbynolongerguaranteeingpriceoravailabilityonlong-term contracts, which in turn increases the risk for contractors who are not always able to pass this risk on to theircustomers.AlthoughAeconattemptstomitigatetheserisksthroughcontractualmeansorpurchasing approaches,thereisnoguaranteethatincreasestoinputcostswillnotnegativelyimpactAecon’sfuture earningsandfinancialposition.

d.Resources and Commodities Sector

Delays,scopereductionsand/orcancellationsinpreviouslyannouncedoranticipatedprojectsinthe resourcesandcommoditiessectorcouldbeimpactedbyavarietyoffactors.Generalfactorsincludebut arenotlimitedto:thepricesofoil,naturalgasandothercommodities;marketvolatility;theimpactofglobal economicconditionsaffectingdemandortheworldwidefinancialmarkets;costoverrunsonannounced projects;effortsbyownerstocontractuallyshiftriskforcostoverrunstocontractors;fluctuationsinthe availabilityofskilledlabour;lackofsufficientgovernmentalinvestmentorinfrastructuretosupportgrowth; theintroductionorrepealofclimatechangeorenvironmentally-focusedlegislation(suchasacarbontax); negativeperceptionoftheoilsandsandgasindustryandrelatedpotentialenvironmentalimpact;theneed forconsentfromorconsultationwithIndigenouspeoplesimpactedbyproposedprojects;andashortageof sufficientpipelineand/ortransportationinfrastructuretotransportproductiontomajormarkets.

Thepricesofoil,naturalgasandothercommoditiesaredeterminedbasedonworlddemand,supply, production,speculativeactivitiesandotherfactors,allofwhicharebeyondthecontroloftheCompany. InvestmentdecisionsbysomeofAecon’sclientsaredependentontheclients’outlookonlong-term commodityprices.Ifthatoutlookisunfavourableitmaycausedelay,reductionorcancellationofcurrent andfutureprojects,includingpipelineprojects.Amaterialreductioninoilandgasdevelopment,commodity mining,transportationordistributionactivitiesandcapitalexpenditureplansofsomeoftheCompany’s clientsdueto,amongotherreasons,theperceptionthatapandemic,warorothersimilarlydisruptive internationalcrisismayhavelastingimpactsontheconsumptionofoil,gas,andothercommodities,could haveanegativeeffectonthefrequency,numberandsizeoftheprojectsforwhichtheCompanywouldbid (Forgreaterdetail,see“RiskFactors–ForceMajeureEvents”herein.).

Giventhevolatilityofworldoil,naturalgasandcommodityprices,asustainedperiodoflowpricesona goingforwardbasisforanyreasonmayresultinmaterialdifferencesinpreviouslyprojectedresource developmentprojects.Postponementsorcancellationsofinvestmentinexistingandnewprojectscould haveanadverseimpactonAecon’sbusinessandfinancialcondition.

6.Risks Related to Climate Change

Globalclimatechangecontinuestoattractconsiderablepublic,scientificandregulatoryattention,while climatechangepolicycontinuestoevolveatregional,nationalandinternationallevels.Aeconcarefully considersthephysicalandnon-physicalimpactsofclimatechangeonthecompany.

a.Transitioning to a Net-Zero Economy

Thetransitiontoanet-zeroeconomyhasthepotentialtobedisruptivetotraditionalbusinessmodelsand investmentstrategies.Aecon’sprivateand/orpublic-sectorclientsmayshifttheirinfrastructureprioritiesdue tochangesinprojectfunding,regulatoryrequirementsorpublicperception.Thisriskcanbemitigatedtoan extentbyidentifyingchangingmarketdemandstooffsetlowerdemandinsomesectorswithopportunities inothers(i.e.theenergytransitionsector,emergencypreparednessandwastewatertreatment),forming strategic partnerships and pursuing sustainable innovations.

Governmentactiontoaddressclimatechangemayinvolveeconomicinstrumentssuchascarbonand energyconsumptiontaxes,restrictionsoncertaineconomicsectorsusingtoolssuchascap-and-trade, increasingefficiencystandardsandmorestringentregulationandreportingofgreenhousegasemissions thatcouldalsoimpactAecon’scurrentorpotentialclientsoperatinginindustriesthatextract,distributeand transport fossil fuels.

b.Financial Impacts

Asnewclimatechangemeasuresareintroducedorstrengthened,Aecon’scostofbusiness,including insurancepremiums,mayincrease,andtheCompanymayincurexpensesrelatedtocomplyingwith environmentalregulationsandpoliciesincountriesorregionswhereitdoesbusiness.Suchcostsmay includepurchasingnewequipmentandmaterialstoreduceemissionstocomplywithnewregulatory standardsortomitigatethefinancialimpactofdifferentformsofcarbonpricing.Inaddition,Aeconmayincur costsrelatedtoengagingwithgovernments,regulatorsandindustryorganizationsfornewmandateson infrastructureprojects,proactivelyandregularlymonitoringregulatorytrendsandimplementingadequate complianceprocesses.Aecon’sinabilitytocomplywithclimatechangelawsandregulationscouldalso resultinpenaltiesandlawsuitsandreputationaldamagethatmayimpairAecon’sfutureprospects.

c.Sustainability (ESG) Reporting

Aeconissubjecttoincreasedpressuretocomplywithnewregulatoryrequirementsandmeetstakeholder expectationswhenaddressingsustainabilityissues.Regulatorysustainability(ESG)reportingmayresult inincreasedcompliancecosts.Aeconaimstoalignwithbestpracticesforsustainabilityreporting,in compliancewithbothnationalandinternationalframeworks,butthereisriskthatdifferentstakeholder groupsmayhavedivergentviewsonsustainabilityrelatedmatters,whichincreasestheriskthatanyaction, orinaction,bytheCompanycouldbeperceivednegativelybyatleastsomestakeholders.

d.Carbon Transition Technologies

InApril2021,Aeconannounceditsplantoreachnet-zeroby2050,withaninitialinterimtargettoachieve a30%reductionindirectCO2emissionsby2030ascomparedto2020.Aecon’sgreenhousegas(“GHG”) emissionreductiontargetsareintensity-basedtargetsbasedoneconomicoutputandrepresenttonnes ofCO2permilliondollarsofrevenue.WhileAeconisfullycommittedtoreachingthesetargetsbydriving operationalefficiencyandacceleratingtheadoptionofnewtechnology,factorssuchasaninabilitytoprocure loweremissionvehiclesinaccordancewithAecon’splansduetosupplychainconstraints(e.g.tariffson renewablediesel)orthatsuchvehiclesarenotavailableoncommerciallyreasonableterms,delaysinthe availabilityofsuitablenewtechnologysuchaslowemissionconstructionequipment,reversalofcleanfuels standards,andgovernmentandclientdecisionstonotallowlowercarbonalternativestoconventional

constructionmaterialscouldcauseAecontofailtomeetitscommitmentsinthetimeframesithassetout or at all.

e.Market and Reputation

InvestorsandotherstakeholdersinCanadaandworldwideareattunedtoclimatechangeactionand sustainabilitymatters,includingscrutinyoftheeffortsmadebycompaniestoreducetheircarbonfootprint. Moreover,stakeholdersincreasinglyhavehigherexpectationsofhowbusinessesrespondtoclimatechange issues,specificallythosethataremostmaterialtotheirbusiness.ThenewBillC-59,whichintroduced environmentally-orientedupdatestothe Competition Act,hasplacedincreasedscrutinyonenvironmental claims.Companiesarenavigatingevolving“greenwashing”concernsandtheexpectationthattheyare transparentaboutsustainabilitytargetsandperformanceandnotoverstatingtheirsustainabilitycredentials. Aeconmaybesubjecttoabroadrangeofadditionalenvironmentalinformationrequestsbycustomers, potentialcustomersandotherstakeholdersincertainregionsandincreasinglevelsofdisclosureregarding climate-relatedenvironmentalperformance.Aecon’sreputationmaybeharmedifitisnotperceivedbyits stakeholderstobesincereinitssustainabilitycommitmentanditslong-termresultsmaybeimpactedas aresult.Inaddition,Aecon’sapproachtoclimatechangeissuesmayincreasinglyinfluencestakeholders’ viewsoftheCompanyinrelationtoitspeersandtheirinvestmentdecisions.

f.Climate Change

ManyofAecon’sconstructionactivitiesareperformedoutdoors.Theprobabilityandunpredictabilityof extremeweathereventsandotherassociatedincidentsmaycontinuetoincreaseduetoclimatechange andwemaycontinuetoseelonger-termshiftsinclimatepatterns.Increasesintheseverityand/orfrequency ofweatherconditionsduetoclimatechangesuchasearthquakes,hurricanes,tornadoes,fires,floods, droughtsandsimilarevents,maycausemoreregularandsevereinterruptionsinAecon’sbusiness.Severe weathereventsmayalsoimpacttheavailabilityandcostofrawmaterialsandmayimpacttherawmaterials supplychainanddisruptkeymanufacturingfacilities.See“RiskFactors–WeatherConditions”hereinfor furtherdetails.EachofthesefactorsmayposeafinancialrisktoAecon’sbusinessorotherwisehavea materialadverseeffectonitsfinancialposition.

7.Social Risks

a.Human Capital

Thedevelopment,attractionandretentionofemployeesisacriticalsuccessfactorforAecon.The Company’scontinuedgrowthandfuturesuccessdependsonitsabilitytoidentify,recruit,assimilateand retainkeymanagement,technical,projectandbusinessdevelopmentpersonnel.Aeconalsocontinuesto emphasizeemployeedevelopmentandtrainingtoempoweritsemployeestounleashtheirfullpotentialand hasimplementedprogramstohelpidentifytopperformersandrisingtalent.Thecompetitionfortoptalent, particularlyduringperiodsofhighdemandincertainsectors,isintenseandtherecanbenoassurancethat theCompanywillbesuccessfulinidentifying,recruitingorretainingsuchpersonnel.

Moreover,effectivesuccessionplanningisacriticalelementofAecon’stalentmanagementstrategy.The Companyinvestsinleadershipdevelopment,butthefailuretoensureeffectiveknowledgetransferand leadershiptransitionscouldimpactitsimplementationofitsstrategicplan.

b.Human Rights

Companies,includingAecon,areunderincreasingscrutinytoaddresshumanrightsissues,includingsocial, genderandracialinequality.Aeconhasmadeeffortstoaddresssystemicandinstitutionalracismandother formsofdiscrimination,includingundertakingadiversitycensusofitsworkforce,expandingitsdiversityand inclusioninitiatives,introducingmandatorydiversityandinclusiontrainingforemployeesandformalizinga clearprocesstobefollowedbyAeconleaderswhobecomeawareofanincidentofracismordiscrimination of any kind. Aecon publicly reports under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Canada).Failuretoeffectivelyimplementtheseinitiativesmayresultinstrategic,reputational and regulatory risks for Aecon.

8.General Risks

a.Shareholder Activism

Inrecentyears,publiclytradedcompanieshavebeenincreasinglysubjecttodemandsfromactivist shareholders advocating for changes to corporate governance practices or engaging in certain corporate actions.Respondingtochallengesfromactivistshareholders,suchasproxycontests,mediacampaignsor otheractivities,couldbecostlyandtimeconsumingandcouldhaveanadverseeffectontheCompany’s reputationanddiverttheattentionandresourcesoftheCompany’smanagementandBoardofDirectors. Additionally,actionsofactivistshareholdersmaycausefluctuationsinAecon’ssharepricebasedon temporaryorspeculativemarketperceptionsorotherfactorsthatdonotnecessarilyreflecttheunderlying fundamentalsandprospectsoftheCompany.

14. OUTSTANDING SHARE DATA

Aeconisauthorizedtoissueanunlimitednumberofcommonshares.Thefollowingaredetailsofcommon sharesoutstandingandsecuritiesthatareconvertibleintocommonsharesofAeconGroupInc.

15. OUTLOOK

Revenuein2025isexpectedtobestrongerthan2024duetoanopeningbacklogof$6.7billioncombined withrecentnewawardsinthefirstquarter,theimpactofbusinessacquisitionscompletedinthesecond halfof2024,solidrecurringrevenue,andastrongbidpipeline.Revenuegrowthisexpectedinmostofthe Constructionsectors,asprogressivedesign-buildoralliancemodelprojectsmoveintotheconstruction phasein2025and2026.

IntheConstructionsegment,demandforAecon’sservicesacrossCanada,aswellasincreasinglyinselect U.S.andinternationalmarkets,continuestobestrong.Developmentphaseworkisongoinginconsortiums inwhichAeconisaparticipanttodeliverseveralsignificantlong-termprogressivedesign-buildprojectsof varioussizes.Inthefirstquarterof2025,anAecon-ledconsortiumcompletedthecollaborativedevelopment phaseandreachedcommercialcloseontheScarboroughSubwayExtensionprogressivedesign-build transitproject.Theimplementationphaseoftheprojectwillnowcommenceunderatargetpricecontract. Aecon’sshareofthecontractisvaluedat$2.8billionandwillbeaddedtoitsConstructionsegmentbacklog inthefirstquarterof2025andwillnolongerbeinrecurringrevenue.Aswell,otherprojectscurrentlybeing deliveredusingprogressivedesign-buildoralliancemodelsandprojectsarealsoexpectedtomoveinto constructionin2025and2026.Inaddition,Aeconanditsconsortiumpartnerwererecentlyawardeda collaborativecontractbyOntarioPowerGenerationwhichincludesthedefinitionphaseworkfortheretube, feederandboilerreplacementofUnits5,6,7and8atthePickeringNuclearGeneratingStationinOntario. Aeconholdsa50%interestinthisjointoperationanditsshareoftheapproximately$1.1billionearlyworks portionofthecontractwasaddedtoitsConstructionsegmentbackloginthefourthquarterof2024.The remainingdefinitionportionofthecontractisvaluedatapproximately$1billion,andAeconwilladditsshare tobackloginthefirstquarterof2025.

IntheConcessionssegment,thereareseveralopportunitiestoaddtotheexistingportfolioofCanadian andinternationalconcessionsinthenext12to24months,includingprojectswithprivatesectorclients thatsupportacollectivefocusonsustainabilityandthetransitiontoanet-zeroeconomy,aswellasprivate sectordevelopmentexpertiseandinvestmenttosupportaginginfrastructure,mobility,connectivity,and populationgrowth.AnAecon-ledconsortiumthatwasselectedbytheU.S.VirginIslandsPortAuthority toredeveloptheCyrilE.KingAirportinSt.ThomasandtheHenryE.RohlsenAirportinSt.Croixundera collaborativeDesign,Build,Finance,Operate,andMaintainPublic-PrivatePartnershipmodelisexpected toreachfinancialclosein2025.

Resultsinrecentyearswerenegativelyimpactedbythefourlegacyprojects,however,therecentCoastal GasLinkPipelinesettlementalongwiththeadditionalwrite-downsonthefixedpricelegacyprojectsin 2024areanticipatedtoleadtoimprovedprofitabilityandmarginpredictability,especiallyastheremaining threeprojectsmoveclosertosubstantialcompletion.Untiltheremainingthreeprojectsarecompleteand therelatedclaimshavebeenresolved,thereisariskthatthiscouldalsooccurinfutureperiods–see Section5“RecentDevelopments”,Section10.2“Contingencies”,andSection13“RiskFactors”inthis MD&Aregardingtheriskoncertainlargefixedpricelegacyprojectsenteredintoin2018orearlierbyjoint operationsinwhichAeconisaparticipant.Assuch,thecompletionandsatisfactoryresolutionofclaims ontheremainingthreelegacyprojectswiththerespectiveclientsremainsacriticalfocusfortheCompany anditspartners.ManagementwillalsobemonitoringtheimpactofannouncedorthreatenedtariffsornontariffmeasuresontheCompany’soperations.Theintroductionofthesemeasurescouldcauseincreased purchasedmaterialcostsand/orreducedavailability.

Aeconplanstomaintainadisciplinedcapitalallocationapproachfocusedonlong-termshareholdervalue throughacquisitionsanddivestitures,organicgrowth,dividends,capitalinvestments,andcommonshare buybacksonanopportunisticbasis.Aeconisalsofocusedonmakingstrategicinvestmentsinitsoperations tosupportaccessandentryintonewmarketsandincreaseoperationaleffectiveness.Capitalexpenditures in2025areexpectedtobemodestlyhigherthanin2024.TheCompanyhasnodebtorworkingcapital creditfacilitymaturitiesuntil2027,exceptequipmentloansandleasesinthenormalcourse.

AECON GROUP INC.

FINANCIAL STATEMENTS

December31,2024

CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 AND 2023

INDEPENDENT AUDITOR’S REPORT

Independent auditor’s report

To the Shareholders of Aecon Group Inc.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Aecon Group Inc. and its subsidiaries (together, the Company) as at December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

What we have audited

The Company’s consolidated financial statements comprise:

 the consolidated balance sheets as at December 31, 2024 and 2023;

 the consolidated statements of income for the years then ended;

 the consolidated statements of comprehensive income for the years then ended;

 the consolidated statements of changes in equity for the years then ended;

 the consolidated statements of cash flows for the years then ended; and

 the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of theconsolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

PricewaterhouseCoopers LLP

PwC Tower, 18 York Street, Suite 2500, Toronto, Ontario, Canada M5J 0B2 T.: +1 416 863 1133, F.: +1 416 365 8215, Fax to mail: ca_toronto_18_york_fax@pwc.com

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

Revenue recognition from long-term construction contracts

Refer to note 4.1 – Major sources of estimation uncertainty – Revenue and gross profit recognition and note 5.1 – Revenue recognition to the consolidated financial statements.

The Company recognized revenue of $4.2 billion for the year ended December 31, 2024. A significant portion of this revenue is generated from long-term construction contracts. The Company typically transfers control of goods or services to the customer by satisfying performance obligations over time and recognizes revenue over time as these performance obligations are satisfied. Revenue is recognized based on the extent of progress towards completion of the performance obligation.

Revenue for fixed-price contracts is generally determined on the percentage of completion method, based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue is generally recorded proportionally as costs are incurred. Due to the nature of the work required to be performed on many of the performance obligations, management’s estimation of total contract revenue and costs at completion is complex and requires significant judgment. Some of the factors that can change the estimates of total contract revenue and costs at completion include differing site conditions, the availability of skilled contract labour, the

How our audit addressed the key audit matter

Our approach to addressing the matter included the following procedures, among others: 

Tested how management determined the estimates of total costs at completion for a sample of fixed-price long-term construction contracts:

Agreed key contractual terms back to signed contracts.

Evaluated the reasonableness of the significant assumptions used by management in estimating the total costs at completion and the timely identification by management of circumstances and factors that may warrant a modification to a previous cost estimate, which included the following:

o tested estimates of total costs at completion, such as estimated labour costs, materials and other costs to appropriate supporting documentation, and subcontractor costs to third party agreements;

o performed procedures to compare the estimated costs to complete to actual costs incurred to date; and

o observed progress of performance and inquired with senior management, project managers and internal legal counsel regarding the status of contracts, changes from previous years

Key audit matter

performance of major material suppliers to deliver on time, the performance of major subcontractors, unusual weather conditions and the accuracy of the original bid estimate.

The Company’s long-term construction contracts may include change orders and claims that impact the transaction price and the measure of progress for the performance obligation to which it relates.

Unpriced change orders and claims are recognized in revenue at the amount the Company expects to be entitled to, where it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with them is resolved. Management uses significant judgment to determine whether unpriced change orders and claims should be included in the transaction price. Internal and external legal counsels, as well as other claim specialists are often used by management in making those judgments (management’s experts).

We considered this a key audit matter due to the significant judgment applied by management, including the use of management’s experts, in determining the estimate of total contract revenue and costs at completion and the amount to be recognized for unpriced change orders and claims.

This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures to evaluate evidence relating to revenue recognition from long-term construction contracts.

How our audit addressed the key audit matter

(if applicable), factors that can change the total contract revenue and costs at completion and any claims.

 Tested whether costs accrued at year-end and subsequent to year-end were recorded in the correct period by inspecting supporting documents for a sample of transactions.

 Tested the costs incurred to date to supporting documents for a sample of transactions.

 For a sample of unpriced change orders and claims recognized, evaluated the appropriateness of management’s assessment and tested the reasonableness of the amount the Company was entitled to, which included the following:

inspected signed contract amendments and correspondence with customers, where applicable;

considered the historical outcomes of previously settled customer claims; and used the work of management’s experts to evaluate the appropriateness of management’s assessment of the merits and probable outcome of unpriced change orders and claims against customers. As a basis for using this work, the competence, capabilities and objectivity of management’s experts were evaluated, the work performed was understood and the appropriateness of the work as audit evidence was evaluated. The procedures performed also included evaluation of the methods and assumptions used by management’s experts, tests of the data used by management’s experts and an evaluation of their findings.

Other information

Management is responsible for the other information. The other information comprises Management’s Discussion and Analysis of Operating Results and Financial Condition, which we obtained prior to the date of this auditor’s report and the information, other than the consolidated financial statements and our auditor’s report thereon, included in annual report, which is expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the information, other than the consolidated financial statements and our auditor’s report thereon, included in annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Sal Bianco.

Chartered Professional Accountants, Licensed Public Accountants

Toronto, Ontario March 5, 2025

CONSOLIDATED BALANCE SHEETS

AS AT DECEMBER 31, 2024 AND 2023 (in thousands of Canadian dollars)

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (in thousands of Canadian dollars, except per share amounts)

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (in thousands of Canadian dollars)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (in thousands of Canadian dollars, except per share amounts)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (in thousands of Canadian dollars)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

1. P

e on o n . e on o e o ny y ded on on nd n e de e o en o ny n o o ed n n d . e on nd d e o de e e o e nd e o en o o n d e n ed e nd on e e ed n e n on y. e e ed o e o ed n o on o n o 20 on o e 105 9 6.

e o ny o e e n o e en n e n e de e o en nd y on on nd on e on .

e e o o e 3 “Related Parties,” o e de on e o ny d e nd n n o n n e en nd o e .

e on o d ed n n e en o e o ny e e o ed o e on 5 2025 y e Bo d o e o o e o ny.

3. S S P S

asis of resen a ion and s a emen of om lian e e o ny e e on o d ed n n e en n o d n e n e n on n n e o n nd d ed y e n e n on o n n nd d Bo d o n n nd d .

asis of meas remen

e on o d ed n n e en e een e ed nde e o o on en on e e o e e on o e n n n e nd n n e o e n d n de e n en .

Prin i les of onsolida ion

e on o d ed n n e en n de e o n o e o ny nd o d e . n dd on e o ny on n o n n e en ed o n o e on o n ed o n e on o d ed n n e en y e e n ne y ne e o ny e o e e e d o n y e n ed o n y nd e en e nd e en e n o e o n o e on . e on o d ed n n e en o n de e o ny n e en n nd e o e e n n o o e o n ed o n e e y e od. en ne e y d en e de o e n n e en o d e o n n e en nd o e o n e o n n o e n ne o e ed y e o ny.

d y no o y-o ned y e o ny e n non- on o n n e e e e en ed e e y on e on o d ed n e ee e e o on o ne n o e nd o o e o e en e n o e e o non- on o n n e e e o o n e e y on e on o d ed e en o n o e nd on e on o d ed e en o o e en e n o e e e e y.

. S S

e e on o e o ny on o d ed n n e en e e n e en o e d en e e nd on e e e o ed o n o e en e e en e e nd e nd e d o e o on n en e . n e n y o e e on nd e e o d e n e d en o e y n e o e e o y e ed.

o n n e e e o e e e n e en o e on o e e y n e n e e e e e o on de. o n n e e e o o e o d o en y e e on e o ny n n e e e d e en e e o on ed.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e nd nde y n on e e e ed on n on o n . e e e e nd on e e o n e ny e ed on e e en e nd ne n o on. e on o o n n e e e e o n ed n e e od n e e e e e ed nd n ny e e od e ed. o n n e e e o no e o ny one e en n e o e e no ed e o .

e o ny e o n n o e e de ed n o e 5

Summary of Material Accounting Policies . e o o n d on n ended o de e o e d en nd ey on on e n n o o e o e on n e n y e end o e e o n e od e e o n n o e n n e d en o e y n o n o e nd e n e ne n n ye .

.1 S S S

SS S S

S SS e o ny e e e e n on n on o d e o n ed o n e on o ne o n on. e en e e n e en o e d en on e e e e ed nd e ed on e ne de ned n 3 B ne o n on nd e n e ed e o e n d n n nd o e e ed e o e n ond ed nd n ed ne . e e e ed o ne o n on nd e on e o ed o e nde y n ed e nd e ed on e e ed e e e o on. e de e n on o e e e e o ny o e on e e nd d en e d n o o e on on e n e e ono e ed e e o o nd e e en . n n d en e e nd on e o e ed y n e en n e n e o n o on n en y en o e e n e o de o e ee nd e n e e e e o n o d e on de ed o e on de on n e ed o e ee .e. on n en on de on o n ed o e e n on o e ne o n on o en on e en e o o n on o o . e e e en o e e on de on nd o on o e e e o e n e en y e e nd e o n ned o nd d y den e e nd e . e e e e o on e o ny e o ed e nd e n d n e o n o ed o n n e e nd ood nd e e n n d e o e on o en on e en e de e on nd o on e en e nd en e n . ee o e 20 Business Combinations

SS P

e en e nd n o e o ed e on on on n d n on n e o ny e o o n o e on e de e ned on e e en e o o e on e od ed on e o o o n ed o d e o e e ed o o . e o ny o e e e y o e on o e e ed y n e en on e nd e ed o o o e e e d ed. o e e d e o n o e een n e n e n e o o o e o o e o e ed o e o n e o on o n d e n n y o e e e e . e o ny e e o on e en e nd o e y de ed. n e en e e e ed on e e en e en y e o n e en nd o n n on o o e o ny o od e e y e e e e o o on e en e nd o d n ny o n n e od. o e e ny o n nd do n e d n on e o n e e od n e n n e o on o y o one n n e o n e od o no e . o e o e o n n e e e e o o on e en e nd o n de d e n e ond on o e e en on e ed e e n e e y o ed on o e e o n e o o e e o de e on e e e o n e o o on o n e e ond on nd e y o e o n d e e. ed e on e o on o o e o ny e o e n e o de nd nd e e o e e e e e e no n e o one o e e en . Be e e o ny ny on n o e ny en e e e n e n e e n o e e o e o n o e o y. n e n o e e on e o e o e on on o e n e e on e o ny on o d ed n n e en e e e ed n e e o o e on en ey e o e no n.

n e o de e o n e o e o e o e o o e e o ed o ed o e o n on ned. n ed n e o de e n e o de e een o ed o o e n o ed o e. e o n n e e o e eed on e o o n no n ded n e o n on e e

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

o ny ee o o e o en o de y e o n e on nd de n on e n on n e o de n d e o n o ed o o o e nd e o o e e o n n ed dd on o . n e en n n d en e e nd on e e on e en e nd o o n o n ed n e o de nd o on de ed e o e en e ono ond on on e o ny o e on . e e d en e e nd on e n e e en e nd o o e o nd d e o n e o on e e ed on nd n e e ed e e en d en e e nd on e e de. n o d n e e o ny o n n o y n ed n e o de nd e e o n ed n e en e e o n e o ny e e o e en ed o e e y o e n n e e o e e en e e o n ed no o en e n e n y o ed e e on de on e o ed. e e e en e o n nno e e ed e on e n e ey e e ded o e e en e o e o e e ed e o n e o on. e e o e o e o e o ny o e n on o e o n ed n one o n n e od o ed e en e e o n ed n e e od. en e o e-no ed o n n e e o ed e o n n o on on on n d n n e o de nd e on y o e on e o e n no ed e o o e n e ne n n ye o e o d e d e en o e e e nd on do ed nd o d e e e d en o e en e nd o e y n o n o e e o y e ed. e o ny n e o n y e o en o e on o d ed n n e o n e n e e n n e en e.

S S S e e o on n e on on nd y nd n e no o e o ne e o ny n o ed n o e on nd o eed n e o e o e o e o y e n n d n e e o eed n d ed n o e 23 “Contingencies”. e o ny e e n on nd e y on e e e d n o en o o e o e o eed n n o de o de e ne o on e ed. n nd e o d n e e o o e o on o eed n e e n e en o e n n d en nd on e n e en y e o nd n e n e . n e en e y n y e en n o on o e e e nd n e n nd e e n e o n e e o e e e o en ed o e e e en . n n de on e d n e need o o on n e en on de e de ee o o y o n n o e o o e nd e y o e en y e e e e o e o n o o . e o o e o e e ed o d e e on nd o eed n y e e e e on e n n o on e o o e on o o o e o ny nd e e no n ee e e no e e e n on de end n on e n e o e on o d e n n o on e o o e on o o o e o ny.

e o ny o e n o e o ne o dd on o e eed n e on e o o o n no n ded n e o n on e. en e e y e o e en o nd n e o ed e end n e o ny y n e n n o n n o e o o e o end n e e o on o e e e n . e o e y e o e on o d e e e e on d y nd n n e .

S S o e o e e o ny o en o d e o n n e en nd e y o n ed n e ee en e n o o d on nd o e o e n e n e ed n od o n e e o e o n e n e n e e e ed o n on deno n ed n en e o e n e n d n do doe no o d o e n n n en o e e d n o e . n dd on o e o e o ny e y o n ed n e ee en e n o de e n n n en n e y n e e e o ed e e y o n e e e e ed o non- e o e o e de . e o ny e ed o e e e n n n n en e n e o e d y e e o on d nd e e no d e n o ed e e o e o e o ed e n e e no e o o e o e e n n e o o o ed.

e e ed e ed y e on e o n . e on e e e o ded n n y e ed e o o nd o . e e o e e e ed e de e ned n e on e e en ed y e e e on e nd e en y e e ed o e e e o n d e. e en e de e ned n n n no e e n en e d y e e o on d e no

NOTES TO

THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e. e ey n n e e e e en n de ed e d e o y nd e nde y n e e. e n e n e e n nd on o d e y e e de e n on o e e e e o n d e. e e o o e 18 “Preferred Shares of Aecon Utilities” nd o e 30 Financial Instruments o e de e d n e e e ed e .

e e o ny on de e e e en o e o e nd e on e e e o e n e on o d e n d e en e . o e o e e n y e e e n n n en nd e d e en e on en on d e e on e n e nd n ed y e e e n ee n e de n on o e. e d e en e e e en o d e e e e d en e e nd on ed e e n e n y n o ed n de e n n e e o e e n n n en .

e n o on e d o e e en o o e n n n en n e o nd n o e 30 “Financial Instruments.”

e o ny e o n o e e n o n d nd e e o e n d on . n n e e nd d en e e ed n de e n n e o ny o d de o on o n o e e . n e o d n y o e o ne e e e n on nd on e e e e de e n on n e n. e o ny e o n e e o n ed d e ed on e e o e e dd on e e d e. n e en e e n o e e o e d on e o ny o e e n n n o on de on d e en n o e e non-ded e e en e on o n e n e n nd n e en e e on o e e . n e en e e e o de e ed n o e e on e o y d e en e e een e e nd e e o ed n e o ny on o d ed n n e en nd e e nd e de e ned y e n e o o n e n e o ny o e e . e o ny o n e o e o e n on o ono o-o e on nd e e o en o ode e o . nde e e on e o ny e o y o - o e d e en e e een o n -B e o on e oB o o n e e e e e d on nd e 15 n e. y n e o ode e nd de e n n e on e on o d ed n n e en o e nd o e n e o en e . o e o ny e e e e e e e on e e e n e no n e e n de e n on o ny d nd on no e e y d e en o e e ed n e o ny o n o e o on nd . e e e n o o e o e e e d e en o e o n e e n y e o ded d e en e e o ny n o e e en e nd en nd de e ed n o e e nd e n e e od n de e n on e de. o n e en e e e de e y o ded o ny dd on e y e e ed e o n d o on e o en e o e e o e e e en o d e n d e e e e on e o ny en nd e e nd n n ond on.

e o ny n e o n y e o en e o on o d ed n n e o n e n e e n n n o e e nd e .

P SS S n n e e n e e e o ed o e e e e . ood n nde n e e no o ed. n e en e e n n e e e no o ed e end o e e o n e od o de e ne e e e en nd n e on n e o o n nde n e e e. n n e e n e e n d n e o ny n n e e n e Be d n e n on o on e on e o n ed o n e e y e od e e ed o en ene e e en o n e nd e e y n e y no e e o e e. ood nd n n e e nde n e e ny e e ed o en y y n e e n e o e o e ye nd e een nn e e en o o n e n e e e ood o n n e e o d e e ed.

en e en n e en y n o e n e en d en o e on ed o o e e e o n nd e o e ond on on o e on . e ey on ed o e e e e o ene n n nde e e e o o d o o e e ed e e o o ed o d o n e o e ed o o ene ed o ne o d nd o e ed o e n n .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e e ed e e o o e ed o d o n o e ed o e de e o ed e e n ode y ed on e n . n e en e d o n e e e e e n e e e on o e o ed e o e ed o o e e e e e o n n .

o de e o e o ene ed o o e d nd o e ed o e n n e o ny o e e o y on o e - y- o e e e e ed n o en ne o e d o e ed ed nd o e ed. n e en o e on de on o e on o e e o e e o e e nd e n e n ne e y nd e o ny o y o e n nn n ne o n e e o n n . e d o o e n n on de on en o o o e n n n e end e e e o e e o o o n e e o n n nd n e n e o ny ne e y. n n ed n e n e e on o e e o d e y e e de e n on o e e o e o n n nd e e o e o d ed e o e n e e e e o e o e e y n e o e o n n en e y nd o d o en y e n n en e n e e.

ee o e 1

Intangible Assets” o e de e d n ood nd o e n n e e .

. S

e o o n e d en n e en de n e o e o y n o n n o e nd e e o n n e e on o e n o n e e o ed n e on o d ed n n e en .

S S S SS S

e n e o ny y o on o o n en e e e e n n n nd o e n o e o no e en y y de end n on e nd n e e e e e e e o n n d en o de e ne e e e o ny on o o n y on o o e e e n n n en e o e e en y e o n e o . e en o on o o e o e on o e e en e e e o ed n e o ny on o d ed n n e en .e. on o d on e y n e en o o o on e .

e o ny e o e o y o on on nd on e on o e o o y o ned d y en e e y on o d ed. o e e n e o o e y o e e -ye -d n y o e nd on e on o e e e e ed o ne n ee en . e on o e e en e d y o n o e on o n en e o e o n n n en e e d en y n e en o n y e e o nd o de e ne e e on o e . n en e n e e n en y ed e e o n o e on o n en e o o e n e en on de e on nd o on o n e e o o d e e nd e e e o e o n n e en . e o e e n nd e n e nd n e o e o n n e en o n n e en on ed o ee en nd ene ne o d ene y e ed o n o e on e e o n n e en on ed o o o on o d e ed o n en e . e o y o e en ne n ee en e ed o n o e on .

e on o d e en d en en e n on o o e on o o n n e en o d e n e y d e en e en on n e on o d ed n n e en .

S SS S

e o n n o on e on n e en e e e on o d en n de e n n e o e n e o e o n e e on 12 Service Concession Arrangements 12 . dd on d en e needed en de e n n on o e n e o n n ode o e ed nde 12 e o on o e on de on e e e e een e en e- ene n e e on o o n ed on e e e e e e n e e e o e ed o e n n e . e o n n o on e on n e en nde 12 e e e e o e e o e e e o e n e en ny n e o e e on - e e e o d e n n n on n e o n n o e on e on n e en .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) . S P S .1

den ifi a ion of a on ra i h a s omer on on on on e y ne o ed o e on on o n e o o n on o e n d n on o e ende n o e e d e y e ed o e on on o e e . on n de ed e nd o - on .

en de e n n e o e e en e e o n on e od o on e o ny e e e e o o o e on o d e o ned nd o n ed o one n e on nd e e e o ned o n e on o d e o n ed o o e n one e o n e o on. e on e e n n d en nd e de on o o ne o o on o o e e n e on n o e e o n e o on o d e e o n o e en e nd o e o ded n en e od.

e o ny o n o on en o e n e e e e o ed e on n o d n e o y ne e nd e o ed o e o on e o e e nd y en e e den ed nd o e y o on de on o e.

den if in erforman e o li a ions in a on ra o o o e o ny on e o e on e o ny o o de n n e e o n e n o e e o nd o onen n o n e o e . on e en y e en e on o n ed o one e o n e o on. e e en y o e e e o ny y o de e e d n ood o e e o on n e e o ny e e e on n o o e n one e o n e o on. on e ed n o o e n one e o n e o on e o n on e o ed o e e o n e o on n n o n ed on e e ed e e nd one e n e o e o ed ood o e e nde y n e e o n e o on. e e e ed o n o y y ed o e e e nd one e n e o e e o n e o on. n o on e o ny e nd d od e e nd o e e o e e nd one e . n e e e e o e e nd one e e ed o de e ne e nd one e n e.

Performan e o li a ions sa isfied o er ime e o ny y y n e on o o ood o e e nd e e o n e o on o e e. e e o e e o ny e o n e e en e o e e e e e o n e o on e ed. on n o n e o on o o e o e o en o ed y e o e y o e on o e e o e o n o e e on e o de e o ny e en o y en o o e o ed o d e e on e o n e e en o e n e y e n e e on o on en en e.

e o on o n e n o e e e en e e o n ed ed on e e en o o e o d o e on o e e o n e o on. e o ny ene y e e o - o- o e e o o e o on e e e e e e n e o n e o e o e o o e n ed on e on . nde e o - o- o e e o o e e e en o o e o d o e on e ed ed on e o o o n ed o d e o e o e ed o o e on o e e o n e o on. e en e n d n e ed ee o o e e o ded o o on y o e n ed. o o on y n de o e on o e en o nd o e d e o e n o on o nd e o .

e erminin he ransa ion ri e o on o e o ny on o on n n en e ee o o e o on n e e n e e o de e e e n on e. e e e o n ene y e ded on e e en o e n e o n e e o e one o o e nd n e ed on o e d e on. e on de on o n de n e o de e no een o ed o e e . e o n n e e o e eed on e o o n no n ded n e o n on e e o ny ee o o e o en o de y e o n e on nd de n on e n on n e o de n d e o n o ed o o o e nd e o o e e o n n ed dd on o . e o ny e e e on de on

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o e y o n e e o e en ed. e o ny n de e e e ed o n n e n on e o e e en y o e n n e e o e e en e e o n ed no o en e n e n y o ed e e on de on e o ed. e e e o e on de on nd de e n on o e e o n de e ed o n n e n on e e ed e y on n e en o e o ny n ed e o n e nd n o on o en nd o e ed e on y e. on e o en od ed o o n o n e n on e on nd e e en . on od on e en e n e e e e e ne o n e e n en o e e nd o on . o o e o ny on od on e o ood o e e e no d n o e e n on d e o e n n n e on e e o ded n e on e o e on nd e o n ed o ey e e o e n on . e e e o e e on od on on e n on e nd e e e o o e o e e o n e o on o e e e o n ed e d en o e en e e e n n e e o de e e n e en e. o e e on od on o d n ood nd e e o e e n on nd e n o e on od on e e e nd one e n n o e dd on ood o e e en e on od on e ed e e on .

e o e n e o ny o e o ny e o n e o on e e on o o e en e nd o o e on o e e o ny e nd e e n n d en . e e e o e e en n e n y e d ed e n o e .1 Major Sources of Estimation Uncertainty . ny n e o e e e o o e ed e en e nd o o e e o n ed on e e o n e n e en e od e e e e o e n e ed on e o n e o on e en e o o e on. n n n e n one o o e o e e e e o d e e o y o one o o e o e o ny e o n e o on . en e e o o o o e n ed on e o n e o on e eed e o e ed e en e o e e ned o on o e en e o on e e o n e o on e o n ed n e e od e o de e ned.

e en e re o ni ion o her on o e o e o e o ny n o e on o e o d no e n ed e on d no een ded. e o ny e o n e on o n e e e o e o e o e o . o o e on o d e een n ed e d e o e e e on ded e e o n ed n e en e en n ed n e o e o e e y e e o e o e e d e o e e e on o ned.

o on o e non- e n e o n ed o e e o n e o on nde o e on . o on o e e en ed n ed n e ey e n n e n e ey e ed n o d n e e e e n o n n nd d o e e on en e en o e o e o o e o e n e e o e ed nd o ed o e n o e e en o e e on e od.

on e en e e e ed e e o e on de on e e ed o e e e. e e de e o y en e e e on e de e n on o e e o n e en e e e o n ed d ed o o n o e e- e-o - oney.

de nd o e e e e n de o n ed nd en y d e o o e . e o ny n n n o n e o e e ed ed o e o o de o e e ed o n o e e e no e o e ed. e o n e ed on n e en o ed o ne o e o o o o o e o y en e e en e e e o o nd n e e e o e o e e en e nd o d- oo n n o on e d n o e y.

n ed e en e e e en e en e e ned n e e o o n ed on n o e ed on . n ed e en e y y e o e nde on on on en e o - o- o e od o e en e e o n on ed nd e en e e o n ed e eed e o n ed o e o e . n ed e en e o n e d ed o e e ed ed o e .

e e ed e en e e e en e e e o o n ed o o e o e e en e e ned on n o e ed on . e e d n e y en e e e ed o o e o e o on o o e e en nd e e e

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

o ny e o n e e e o n e nd n de e n de e ed e en e. e e ed e en e on on on on ed en y.

n ed e en e nd de e ed e en e e o n ed o on on - y- on e end o e e o n e od.

e o e n y e o d on o ny o e o ny on e eed one ye . on e ed e nd e e ed en ey e e e ed o e e ed o ed n e o e n y e o e on .

e o ny no y doe no e ny on on on e e e e od o e n e o e o ed ood o e e o e o e e e en n n n o onen . e n on e no d ed o e e e o oney. o on - e e e e nde e e on e on n e en ee e on 5. e e on e on n e en .

e o ny e e e n d n e y en e o on e o n ed nd e e o n on nd e e en n e o 15 e ed o de e ne n o e o e o n n e en e.

ene y on on nd e e on n de de e nd n y e od o o n o e on o e o e . e e o on e no dee ed o e e e e o n e o on nd e e e o e e ed nd n ded n e o o o e on . e e e ed o n e e o n ed o d n o 3 “Provisions, Contingent Liabilities and Contingent Assets”.

her re en e es e en e e ed o e e o e e nd o e e e o n ed o n n e nd e e o n e o on y y ed on e de e y o e od o e o e .

e en e e ed o o e on nd n en n e e o n ed o e e e e o n e o on e ed y e o ny.

emainin erforman e o li a ions

B o .e. e n n e o n e o on e o e o o no ye een o e ed e n y o e n e o ed e o e e en e o n e e ed on o o o de e y n o o e e nd n o een ded o e o ny e den ed y n e e ed nd n e e o n en o ee en de n e ene o o e e nd n o o nd e e e n on o o on n e e o o e on y ed. e e o ded nde on n o e e od o o 30 ye . n o de o o de n o on o e o e o o o e e o e o y e o ny o o e o e e e o e on e nd e ne e ye .

. S S S

nd e en on o n nd on nd n o n o e on de nd de o nd oe y d n e en e e d y on e e n o no n o n o nd e e o n n n n o n e n e. e o ny on de n e en ed o n e o ee on o e o e e en .

.3 S S SS S

e o ny e n n e n o one o ee e o e e ed o ed o e o o e o e en e n o e nd e o o nd o . e on o n n e nde 9 ene y ed on e ne ode n n n e n ed nd on o e .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o ni ion and ini ial meas remen

n n e nd n n e e e o n ed n e e en o n n o on en e o ny e o e y o e on o on o n n n en . n n n en e e ed e on n e o n on. n n n en e ed o on e nd e e ed en ey e e e ed o e e ed o ed n e o e n y e o e on . o e n n n en e on de ed nonen ey e e e ed o e e ed o e n 12 on e e e o n e od.

n on o e d e y e o e on o n e o n n e nd n n e o e n n n e nd n n e ed e dded o o ded ed o e e on n e o n on. n on o d e y e o e on o n n e o n n e ed e e o n ed ed e y n ne n o e.

on n en e e no e o n ed n e on o d ed n n e en y e n e e o n on o n o e y ne e e e ed. o e e en e e on o n o e y e n en e e ed e no on n en e nd e o n on o e.

lassifi a ion and s se en meas remen

e o ny e n n e e e o n e o n on o d n o e o ny ne ode o n n e n n e nd e on e o e o . n n e e ed n e o o n e e en e o e o ed o nd e.

en e e e ed e n nd o e e e e e o n ed en e y n o o o .e. o e o n ed n o e o e en e n o e .e. .

n n e e e en y e ed o ed o o e o o n ond on e e nd ey e no de n ed

e n n e e d n ne o e o e e o o d n n e o o e on o nd

e on e o e n n e e e on e ed d e o o e o e y y en o n nd n e e on e n o n o nd n . e e e e e en y e ed o ed o n e e e e n e e e e od e ny en n nd o e e o n ed n ne n o e n e e od e e de e o n ed o ed.

n n e e e en y e ed o ed o n e e e e n e e e e od n nd o e e o n ed n ne n o e n e e od e y de e o n ed e e o n n e ed . e e n n e e e en y e ed e n e n e e o ded n ne n o e n e e od n ey e o e e en ey e no o de n ed ed n e on .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o o n e o ne e on o n n n en nde 9

lassifi a ion

Financial assets

nd e en o ed o e ed o ed o de nd o e e e e o ed o n ed e en e o ed o on - e n n e - n n n en n e de n ed n ed n e on n e ed on - e n n e - o e e e e o ed o

Financial liabilities

B n nde edne o ed o de nd o e y e o ed o on - e de o ed o e e ed e o e on e e e - de e e

o n o n n e e e e e ed e o de o nd o y ede on y e e o ed o de e n e o n ed o de e n e e d e o e e o de e o e e e e o edee e n en o e d e o ed o de e n e o n n n y. n dd on n n n en e e o de e o o e e o o no e n n e e n en n n y. e o e d y o on nd e n e o e e e ed e o e on e e e e ed e e een ed en n n y n e on o d ed n e ee e e e 31 202 .

n dd on e e e e e ed e on n e n e edded e e o d o e e y e edded de e e o ny e e ed o de n e e e e ed e e o o o o nd e en y e e e e e ed e o e e e o n d e. e o n o n e n e e o e n n y e o n e n e ed o e e e ed e e e o n ed n o e o e en e n o e nd e no e y ed o e n o e e en .

. S S

e o ny o en o o n n e en nd e y o n ed n e ee en e n o de e n n n en n e y n e e e o ed e e y o n e e e e ed o e on - e de o on e on o e nd o e n en y o d on o ed e o e n en y e o e on e e on on o e . o de n ed ed e e o ny o y do en e on e een ed n n en nd ed ed e e n e en o e e nd e y o nde n e e ed e n on nd e y e e e e e ene o e e ed e .

e e n n n en de n ed o ed e e e ed e e ed y n on e n e ed on o e e e d nd n n o o n e ed y o e n en . e e e e o on o e n e n e o e de e n n n en e o ded n o e o e en e n o e e e ne e e o on ny o n e e o n ed n ne n o e. en ne e e n o o e o o ed e n ded n o e o e en e n o e e e ed o ne n o e n o e o e o e o n e o n ed on e nde y n ed ed e .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

. P P P P

o e y n nd e en e e o ded o o e ed de e on nd ed en o e ny. e o o o e y n nd e en n de e e e nd e d e y e o o on o on on o e ed o n e e o e o on nd ond on ne e y o e e o e e o o e n n e nne n ended y n e en . -o - e e e n y e ed o o e e n o n o e e e y d ed o ny e e y en de o e o e e o en e en d e ny n d e o n ed nd n e e o o o d n e nd e o e e nde y n e o o e o e e nde y n e o e e on o ed e ny e e n en e e e ed.

n e en e od o e y n nd e en e ed o e ed de e on nd ny en n e e e e on o nd nd e nde on on e no de e ed e ed o e ny en n e.

e e on e o ded o o e e o e e ed e d e o o e y n nd e en o e e e ed e e on e o o n e

e e o e e e de e ed n e n o e on e od ed on e ed e ono y e o e e e e e e n de e on e o o on o e de e on o e e e .

o e e e d n e nde on on e de e ed on - ne o e e od o e e e ed e e o e e o o

sse s erm nd o de e ed

B d n nd e e o d o e en 10 o 0 ye ne y nd e en 2 o 15 ye e e en 3 o 5 ye e e 1 o 5 ye

e nde on on e no de e ed n ey e o n o e o n ey e n e ed n o e o e e e o y.

e o ny e e e e d e e e nd de e on e od o de e e e on n nn nd e e e on e e ed e o ny e n e n e e on o e e .

e ne y n o n o o e y n nd e en e e e e ed o en e e nd d y o e - ene n n e e en e en nd n e n n e nd e e y n o n y no e e o e e. o e e en e e y n o n e eed e e o e e o n e e y e o n ed n o o o n e n n ye n de e ned.

en n n o o e y n nd e en e e ed o e e ed nd o e e e ono ene o ed e e e e o e o ny e e end e ed nd e y n o n o e e e ed de e o n ed. y n en n e nd n e on o o ed o o e e ed nd de e ed o e e e e e e o e e e ono ene e e nd ny e n n y n o n o e o o e o o e e de e o n ed. o e o e e en ed n ed.

. SS S

ood ill

ood e e en e e e ono ene n o o e e ed n ne o n on e no nd d y den ed nd e e y e o n ed. ood e n o e on o d e n ded on e

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

on o d ed n e ee n n n e e . ood e n o e on o o e n ded n e n e en o e o e nd e e o e e ed o en n on n on e o e n e en n e.

ood no o ed e e ed o en e nn y nd ene e e en o n e nd e e y n o n y e ed. ood o ed o - ene n n o e o e o en e n . e o on de o e - ene n n o o o - ene n n e e e ed o ene o e ne o n on n e ood o e. e o ny - ene n n ene y e e en e e nd d ne n o o o ne n e e o e e e o e o ny o e n e en .

n ne o n on en e e e o e o ny e o e ne den e e ed e eed e o o e ne o n on e e e e o n ed ed e y n o o o .

n e n y ene ed ood no e o n ed.

n nd o e on e d o o n en y n de e y n o n o ood e n o e en y o d.

n an i le asse s n n e e ed o ne o n on ed o e o e e e ee en o e e on nd den e e e o ded e e on d e e e e e o e o on o e nd e e n e e ed e y on n e o n on. e en o n e o n on n n e e ed n ne o n on e e o ed o e ed o on nd ed en o e on e e n n e e e ed e e y e e n e e e.

n n e e e o ed o e e e ed e e . n n e e nde de e o en e no o ed n n o e.

ed e e e de e ned e e od o e e o ny e e o e e e nd o e o ny e n on o o e ene de ed o e o e e .

o n n e e n e e e e o on e od nd e od e e e ed nn y nd en e n nde en en n e nd e e y n o n y no e e o e e.

o on e en e on n n e e n e e e o n ed n o o o n e en e e .

e o y e o n n e e nd e o on e od e o o

sse s mor i a ion asis ed o e o - ne o e en e o ed o e e e ee en - ne o e 1 - 10 ye en e o e nd o e - ne o e 1 - 10 ye e e e n o e on o e e on - ne o e 3 ye den e - ne o e 16 ye

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

. S SS S

e o ny o n o e e on e on n e en n o d n e 12 .

12 o de d n e on e o n n o e n y n - e ne n e en e e y e n o .e. y o e n en on o o e e e e e o e o .e. e on e on e o de e n e o o o de o e e e nd e nd on o ny n n e d n e e n e n e e end o e e o e n e en .

nde on e on n e en e on e on e o n o e n e e y y n one o e o o n o n n ode de end n on e o on o e de nd o e e o e n e e een e n o nd e on e on e

o n in odel

(a) inan ial sse odel

e en e on e on e doe no e de nd o e e o e n e .e. n n ond on o e e e e e e o e e o e n e o e e o y y en .

en e o ny de e o e n one e o y o y n e e on e on n e en e on de on e e ed o e e e o ed y e e en e o e e e e o e y de e ed en e o n e e e y den e.

e en e e o n ed y e o ny nde e n n e ode e o n ed n on e e e e n n e e o e ed o y en e e ed o e n o .

( ) n an i le sse odel

e en e on e on e e de nd .e. o e ee o e o e n e .

e o ny e o n e n n n e e n o e e on e on n e en en o e o e o e on e on n e. e n n e e e e ed on de on o o d n on on o de e e n e e on e on n e en e ed e on n e o n on. Bo o n o ny e ed n e n e e dy o n ended e o e y n o n o e n n e e .

e n n e e en o ed o e e e ed e e e on e on e od n e e on e on n e en . e o on e od e n en e n e e o e. e en e o e e on e on n e en o n ed o nde 12 e e o n ed o o

(a) ons r ion or rade a i i ies hen a ser i e on ession arran emen in ol es he ons r ion or rade of he li ser i e infras r re

e en e e n o on on o de e e nde e e on e on n e en e e o n ed ed on e e o o e on o e o e o ed on en e o ny o n n o y on e o n n e en e e o ny on on on ee e on 5.1 e en e e o n on .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

( ) era ions and main enan e a i i ies ma in l de main enan e of he infras r re and o her a i i ies ro ided dire l o he ran or or he sers

e on nd n en n e e en e e e o n ed n e e od n e e e e o ed y e o ny on en e o ny o n n o y on e o n n e en e e o ny o e on nd n en n e on ee e on 5.1 e en e e o n on .

( ) inan in (a li a le hen he finan ial asse model is a lied)

n n e n o e ene ed on n n e e o n ed n e e e e n e e e od.

.8 P SS S

o e y n nd e en nd n n e e e e o o on e e e ed o en e end o e e o n e od. e e e nd o o en e e nde en o de e ne e e e y n o n e n e e o e e o e e o n . n e e o e e o n de e ned e e o e e o o d o nd e- n- e. e e e nde en on n e - y- e e e e e e do no ene e o nde enden o o e e n e e e e nde en e - ene n n e e .

e e o o o ood o ed o o n de n n e e e e e no eo - e o e n nde n e e e nd n on y e e ed o n en e e o ed e nn y o ene e e e n nd on e y n o n o e y e ed. o o e e e e e o e y n e o n o n en on e o ed o ed on e ene e e ed y e .

e y n o n o n nd d e o e eed e o e e o n n en o e o ded n o o o o e e e e e o e o n . n e n e e- n- e e e e n e o e e ed o e o e on n n e o e nd o e d o e d o n ed o e e en e n e de e ned e- d o n e e e en e e en o e e- e-o - oney nd e - e . e e o o e de e ned e o n o d e o ned o e e o e e n n en n on e een no ed e e nd n e .

y e e o e o y e o n ed en o e o ded n o o o en e en o n e nd e e e e ed o de e ne e e o e e o n e n ed n e e o en o e o n ed nd e e o e e o n o e e e eed y n o n . e y n o n n e ed o e e o e e o n no eyond e y n o n ne o o on o d e en e o en o d no een e o n ed. e e e e o on e d ed n e e od o o e e e e ed y n o n e ny e d e on y e o e e n n e e. ood en e no e e ed.

. S

nde 11 Joint Arrangements o n n e en on n e en e e n o o o e e e o n on o . o n on o e on y eed n o on o o n n e en en e e n n nd o e n de on e n o e n e en e e e n n o on en o e e n on o .

n e en n o n n e en e ed e e o n o e on o o n en e de end n on e on nd o on o e y. e e o o e “Critical Accounting Estimates” o n n d en e n e on o o n n e en e e o n o e on o o n en e .

e e o o n o e on e o e e nd o on o e e e n o e n e en e e o n en e e o e ne e o e n e en . n o d n e 11 e o ny o n o o n o e on y e o n n e o ny e e d o n y nd ny e n ed o n y on

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o e e en e o e e o e o y e o n o e on nd e en e n d n e o ny e en e n ed o n y.

o n en e e o n ed o n e e y e od o o n n n o d n e 28 Investments in Associates and Joint Ventures.”

nde e e y e od o o n n e o ny n e en n o n en e nd o e e ed o nd d ed o o - on n e n e ne e o e n e en . o o o e e e o ny e o e e o e e n e en . on e e ed o n n e ee ed e e y n o n o e n e en . e on o d ed e en o o e en e n o e o n de e o ny e o ny o n e o n ed y o n en e nd o e n .

e e e e een n e e o n ed d e y n e e y o e o n en e o o e e o ny e o n e e o n e n e y.

e n n e en o e o n en e nd o e e ene y e ed o e e e o n e od e o ny n on en o n n o e . d en e de o n n o ne ny d o n n o e y e n e nde y n e o d o e o n en e nd o o e. d en e de n e on o d ed n n e en o e n e e o ny e o n e ed n nd o e on n on e een e o ny nd o n en e nd o e .

ransa ions i h oin o era ions

e e e o ny on e o e e o o n o e on e o ny e o n e on y o on o e n o o e o e n e e o e o e e .

e e e o ny e e o o n o e on e o ny doe no e o n e e o e o o o o e o n o e on o e n on n e e e e o n nde enden y.

e o ny d o n o e on n n e en o n e ed o e e on en o n n o e .

.1 SS S

n e n e o ny n n n en e nd e ne e d e no o n n e en e o n ed o n e e y e od o o n n n o d n e 28 Investments in Associates and Joint Ventures.” e od o o n n de ed n e on 5.9 o n n e en .”

e o ny d on n e e e o e e y e od o e d e on e e o e n n n en e nd o d e o n o e n e en n o d n e 9 Financial Instruments e o ded e n e en doe no en y d y o o n n e en .

.11 SS S S

e o o on o o d y o o n n o e y o en e o ny e o o e e n e o on o n e e n d y n n e n on o e o e n on . n o n on o o d y o o n n o e e o ny de e o n e e e n d n ood nd e o e d y e y n o n de e o n e e non- on o n n e e n d n ny o onen o o e o e en e n o e e o e e o n e e e o e on de on e e ed ny nd ny e d ed d dend o e n on e ed n e o o on o e o n e ny n e en e ned n e o e d y e e e o o o o e ed y o e o n n nd d o n e d e y o e ned e n n ny o n n ded n o e o e en e n o e nd e o n e ny e n n o o n o o o e o e en .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

.1 P S S eneral

o on e e o n ed en e o ny e en o on e o on e e o e en o e n o o o e o e e ody n e ono ene e e ed o e e e o on nd e e e e n e de o e o n o e o on. e e e o ny e e o e o o e o on o e e ed e e e en e o n ed e e e en e e en y e n. e e en e e n o ny o on e en ed n o o o ne o ny e e en . e e e o on e d o n ed n en e- d o n e e e e e o e e e o e y. e e d o n n ed e n e e n e o on d e o e e o e e o n ed n n e o . e ommissionin lia ili ies

e o ny e o on o ed e e e en o nd e ed n e e n n o e on . e o on de o o e do n e o on nd en on en e on o n de e d n n nd de o on o n e e o o e d e nd e ed on o d ed e n e n n e od en e e ed en on en d n e o ed on e ed e o n n o on e e on o d ed n e ee d e . e o on d o n ed n en e - ed e- d o n e e e e e e e o e o on nd e e o e y. n n e e n e o on d e o e e o e e o n ed n n e o nd e o on ed ed y e on o n ed. e e en e o e e o on n ed e o n ed n n en o y od on o nd n ded n e o o e e e od ed.

e o on e e ed e e o n d e o n e o o on e on o d o n e e ed o o e o o e on . n e n e o n o n o e nde y n e o o n e n e d o n e e ed e y e o n ed n n e e o de e e n e y n o n o e ed e nd e o on.

.13 S S

n e on o on e o ny e e e e on o on n e e. on o on n e e e on on ey e o on o e e o n den ed e o e od o e n e n e o on de on.

o e e e on on ey e o on o e e o n den ed e e o ny e e e e

 e on n o e e e o n den ed e y e e ed e y o y nd o d e y y d n o e e en n y o e y o y y d n e . e e n e on en e e no den ed

 e o ny e o o n n y o e e ono ene o e o e e o o e e od o e nd

 e o ny e o d e e e o e e . e o ny en e de onn e o e e n o n n o nd o o e e e ed. n e e e e e de on o o nd o o e e e ed ede e ned e o ny e o d e e e o e e e e

o e o ny e o o e e e e o o e o ny de ned e e n y ede e ne o nd o o e e ed.

n e on o on e e en o on on n e e o onen e o ny o e e on de on n e on o e e e o onen on e o e e e nd- one e.

e o ny e o n e -o - e e nd e e y e e e o en e en d e. e -o - e e n y e ed o o e e n o n o e e e y d ed o ny e e y en

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

de o e o e e o en e en d e ny n d e o n ed nd n e e o o o d n e nd e o e e nde y n e o o e o e e nde y n e o e e on o ed e ny e e n en e e e ed.

e -o - e e e en y de e ed n e - ne e od o e o en e en d e o e e e o e end o e e e o e -o - e e o e end o e e e e . e e ed e e o -o - e e e de e ned on e e o e o o e y n nd e en . n dd on e -oe e e od y ed ed y en o e ny nd d ed o e n e e e en o e e e y.

e e e y n y e ed e e en e o e e e y en e no d e o en e en d e d o n ed n e n e e e n e e e o e nno e e d y de e ned e o ny n e en o o n e.

e e y en n ded n e e e en o e e e y o e e o o n

 ed y en n d n n- n e ed y en

 e e e y en de end on n nde o e n y e ed n e e e n nde o e e o en e en d e

 o n e e ed o e y e nde e d e n ee nd

 e e e e e nde e o on e o ny e on y e n o e e e e e y en n n o on ene e od e o ny e on y e n o e e e n e en on o on nd en e o e y e n on o e e n e e o ny e on y e n no o e n e e y.

e e e y e ed o ed o n e e e e n e e e od. e e ed en e e n e n e e e y en n o n e n e e e n nde o e e e n e n e o ny e e o e o n e e ed o e y e nde e d e n ee o e o ny n e e en o e e e e e e e en on o e n on o on.

en e e e y e e ed n y o e ond n d en de o e y n o n o e -o - e e o e o ded n o o o e y n o n o e -o - e e een ed ed o e o.

e o ny e en -o - e e n o e y n nd e en nd e e e n on - e de n e on o d ed n e ee .

Shor erm leases and leases of lo al e asse s

e o ny e e ed no o e o n e -o - e e nd e e e o o - e e e o o e y n nd e en e e e e o 12 on o e nd e e o o - e e o e -e en . e o ny e o n e e e e y en o ed e e e e n e en e on - ne o e e e e e .

a re of leased asse s

e o ny e e o o e e o e nd e en nd e e . on e y y de o ed e od o one o en ye y e e en on o on de ed e o . e e e e ne o ed on n nd d nd on n de n e o d e en e nd ond on . e ed e y no e ed e y o o o n o e . o e e e o de o dd on y en ed on n e n n on.

ension and ermina ion o ions

o e o e e e n de n o on o ene e e e o n dd on e od e e non- n e e on e od. e e e e o ny ee o n de e en on o on n ne e e o o de o e on e y. en on o on e e e e on y y e o ny nd no y e e o . e o ny e e e e

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

o en e en e e e on y e n o e e e e e en on o on . e o ny e e e o o o o e e o de e ne e e e on y e n o e e e e o on e e n n e en o n n n e n n e n on o . e o ny on de nd n e en n de on. e o ny e ne e e e e n e ono n en e o en y o d e e de on o e e e e o on o e e e e e e e o on e o e e o e e e o ny de n n n e en n e e o d o e en . e e no e on y e n e e e e e ended o e n ed e o ny no e o n e e e o on .

aria le lease a men s o e e e o e e e o ny o e y en e e o e o e y e nd dd on e e e ed on e e o nd n n e y en de y e e o e e o n e ene y de e ned nn y.

.1 P P S

e o ny e o n e e o o e e en ene o e e e od n e oyee e e e ed o ende e e n e n o e ene .

e o ny on o de ned ene en on n d e e e o en n y 1 1998 nd de ned on on en on n o ed e oyee . e o ny e e oyee on on o e de ned on on n e ed on e en e o e . o e de ned on on en on n e on on e e o n ed n e oyee ene e en e en ey e e ned.

o e de ned ene en on n en e e o e ed o o e on ey e ed on e e ende ed y e oyee d n e ye . en on ene o on e de e ned nn y y nde enden e n n e en e e e on . e n e e e ed e. e e en e o e de ned ene o on de e ned y d o n n e e ed e o n n e e e o y o o e ond e e o y o n e e o e e ed en on y. n nd o e e e o n ed n o e o e en e n o e ey e. e e o e e o n ed ed e y n o o o n e e n e o e en on n e ond on on e e oyee e n n n e e o e ed e od o e e e n e od . n e e e e o e o ed on - ne o e e e n e od.

.1 S

en n o e ed on e o en ed o n e y en ed e on o d ed n e ee d e n e o n e e e e o ny o e e nd ene e e n o e. en n de d en o y e o e o e e n e e o e o e od .

e e ed n o e o ded n e e nd y e od on e o y d e en e e on o d ed n e ee d e e een e o e nd e nd e y n o n o n n e o n o e . o e e de e ed n o e e e no e o n ed ey e o e n e o n on o ood . e e ed n o e o no o n ed o e o e n e o n on o n e o y n n on no ne o n on nd e e o e n on e ne e e o n n o no e o o o .

e e ed n o e o ded on e o y d e en e o ed n e en n d e o e o o n en e e e e e e n o e e e o e o y d e en e n e on o ed nd o e e e o y d e en e no e e e n e o e ee e e.

e e ed n o e e e e o n ed on y o e e en o e e o e e n ded e e o y d e en e ed o d ed o o e n e ed.

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e e ed e ed on n nd o n ed e e e e e ed o y n e e od n e e e ed o e y e ed ed on e nd en ed o n e y en ed e on o d ed n e ee d e .

e y n o n o de e ed n o e e e e ed e on o d ed n e ee d e nd ed ed o e e en no on e o e en e o e e o o o o e de e ed n o e e o e ed. o e e en n e no e o y e o n ed e e o e o n on de e ed n o e e e o ded.

en nd de e ed e e n o e e o n ed d e y n e y nd o e o e en e n o e e e o n ed n e y nd o e o e en e n o e nd no n o o o .

en n o e e nd e o de e ed n o e e nd e e o e e y en o e e e o o e en e n en e nd e n o e e e e o e e e en y nd e e o y.

.1 S S P S

e o ny o - ed o en on n de ed n o e 2 Capital Stock. n on n o n o - ed y en e e o n ed n e en e o e e e n e od.

y- e ed o - ed y en n on o o on d nd e o ny on - e n en e n e e ed e n d e e o e oyee e e e e ed n e n e o e n o o on o e d nd o non-e oyee n on e e o e ood o e e e e ed e d e on e en y e o n e e ood o e e . e o o n o e e en e e o n ed n o o o de e ned y e e en e o e e o e e d o o on n ed o n e n e o o on e e ed o e . y- e ed e- ed y en n on e no e e ed on e e n d e e een de e ned e e n e e e e o - ed y en n ed o non- e e ed e o n e ond on .

- e ed o - ed y en n on e e ed e e o e y. e y e e ed e on o d ed n e ee d e nd e d e o e e en n e n e e o n ed n o o o .

.1 S P S

asi earnin s er share

B e n n e e de e ned y d d n o e o e o de o e o ny e d n e e e ed d dend e - o on o d o n nd e on n e e on e e nd e en o on e e n o on e e de en e nd ny o o e n e y o e n o on e y e e ed e e n e o o on e o nd n d n e ye .

il ed earnin s er share

ed e n n e e d e e ed n e de e n on o e n n e e o e n o o n e e n o e e e o n e e nd o e n n n o o ed d e o en o on e nd e e ed e e n e o e ed o e een ed n e on o d e o en o on e .

e o en o on e e o n e o o o on nd on e e de en e .

.18 S

n ional and resen a ion rren

e n ded n e n n e en o e o e o ny en e e e ed n e en y o e y e ono en on en n e en y o e e e n on en y . e on o d ed n n e en e e en ed n o nd o n d n do e o ny e en on en y.

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

ransa ions

o e n en y n on e n ed n o e n on en y n e e n e e e n e d e o e n on o on e e e e e e ed. o e n e n e n nd o e e n o e e e en o n on nd e n o e n on ye -end e n e e o one y e nd e deno n ed n o e n en e e e o n ed n o o o e e en de e ed n o e o e en e n o e o y n o ed e nd o y n ne n e en ed e .

o e n e n e n nd o e e en ed n o o o e e en ed n o e n o e.

n e n e e o one y e e deno n ed n o e n en y ed e e ed e een n on d e en e e n o n e n e o ed o o e e y nd o e n e n e y n o n o e e y. n on d e en e e ed o n e n o ed o e e o n ed n o o o nd o e n e n e y n o n e e o n ed n o e o e en e n o e.

n on d e en e on non- one y n n e nd e e e e d e o o o o e e o n ed n o o o o e e n o o . n on d e en e on non- one y n n e e e ed e n ded n o e o e en e n o e.

ransla ion of forei n en i ies

e nd e e n ed o e n on en y o e e en on en y e o n e e end o e e o n e od. e on o d ed e en o n o e e n ed e n e e e d e o e n on o e e e e o e e e . e n e n e d e en e e e o n ed n o e o e en e n o e.

n d o o d o o o e n en y o e on o e ne n e en n o e n en y e n n o o on o n n n en e o o n on o e e n on o n n e e o n ed n e y e n o o e n en y e o n ed n o o o o e n o o on e. n d o on o d y doe no e n o o on o e o n e e o ed o e non- on o n n e e n e o e n o e on ed on o o on e e o e e o n e o n ed n . n d o on o o n y on o ed o e n en e o o e e o o on e e o n on d e en e e o y e o n ed n e ed o o o o

.1 S SS S

e o ny e e on e od o o n n o o n o ne o n on . e on de on n e ed o e on o d y n de e e o e e n e ed e e n ed nd e e y n e e ed y e o ny. e on de on n e ed n de e e o ny e o y e n o on n en on de on n e en . on e ed o e e en ed n ed. den e e ed nd e nd on n en e ed n ne o n on e e ed n y e e e on d e. o e on e o ny e o n e ny non- on o n n e e n e ee e e e o e non- on o n n e e o o on e e o e ee ne e .

e e e o e o e on de on n e ed e o n o ny non- on o n n e e n e ee nd e on d e e o ny e o e y n e e n e ee o e e e o e o ny e o e den e ne e ed e o ded ood . o n e n e e o e ne e o e d y ed n e e o n e e d e en e e o n ed d e y n o o o .

on- on o n n e e e e en e e y n d y no e d e y o nd e y o en nd e e en ed n e y n e on o d ed n e ee e e y o e en e o de e y.

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

. S S

e o o n end en o o n n nd d nd n e e on e e e e e o e nn e od e nn n on o e n y 1 202 .

lassifi a ion of ia ili ies as rren or on rren ( mendmen s o S 1 Presen a ion of inan ial S a emen s)

e end en o 1 e e e o o e on o e ed on e on n e en n e e e o n d e. e end en y e on o e en o nonen o d e ed on e n e en e e end o e e o n e od nd n e o d n n e ed o e e o e o de e e e en y e e e on nd e e on y n e e end o e e o n e od o d e e on o y. e end en e e e e o nn e o n e od e nn n on o e n y 1 202 nd e e ed e o e e y.

on do on o e end en o 1 e en e n e o e e ed e o e on e e ed o nonen e o en e nd n nde edne e ed o en e o nonen e n e on o d ed n e ee . e en o on o e e ed e n e ed y $15 110 nd $n e e e y e e e 31 2023 nd n y 1 2023 e e e y e e on - e o on o e e ed e de e ed y e e o n n e e od. n dd on e on - e o on o n nde edne n e ed y $111 00 nd $120 9 9 e e e y e e e 31 2023 nd n y 1 2023 e e e y e e en o on o n nde edne de e ed y e e o n n e e od.

her e S andards mendmen s and n er re a ions do ed n e o o n end en o nd d nd n e e on o e e e e e o nn e od e nn n on n y 1 202 . e on o e e end en nd n e e on d no n n on e o ny on o d ed n n o on o e o o e on .

on rren ia ili ies i h o enan s ( mendmen s o S 1) e end en o 1 e y on y o en n n en y e ed o o y on o e o e e e o n d e e e on o y en o nonen . n dd on n en y o d d o e n o on n e no e en e e o n n e en o nde nd e nonen e o en n o d e o e e y e n e e on .

ease ia ili eas remen in a Sale and ease a ransa ion ( mendmen s o S 1 eases) e end en o 16 y o e e - e ee o d y e e en e e en e e en n 16 o e e e y e n e nd e e n on. e end en e y e e e - e ee doe no e o n e ny o n o e n o o e e o e o e e n en e e e e e en y e ed. o e e e ne e e en do no e en e e - e ee o e o n n n o o o ny n o o e e o e o e n on o e e.

S 18 Presen a ion and is los re in inan ial S a emen s 18 ne nd d ed n 202 on n n e en e en on nd d o e o on d e o e e en o n o e. 18 e ede 1 e en on o n n e en nd e e ed n e e on en e o e e e e o e e ny e n n e n 1 e e ned ed n e . e e e en n od ed n 18 n de d e o e e o e e en o n o e n d n e en n de ned o nd e ed e o e e d o e on n e en -de ned e o n e e e nd en n ed d n e on e n e o e on nd d e on. e nd d e e e o nn e o n e od e nn n on o e n y 1 202 nd e o e e on e ed.

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e en .

8. S S S

(in thousands of Canadian dollars, except per share amounts)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

1 . P S S

31, 2024 AND 2023 (in thousands of Canadian dollars, except per share amounts)

y 01 n on o e

2023

o B d e e e en o e 50 o n en e 202 2023

n on o o n e en on d n e nne o e 0 o n en e 202 2023 e e on n . 28 o n en e 202 2023 e o ne od d. 50 o n en e 2023

Be d n e n on o on e on e y o 50.1 o n en e

202 2023

n e e e 20 2023 e o ny o e ed e e o 9.9 n e e n y o o onno nn n e n e . e en o n on e o ny o d 50.1 n e e n y o e on e on e e on e o e Be d n e n on o o e on n en n e nd o e n on nd e en y n e nd oo d n e e o e de e y o e Be d n e n on o ede e o en o e o e 30-ye on e on e o en ed n 201 . o o e o n o e n on n e e o ny on n y o 100 on o d ed n e on e on e en nd o n ed o n e on o d ed n n e en y e e n ne y ne e e e e en e nd e en e o y o . e en o e o n o e e o 9.9 n e e n y o e on e n n 50.1 n e e n e y o on e on o n en e o n ed o n e e y e od ee o e 26 Other Income .

n y 1 2023 e o ny o e ed e e o e on n o on o d d n e e nd e ne e n n o o een n e ne n . e on e o e e o e e o ne od d. o n en e e o ed n o e o n ed o n e e y e od n e o e e o e ne n e e ond e o 2023 ee o e 26 Other Income .

o e o n ed o n e e y e od n de o on e on o n en e o o e e o e e e ed o e. o e e e on on e e ed o e e on e on nd o e e ed o n o e on e o n ed o n e on o d ed n n e en y e e n ne y ne

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) e o ny e

o e on .

13. P P P P

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

1 . SS S

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

n 202 ood nd o e n n e e n e ed y $ 00 nd $85 18 e e e y e o e on o e e o e ne on on n o o e on on nd n

n . e e o o e 20 Business Combinations o e de e d n ood nd o e n n e e ed n 202 .

o on o n n e e n ded n e de e on nd o on e en e ne e on e on o d ed e en o n o e.

on ession ri h s erm da n erna ional ir or ede elo men Pro e

e e e 31 202 e o ny o d 50.1 2023- 50.1 n e e n Be d y o o o on ed y o Be d n o ny nde n e . . de n e n on ede e o en o e n Be d Be d n e n on o ede e o en o e . ee o e 26 “Other Income” o de o e o ny e o 9.9 n e e n y o n 2023.

y o n o e on on o

n n nd o e n e e n . de n e n on o e n Be d o nd

n n e de e o en n n n on on o e on nd n en n e o e ne o e n nd o ed n e e o e n nde 30-ye on e on n e en .

e e e 31 202 e o ny 50.1 e ned n e e n y o o n ed o n e e y e od ee o e 12 “Projects Accounted For Using The Equity Method” .

ood ill

e o o n o o o e ood o n o ed o e o e o e o en e n

e e o e e o n o e o e ed e e de e ned ed on e e o o e on . e e o o e on e o - o o e on e e ed o e ene ed y e ed on n n d e o ed y n e en o e n o-ye e od. o e no ed o e o eyond e o-ye e od e e e o ed e e e 31 202 n o e o 2 2023 2 doe no e eed e on - e e e o e o e ne n e o e e. e d o n e ed o o o e on e e e 31 202 10.25 2023 10.25 o 12 ed on e o ny o - e ed e e o o . e ed en y n y e e e ond ed o e e o n e n o e o o nd o on e e o e e o n d d no nd e e y n o n o e e eed e e o e e o n . B d e ed o e e de e ned y n e en ed on e o ny e o n e o en y on nd nd e e en e o e .

(in thousands of Canadian dollars, except per share amounts)

1 . P S

1 . P S S

(a) Contractrelatedobligationsaremadeupofcontractwarrantyobligations,litigationrisks,andonerouscontractsrelating toconstructionoperations.ContractwarrantyobligationsrelatetowarrantiesprovidedbytheCompanyinrespectofits constructioncontracts.Ifnotusedduringthewarrantyperiod,theseamountswillbereversedintoincome.Warranty periodsrangefromonetosevenyears.

(b) Assetdecommissioningcostsrelatetofuturelegalandconstructiveobligationsassociatedwiththeretirementofpitsand quarriesengagedinaggregateminingoperationsinOntarioandAlberta.Decommissioningobligationsareexpectedto besettledbetween2030and2055atwhichpointtheamountoftheliabilitywillreverse.A2%inflationfactorhasbeen appliedtoobtainthefuturevalueofthedecommissioningcosts,whichhasbeendiscountedatarateof5.6%toobtain the present value of the obligation.

(c) Tax assessmentsincludeprovisionsforspecificincometaxexposuresfacedbytheCompanyinCanadianandforeign jurisdictions.Althoughfinalfederalandprovincialreassessmentshavenotyetbeenissuedforcertainyears,the Companybelievesthatithasadequateprovisionstocovertheultimateoutcomeofthisandothertaxreassessments.

31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e or ed as rren lia ili ies

lia ili ies

e o o n de e e o onen o on - e de e e e 31 202 e e o $12 623 e e e 31 2023 - $120 35 o e n e e ed e e n 5.20 e e e 31 2023 .62 e nn e e en o ded e y. e e e 31 202 e en nd o e

e e ed e e n e e e on o on - e de o nd n e d n on e e de en e nd none o e o e de e e e 31 202 .9 e e e 31 2023 .52 . en e e n o o - e e e nd e e o o - e e e o n ed n e e en o n o e o e ye ended e e e 31 202 $99 8 5 2023 - $9 5 0 .

e e e y en o $1 0 9 e ed o o e y e e ed on e o nd no n ded n e e e en o e e e e e e o n ed n e e en o n o e d n e ye ended e e e 31 202 2023 - $1 219 .

o o o e ed o e e e d n e en e e n o o - e nd o - e e e nd e e e y en n 202 $ 0 522 2023 $ 62 .

e e o o e 13 Property, plant and equipment o e de o dd on o -o - e e nd de e on ed on -o - e e d n e ye ended e e e 31 202 .

e e o o e 2 Finance cost o e de o n e e on e e e e o n ed d n e ye ended e e e 31 202 .

e e o o e 30 Financial instruments o on e o e e e e e e 31 202 . e e e en on nd e n on o on e n ded n n e o o e y nd e en e e o e o ny. e e e 31 202 o en e o o o $ 5 9 e e e 31 2023 - $19 8 8 e ed o e e e en on nd e n on o on e no n ded n e e e y e e no e on y e n e e e e e ended o no e n ed .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) n

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e e e 31 202 e o ny o n n n dd on e o n e e y n ee y o

000 e e e 31 2023 - $900 000 o o e e o ed o ded y o e e o en n d o $610 656 ed e e e 31 202 e e e 31 2023 - $622 392 . e o n e e y n ee y e on ne 30 2025.

. S SS S

reme Po erline ons r ion n

n y 2 202 e o ny o d y e on e ed 9 .3 n e e n e e o e ne on on n . e e n e e d on y on o e d e ed n o on n. e o y e y o ned o ny e e - e e o e ne on o e n n o e e d d on ne e n en n e nd e n on e e o o e e n n ed e . e e n e en e ned no y o ne o 5.66 n e e o - on. e e e nd e on e e e d on e n e . . nd en n e d e e y n e e e o e n .

e on o n ed o n e e e od nd e e o o e on e n ded o e d e o e on. e n e e o non- on o n e o de e ed e on d e e o o on o e e o e e nd e e o n ed.

e n on e e e o ny o y e e e dd on e no y en ed on e eed n nn o y e o e e e en o ye . e o ny n ded $19 210 on n en on de on e ed o e dd on e no y en e e en e en o e e d e o on. o n e e d en y e o e e e o e o ny ed on e n o n o n n e e eed n e e o n o n n e. n dd on o e ye ended e e e 31 202 o en on e en e o $ 92 e o n ed n e n ene nd d n e e en e e ed o e n e e no y en e o n ed e e y o e ne o n on.

ood ed o e e o o e e e o y o e ed ne e o e e ed yne e n o e o e en y n e o e e e e o e n . ood no e ded e o o e .

ins or h Po er ons r ion

n e e e 2 202 e o ny o d y e on e ed o e o e y nd e o n o o e on on n e e e e nd o e y e ne n o n o n . e d e ed n o on o n o o n e ed y e e . n o o e on on n e en nd o e on e o ned e on e on o n e n on. n o o e on on e nd e on e e e d on e n n d nd en n e d e e y n e e e o e n .

e on o n ed o n e e e od nd e e o o e on e n ded o e d e o e on. e e e o on o on o on e o ny n n e on o e ed nd e ed e d e o on. e n o on o e e e y y n n y o e o n e en ed e o .

ood ed o n o o e on on o o e e e o y o e ed ne e o e e ed yne e n o e o e en y n e o n o o e on on e e o e n . ood no e ded e o o e .

31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

ni ed n ineers ons r ors n .

n e e e 1

yne e

e o e en y n e o n ed e e o e n . ood no e ded e o o e .

e ails of he isi ions

e o e e on de on e ne e ed nd ood o e ee ne o n on d n e ye e o o

sse

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e e o de nd o e e e e o $63 65 n de $152 o e e ed ed o e . ash flo Presen ed in he onsolida ed S a

o o o ne on ne o ed on de on d n e e od

e e y en o n

e en e and o era in rofi on ri ion

o e e od o e e e e d e o e

on ed e en e o $82

e e ed nd e o e o ny on o d ed e e o n e. isi ion rela ed os s on- e ed o o $5 06 o e ye ended

e en o o .

31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

1. S

n ome a es ere om rised of he follo in

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) e o e en n e o onen o de e ed n o e e o o

1 e o e d e en e e een e e

e e en e o o e on e od o e o n o on o d ed n n e en o e nd e o e n o e ed on nd n e o e d n on o d o o e .

e e ed e e o e n de e ed e n e e en y.

e e e 31 202 e o ny d $56 95 2023 - $ 3 6 8 o non- o e ed o d e e n y n o n n 20 ye . e e e 31 202 de e ed n o e e o $1 6 56 2023$11 3 een e o n ed on $56 95 2023 - $ 3 6 8 o e e o e . e de e ed n o e e e e o n ed on y o e e en o e e n o e e e n e n ed o e n e ed.

e o e on o e o ny e o e nd e ed n e e on e on nd e on e e o n e. e o ny e e e e o n e o ed de e ed n o e e de e y e e n e en en e e e o n o e e o e ee o e16 Provisions .

e o ny n e o e o e n on o ono o-o e on nd e e o en o ode e o . o e on en ed n n d on ne 20 202 nd e n o e e o n y 1 202 . nde e e on e o ny e o y o - o e d e en e e een o n -B e o on e oB o o n e e e e e d on nd e 15 n e.

en n o e e en e e ed o o n o e e e o ded n e ye ended e e e 31 202 $ 35.

e o ny y n e e e on o e o n e nd d o e n o on o de e ed e nd e e ed o o n o e e o ded n e end en o 12 ed n y 2023.

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

. P P S

e o ny de ned ene en on n n d n e en y e e e e e en n nd de ned on on n o e n n y e oyee o e n n on e oyee o e o e ed y -e oye en on n d n e ed y e n on . Bene nde e de ned ene n e ene y ed on e e oyee ye o e e nd e e o o en on ne e e en . Bene e no nde ed o n on e e o e en y e e e e e en n y nde ed o n e n e on e e nde . e o ny doe no o de o -e oy en ene o e n en on .

e e e en d e ed o n n e o n o e o e en on n e nd ene o on e e e 31. e o e en on ed o nd n o e o e n de ned ene en on n o e ed e e e 31 2021 nd e ne e ed on e e ed n e e e d e no e n e e e 31 202 .

e de ned ene en on o on e en ed o o e e on e on o d ed n e.

e n n o on nd o e e e ed n o on e ed o e e oyee de ned ene en on n e en ed n e e e o

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e de ned ene o on nd ene o e e n e e o e n e n e e od nd on e e e d e n o on nd e e e e o e o e e e en e n o o e none o e een n ed e. e n e e en e d e n o e on e n n o o e e e e ed n e o n n on . e o e n e n y o ed e e e e e e no n e e n e e o e n e ed e o e n on n e . e o e e d en n e y e n n e o d o n e nd o e e o d e n e o ny e n e ed o e on on o e n n e e y d e n n y o e e . e e e n n o n o e e en n e n y n o ed n e on o e . e e en n e n y y e d o o en on n n n e e o e e e on o on nd o e o n n e e n o ed n e de e n on o en on e en e nd o on . n n nd o n n on n e e o n o en on n e d o n e on. e e e 31 202 e o ny ed d o n e o .5 n en on n on o on o d ed n n e en o e . e o 0.5 de e e n e d o n e on o d e e ed n n n e e n e en on ene o on o o e y $1 3 e e e 31 202 nd n n e e n e e ed 202 en on e en e o o e y $ 8.

e e e 31 202 e e ed e e d on o e de ned ene o on 8 ye .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

3. S

oas al as in Pi eline Se ions 3 and n ne 28 202 e on nno n ed ne y o ene ne o e on on on o n . nd o e B. o e e o. d. nd o n e ne ed ne y ene ne o n e ne d. e ed n e nd y ee e o e e en o e o e e d e y nd n y o e e on on o e on 3 nd o e o n e ne o e n B o .

e e e en ee en no n d on o y y e e y nd e e e y e e ed e e e e n e on e e y o d n e e en e den nd n e n y o ed on.

e e o e e e en ee en d d no e n ny e o e on. o n o n n e e e e on e o n ed n on o d ed n n e e o $12 000 o e ye ended e e e 31 202 2023 - $n e ed o e on on o e on 3 nd o e o n e ne o e .

emano enera in S a ion Se ond nnel Pro e

n e e ond e o 2020 o n o ed no e o e n on o on o e o n o e on n e on o d 0 n e e e e o e e no ene n on e ond nne o e . o n o o ed no e o e o n o e on e e e n on e 50 e o n e ond e e e en e ed n o oo e on ee en o n o e no en o on on e d y o on e ond . n e d e o 2020 e o n o e on ed no e o ee n o e y $105 000 n d e o o n o. e o n o e on o e e ed nd e e ed de en n o e nd o d n e y o e o e y $9 000 o e ed d e . n e e o 2021 o n o ed o n e n e o n o e on nd e en y ended e d n o dd e o n o e on en o n e o e on n o en o ny n ee ed y d o n e nd o o e o n e d e o o e y $ 28 000. e o e o e d e o d e n e o e on e n n nd o no e o ed e e e nno e ed ed e. e o e en oned no e o o en ed n e e e o o B o e een on e e e on o nd on e e e e on o n en e n de end n y o n e nd o n o n n . nd n o ny o n d ed n n d e e de end n n y o n e .

S Po ash anada

n e e ond e o 2018 e o ny ed e en o n e o o n Ben o e n e o n o n d nd ed e en o n e o n e o ny. Bo on e e o e e y ne o e n Be ne e n. e o ny ee n $180 000 n y en d e o n o ee en en e ed n o e een e o ny nd e e o e o e o e y $1 000 n d e . e o ny e o ded $1 1 290 o n ed e en e nd o n e e e e e e 31 202 . e n o n o o e e en e o ny ed $ 5 000 n de nd o e y e o o en y en o d e end n e o o e o e n . ee n n o de e o ny e y o o e y $195 000 e dy d o e o ny n o ee en . e o ny o een o n o o o e n e e o e een nd o o e on o n o ed e e y ne o e o e n o e e o ny e e e e e y o e ed y n n e o e e o e e en o ny y. n e o e o 2022 e o ed de on o n n on y e on o dd en o ny en e e de end n o e n o ond n nd n o e on e on. e e y no e e o ed o e e ye . e e o ny on de o e o e nd doe no e e e e o on o e e e e o n n o on e e e nno e ed ed e.

e o ny n o ed n o o e d e nd on o n nd de end n . n e o n on o n e en e e o on o o e d e n e o ny n d n o e o ded o ee o e 16

“Provisions” e no e e ed o e n e e e on e on o d ed n n o on o e o ny.

(in thousands of Canadian dollars, except per share amounts)

e e e e o e o o n n e en on . . P S

m er of ommon shares o s andin e innin of ear

m er of ommon

o s andin end of ear

8 $ 33 3 $ 3 e o ny o ed o e n n ed n e o o on e . ormal o rse ss er id

n 15 202 e o on o o n e o ed e o ny no o e e d e B n o e o ny y e o n e on o 3 126 306 o on e o e on e e en n 5 o e ed nd o nd n o on e o 202 . e B o en ed on 18 202 nd end no e n 18 2025.

e o ny o en e ed n o n o e e e n n e e o e B de n ed o e e B o e . e B o e e on e o n e o o on e n o e n d n d n e en e o ny o d o d n y no e e ed o e o on e d e o e o y e on o d n -o e od e ed nde e on n de d n o y. nde e n e on y no e ed o n e B o e o e e nde e B ed on e e e y e on n o d n e e n e nd e e e . e e e 31 202 no y e o ded n e o ny on o d ed n e ee n onne on e .

n e ye ended e e e 31 202 160 600 o on e e e e ed o n e on n o e B o o $3 116 o $1 116 e o ded ed on n e nd $2 000 e o ded ed on o e ned e n n .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

S S P S

on erm n en i e Plans

e o ny n n o on - e n en e n o e e y o e o en o e e e on e e e en o e o ny e n e e e en on oo o e e e e e nd e e n e n e e o en o e e e o e o e o de . d o n e ed on e n n e o e o ny nd e de n e o o e e ed e n nd e ed e n . nd d e e en e o e e e one o on e o e o ny. o en n n 202 e o ny o do ed ne e o n e e n n. d e e e e e o n e e od e o n e e nd e o n e e y n e o 50 o 200 ed o e e o n e e . d e e en e o e e e e e e o one o on e n .

d e on y on e e e en o e n on o e n d e nn y o e ee ye nd d e e ee-ye e od. o en on e e ed o e e e en ed o e e e ed e n e od o e d n e n ene nd d n e e en e n e on o d ed e en o n o e. nd d e o n ed o e y- e ed o - ed n on . d e o n ed o - e ed o - ed n on e e ed y e ed o e e end o e e o n e od. d e o ny n d dend e en e o e en ed e ned n e n ene nd d n e e en e.

o e ye ended e e e 31 202 e o ny e o ded o en on e o $1 32 2023 - $19 366 . her S o ased om ensa ion ire or S ards

n e y 2021 e Bo d o e o od ed d e o o en on o y e n e 201 e o n de ned e o d e o de e ed e n n o de o e e e en o n on y e 2021 e o n o e n . o e e e n o n o e o ny e o e e o one o on e. n dd on o e d e on y d o d e o e n o on o e e o e e e 50 o 100 o e Bo d nn e ne ee o e e y e n n e o o . e n e o ded o d e o e o e e o e o en on d e o e e o e e e n o e e ded y e o ny on n nn d ded y e o e e ed e e d n e o o on e on e o e e d n d y o o e d e o e d. e edee e on e ne d y o o n e d e e d e o e e o e e on e Bo d.

e Bo d o e o no on e e ne nde e d e o de e ed e n n d ed y 201 e 201 e o n . e d o nde e 201 e o n de on 12 2020. n ed nde e 201 e o n on n e o e o e ned y e e o e 201 e o n.

e o d e e en ed n on e d e o n nd e o n ed n e n ene nd d n e e en e n e on o d ed e en o n o e. d nde e 201 e o n e o n ed o e y- e ed o - ed n on . d nde e 2021 e o n e o n ed o - e ed o - ed n on e e ed y e ed o e e end o e e o n e od. e o e o ny n d dend e en e o e en ed e ned n e n ene nd d n e e en e.

o e ye ended e e e 31 202 e o ny e o ded e o o en on e en e ne o e d en o $6 199 2023 e en e o $2 606 .

e e e e o e o ny o on e e e e 31 202 $2 .22 e e e 31 2023 - $13.0 .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) her S o ased om ensa ion m lo ee Share ni ( S ) ards

$2 31 e e e 31 2023 $ 803 e e

B n e ee e e e 31 202

$8 911 e e e 31 2023 - $3 558 e e e

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

. P S S

31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) e e e

e e e 31 202 n on e o $5

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

8. S P S

2023. . S PP S

han e in o her alan es rela in o o era ions

ash flo s from in eres

a i i ies

31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

3 . S S

e o

o ny d on o y $16

$1 920 nd e

e o ded n e on o d ed e en

e e e 31 202 o nd n on o y $338 e e e 31 2023 y $29 2 e e de n ed o ed e on e e

n o e

$55 e e e 31 2023 n $ 8 . e ne n e ed e n e n o o e e en e e ed o n e o ny o d e e e ed d e n ed e on e end o e e e e e od . n dd on o e o e o ny n e en n o e o n ed o n e e y e od en e n o de e n n n en n e y n e e e o ed e e y o n e e e e ed o non- e o e o e de . e e e 31 202 o e e de e n n n en de n ed o ed e e e e n e ed n e o ded n o e o e en e n o e o $1 06 e e e 31 2023 - n $8 3 1 .

13 e e e en en n e d o e o e e e en . e de ned e o n o n e o d e e n ed o y e ed e een no ed e e n e n n en n on. on e n e ed o e e e e e e o o e e n nd n e e e o no e e n . e e e y ed on ee e e o n . e o e e e on de ed o e e nd e no e e. e e e e e ed o e e e o o

e e 1 o ed e n d ed n e e o den e o e e o ny e y o e e e e en d e.

e e 2 n o e n e e 1 n e o e e o e nd e e e d e y o nd e y. e e 2 n n de o ed e e o e o e o ed e n e e no e o o e n e o e e o n e o o o ed y o e e e d o n y e e o e e o e .

e e 3 no e e n e o ed y e o no e y nd e n n o e e o e e o e .

e o o n e e e e e y nde e o ny e d o e o n n n en e ed. e e e 31 202 o al e el 1 e el e el 3

inan ial asse s (lia ili ies) meas red a fair al e o ed e $ 1 119 $ - $ 1 119 $on - e n n e 16 0 8 - 16 0 8e e ed e o e on e 160 300 - - 160 300 inan ial asse s (lia ili ies) dis losed a fair al e on - e n n e 22 32 - 22 32on - e de 160 3 - 160 3 -

n e ye ended e e e 31 202 e e e e no n e e een e e 1 nd e e 2 e e e en nd no n e n o o o o e e 3 e e e en .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

Preferred Shares of e on ili ies

e e e ed e e de n ed e o o o o nd ed e e 3 n e e e y e e e n n no e e n ed n e on. n e en e e ode o e e e e o e e e ed e . e e no ee e od o o e e o e o e en de e ne o n o e e e e on e on e e nd o e o on e n ded n e n en nd e e o e yo o e n en . e ey n n de e n n e n de ed e d - ee e e o y nde y n e e nd on e on e nd on e ed o e o y o e en o d e nd o y on e on .

e odo o e nd o ed e e d n e e 3 e e e en e de e ned y e o ny n e en . e on o e e 3 e de ed ed on e nde y n on e o e e e ed e e o e e nd no e e n . e e o en o no e e n e e e e o n n d en . e e 3 e e e en e e e ed nd d ed y e o ny n e en o en e e on y nd y on e y .

e e e ed e e e e ed e n e o o n n n no e e n e o ny ed n nde y n e e o e on e e e e 31 202 o $1.00. e o ny d ed n nde y n e e e o o e y 10 e o en e e o d e n n e e o $12 520 o de e e o $9 659 o e e o e e e ed e o e n o e e en . e o ny ed e o y o 29.99 . e o ny d ed e o y e o o e y 10 e o en e e o d e n n e e o $2 258 o de e e o $1 90 o e e o e e e ed e o e n o e e en . e o ny ed ed e d o 15.16 . e o ny d ed ed e d e o o e y 10 e o en e e o d e de e e o $3 9 o n n e e o $6 615 o e e o e e e ed e o o e o e en e n o e.

is mana emen

e n n o e o ny n n n en e ed d y n e e e nd en y . e e e o e o e o n e no o e o ne nd e n ed on on o d ed o ny .

redi ris

n n n en e e o ny o ed on y o nd e en o - e de o nd e e e e o n e e e o d e e e n ed e en e nd o e n e n e on .

ed o ed nd o - e de o n ed y en n e e n n e e ed n n n on n e en de ed n nd y n on e o n n e n e ed ny n e n n n on.

e ed o ed o e n e n e on e o e o y e o n e y o one o e e on o e o o d n o e e o e on . ed o ed o e n e n e on n ed y en e n n o n on o n d n n n n on .

on en on o ed o ed o n e e e o d e e e nd n ed e en e ed y e o ny d e ed o e e nd d e on o d e en ne nd eo e . e ed y o e o ny n n o e on o ed on n on o n nd o n e e o ded o o en o e e een n ed e on o d ed n e ee d e. e e e e ne e d e no ed e on de ed y n e en o e no n n o e on . e d y o o e nd e y o y e e e e on de ed n e en o e . o de e e e e d e e o - e o en nd n e nd o n e on ed n nd e e o o e ed . o o e e d n e e o ed e o e e d e no ed. e o ny e o n e

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) o

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) e e e 31 202

rren ris

e o ny o o o n e en e od y $6 53 e e o en y e o e . e en y n y n de o e n en y deno n ed one y e e de n e en n o n en e nd ed e nd d e n on ye -end o e o e 10 n e n o e n en y e .

ddi ional informa ion on finan ial ins r men s e e e 31 202

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

o n e o e e n ee on nd e n n e o e n one ye e ed o - e n e en . n e en e eyond one ye y e ed en ed on e y d n e nd e e e e e e e e en e n e en o e o en o e on .

e n n n en e d o ed y e o ny n de o d e e e non- n e e e n o e d n e y e o o d y e e o n d e y e ed o on on on . e e o n y e n e do no e n e e nd on de on o e e e o oney ne o ed n o e e o e on . e o ny doe no e n o e e e n n n en o d e nd e e o e e e n e no o e o ne . o o ed e e e o e e n en e e ey e no ded n n e nd d e . o d n y e e o o d e e e non- n e e e n o e d n e y e o o d y e e d e n one ye e on de ed o o e e y n e . o o e n n n en e d e eyond one ye e o ny ed e o e e e e e o oney nd e ed o e o o n o ed e e n n n en .

e e o on - e de de ed y d o n n e e n n n nd n e e y en n e e e e e e o e o ny en o o o o n o de . e e n e e e e e ed y n e n d n n e e e y e d ye -end nd d n o e ed e d e e e o ny o o e ed ed . e e o e on e e de en e o ned o o ed e o e e on e o on o o n e.

31. P S S S

o n e en o e e o ny de ne e e e o e o de e y nd de . e n de e en nd nonen o on o on - e de e d n non- e o e de nd d n on e o ny ed e e en ed n nde edne on e e de en e nd e e ed e o e on e .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o ny n o e e n n n e

o en e en d y o de e y nd e on o n o e on o e ne o o de e y o e d n e o on nd o o o n e e e e ed o o de e n o e o de

o n n on e

o o de e o e n n e e o o o o e o de nd o o y n n o en n e ed nde o o o n e .

e o ny n e e nd d n o n e n e ono ond on . n o de o n n o d e e o ny y e ne de o e y e n de e ne e e e e e on e e de o d e n o d dend d o e o de . n n n de on e ene y de on e n on nd de end on n e o ny need e nd e ono ond on e e o e n on.

o e o ny on o on n e o e n d n d y nd o n o de e d n non- e o e de nd d n on e o ny ed e e en ed n nde edne e en e o o on de o on e en e on de ed y e o ny o e e o o n e n e n e en nd e y o on o d ed n e ee . e e e 31 202 e de o on e en e 25 e e e 31 2023 - 22 . e e o ny e e e de o on e en e e e e e o e y n e o ne nd d e o e n e n e de ed n o e Critical Accounting Estimates nd o e 23 Contingencies e o ny on n e en e o o n n on e e o on.

nde e e o e o ny o ed ed e e y n o n e e e 31 202 o $152 8 2023 $111 00 e o ny e ed o o y e end o e nn nd n e e o n e od ey n n de o en n ed n o de ned n e ed ee en o e o nded de d e de nd n e e o on o e n n e o e ed ee en . e e e 31 202 e o ny o ed o n n de o en n .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

3 . P S S

e en e o n ed on e o ny d on o e on . e e do n y d on o e o ny n e n e o n y e .

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e on on e en n de e o e on on o o nd e n e y n n d nd on e e ed n e n on y nd o e y on e o o n e e o n e

n n o on o on e o e n e y n e nd nd n e.

e n e on e on e en n de e de e o en n n n d nd o e on o on on o e y y y o - e ne on e e n e n e e e o o e n nd ne n e en nd e o e on. e on e on e en o e y on o d n e o o n e e e e o en o do e nd n e n on - e ne 3 o e

e n n e o on e e o n e ne

e d n nd o e y n n de e o en e nd e on nd n en n e o n e e .

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

eo ra hi se men informa ion

e en e from e ernal s omers

Pro er lan e i men and in an i le asse s

e en e o e e n o e een ed o nd d o n e on e o e o e o on.

33. P S

o .e. e n n e o n e o on e n e o e o o no ye een o e ed e n y o e n e o ed e o e e en e o n e e ed on o o o de e y n o o e e nd n o een ded o e o ny e den ed y n e e ed nd n e e o n en o ee en de n e ene o o e e nd n o o nd e e e n on o o on n e e o o e on y ed. e e o ded nde on n o e e od o o 30 ye . n o de o o de n o on o e o e o o o e e o e o y e o ny o o e o e e e o e on e nd e ne e ye .

e o ed o e e e 31 202 o $6 661 913 o e o o o $6 15 9 e e e 31 2023. e on d o $ 195 e e oo ed n 202 o ed o $ 50 828 n 2023. a lo s a e em er 31 2023

ons r ion $ $6 053 032 on essions 111 1 10 1 onsolida ed $ 1 13 $6 15 9

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

B o d on e e en n e e e ed e od d n o on nd e on e ed n o e en e e o n e e e o

s ima ed a lo d ra ion s

e o ny doe no e o o e n n n e o on nd n e en n nd e e e e o n o o o e e o ed nno e e y n ed o e e n n e o n e on e ed e e n no n eed. e n de e nd e nd o e o - nd n ed on e e e e en o e e o e o ded nde ned

e n e o n nno e e

e on e e n y. e e e n de e e o on on o n ed nde on on n e en d o y on on e on ee en -ye o e n nd n en n e e e on e e e e o e o no e ed e o o e n e en nd n e ee en e e e en e e e e on n -needed . one o e e e ed e en e o e e y e o on nd n e en n ded n o . e e o e e o ny n ed e o o e e o ed ny en e e e n e o ed o .

3 . P S

e o ny ond ne n y o e o o n d y o n e o e o y o ned. ee n e en n e e e ed e o e on e on e e ny e y ee n o ed 2 .5 o e o on e y o e on e ee o e 18 Preferred Shares of Aecon Utilities

S sidiar

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DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts)

e o ny o ond ne o e o o n n n o n n e en nd o e

oin arran emen s and asso ia es

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o n r of o era ions nershi in eres s a re of a i i ies

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n d 0.00 on on e ene n on nd y o o e

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n d 50.00 on on

DECEMBER 31, 2024 AND 2023

(in thousands of Canadian dollars, except per share amounts) e o ny en e n o n on

o e on . e o ny d e

$8 1 5 1 nd d e o nd e en e

n e en

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ariffs

e e 2025 e n ed e o ed on o o n e o o n e n d n 25 on ood o n d nd 10 on n d n ene y o . e o e n en o n d o e n on ndn on o e n en nno n ed o e ened e n e o y e e n d n o n e . e o o o e e e on e e en ed e o n e o o n d n e d on o o e e n e n e o n o e nd n e o e o e e n e e ny e o n e e e y e en o d n e e e o o y o e o e on o en nd ny n on y e o e e. e n od on o o non- e e o d e o e o y o e on nd o e ed e o d e ed o e n e e nd o ed ed y. o o d e de o e e e y n o e n e o e o y n e e e ed o on o en . dd on y o e en o d e ed y o non- e e e n n e end n y o e on on on o e . e e o o o y o o e e e o de yed o n e ed o e o d e e d e e e e on e on e e n n nd n n o on.

EXECUTIVE COMMITTEE

Jean-Louis Servranckx

President and Chief Executive Officer

Steve Nackan

Executive Vice President and President, Concessions

Eric MacDonald

Executive Vice President, Utilities

Manuel Rivaya

Senior Vice President, Urban Transportation Solutions

Jerome Julier

Executive Vice President and Chief Financial Officer

Thomas Clochard

Executive Vice President, Civil and Nuclear

Tim Murphy

Executive Vice President, Chief Strategic Affairs Officer

Gordana Terkalas

Senior Vice President and Chief People Officer

BOARD OF DIRECTORS

John M. Beck

Scott Thon ICD.D

Susan Wolburgh Jenah ICD.D

Stuart Lee

Eric Rosenfeld

Monica Sloan ICD.D

Scott Stewart

Leslie Kass

Rod Phillips ICD.D

Jean-Louis Servranckx

Deborah S. Stein ICD.D

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