- Aecon (TSX:ARE) secured contracts worth C$3 billion for the Pickering Nuclear Generating Station Refurbishment Project, with Aecon’s share totalling C$1.75 billion
- Aecon and AtkinsRéalis (TSX:ATRL) were awarded a C$1.7 billion contract to replace steam generators, fuel channels and feeders on Unit 5, with similar work expected on Units 6, 7 and 8
- An Aecon-Siemens Energy (OTCQX:SMEGF) consortium won a C$1.3 billion contract to replace turbine generator equipment, supporting Ontario’s long-term electricity supply
- Aecon Group stock (TSX:ARE) last traded at C$51.24
Aecon Group (TSX:ARE) has been awarded contracts with a combined value of approximately C$3 billion as part of the Pickering Nuclear Generating Station Refurbishment Project, marking a significant milestone in one of Canada’s largest clean energy infrastructure initiatives.
The contracts, awarded by Ontario Power Generation (OPG), will see Aecon play a central role in extending the operational life of the Pickering Nuclear Generating Station, a key source of emissions-free electricity located on the shore of Lake Ontario. Aecon’s share of the contracts totals approximately C$1.75 billion, which will be added to the company’s Construction segment backlog during the third quarter of 2026.
The awards build upon previously completed early works contracts and position Aecon at the forefront of the multi-year refurbishment project, which is expected to begin full execution in January 2027, pending regulatory approval.
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Major refurbishment scope
Aecon will deliver critical construction services and major component replacement work through two key project packages designed to support the long-term operation of the Pickering station and help meet Ontario’s growing electricity demand.
“These contract awards represent a major step forward for the Pickering Refurbishment Project and reinforce Aecon’s position as a leading partner in Canada’s nuclear sector,” the company said.
Retube, feeder and boiler replacement contract
Aecon’s long-standing 50/50 joint venture with AtkinsRéalis Group (TSX:ATRL) has been awarded a C$1.7 billion contract for the Unit 5 Retube, Feeder and Boiler Replacement (RFBR) project.
The RFBR work represents the first refurbishment unit in the broader Pickering program, with similar projects anticipated for Units 6, 7 and 8 in future phases, subject to regulatory approvals.
The scope includes the replacement of steam generators, fuel channels and feeders, major components that are critical to extending the life of the nuclear station. The work is expected to enhance the plant’s ability to provide reliable, emissions-free electricity for decades to come.
Turbine generator replacement contract
In a separate award, a consortium formed by Aecon and Siemens Energy (OTC:SMEGF) secured a C$1.3 billion contract for the Turbine Generator Replacement (TGR) project.
Aecon holds a majority interest in the consortium and will be responsible for construction services and material procurement.
Under the contract, the consortium will oversee the installation of 14 new steam turbine rotors, conduct overhauls of four generators, including stator rewinds, and deliver new auxiliary systems along with an advanced control and monitoring system.
The upgrades are expected to improve operational reliability and efficiency across the station’s generating units.
Work already underway
Both the RFBR and TGR projects are nearing completion of collaborative development activities, while additional prerequisite work is scheduled to begin this month.
Aecon said the refurbishment will draw on the expertise of hundreds of skilled nuclear and union workers, supported by a broad Canadian supply chain and fabrication network. The company plans to leverage decades of experience gained through its involvement in major nuclear projects across Canada.
An eye on Ontario’s energy future
The Pickering refurbishment is considered a cornerstone of Ontario’s long-term electricity strategy as demand is projected to increase due to population growth, electrification and industrial expansion.
By extending the operating life of the Pickering Nuclear Generating Station, the project is expected to help ensure a stable supply of clean, reliable baseload power while supporting thousands of jobs throughout the construction and engineering sectors.
For Aecon, the contract awards further strengthen an already significant nuclear construction portfolio and provide substantial backlog growth heading into 2027, reinforcing the company’s position in Canada’s expanding clean energy and nuclear infrastructure market.
Management insights
“As Canada’s nuclear constructor, Aecon’s involvement in both major scopes of work highlights our unique ability to deliver complex nuclear infrastructure projects through collaborative delivery models with our trusted partners,” Aecon’s president and CEO, Jean-Louis Servranckx said in a news release. “Aecon played a key role in safely completing the Darlington Refurbishment ahead of schedule and under budget, and we are applying the lessons learned, best practices and proven execution strategies from that project to support the successful delivery of the Pickering refurbishment.”
About Aecon Group Inc.
Aecon Group stock (TSX:ARE) closed trading 8.56% higher at C$51.24 and has risen 63.40% since the year began.
Aecon Group Inc. provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally.
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