Stuart Olson Inc. Reports Consolidated Financial Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Full Year of 2018
As compared to fiscal 2017, the company expects 2018 consolidated contract revenue to be modestly higher, and adjusted EBITDA to be meaningfully higher, based on the outlook for each of its business groups outlined below. The company expects 2018 adjusted EBITDA margin to remain stable year-over-year. Revenue and adjusted EBITDA from the Industrial Group are expected to be meaningfully higher in 2018 than in 2017, supported by increased activity in the oil sands as project owners complete increased scopes of maintenance and turnaround work. The group's financial results are also expected to be supported by the completion of two large projects outside Alberta in the power and mining sectors. Industrial Group EBITDA margin is expected to remain stable year-over-year. With a greater proportion of projects nearing completion in 2018 as compared to 2017, the Buildings Group anticipates modestly lower revenue year-over-year, paired with stable adjusted EBITDA and slightly higher adjusted EBITDA margin. The Buildings Group results as a whole will continue to be supported by predominantly public projects in multiple provinces, including the group's growing activity in Ontario. Commercial Systems Group revenue and adjusted EBITDA are expected to be significantly higher in 2018 as the group begins to see material benefits from the substantial number of project awards secured in 2017. The group's adjusted EBITDA margin is expected to be slightly lower year-over-year, reflecting the group being in earlier stages of completion on a number of larger projects and a greater proportion of projects contracted on a lower risk cost-plus basis.