Wildfires in France and Spain are not only a human and environmental crisis, they are also a real-time stress test for companies tied to climate change adaptation and disaster management. When evacuation orders interrupt operations for more than 13,000 businesses and raise the prospect of hundreds of millions of euros in losses, investors start to reassess which stocks might be more resilient to these shocks. This article looks at 3 stocks from our Climate Change Adaptation and Disaster Management screener that appear positively exposed to the current news backdrop, and explains what this could mean for your portfolio decisions.

Aecon Group (TSX:ARE)

Overview: Aecon Group is a Toronto based construction and infrastructure company that builds and operates large civil, transportation, utility, nuclear and industrial projects for governments and private clients in Canada, the United States and abroad, including through public private partnership contracts.

Operations: Aecon generates virtually all of its revenue from Construction at about CA$5.6b, with a small contribution from Concessions of about CA$8.3m and CA$4.0m from other items and eliminations.

Market Cap: CA$3.4b

Aecon Group operates in areas that are relevant to climate adaptation and disaster recovery work, with expertise in civil infrastructure, utilities and large projects that can be important after events such as major wildfires. The company has an energy transition focused backlog that includes nuclear, transmission and water treatment projects, plus long term roles such as its 30 year operations and maintenance position on the Gordie Howe International Bridge, which can support more recurring cash flows. At the same time, high reliance on government and utility spending, margin pressure in construction and a high P/E multiple mean execution risk and pricing risk are issues for investors to consider. The combination of opportunity and complexity is a key aspect of the investment narrative for Aecon.

Aecon’s energy transition projects and long term concessions may be masking a very different risk return profile compared with a typical contractor, so it is worth reading the 2 key rewards and 2 important warning signs

Brady (BRC)

Overview: Brady Corporation sells identification and workplace safety products that help companies label, track and protect people, equipment and facilities, from industrial plants and data centers to hospitals and transit systems, across the Americas, Asia, Europe and Australia.

Operations: Brady generates about US$1.1b in revenue from the Americas & Asia and about US$550.6m from Europe & Australia.

Market Cap: US$4.5b

Brady stands out in the Climate Change Adaptation and Disaster Management screener because its labels, printers, safety signs and tracking systems are used directly in emergency response, hazardous environments and complex industrial sites affected by events such as the wildfires disrupting thousands of businesses in France and Spain. The company is expanding into higher margin traceability and compliance solutions through acquisitions like Honeywell PSS, supported by record R&D spending and a recently appointed CEO who is focused on integrating these assets. At the same time, higher tariff costs, heavier use of external borrowing to fund deals and mixed growth in mature regions introduce execution risk. The overall picture reflects how these growth projects, funding choices and risk factors intersect over the next few years.

Brady’s push into higher margin traceability and compliance could be reshaping its story, but most investors may not be connecting the dots between these projects and the analyst forecasts for Brady that might reveal what is quietly changing under the surface.

Avon Technologies (LSE:AVON)

Overview: Avon Technologies is a UK based supplier of respiratory and head protection equipment, providing masks, escape hoods, thermal imaging and specialized helmets for military personnel and first responders across Europe and the United States under its Avon Protection and Team Wendy brands.

Operations: Avon Technologies generates about US$186.2m from Avon Protection and US$139.8m from Team Wendy, with most revenue tied to U.S. customers.

Market Cap: £516.6m

Avon Technologies operates at the intersection of defense spending and climate driven emergencies, with its respirators and firefighting gear used directly in frontline responses to events like the wildfires affecting thousands of businesses in France and Spain. A larger order book, recent multi year NATO and U.S. Army contracts and high quality earnings provide greater visibility, while transformation projects are aimed at lifting productivity and margins over time. The company still carries funding risk from external borrowing and depends on defense budgets and large, sometimes uneven orders, so the path is not perfectly smooth. That mix of demand strength, operational change and real world risk exposure is exactly what makes Avon a potential candidate for closer attention within this theme.

Avon Technologies’ growing order book and frontline role in climate emergencies might be only half the story. The analyst forecasts for Avon Technologies could highlight a twist in its risk profile that most investors are missing.

The three stocks in this article are only a starting point. The full Climate Change Adaptation and Disaster Management screener surfaces 42 more companies that may have equally compelling climate adaptation and disaster management narratives for you to review. Use Simply Wall St to identify, filter and analyze the specific catalysts and themes that matter to you so you can focus on the highest conviction ideas within this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.