AtkinsRealis (ATRL) AI Stock Analysis

• Market Cap: C$15.98B
• Dividend Yield: 0.08%
• Average Volume (3M): 475.47K
• Price to Earnings (P/E): 54.8
• Beta (1Y): 1.20
• Revenue Growth: 12.05%
• EPS Growth: 1.32%
• Country: CA
• Employees: 38,446
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.78
• Shares Outstanding: 165,934,810
• 10 Day Avg. Volume: 638,769
• 30 Day Avg. Volume: 475,468
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$108.20
• Price Target Upside: 11.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: C$105.00 ▲(8.31% Upside)

AtkinsRealis benefits from strong financial performance in key segments like Nuclear, supported by strategic corporate actions. However, valuation concerns and operational efficiency issues weigh on the overall score.

Positive Factors

Nuclear Segment Growth

The Nuclear segment achieved +67.0% year-over-year revenue growth.

Sale Proceeds

The sale of its remaining stake in Highway 407 provides significant resources to be redeployed across its capital allocation priorities.

Strategic Acquisition

The acquisition of a 70% stake in engineering services firm David Evans is viewed positively both strategically and financially, aligning well with ATRL's U.S. Land & Expand strategy and significantly bolstering ATRL's Western U.S. presence.

Negative Factors

Automotive Sector Sentiment

Negative sentiment was observed on the automotive sector.

Project Management Losses

The Professional Services & Project Management adjusted EBITDA missed estimates by 23% due to $84 million in losses associated with legacy LSTK contracts.

User Growth

Continued weakness in monthly active user growth is expected.

AtkinsRealis Business Overview & Revenue Model

Company Description

AtkinsRéalis Group Inc., together with its subsidiaries, provides professional services and project management, and capital investment services in United Kingdom, Canada, the United States, Saudi Arabia, and internationally. It operates through eight segments: Canada, UKI, USLA, AMEA, Nuclear, Linxon, LSTK Projects, and Capital. The company provides consultancy, strategy, advisory, engineering, design, project & program management and project delivery services for building and places, defence, industrial, power and renewables, and transportation and water markets; and operations, maintenance, and asset management solutions for various assets. It also offers services for clients across the nuclear life cycle from consultancy, engineering, procurement and construction management, field, technology, decommissioning, and waste management services, as well as spare parts; and new-build and full refurbishment services for reactors. In addition, the company is involved in installation of alternative current power substations, including expansions and electrification, notably through repetitive engineering, procurement and construction offerings for utilities, renewables and conventional generation, transportation, and data centers markets; and provision of lump-sum turnkey LSTK construction contracts for the mass transit projects. Further, it engages in developing projects, arranging financing, investing in equity, undertaking complex financial modeling, and managing its infrastructure investments, such as bridges and highways, mass transit systems, power facilities, energy infrastructure, water treatment plants, and social infrastructure. Additionally, it offers staff augmentation services. The company was formerly known as SNC-Lavalin Group Inc. and changed its name to AtkinsRéalis in September 2023. AtkinsRéalis Group Inc. was founded in 1911 and is headquartered in Montreal, Canada.

How the Company Makes Money

AtkinsRealis generates revenue through a diversified model primarily based on providing consultancy and engineering services across multiple industry sectors. Key revenue streams include fees from project management, design, and consultancy services offered to both public and private sector clients. The company also earns income from long-term contracts and partnerships with governments and large corporations, delivering significant infrastructure and energy projects. Additionally, AtkinsRealis leverages its expertise in digital engineering to offer advanced technological solutions, which contribute to its revenue. Strategic partnerships and collaborations further enhance its market presence and earning potential.

AtkinsRealis Financial Statement Overview

Summary

AtkinsRéalis exhibits strong revenue growth and improved gross profit margins, but operational efficiency issues are a concern given the declining EBIT. The balance sheet is stable and reflects a prudent capital structure, while cash flows show improvement but are still subject to volatility. The company is positioned well in the construction industry, but operational improvements are needed to enhance profitability.

Income Statement

AtkinsRealis has demonstrated consistent revenue growth over recent years, with a notable increase in gross profit margin, indicating improved cost management. However, the company has faced challenges with EBIT, showing a decline in profitability from core operations recently. The net profit margin has improved, but the inconsistency in EBIT signals operational efficiency issues that could affect future profitability.

Balance Sheet

The balance sheet of AtkinsRealis is solid with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio is stable, reflecting a solid foundation of assets relative to equity. However, the return on equity has shown variability, suggesting fluctuating profitability returns to shareholders.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, reflecting improved cash management. Operating cash flow has shown improvement, supporting net income, but the free cash flow to net income ratio remains volatile, indicating potential challenges in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.67B	8.63B	7.55B	7.37B	7.01B
Gross Profit	844.84M	766.00M	413.11M	489.31M	125.35M
EBITDA	768.97M	752.00M	283.59M	383.82M	-14.32M
Net Income	283.87M	287.21M	9.75M	666.56M	-965.45M
Balance Sheet
Total Assets	11.29B	10.17B	9.46B	9.88B	10.34B
Cash, Cash Equivalents and Short-Term Investments	805.85M	540.64M	645.06M	680.24M	1.08B
Total Debt	2.20B	2.37B	2.49B	2.16B	2.50B
Total Liabilities	7.50B	6.99B	6.58B	6.88B	7.77B
Stockholders Equity	3.77B	3.16B	2.87B	2.97B	2.56B
Cash Flow
Free Cash Flow	365.86M	-25.82M	-355.19M	27.91M	45.66M
Operating Cash Flow	525.78M	65.96M	-245.36M	134.20M	121.48M
Investing Cash Flow	70.27M	9.48M	-82.47M	-263.71M	-185.12M
Financing Cash Flow	-408.35M	-170.91M	283.12M	-192.53M	-190.43M

AtkinsRealis Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 96.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATRL, the sentiment is Neutral. The current price of 96.94 is below the 20-day moving average (MA) of 97.91, above the 50-day MA of 95.66, and above the 200-day MA of 78.02, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATRL.

AtkinsRealis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥258.28B	14.57	8.48%	2.82%	6.30%	11.95%
ATRL	69 Neutral	C$15.98B	54.85	8.66%	0.08%	12.05%	1.32%
STN	―	$12.72B	45.78	13.13%	0.57%	―	―
BDGIF	―	$1.30B	23.43	21.65%	1.37%	―	―
BDT	79 Outperform	C$1.61B	15.99	26.31%	2.68%	16.14%	27.71%
WSP	70 Outperform	C$37.25B	51.92	10.52%	0.53%	16.77%	21.38%
ARE	61 Neutral	C$1.21B	47.56	2.78%	3.78%	20.53%	74.96%

AtkinsRealis Corporate Events

AtkinsRéalis Achieves Record Q2 Results and Strategic Milestones

AtkinsRéalis reported a strong second quarter in 2025, with a 15% increase in revenue and a 20% rise in total backlog, reaching a record $20.9 billion. The company achieved significant financial milestones, including the sale of its Highway 407 ETR interest, reducing debt, and acquiring a majority stake in David Evans. These strategic moves, along with robust financial performance, position AtkinsRéalis to capitalize on market opportunities and reinforce its industry standing.

The most recent analyst rating on (TSE:ATRL) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on AtkinsRealis stock, see the TSE:ATRL Stock Forecast page.

AtkinsRéalis to Repurchase 7 Million Shares from La Caisse

AtkinsRéalis announced a private agreement to repurchase 7,000,000 of its shares from La Caisse at a price of $90.87 per share, totaling approximately $636 million. This transaction aligns with the company’s capital allocation strategy and aims to create shareholder value, leveraging its strong balance sheet after selling its interest in Highway 407 ETR. La Caisse remains a significant shareholder, holding 16.5% of the company’s shares, and continues to express confidence in AtkinsRéalis’ prospects. The transaction received an exemption from issuer bid requirements, allowing it to proceed at a discount.

The most recent analyst rating on (TSE:ATRL) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on AtkinsRealis stock, see the TSE:ATRL Stock Forecast page.

AtkinsRéalis Finalizes Sale of Highway 407 ETR Stake, Boosting Financial Flexibility

AtkinsRéalis has completed the sale of its remaining 6.76% interest in Highway 407 ETR, generating approximately $2.6 billion in total proceeds. This transaction allows the company to repay a $400 million loan and align with its capital allocation priorities, which include reducing debt, pursuing growth through acquisitions, and returning capital to shareholders, thereby enhancing shareholder value.

The most recent analyst rating on (TSE:ATRL) stock is a Buy with a C$68.00 price target. To see the full list of analyst forecasts on AtkinsRealis stock, see the TSE:ATRL Stock Forecast page.

AtkinsRéalis Achieves Record Q1 2025 Results with Strong Nuclear Growth

AtkinsRéalis reported strong financial results for the first quarter of 2025, with significant increases in revenue, Segment Adjusted EBIT, and diluted earnings per share. The company’s backlog reached record-high levels, driven by robust demand in its Engineering Services Regions, Nuclear, and Linxon segments. The nuclear segment, in particular, saw a substantial increase in revenue and backlog, highlighting the company’s strong market positioning in this area. The acquisition of David Evans and the integration of its team further bolster AtkinsRéalis’ capabilities and workforce. The company also raised its full-year 2025 revenue outlook for the nuclear segment, reflecting continued confidence in market demand.

The most recent analyst rating on (TSE:ATRL) stock is a Buy with a C$64.00 price target. To see the full list of analyst forecasts on AtkinsRealis stock, see the TSE:ATRL Stock Forecast page.