AtkinsRealis (ATRL) AI Stock Analysis

• Market Cap: $15.83B
• Dividend Yield: 0.08%
• Average Volume (3M): 530.91K
• Price to Earnings (P/E): 51.8
• Beta (1Y): 1.20
• Revenue Growth: 12.05%
• EPS Growth: 1.32%
• Country: CA
• Employees: 38,446
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 0.63
• Shares Outstanding: 173,980,240
• 10 Day Avg. Volume: 621,930
• 30 Day Avg. Volume: 530,912
• PEG Ratio: -1.50
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.80
• 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: $99.66
• Price Target Upside: 8.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: C$91.00 ▼(-0.95%Downside)

AtkinsRealis has strong growth prospects, driven by significant achievements in its Nuclear segment and backlog growth. However, operational efficiency concerns, high valuation, and mixed technical indicators temper the outlook. The stock is positioned well for growth, but improvements in operational efficiency are needed to enhance profitability.

Positive Factors

Acquisition Strategy

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.

Nuclear Segment Performance

Nuclear EBIT increased by 36% year-over-year, exceeding estimates by 17%, with revenue reaching a record high of $464 million.

Revenue Growth

The company's Q4/2024 Services revenue increased by 15.1% year-over-year to $2.52 billion, exceeding estimates by 10%.

Negative Factors

Financial Performance

Q4/24 PS&PM EBITDA missed consensus, and 2025 CFO guidance is weaker than expected.

LSTK Project Challenges

LSTK project losses increased due to greater-than-anticipated project commissioning costs on the Ottawa LRT and Eglinton LRT scheduling delays and additional provisions.

User Growth

Continued weakness in monthly active user growth is expected.

AtkinsRealis Business Overview & Revenue Model

Company Description

AtkinsRealis (ATRL) is a leading global engineering and project management consultancy that operates primarily in the infrastructure, transportation, energy, and water sectors. The company provides a wide range of services including engineering design, project management, consulting, and advisory services aimed at delivering sustainable and innovative solutions for complex projects. By leveraging its expertise and global reach, AtkinsRealis supports clients in developing, managing, and maintaining infrastructure assets worldwide.

How the Company Makes Money

AtkinsRealis makes money through a diversified revenue model that includes consultancy fees, project management contracts, and engineering services. The company generates income by providing end-to-end solutions for infrastructure development and management, often engaging in long-term contracts with governmental, private, and public sector clients. Key revenue streams include design and advisory services, where the company applies its engineering expertise to help clients plan and execute projects efficiently. Additionally, AtkinsRealis benefits from strategic partnerships and collaborations with industry leaders, enhancing its ability to secure large-scale projects and expand its market presence. The company's focus on sustainable and innovative solutions also positions it favorably in sectors experiencing growth due to increased investment in infrastructure and environmental resilience.

AtkinsRealis Financial Statement Overview

Summary

AtkinsRealis demonstrates strong revenue growth and improved gross profit margins, but faces challenges with operational efficiency, reflected in declining EBIT. The balance sheet is stable with a moderate debt-to-equity ratio. Cash flows are improving, yet volatility in the free cash flow to net income ratio poses potential challenges.

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
	EBIT
0.00	506.62M	195.78M	235.27M	-185.90M
	EBITDA
768.97M	752.00M	283.59M	383.82M	-14.32M
	Net Income Common Stockholders
283.87M	287.21M	9.75M	666.56M	-965.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
805.85M	540.64M	645.06M	680.24M	1.08B
	Total Assets
11.29B	10.17B	9.46B	9.88B	10.34B
	Total Debt
2.20B	2.37B	2.49B	2.16B	2.50B
	Net Debt
1.53B	1.90B	1.92B	1.55B	1.57B
	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: Positive
• Last Price: 91.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATRL, the sentiment is Positive. The current price of 91.87 is above the 20-day moving average (MA) of 84.69, above the 50-day MA of 74.71, and above the 200-day MA of 68.93, indicating a bullish trend. The MACD of 5.36 indicates Negative momentum. The RSI at 78.62 is Negative, neither overbought nor oversold. The STOCH value of 85.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ATRL.

AtkinsRealis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	81 Outperform	C$1.51B	15.04	26.31%	2.48%	16.14%	27.71%
STN	76 Outperform	C$16.42B	42.55	13.13%	0.58%	15.62%	9.66%
WSP	75 Outperform	C$35.82B	49.94	9.42%	0.55%	16.77%	21.38%
BDGI	70 Outperform	C$1.53B	22.95	19.89%	1.58%	10.97%	24.27%
ATRL	67 Neutral	$15.83B	51.82	8.66%	0.08%	12.05%	1.32%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
ARE	55 Neutral	C$1.21B	―	-9.26%	3.96%	1.70%	-154.73%

AtkinsRealis Corporate Events

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.

AtkinsRéalis to Divest Remaining Stake in Highway 407 ETR for $2.79 Billion

AtkinsRéalis Group Inc. has announced the sale of its remaining 6.76% interest in Highway 407 ETR, a toll highway in Ontario, Canada, to Ferrovial and CPP Investments for up to $2.79 billion. This strategic divestment is structured in two main transactions: a 5.06% interest sold to Ferrovial and a 1.70% interest to CPP Investments. The transactions are expected to close in the second quarter of 2025, contingent on customary conditions and the closing of related sales by CPP Investments.

AtkinsRéalis Achieves Record-High Revenue and Strong Growth in 2024

AtkinsRéalis reported a successful fourth quarter of 2024, achieving record-high revenues in its nuclear segment and strong operating cash flows. The company also announced a record-high services backlog, reflecting robust demand for its offerings. With a 15% organic revenue growth in its services, AtkinsRéalis has a strong financial position and low debt, allowing for future growth investments. The company successfully delivered the Trillium Line project in Ottawa and concluded its Pivoting to Growth Strategy, entering a new phase focused on excellence and growth.