AtkinsRealis (ATRL) AI Stock Analysis

• Market Cap: C$15.72B
• Dividend Yield: 0.09%
• Average Volume (3M): 689.18K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.31
• Revenue Growth: 13.97%
• EPS Growth: 715.65%
• Country: CA
• Employees: 38,446
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.10
• Shares Outstanding: 164,491,760
• 10 Day Avg. Volume: 595,252
• 30 Day Avg. Volume: 689,178
• PEG Ratio: -38.59
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 36.51
• 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$118.25
• Price Target Upside: 23.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$106.00 ▲(10.93% Upside)

AtkinsRealis demonstrates strong financial performance with impressive profitability and a solid balance sheet, though cash flow management needs improvement. The stock appears undervalued based on its low P/E ratio. However, technical indicators suggest bearish momentum, which could pose short-term risks.

Positive Factors

High reported profitability

Sustained high net profit and rising EBIT/EBITDA margins indicate durable operational efficiency and pricing power across projects. This supports internal funding for bid investments, R&D and sustainability services, and provides a buffer versus cyclical revenue swings in infrastructure work.

Low leverage and strong equity returns

A low debt-to-equity ratio gives the company financial flexibility to pursue large, capital-intensive projects or M&A without stressing solvency. Exceptionally high ROE suggests efficient capital deployment, supporting reinvestment and long-term shareholder value if sustained by core operations.

Diversified, contract-based revenue model

A fee-for-service model with long-term public-sector contracts and partnerships reduces revenue volatility and underpins backlog visibility. Diversification across public and private projects and sustainability advisory increases resilience to single-client or sector shocks and supports steady pipeline.

Negative Factors

Declining free cash flow growth

A steep drop in free cash flow growth materially weakens the firm's ability to self-fund projects, pay dividends, or build cash reserves. For a project-driven engineering firm, reduced FCF can constrain bidding capacity and increase dependence on external financing for working capital and capex.

Weak conversion of earnings into cash

Low operating cash flow relative to reported net income signals potential working-capital friction or revenue recognition timing differences. In construction/engineering this elevates liquidity risk on long-duration contracts and may necessitate higher short-term borrowing to fund project execution.

Relatively low gross profit margin

A comparatively low gross margin points to cost intensity or limited pricing power on core services. Structural pressure on gross margins makes the business more vulnerable to rising input or labor costs and reduces scope to absorb project overruns without harming long-term profitability.

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 multiple streams primarily focused on service delivery. The company earns money by charging clients for project management, engineering, and consulting services on a fee-for-service basis. Key revenue streams include long-term contracts with governmental agencies for infrastructure projects, private sector contracts related to construction management and environmental consulting, and specialized advisory services for sustainability initiatives. Additionally, strategic partnerships with other firms in the construction and engineering sectors enhance its market reach and contribute to its earnings, allowing the company to secure larger projects and diversify its service offerings.

AtkinsRealis Financial Statement Overview

Summary

AtkinsRealis shows strong revenue and profit growth with high profitability metrics and a solid balance sheet. However, cash flow management is a concern due to declining free cash flow growth and low operating cash flow ratios.

Income Statement

AtkinsRealis has demonstrated strong revenue growth with a 3.69% increase in TTM, supported by a robust net profit margin of 24.94%. The company has improved its EBIT and EBITDA margins significantly over the years, indicating enhanced operational efficiency. However, the gross profit margin remains relatively low, suggesting potential cost management challenges.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.25 in TTM, reflecting strong financial leverage management. Return on equity is exceptionally high at 61.63%, indicating efficient use of equity capital. The equity ratio is stable, but the company should monitor its debt levels to maintain financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 43.28% in TTM, which could pose liquidity challenges. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively strong, indicating some level of cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.57B	9.57B	8.53B	7.47B	7.29B	6.92B
Gross Profit	798.07M	665.27M	574.53M	251.22M	-122.17M	-88.77M
EBITDA	3.33B	693.40M	673.37M	283.59M	383.82M	-14.32M
Net Income	2.59B	283.87M	287.21M	9.75M	666.56M	-965.45M
Balance Sheet
Total Assets	12.38B	11.29B	10.28B	9.46B	9.88B	10.34B
Cash, Cash Equivalents and Short-Term Investments	1.48B	679.01M	486.63M	599.35M	628.04M	968.40M
Total Debt	1.32B	2.20B	2.37B	2.49B	2.16B	2.50B
Total Liabilities	6.78B	7.50B	6.99B	6.58B	6.88B	7.77B
Stockholders Equity	5.53B	3.77B	3.28B	2.87B	2.97B	2.56B
Cash Flow
Free Cash Flow	198.57M	365.86M	-25.82M	-355.19M	27.91M	45.66M
Operating Cash Flow	371.00M	525.78M	65.96M	-245.36M	134.20M	121.48M
Investing Cash Flow	2.09B	70.27M	9.48M	-82.47M	-263.71M	-185.12M
Financing Cash Flow	-2.02B	-408.35M	-170.91M	283.12M	-192.53M	-190.43M

AtkinsRealis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.56
• 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 Positive. The current price of 95.56 is above the 20-day moving average (MA) of 95.15, above the 50-day MA of 90.67, and above the 200-day MA of 91.88, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, 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
WSP	75 Outperform	C$35.49B	39.25	11.21%	0.60%	18.85%	29.60%
ATRL	71 Outperform	C$15.72B	6.39	56.38%	0.09%	13.97%	715.65%
STN	70 Outperform	$15.39B	31.84	15.96%	0.67%	11.73%	41.17%
BDT	69 Neutral	C$1.67B	17.79	21.68%	2.88%	6.26%	0.52%
BDGI	66 Neutral	$2.60B	30.50	22.05%	0.99%	13.02%	52.88%
ARE	65 Neutral	C$2.26B	270.29	0.92%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

AtkinsRealis Corporate Events

AtkinsRéalis Achieves Record Q3 2025 Financial Performance

AtkinsRéalis reported a robust financial performance for the third quarter of 2025, with a 15% increase in total revenue and a 68% rise in diluted earnings per share from PS&PM compared to the previous year. The company achieved a record high backlog of $21 billion, reflecting a 20% increase from the end of 2024. The acquisition of C2AE is part of their strategy to expand in the U.S. market, positioning AtkinsRéalis to capitalize on growing demand for their services. The company’s strong results underscore its ability to grow and operate efficiently, driven by significant growth in its engineering and nuclear segments.

The most recent analyst rating on (TSE:ATRL) stock is a Hold with a C$98.00 price target. To see the full list of analyst forecasts on AtkinsRealis stock, see the TSE:ATRL Stock Forecast page.