AtkinsRealis (ATRL) AI Stock Analysis

• Market Cap: C$15.18B
• Dividend Yield: 0.09%
• Average Volume (3M): 689.18K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.42
• 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$119.15
• Price Target Upside: 30.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$105.00 ▲(15.42% 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 net profitability

Sustained high net margin (24.94%) and improving EBIT/EBITDA margins indicate durable operational efficiency and pricing power across projects. This supports long-term cash generation, funds reinvestment and shareholder returns, and reduces sensitivity to project cost volatility.

Solid balance sheet and leverage

Low leverage and strong ROE point to financial resilience and efficient use of equity. This balance sheet strength enables capacity to bid large public projects, absorb working capital swings, and pursue strategic investments or M&A without materially stressing liquidity.

Diversified, contract-backed revenue mix

Revenue anchored by long-term government contracts, private sector construction mandates and partnerships provides recurring, contractually backed cash flows and backlog visibility. This diversification lowers revenue volatility and supports multi-year project pipelines.

Negative Factors

Declining free cash flow growth

A 43% drop in free cash flow growth despite earnings strength signals weakening cash generation. If persistent, lower FCF growth can constrain reinvestment, dividends and debt service capacity, forcing reliance on external financing for growth or working capital.

Weak cash conversion

Low operating cash flow relative to net income shows earnings are not reliably turning into cash. Over months this raises liquidity risk when projects delay payments or receivables lengthen, increasing working capital needs and financing costs for normal operations.

Relatively low gross profit margin

A relatively weak gross margin amid strong net results implies tight project-level margins or high direct costs. This reduces buffer against input cost inflation and competitive pressure, making long-term margin sustainability reliant on improved cost control or pricing power.

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 demonstrates solid growth and profitability with stable revenue and profit margins. The company manages leverage effectively, but cash flow efficiency needs improvement to support ongoing operations and growth.

Income Statement

AtkinsRealis has shown consistent revenue growth, with a TTM revenue growth rate of 3.54%. The gross profit margin is stable at around 8.71%, and the net profit margin has improved to 3.09% in the TTM. EBIT and EBITDA margins are also healthy, indicating efficient operations. However, the company needs to maintain this trajectory to ensure long-term profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.56 in the TTM, indicating better leverage management. Return on equity is at 8.40%, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure. Continued focus on reducing debt could enhance financial stability.

Cash Flow

Operating cash flow remains positive, but free cash flow has declined slightly by 3.33% in the TTM. The operating cash flow to net income ratio is low at 0.11, indicating potential challenges in converting income into cash. Improving cash flow efficiency will be crucial for sustaining operations.

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: 90.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 90.97 is above the 20-day moving average (MA) of 89.13, above the 50-day MA of 90.03, and above the 200-day MA of 89.63, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 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$33.57B	38.21	11.21%	0.60%	18.85%	29.60%
ATRL	71 Outperform	C$15.18B	6.09	56.38%	0.09%	13.97%	715.65%
STN	70 Outperform	C$15.52B	31.78	15.96%	0.67%	11.73%	41.17%
BDT	69 Neutral	C$1.64B	17.52	21.68%	2.88%	6.26%	0.52%
BDGI	66 Neutral	$2.42B	29.68	22.05%	0.99%	13.02%	52.88%
ARE	65 Neutral	C$2.02B	237.90	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.