AtkinsRealis (TSE:ATRL)
TSX:ATRL
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AtkinsRealis
(TSX:ATRL)
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Rating:75Outperform
Price Target:
C$107.00
▲(22.86% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by improved operating performance and balance-sheet strength, plus very attractive valuation (low P/E and high yield). The main constraints are uneven cash conversion/inconsistent cash flows and only neutral-to-weak technical momentum, while the earnings call supports the outlook despite near-term LSTK and transformation cost headwinds.
Positive Factors
Backlog and revenue visibility
A record $21.2B backlog, rising ~21%–23% year-over-year, gives multi-year contracted work and revenue visibility. Durable backlog reduces reliance on spot bidding, supports capacity planning and predictable utilization, and underpins sustainable top-line momentum over the medium term.
Negative Factors
Legacy LSTK closeout drag
Material negative EBIT and forecasted $100–150M cash drag from legacy LSTK closeouts materially impair near-term free cash flow and divert management attention. This reduces available capital for reinvestment or distributions and elevates execution and working‑capital risk into 2026.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and revenue visibility
A record $21.2B backlog, rising ~21%–23% year-over-year, gives multi-year contracted work and revenue visibility. Durable backlog reduces reliance on spot bidding, supports capacity planning and predictable utilization, and underpins sustainable top-line momentum over the medium term.
Read all positive factors
AtkinsRealis (ATRL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$14.33B
Dividend Yield0.09%
Average Volume (3M)689.18K
Price to Earnings (P/E)5.7
Beta (1Y)1.14
Revenue Growth13.97%
EPS Growth715.65%
CountryCA
Employees38,446
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.97
Shares Outstanding164,494,050
10 Day Avg. Volume595,252
30 Day Avg. Volume689,178
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.74
Price to Sales (P/S)1.37
P/FCF Ratio52.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$118.64Price Target Upside36.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)3.95
Revenue Forecast (FY)C$11.77B
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 ei...
How the Company Makes Money
AtkinsRéalis primarily makes money by providing fee-based professional services and project delivery services to clients. Its revenue model is generally driven by (1) time-and-materials and fixed-fee engineering, design, and advisory engagements w...
AtkinsRealis Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial progress: record revenues and backlog, robust cash generation, material EPS improvement, and major nuclear contract wins. Management highlighted margin expansion initiatives, strategic acquisitions, an investment-grade balance sheet after monetizing Highway 407, and a confident 2026 outlook for Engineering Services and Nuclear. Key negatives center on legacy LSTK project closeouts causing notable near-term cash and EBIT drag, higher transformation costs, and some regional/sector softness (U.S. minerals & metals, Middle East reprioritization). Overall, the positive indicators (record metrics, cash, backlog, nuclear momentum, improved margins and EPS) substantially outweigh the limited, mostly one-time or transitional lowlights.Positive Updates
Record Annual Revenue for AtkinsRealis Services
AtkinsRealis Services generated record revenue of $11.0 billion in 2025, up 16% organic growth year-over-year with an approximate 10% segment adjusted EBIT-to-segment revenue ratio.
Negative Updates
LSTK Legacy Project Closeout Drag
LSTK projects produced negative full-year EBIT (-$112 million) and negative net cash of $25 million in 2025. Management expects LSTK cash flows to be negative $100 million to $150 million in 2026 while completing legacy light rail transit closeouts and settling final accounts and claims.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue for AtkinsRealis Services
AtkinsRealis Services generated record revenue of $11.0 billion in 2025, up 16% organic growth year-over-year with an approximate 10% segment adjusted EBIT-to-segment revenue ratio.
Read all positive updates
Company Guidance
The company’s 2026 guidance calls for Engineering Services regions organic revenue growth of 5%–7% with a segment adjusted EBITDA-to-net-revenue margin of 16.5%–17.5% (with EBITDA more weighted to H2), Nuclear revenues of approximately $2.5 billion with adjusted EBIT margin ~11%–12% (implying segment adjusted EBITDA in the mid‑20% range), corporate SG&A of $125–135 million, CapEx of $175–200 million, net cash from operating activities of ~ $500 million, LSTK cash flow drag of roughly negative $100–150 million, and an expected 2026 effective tax rate nearer the statutory 25%–30%; longer‑term targets were updated to Engineering Services organic CAGR 2025–27 of 5%–7% and Nuclear revenue of $2.6–3.0 billion by 2027 with adjusted EBIT-to-revenue targeted at 11%–13% (long‑term 12%–14%).AtkinsRealis Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.96B | 9.57B | 8.53B | 7.47B | 7.29B |
| Gross Profit | 822.29M | 665.27M | 574.53M | 251.22M | -122.17M |
| EBITDA | 948.97M | 693.40M | 673.37M | 283.59M | 383.82M |
| Net Income | 2.63B | 283.87M | 287.21M | 9.75M | 666.56M |
Balance Sheet | |||||
| Total Assets | 12.53B | 11.29B | 10.28B | 9.46B | 9.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 679.01M | 486.63M | 599.35M | 628.04M |
| Total Debt | 1.72B | 2.20B | 2.37B | 2.49B | 2.16B |
| Total Liabilities | 6.96B | 7.50B | 6.99B | 6.58B | 6.88B |
| Stockholders Equity | 5.50B | 3.77B | 3.28B | 2.87B | 2.97B |
Cash Flow | |||||
| Free Cash Flow | 284.70M | 365.86M | -25.82M | -355.19M | 27.91M |
| Operating Cash Flow | 461.28M | 525.78M | 65.96M | -245.36M | 134.20M |
| Investing Cash Flow | 1.96B | 70.27M | 9.48M | -82.47M | -263.71M |
| Financing Cash Flow | -1.93B | -408.35M | -170.91M | 283.12M | -192.53M |
AtkinsRealis Technical Analysis
Negative
87.09
Price Trends
95.51
Negative
92.49
Negative
94.97
Negative
Market Momentum
-1.50
Positive
38.12
Neutral
36.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATRL, the sentiment is Negative. The current price of 87.09 is below the 20-day moving average (MA) of 92.91, below the 50-day MA of 95.51, and below the 200-day MA of 94.97, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ATRL.
AtkinsRealis Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$14.33B | 5.72 | 56.38% | 0.09% | 13.97% | 715.65% | |
70 Outperform | C$2.68B | 130.21 | 1.66% | 2.38% | 25.68% | ― | |
70 Outperform | C$28.68B | 33.67 | 10.86% | 0.60% | 18.85% | 29.60% | |
69 Neutral | C$13.51B | 30.82 | 15.28% | 0.67% | 11.73% | 41.17% | |
65 Neutral | C$2.10B | 29.89 | 24.10% | 0.99% | 13.02% | 52.88% | |
64 Neutral | C$2.18B | 33.32 | 21.42% | 2.88% | 6.26% | 0.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:ATRL
AtkinsRealis
87.09
18.78
27.49%
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AtkinsRealis Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AtkinsRéalis to Refinance $700 Million in Debt With New Unsecured Debenture Offering
Positive
Mar 25, 2026
AtkinsRéalis Group Inc. has launched a private offering of $700 million in unsecured debentures, split between $400 million of 4.411% Series 9 notes due 2031 and $300 million of 4.756% Series 10 notes due 2033, to be sold through a syndicate ...
Business Operations and StrategyFinancial Disclosures
AtkinsRéalis Posts Double-Digit 2025 Growth and Record Backlog on Nuclear and Engineering Demand
Positive
Feb 27, 2026
AtkinsRéalis reported strong fourth-quarter and full-year 2025 results, with total annual revenue rising 14% to $11.0 billion and services revenue up 16%, driven by robust demand in its Engineering Services Regions and Nuclear divisions. Segm...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.