AtkinsRealis (ATRL) AI Stock Analysis

• Market Cap: $15.32B
• Dividend Yield: 0.09%
• Average Volume (3M): 578.79K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.07
• Revenue Growth: 13.07%
• EPS Growth: 697.05%
• Country: CA
• Employees: 38,446
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 0.78
• Shares Outstanding: 165,826,110
• 10 Day Avg. Volume: 615,560
• 30 Day Avg. Volume: 578,787
• 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: 1.11
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 19.65
• Enterprise Value/Ebitda: 22.20
• 1Y Price Target: $112.31
• Price Target Upside: 19.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: C$103.00 ▲(9.97% Upside)

AtkinsRealis shows strong financial performance and attractive valuation, driven by growth in the Nuclear segment and effective leverage management. However, technical indicators suggest potential short-term weakness, and challenges in cash flow efficiency and regional growth could impact future performance.

Positive Factors

Earnings

Q2 results showed a strong performance with a 20% beat, affirming a positive outlook for the company.

Infrastructure Development

ATRL, along with various partners, was selected to develop a proposed high-speed rail line in the Toronto-Quebec City corridor, with the potential to be Canada's largest-ever infrastructure project.

Strategic Expansion

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

Investment Concerns

Downgrade to HOLD due to higher-for-longer investment concerns.

Performance Miss

Slight miss in core wireless performance during Q2, impacting overall results.

User Growth

Continued weakness in monthly active user growth is expected.

AtkinsRealis Business Overview & Revenue Model

Company Description

AtkinsRealis (ATRL) is a leading global provider of advanced planning and management solutions, specializing in the energy and infrastructure sectors. The company focuses on delivering innovative technologies and consulting services that enhance operational efficiency and project delivery. ATRL's core offerings include project management software, data analytics, and advisory services designed to optimize resource allocation and streamline processes for its clients.

How the Company Makes Money

AtkinsRealis generates revenue through a diversified model that includes software licensing, subscription fees for its planning and management platforms, and consulting services. Key revenue streams comprise direct sales of software solutions to enterprises in the energy and infrastructure sectors, ongoing service agreements for software maintenance and updates, and professional consulting engagements that provide expert guidance on project execution and risk management. Additionally, ATRL has established strategic partnerships with technology providers and industry stakeholders, enhancing its market reach and contributing to its overall earnings through collaborative projects and joint ventures.

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: 93.66
• 50DMA: Negative
• 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 93.66 is below the 20-day moving average (MA) of 95.73, below the 50-day MA of 96.33, and above the 200-day MA of 79.90, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.85 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
ATRL	70 Outperform	$15.32B	6.32	57.95%	0.09%	13.07%	697.05%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
STN	―	$12.45B	39.60	14.26%	0.57%	―	―
BDGIF	―	$1.42B	25.50	21.65%	1.26%	―	―
WSP	78 Outperform	C$36.61B	45.53	10.52%	0.53%	18.24%	28.47%
ARE	68 Neutral	C$1.29B	50.42	2.78%	3.72%	20.53%	74.96%
BDT	66 Neutral	C$1.26B	12.96	25.25%	3.36%	8.49%	14.10%

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.