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Atkinsrealis Group Inc T.ATRL

Alternate Symbol(s):  SNCAF

Atkinsrealis Group Inc., formerly SNC-Lavalin Group Inc., is a professional services, and project management company. It delivers end-to-end services across the whole life cycle of an asset including consulting, and advisory and environmental services. Its segments include Engineering Services; Nuclear; O&M; Linxon; LSTK Projects, and Capital. The Engineering Services segment includes consultancy, engineering, design and project management services. The Nuclear segment supports clients across the entire nuclear lifecycle with the full spectrum of services from consultancy, EPCM services, field services, technology services, spare parts, reactor support and decommissioning and waste management. The O&M segment consists of providing operations, maintenance, and asset management solutions. The Linxon segment offers engineering, procurement, management, and construction services. The LSTK Projects is comprised of the remaining LSTK construction contracts of the Company.


TSX:ATRL - Post by User

Post by Gabrielon Jul 13, 2022 9:14am
165 Views
Post# 34820221

Relevant excerpts from Q1

Relevant excerpts from Q1

I was reading the Q1 transcripts including the Q&A 

https://www.snclavalin.com/~/media/Files/S/SNC-Lavalin/investor-briefcase/en/2022/conference-call-transcript-q1-2022-en.pdf

During the first quarter, we saw continued growth in top line performance as total revenues increased 3.8% year-over-year to $1.9 billion driven by our SNCL services business, where revenues were up 6.8% over the first quarter last year to $1.7 billion. Excluding the impacts of foreign currency, we achieved a robust organic growth of 8.4%. SNCL Services segment Adjusted EBIT of $127 million represented a 7.6% margin. Over the first three months, our LSTK backlog decreased by $210 million to just under a billion dollars, and we remain on path to substantially closing out these projects over the next several quarters.

Following our first quarter results, we are reaffirming our 2022 outlook, including SNCL Services revenue growth of between 4% and 6% versus 2021 with a segment Adjusted EBIT to segment revenue ratio of 8% to 10%, and overall company positive net cash from operating activities.
 

Engineering services Revenues were up 10% on an organic revenue basis over Q1 last year to just over $1.1 billion driven by strong growth in the U.S., Canada, and the U.K. Segment Adjusted EBIT was flat year-over-year, as the continued strong performance in the U.K. was offset by increased business development costs to win new projects and expenses related to executing on our Pivoting to Growth Strategy.

The quarter witnessed key wins across the U.S. and Europe, such as a recent contract extension for our work on the expansion of Southwest Florida's International Airport in Fort Myers. Our near-term growth trajectory is on track against our plan. We continue to execute on our land-and-expand strategy in the U.S., particularly Colorado and New York. As a result, backlog increased 7% compared to the prior year to $3.9 billion and gives us confidence in delivering our revenue targets for the full year.

we are seeing a really, really strong demand for our services in core geographies that we've positioned ourselves in, and the end markets within the entirety of SNCL Services. So, the go-forward part of this business, we believe we've positioned it really well, and we've spent a lot of time positioning in markets where we think we can be successful and grow. Obviously, enacting our Pivoting to Growth Strategy that we tabled in September we're feeling good about, because, as you can see from the revenue year- over-year organic growth, you can see that the fruits of that are beginning to take.
 
With respect to the engineering part of the business and the services part of the business, we are not seeing an impact from Omicron absenteeism, and we're not seeing an impact from the race-for-talent, if you like, and the inflation that that brings, because generally speaking, people are working remotely, whether they're sick or whether they're healthy. All the way through the pandemic that has, in the services part of the business, given us sustainable productivity.
But the wage and the inflation that we're seeing, because the services part of the business is on a short cycle, generally speaking, we always experienced that being passed on through the rebidding and the rewinning of work. Remember, a lot of this work is reimbursable, so as the wages increase, then the reimbursement comes.
What we have seen is an enormous amount of opportunities and pipeline that we've experienced across all three core geographies: the U.K., the U.S., and in Canada. We will see that normalizing, and we'll see the margins, particularly second half of this year, becoming really, really strong within the range. We are not worried that this is a trend at all. In fact, we've reissued, as you heard from Jeff and myself, that we're confident of being in the range for the year.
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