Professional services growing nicely is key Services
SNCL Services revenue reached $1.6 billion, up 4.2%, or 6.0% based on organic revenue growth. Engineering Services segment revenue up 6.4%, or 8.3% based on organic revenue growth
SNCL Services Segment Adjusted EBIT of $145.9 million, representing a 9.1% margin. Last year the EBIT included the positive impact of settling a number of project final accounts.
Engineering Services Segment Adjusted EBITDA to segment net revenue ratio(1)(6) of 15.0%.
SNCL Services backlog as at June 30, totaled $11.3 billion of which Engineering Services segment backlog stood at a record high of $4.2 billion, up 11.0%, with a strong increase in the US
Outlook
Reaffirming financial outlook metrics for full year 2022, including full year SNCL Services organic revenue growth, Segment Adjusted EBIT margins and Engineering Services Segment Adjusted EBITDA margin targets, other than full year 2022 net cash from operating activities
LSTK
LSTK Projects EBIT of negative $36.6 million
2022 net cash from operating activities updated to between negative $50 million and negative $150 million (previously between $0 million and $100 million), primarily driven by the need to fund higher costs to complete the LSTK projects in advance of the timing of potential claim recoveries
Management remains confident that the cumulative potential financial risks to complete the LSTK projects should be contained in the previously disclosed $300 million
Year-to-date, the Company recognized $46 million in losses related to the completion of the LSTK projects ($20 million in Q1 2022 and $26 million in Q2 2022)
LSTK Projects backlog reduced by $128.2m or 13.4% from Q1 2022 to $828.4m (29% in H1).
The two LSTK Ontario projects remain on track to be largely complete by the end of the year.