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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

Comment by Gabrielon Sep 12, 2024 9:05pm
73 Views
Post# 36221508

RE:National Bank reiterated its outperform rating on ATRL

RE:National Bank reiterated its outperform rating on ATRL

Key Takeaways from our meetings below: We had the opportunity to host investor meetings with company’s management yesterday in Montreal (in attendance - President & CEO, Ian Edwards; CFO, Jeff Bell; and the IR team, Denis Jasmin and Kristina Malcheva). Below are the key takeaways from our discussions. The strong investor engagement during the meetings indicates that ATRL is well on its journey to being perceived as a high-quality engineering consulting company with substantial catch-up potential in the core Engineering business as well as growth opportunity in Nuclear (which is unique in the space). While we’ve noticed a stock pullback since the last earnings report, we attribute it more to market volatility and fluctuations in fund flow dynamic. There is still material upside in terms of multiple expansion to reach par with Canadian peers (WSP / STN trading at 16.1x / 14.1x EV/EBITDA on 2025E estimates vs. 8.9x for ATRL ex. Capital concessions) as the company continues to execute its margin expansion strategy (+200 to +300 bps improvement vs. 2023 by 2027E), as well as its efforts to liquidate its (now) non-core operations in the 407-ETR + Linxon and redeploy that capital to expand the Engineering + Nuclear business. For those unfamiliar with the story, please refer to our post Investor Day note for a complete overview of ATRL’s strategy going forward and why it is now a top idea in the consulting space.

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