Atkinsrealis Group Inc T.ATRL

Alternate Symbol(s): SNCAF

Industrials Conglomerates

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.

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Atkinsrealis Group Inc

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Post by retiredcfon Nov 14, 2024 8:33am

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Post# 36312304

TD

Currenty have an $87.00 target. GLTA

Q3/24 BEAT: ALL-AROUND SOLID PERFORMANCE; BACKLOG REACHES ANOTHER RECORD-HIGH

THE TD COWEN INSIGHT

Overall, we characterize ATRL's Q3/24 results release as POSITIVE. Adj. PS&PM EBITDA was ~7% above consensus. Further, ATRL's AtkinsRealis Services backlog reached
another record-high at quarter-end. Encouragingly, the company generated $267mm of consolidated cash flow from ops. (CFO) in Q3/24, suggesting that ATRL is on-track to deliver on its 2024 CFO guidance (in excess of $400mm), in our view.

Event

Q3/24 adj. PS&PM EBITDA of $233mm was above consensus/TD at $218mm/$219mm. Meanwhile, adj. PS&PM EPS of $0.63 was also ahead of consensus/TD at $0.56/$0.55. Q3/24 cash flow from operations was +$267mm (ahead of our +$130mm estimate; CFO now +$215mm YTD). Recall, the company expects consolidated CFO to be in excess of $400mm in 2024.
No specific update was provided regarding its previously disclosed full-year 2024 guidance (see details below).
Conference call at 8:00 am ET (1-844-763-8274).
Impact: POSITIVE

In AtkinsRealis Services segment, adj. EBIT of $239mm was ahead of consensus/TD at $219mm/$224mm. Engineering Services Regions segment revenue growth was +9.7% y/y (+8.4% organically), while adj. EBIT was $186mm (vs. consensus/TD at $170mm/ $174mm). Nuclear delivered +36.4% y/y revenue growth (+34.7% organically), and realized adj. EBIT of $46mm (vs. consensus/TD both at $47mm). Meanwhile, LSTK Project adj. EBIT loss was $18mm (vs. consensus/TD at $14mm/$18mm).
AtkinsRealis Services backlog reached another record-high at quarter-end ($16.8bln vs. $15.6bln at the end of Q2/24), +7.8% q/q and +34.7% y/y. In particular, Nuclear segment backlog reached a record-high level ($3.2bln vs. $1.7bln at the end of Q2/24), +84.2% q/q and +205.9% y/y. For LSTK Projects backlog, it was $190.1mm at quarter-end (vs. $251.4mm at the end of Q2/24); -24.4% q/q; and -37.7% y/y.
ATRL's net recourse debt-to-EBITDA ratio was 1.4x at quarter-end (vs. 1.9x at Q2/24).
Full-Year 2024 Guidance (no incremental update provided in press release):

As a reminder, ATRL expects ESR segment full-year 2024 organic revenue growth of 8%–10% y/y. Meanwhile, the company expects ESR segment 2024 adjusted EBITDA margin expected to be in the 15%–17% range. For Nuclear segment, ATRL anticipates 2024 organic revenue growth in the range of 30%– 35% y/y. Meanwhile, ATRL expects 2024 Nuclear segment adj. EBIT margin to be in the 12%–14% range.