Atkinsrealis Group Inc T.ATRL

Nuclear

[Gabriel]

• Nuclear showing robust tailwinds – backlog supports the positive narrative across the entire supply chain (21% of our NAV). The company stands out as being the only consulting peer with a dedicated Nuclear segment that is exposed to all stages of the Nuclear lifecycle. Regardless of a country’s choice when it comes to nuclear tech (whether CANDU, SMR, ADF, Westinghouse, etc. – or a combo of several as is the case in China), the majority of ATRL services are being utilized during any reactor buildout, or decommissioning/refurbishment work – i.e., civil /mechanical / electrical engineering on top of the direct nuclear capabilities. The nature of multiple revenue streams creates a long runway, supported by aging reactor fleet and also growing electrical demand due to data centres growth and Net Zero push. Recall the company expects to 2x revenue from this segment by 2027E (ATRL hired 1,000 engineers in the division on LTM basis). Even though FCF generation can be lumpy and back-end loaded, the company is highly confident in maintaining its 80%-90% FCF conversion target for the consolidated business (expected to be achieved in Q4/24E).