AtkinsRéalis Group (ATRL) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with significant year-over-year increases in revenue, profit, and record backlog, driven by robust demand, key contract wins, and market leadership in energy transition and infrastructure renewal.

• Launched new strategies focused on operational excellence, business optimization, and long-term financial targets, including 'Delivering Excellence, Driving Growth' and 'Pivoting to Growth.'

Financial highlights

• Total Q2 2024 revenue rose 11% year-over-year to $2.36B; net income attributable to shareholders increased 28% to $82M.

• Adjusted EPS from PS&PM was $0.49, up 20%; diluted EPS was $0.47, up 31% year-over-year.

• Segment Adjusted EBIT increased 17% to $208M; AtkinsRéalis Services revenue grew 17% to $2.3B.

• Free cash flow was -$134M for the first six months; net cash used for operating activities was $89M in Q2.

• IFRS net income grew 28% to $82M; $16.1M returned to shareholders via share repurchases and dividends.

Outlook and guidance

• Raised full-year 2024 Nuclear organic revenue growth guidance to 30%-35% and Nuclear Segment Adjusted EBIT margin to 12%-14%.

• Maintained 8%-10% full-year organic growth outlook for engineering services; Engineering Services Regions Segment Adjusted EBITDA to net revenue ratio targeted at 15%-17%.

• Operating cash flow for 2024 expected to exceed $400M; capex forecast between $140M and $160M.