AtkinsRéalis Group (ATRL) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with double-digit revenue and profit growth, record backlog, and robust demand across all business segments, especially in engineering and nuclear, driven by energy transition and infrastructure services.

• Operational efficiencies and new strategies, including 'Pivoting to Growth' and 'Delivering Excellence, Driving Growth,' are supporting continued expansion, margin improvement, and long-term financial targets.

• Market leadership in energy transition and infrastructure renewal is fueling growth opportunities and major contract wins.

Financial highlights

• Total Q2 2024 revenue increased 11% year-over-year to $2.36B; net income attributable to shareholders rose 28% to $82M; adjusted EPS from PS&PM up 20% to $0.49 per diluted share.

• Segment-adjusted EBIT rose 17% to $208M; AtkinsRéalis Services revenue grew 17% to $2.3B.

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

Outlook and guidance

• Raised 2024 nuclear organic revenue growth guidance from 15%-20% to 30%-35%; nuclear segment-adjusted EBIT margin guidance updated to 12%-14%.

• Maintained full-year engineering services organic growth outlook at 8%-10%; operating cash flow for 2024 expected to exceed $400M.