AtkinsRéalis Group (ATRL) Q3 2025 earnings summary

Executive summary

• Achieved record revenues, margins, and backlog in Q3 2025, with strong performance in engineering services and nuclear segments; total revenue reached $2.8B, up 15% year-over-year.

• Services revenue grew 17% year-over-year (11% organic), with engineering services at a record $1.9B and nuclear revenue up 60% organically to $596M.

• Record-high total backlog reached $21B, up 23% year-over-year, driven by robust demand in Engineering Services and Nuclear segments.

• Announced acquisition of C2AE to expand U.S. presence and support U.S. expansion strategy.

• Well-positioned for M&A opportunities due to a strong balance sheet and continued focus on inorganic growth.

Financial highlights

• Total IFRS revenues increased 15% year-over-year to $2.8B; engineering services up 8%, nuclear up 62%, Linxon up 19%.

• Net income attributable to shareholders rose 41% to $147M; diluted EPS up 49% to $0.88; adjusted EPS from PS&PM up 68% to $1.06.

• Segment-adjusted EBITDA rose 9% to $269M; adjusted EBITDA from PS&PM up 20.7% to $281.5M.

• Net cash from operating activities was $123M; free cash flow after CapEx and lease payments was $56M.

• Total backlog reached $21B, up 23% from Q3 2024.

Outlook and guidance

• Raised 2025 nuclear revenue outlook to $2.2B–$2.3B (from $2.0B–$2.1B); nuclear annual revenue by 2027 targeted between $2.2B and $2.5B.

• Lowered 2025 organic revenue growth outlook for engineering services regions to low single digits due to USLA and EMEA softness.

• Maintains medium-term target of 8%+ revenue growth for engineering services.

• Expects operating cash flow to exceed $300M for full year 2025.

• Segment Adjusted EBITDA to net revenue ratio for Engineering Services Regions targeted at 16%-17%.