AtkinsRéalis Group (ATRL) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and Segment Adjusted EBIT in 2024, driven by strong demand in nuclear and engineering services, with a record backlog as of December 31, 2024.

• Announced sale of entire 6.76% interest in Highway 407 for ~$2.8 billion, a key step in strategic simplification and value creation.

• Successfully concluded the "Pivoting to Growth" strategy, meeting or exceeding all 2024 targets, and launched a new phase focused on excellence and growth for 2025-2027.

• Major contract wins in nuclear, including the first CANDU® new build since 2007 and significant life extension projects in Romania and Canada.

• Positive net cash from operating activities and reduced leverage, with a leverage ratio of 1.1x at year-end.

Financial highlights

• Total 2024 revenues rose 12% year-over-year to $9.7 billion; services revenue up 16%.

• Segment-adjusted EBIT rose 10% to $845 million; adjusted net income from PSMPM up 15% to $315 million.

• Net cash from operating activities was $526 million, a significant increase from $66 million in 2023.

• IFRS net income from continuing operations was $284 million, with diluted EPS of $1.62.

• Backlog reached a record $17.5 billion, up 24-25% year-over-year.

Outlook and guidance

• 2025 organic revenue growth for engineering services regions expected at 7-9%, with segment-adjusted EBITDA margin of 16-17%.

• Nuclear segment revenue guidance for 2025 is $1.6-$1.7 billion, with adjusted EBIT margin of 12-14%.

• Operating cash flow for 2025 expected to exceed $300 million, with CapEx of $150-$200 million focused on Monarch nuclear reactor development.

• 2025-2027 targets include >8% organic revenue CAGR for Engineering Services Regions and 17-18% EBITDA margin by 2027.