AtkinsRéalis Group (ATRL) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of $11 billion, with 16% organic growth in services and a segment adjusted EBIT margin near 10%.

• Completed transformation to a focused engineering services and nuclear company, with a record backlog of $21.2 billion, up over 20% year-over-year.

• Sold remaining interest in Highway 407 for $2.6 billion, enabling debt repayment, share buybacks, and investment-grade credit rating.

• Major nuclear contract wins and project milestones, including Pickering and Darlington refurbishments, supported growth.

• Completed three strategic acquisitions in 2025, expanding presence in the US and Australia.

Financial highlights

• Q4 2025 revenue rose 13% year-over-year to $2.9 billion; full-year revenue up 14% to $11 billion.

• Segment adjusted EBIT increased 10% in Q4 to $238 million; full-year EBIT up 15% to $973 million.

• Net income for the year was $2.6 billion, or $15.41 per share, including a $2.2 billion after-tax gain from the Highway 407 sale.

• Free cash flow for the year was $199 million after CapEx of $177 million; cash and cash equivalents at year-end were $1.2 billion.

• $938.5 million was returned to shareholders via buybacks and dividends.

Outlook and guidance

• 2026 organic revenue growth expected at 5%-7% for engineering services regions; nuclear revenue projected at ~$2.5 billion with EBIT margin of 11%-12%.

• Nuclear annual revenue target raised to $2.6-$3 billion by 2027; long-term EBIT margin expected at 12%-14%.

• CapEx for 2026 expected at $175-$200 million; net cash from operations forecast at ~$500 million.

• Corporate SG&A expenses forecasted at $125M–$135M; effective tax rate expected to rise to 25%-30% in 2026.

• Quarterly dividend maintained at $0.02 per share.