Company Reports

AtkinsRealis (formerly SNC-Lavalin) had a strong finish to 2023, as fourth-quarter earnings per share from continuing operations swung to CAD 0.51 from a CAD 0.31 loss in the prior-year period. After rolling our model forward one year, we’ve raised our fair value estimate to CAD 46.50 from CAD 43.50, which reflects our slightly more optimistic near-term revenue growth projections as well as time value of money.

In 2022, AtkinsRealis (formerly SNC-Lavalin) reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We are increasing our fair value estimate for AtkinsRealis (formerly SNC-Lavalin) to CAD 43.50 from CAD 40 after the Canadian engineering and construction firm posted solid third-quarter results and raised its full-year outlook. The company has maintained strong momentum in the services business line and continued to make progress toward completing its remaining lump-sum turnkey, or LSTK, project backlog. The fair value adjustment is due to our more optimistic revenue growth projections and time value of money.

In 2022, AtkinsRealis (formerly SNC-Lavalin) reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

In 2022, AtkinsRealis (formerly SNC-Lavalin) reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We’ve raised our fair value estimate for SNC-Lavalin to CAD 40 from CAD 37 following another quarter of strong execution. The engineering and construction firm raised its full-year organic revenue growth outlook for SNCL Services while avoiding major losses as it continues to make progress in completing its remaining lump-sum turnkey project backlog.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We’ve raised our fair value estimate for no-moat-rated SNC-Lavalin to CAD 37 from CAD 35 after the engineering and construction firm reported solid first-quarter results. SNCL Services is on track to reach management’s full-year targets, while SNCL Projects avoided major losses while making meaningful progress in reducing the remaining lump-sum turnkey, or LSTK, project backlog. We are encouraged by solid results in SNCL Services and believe that the firm’s risk profile will improve as it continues to work off the remaining LSTK project backlog.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

No-moat-rated SNC-Lavalin ended 2022 with a mixed fourth quarter, as SNCL Services performed in line with management's targets, but SNCL Projects posted more losses on lump-sum turnkey, or LSTK, projects. After rolling our model forward one year, we’ve maintained our CAD 35 fair value estimate, as our slightly more muted near-term revenue growth and operating margin expectations were offset by time value of money.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We are maintaining our CAD 35 fair value estimate for no-moat SNC-Lavalin after the engineering and construction firm posted mixed third-quarter results. Once again, the company reported solid performance in SNCL Services but continued losses on lump-sum turnkey, or LSTK, projects.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We are maintaining our CAD 35 fair value estimate for no-moat SNC-Lavalin after the engineering & construction firm reported mixed second-quarter results, with SNCL Services on pace to deliver results within management's full-year guidance range but more losses on lump-sum turnkey (LSTK) projects.

We are lowering our fair value estimate for no-moat SNC-Lavalin to CAD 35 from CAD 36 after the engineering and construction firm reported disappointing first-quarter results, with losses on lump-sum turnkey, or LSTK, projects due to COVID-19, cost inflation, and supply chain disruptions.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

In 2022, SNC-Lavalin reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.

We trim our fair value estimate for no-moat SNC-Lavalin to CAD 36 from CAD 38 after the engineering and construction firm reported a fourth-quarter CAD 15.3 million net loss from continuing operations attributable to SNC-Lavalin shareholders. The fair value reduction primarily reflects a higher estimate of potential losses on the remaining lump-sum turnkey, or LSTK, backlog, partially offset by time value of money, as well as reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model.