Company Reports

AtkinsRealis grew its second-quarter adjusted EPS by 20% from the prior-year period to CAD 0.97. Organic revenue increased by 8.3% year over year, fueled by 18.1% growth in nuclear. Engineering services organic revenue was up 2.2%.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 94 million at the end of 2025, which we believe significantly reduces the risk of further material cost overruns. We expect more-stable results once the firm completes the remaining LSTK backlog.

AtkinsRéalis started 2026 with a solid first quarter, as adjusted EPS increased by 27% year over year to CAD 0.80. Organic revenue increased by 12.8% from the prior-year period, driven by 5% growth in engineering services and 36.5% growth in nuclear.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 94 million at the end of 2025, which we believe significantly reduces the risk of further material cost overruns. We expect more-stable results once the firm completes the remaining LSTK backlog.

AtkinsRealis fourth-quarter services revenue increased by 17% and segment adjusted EBIT increased by 19% from the prior-year period.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 94 million at the end of 2025, which we believe significantly reduces the risk of further material cost overruns. We expect more-stable results once the firm completes the remaining LSTK backlog.

Artificial intelligence jitters have roiled the market this week, leading to a selloff in firms seen as vulnerable to AI disruption. The AI fears spread to engineering and construction firms on Feb. 12, with shares closing down roughly 8% for Jacobs, 10% for AtkinsRealis, and 12% for Aecom.

AtkinsRéalis increased third-quarter organic revenue by 11% from the year-ago period. Management revised its full-year guidance, now anticipating faster growth in nuclear but slower growth in the United States and Latin America as well as Asia, the Middle East, and Australia.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.2 billion at the end of 2024, which we believe significantly reduces the risk of further material cost overruns. Operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

AtkinsRéalis increased second-quarter organic services revenue by 9% year over year. Management revised its 2025 outlook, now expecting stronger growth in nuclear but weaker growth in engineering services, with the offsetting dynamics having no impact on full-year profitability.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.2 billion at the end of 2024, which we believe significantly reduces the risk of further material cost overruns. Operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

We’ve raised our fair value estimate for AtkinsRealis to CAD 82 from CAD 74 after the engineering and construction company reported strong first-quarter results, delivering a roughly 20% year-over-year increase in segment adjusted EBIT in the services business. Our fair value increase is driven primarily by our more optimistic revenue growth expectations for the nuclear segment.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.2 billion at the end of 2024, which we believe significantly reduces the risk of further material cost overruns. Operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

AtkinsRéalis ended 2024 on a solid note, posting a 21% year-over-year increase in segment adjusted EBIT in the services business in the fourth quarter. We’ve raised our fair value estimate to CAD 74 per share from CAD 65, driven by our more optimistic near-term revenue growth and operating margin projections. We’ve also lowered our Morningstar Uncertainty Rating to Medium from High as the company nears the completion of its remaining lump-sum turnkey projects.

Since Ian Edwards took the helm as president and CEO in 2019, AtkinsRéalis has transformed and significantly derisked its portfolio. The company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.2 billion at the end of 2024, which we believe significantly reduces the risk of further material cost overruns. Operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

AtkinsRealis delivered strong third-quarter results, as its professional services and project management adjusted EBITDA increased 38.4% year over year to CAD 233.2 million. We’ve raised our fair value estimate to CAD 65 per share from CAD 60, primarily due to our more optimistic revenue growth projections for the nuclear business.

Since Ian Edwards took the helm as president and CEO in 2019, management has transformed and significantly derisked AtkinsRealis' portfolio. During his tenure, the company has ceased bidding on lump-sum turnkey projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.3 billion at the end of the second quarter of 2024, which we believe significantly reduces the risk of further material cost overruns. The firm’s operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

After reviewing AtkinsRealis’ second-quarter results, we’ve raised our fair value estimate to CAD 60 from CAD 58, driven by our more optimistic near-term revenue growth projections (particularly in the nuclear business) and time value of money, partially offset by slightly lower operating margin assumptions.

Since Ian Edwards took the helm as president and CEO in June 2019, management has transformed and significantly derisked AtkinsRealis' portfolio. During his tenure, the company has ceased bidding on lump-sum turnkey (LSTK) projects and divested its oil and gas business. We view the new strategic direction favorably, as cost overruns on LSTK projects led to negative cash flows in recent years. The company has steadily reduced its LSTK backlog to only CAD 0.3 billion at the end of the second quarter of 2024, which we believe significantly reduces the risk of further material cost overruns. The firm’s operating cash flow inflected positive in the second half of 2023, and we expect more stable results once the firm completes the remaining LSTK backlog.

After reviewing AtkinsRealis’ 2024 investor day presentation, we’ve raised our fair value estimate to CAD 58 from CAD 49.50, mainly driven by our more optimistic revenue growth projections in the nuclear business as well as higher margin assumptions in engineering services regions.