Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Q4 2024 Earnings Presentation
29 slides from Atkinsrealis's earnings presentation, Mar 13, 2025
Slide 1: Q4 Conference Call Presentation
Q4 CONFERENCE CALL PRESENTATION March 13, 2025
Slide 2: Forward-Looking Statements, Forward-Looking Financial Information and Outlook
Forward-Looking Statements, Forward-Looking Financial Information and Outlook 2 References in this presentation to the “Company”, “AtkinsRéalis”, “we”, us” and “our” mean, as the context may require, AtkinsRéalis Group Inc. or all or some of its subsidiaries or joint arrangements or associates. Stat
Slide 3: A Successful 2024
3 A Successful 2024 AtkinsRéalis Services1: ▪ Industry-leading revenue 16.3% 15.1% Organic revenue growth Revenue growth (YoY) growth2 (YoY) ▪ Margin enhancement $871.9M Segment Adjusted EBIT 9.4% program progressing well Segment Adj. EBIT to Segment revenue ratio ▪ Record backlog; Engineering Servi
Slide 4: 2024 Accomplishments
4 2024 2024 Latest Targets 2024 Actuals Accomplishments Engineering Services Regions2 organic revenue growth1 Between 8% and 10% 8.4% ✓ ▪ Successfully met or surpassed 2024 targets Nuclear organic revenue growth1 Between 30% and 35% 40.8% ✓ ▪ Generated strong positive Net cash from operating Enginee
Slide 5: Concluding on the 2022-2024 "Pivoting to Growth" Strategy
5 Concluding on the 2022-2024 ▪ Successfully delivered on “Pivoting to “Pivoting to Growth” Strategy Growth” strategy ▪ Successfully delivered on the 3-year targets, significantly outperforming Pivoting to Growth Annual 2022 2023 2024 Long-Term Annual Targets Targets Actuals Actuals Actuals organic
Slide 6: Fourth Quarter Results
6 Fourth Quarter Results ▪ AtkinsRéalis Services revenue totaled $2.5B3, an increase of 15%1,3 (11% on an organic revenue growth5 basis) • Engineering Services Regions revenue totaled $1.7B3, up 1%1,3 (-3% on an organic revenue Record-high Nuclear contraction5 basis) • Nuclear revenue totaled a reco
Slide 7: AtkinsRéalis Services Backlog
7 AtkinsRéalis Services Backlog1 in $M Selected Q4 Bookings ▪ Early works on two new build CANDU® 17,198 reactors at the Cernavoda Nuclear +25.1% 16,837 Generating Station in Romania ▪ Engineering design, procurement and 15,617 construction contract administration to 15,271 support Uisce Éireann wit
Slide 8: Engineering Services Regions
88 Revenues by Market4 Engineering Services Regions Other Water Revenue1 ($M) Backlog1 ($M) Net Revenue1 +8% Defence Organic revenue growth (contraction)2 +14% Transportation 6,967 6,367 Industrial (3)% 11,864 Buildings & Places 10,453 1,699 1,710 4,590 4,942 1,206 1,234 Revenues by Capability4 Q4 2
Slide 9: Canada
9 Canada Revenue ($M) Net Revenue Backlog ($M) Organic revenue (0)% Q4 Key Highlights and Wins contraction1 Continued success winning contracts in Transportation, Buildings & Places and +23% 1,426 1,461 Power & Renewables end markets Revenue decrease driven by a major project contract ended in H1, w
Slide 10: UKI
10 UKI Revenue ($M) Net Revenue Backlog ($M) +4% Q4 Key Highlights and Wins Organic revenue growth1 Continued strong performance across the well-funded markets of Water, Aviation, +25% 2,383 2,481 Defence, and Power & Renewables, where more opportunities exist to exploit Revenues were flat mainly du
Slide 11: USLA
11 USLA Revenue ($M) Net Revenue Backlog ($M) +10% Q4 Key Highlights and Wins Organic revenue growth1 Strong progress against the Land and Expand strategy, entering into M&A phase +2% 1,708 › Acquisition of a 70% stake in David Evans 1,541 › Several break in wins with NJ DoT +4% › Strengthening pres
Slide 12: Acquisition of Majority Stake in David Evans Enterprises, Inc.
12 Acquisition of Majority Stake in David Evans Enterprises, Inc.1 Forming a leading growth platform for the Western US David Evans Surveying & Land Strategic Rationale: End Markets: Geomatics Development ▪ Aligns with our Land and Expand strategy Water & ▪ Highly complementary geographical footprin
Slide 13: AMEA
13 AMEA Revenue ($M) Net Revenue Backlog ($M) Organic revenue growth +28% Q4 Key Highlights and Wins (contraction)1 -19% Revenue and backlog decreased mainly driven by the completion of a 1,318 large-scale project in the Middle East 1,017 Net Revenue remained flat indicating positive underlying grow
Slide 14: Nuclear
14 Nuclear Revenues by Service2 Revenue ($M) Backlog ($M) Organic revenue growth1 +41% CANDU® +73% 1,489 +64% 1,044 3,203 Services 464 1,854 278 Q4 2023 Q4 2024 2023 2024 31-Dec-23 31-Dec-24 Revenues by Region2 Segment Adjusted EBIT ($M) +27% (% of Segment Revenue) Other UK & Europe 184 145 12.4% +3
Slide 15: Nuclear Q4 Key Highlights and Wins
15 Nuclear Q4 Key Highlights and Wins CANDU® Services Canadians for CANDU® campaign continues to gain support Win with Rolls-Royce Submarines to support new fissile design as part of plans to double the size of its nuclear-powered submarines site in Derby, England Major industry milestone with the f
Slide 16: CANDU Delivers Revenue Today and into the Future
16 CANDU® Delivers Revenue Today and into the Future Strong Present Total $0.9B $1.9B $3.2B Bright Future Dec. 31 Dec. 31 Dec.31 Nuclear Backlog 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Darlington 1 to 4 Life Extension Bruce 3 to 8 Projects Pickering 5 to 8 Phase 1 Phase 2 Canada
Slide 17: Linxon, LSTK Projects & Capital
17 Linxon, LSTK Projects & Capital Linxon LSTK Projects Capital Revenue ($M) +42% Organic revenue Segment Adjusted EBIT ($M) Segment Adjusted EBIT ($M) growth1 +70% 836 578 174 301 -24 -59 Q4 2023 Q4 2024 2023 2024 -84 -134 113 107 Segment Adjusted EBIT ($M) 58 54 (% of Segment Revenue) 3.7% 6.4% Q4
Slide 18: Financial Performance
18 FINANCIAL PERFORMANCE
Slide 19: Q4 Selected Financial Metrics
19 Q4 Selected Financial Metrics in $M, except otherwise indicated Q4 2024 Q4 2023 Change Revenues PS&PM 2,524 2,216 14% Capital 63 64 (2)% Total Revenues 2,588 2,280 14% Segment Adjusted EBIT – Total 217 232 (6)% Corporate SG&A expenses – from PS&PM (49) (35) 40% Net financial expenses (41) (45) (9
Slide 20: 2024 Selected Financial Metrics
20 2024 Selected Financial Metrics in $M, except otherwise indicated 2024 2023 Change Revenues PS&PM 9,542 8,496 12% Capital 126 139 (9)% Total Revenues 9,668 8,634 12% Segment Adjusted EBIT – Total 845 766 10% Corporate SG&A expenses – from PS&PM (155) (140) 11% Gain from sale of a PS&PM business -
Slide 21: Free Cash Flow
21 Free Cash Flow1 in $M Q4 2024 Q4 2023 2024 2023 Segment Adjusted EBIT2 from AtkinsRéalis Services 243 201 872 712 Segment Adjusted EBITDA1 from AtkinsRéalis Services 283 239 1,024 854 Change in working capital and other items from AtkinsRéalis Services 163 217 165 (50) Net cash generated from ope
Slide 22: Sale of Interest in the Highway 407 ETR
22 Sale of Interest in the Highway 407 ETR1 Summary of Transaction and Gross Proceeds Over next 18 Sale of the Company’s entire 6.76% interest in the shares of Highway 407 ETR At closing months Sale of 5.06% Interest in Highway 407 ETR to Ferrovial ~$1,360M2 ~$730M3,5 Sale of 1.70% Interest in Highw
Slide 23: Outlook 2025
23 Outlook 2025 Organic Growth Pillars Other Metrics Corporate Selling, General and Amortization of Intangible 7% – 9% 16% – 17% Administrative Expenses Assets Related to Business Expected to be more Combinations weighted in the second Segment $120M – $130M half of 2025 Adjusted EBITDA to From PS&PM
Slide 24: Conclusion
2 4 CONCLUSION
Slide 25: Conclusion
25 Conclusion ▪ 2024 was an exceptional year ▪ Record performance for our Engineering Services and Nuclear segments ▪ Successfully concluded our “Pivoting to Growth” strategy ▪ Revenues are growing, backlog is building, margins are improving, and positive operating cash flows are being generated ▪ N
Slide 26: Questions & Answers
26 QUESTIONS & ANSWERS
Slide 27: Appendix
27 APPENDIX
Slide 28: Financial Targets 2025-2027 set in 2024
28 Financial Targets 2025-20271 set in 2024 2025 – 2027 Target Engineering Services Regions2 Organic revenue growth3 CAGR 2025 – 2027 >8% Segment Adjusted EBITDA to segment net revenue ratio3 by 2027 Between 17% and 18% Nuclear Annual revenue by 2027 Between $1.8B to $2.0B Segment Adjusted EBIT to s
Slide 29: Endnotes
Endnotes 29 (See also the cautionary statement regarding non-IFRS financial measures and ratios, supplementary financial measures, total of segment measures and non-financial information at slide 2 of this presentation.) 1. Organic revenue growth (contraction) ratio is a non-IFRS ratio comparing org