Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Q1 2024 Earnings Presentation
22 slides from Atkinsrealis's earnings presentation, May 15, 2024
Slide 1: Q1 Conference Call Presentation
Q1 CONFERENCE CALL PRESENTATION May 15, 2024
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
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, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or
Slide 3: Strong Q1 Results and Positive Operating Cash Flows
3 Strong Q1 ▪ AtkinsRéalis Services revenue increased 19.1%1 to $2.2B4 Results and ▪ Engineering Services Regions revenue increased 17.9%1 and totaled $1.7B4 Positive ▪ Nuclear revenue increase 20.9%1 and totaled $298.6M Operating Cash ▪ AtkinsRéalis Services Segment Adjusted EBIT increased by 19.5%
Slide 4: AtkinsRéalis Services Backlog
4 AtkinsRéalis Services Backlog (in $M) 15,271 Q1 Key Bookings ▪ Operations and maintenance work at the Centre Hospitalier de l'Université de +26.4% Montreal (CHUM), one of the largest hospital 13,746 centres in Canada ▪ Georgia Department of Transportation (DoT) Construction Engineering and Inspect
Slide 5: Engineering Services Regions
5 Engineering Services Regions Revenue*** ($M) By Region Net Revenue 17.9% AMEA Canada 1,719 1,470 1,049 1,176 USLA UKI Q1 2023 Q1 2024 Organic revenue growth* Backlog ($M) Segment Adjusted EBITDA** ($M) (% of Segment Net Revenue*) +18.5% 15.0% 14.5% 11,969 152 177 10,099 * Organic revenue growth an
Slide 6: Canada
6 Revenue ($M) Backlog ($M) Canada Net Revenue 21.8% Q1 Key Highlights and Wins +21.9% 371 Well-positioned in the Power & Renewables, Industrial and Transportation 301 end markets to support clients with Energy Transition and capture significant market tailwinds from government investments 7,282 Str
Slide 7: UKI
7 Revenue ($M) Backlog ($M) UKI Net Revenue 4.8%1 Q1 Key Highlights and Wins +10.7% 595 607 Strong opportunity flow continues in Defence, Water, Transportation (particularly in Aviation) and Power & Renewable end markets Significant key framework wins in prior quarter provide strong 1,526 1,688 unde
Slide 8: USLA
8 Revenue ($M) Backlog ($M) USLA Net Revenue 13.3% Q1 Key Highlights and Wins +9.4% 416 Strong work-winning performance, particularly in Transportation, Power & 368 Renewables and Minerals & Metals (M&M) Further progress with our “Land & Expand” strategy with key wins and hires 1,439 1,575 in South
Slide 9: AMEA
9 Revenue ($M) Backlog ($M) AMEA Net Revenue 57.9% Q1 Key Highlights +22.8% 325 Strong demand for Transportation, Building & Places, and Power & Renewables driving the growth outlook across AMEA 207 In KSA and UAE, work continues to support key clients to deliver 1,424 transformational Building & Pl
Slide 10: Nuclear
10 Nuclear Revenue ($M) By Service 20.9% New Builds Reactor Support & Life 299 Extension 244 Waste Q1 2023 Q1 2024 Management & Organic revenue growth* Decommissioning Backlog ($M) Segment Adjusted EBIT ($M) (% of Segment Gross Revenue) +87.1% 13.1% 13.4% 1,844 39 33 986 Q1 2023 Q1 2024 Q1 2023 Q1 2
Slide 11: Nuclear Q1 Key Highlights and Wins
11 Nuclear Q1 Key Highlights and Wins New Builds Reactor Support & Life Extension Waste Management & Successfully launched in February the Canadians Awarded ~$750M engineering, technology and Decommissioning for CANDU campaign with strong support from procurement of tooling and reactor components in
Slide 12: Linxon, LSTK Projects & Capital
12 Linxon, LSTK Projects & Capital 29.7% Linxon LSTK Projects Capital Revenue ($M) Organic revenue Segment Adjusted EBIT ($M) Segment Adjusted EBIT ($M) growth* 159 122 Q1 2023 Q1 2024 Segment Adjusted 1.2% EBIT ($M) -9 (% of Segment -13 12 Gross Revenue) 0.7% 2 1 1 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q
Slide 13: Financial Performance
13 FINANCIAL PERFORMANCE
Slide 14: Q1 Selected Financial Metrics
14 Q1 Selected Financial Metrics AtkinsRéalis Services Engineering Services Linxon Nuclear (in $M, except otherwise indicated) Q1 2024 Q1 2023 Change Revenues PS&PM 2,258 2,007 13% Revenue** ($M) 2,176 Capital 7 16 (56)% 1,836 Total Revenues 2,264 2,023 12% Segment Adjusted EBIT – Total 175 159 10%
Slide 15: Free Cash Flow and Leverage
15 Free Cash Flow* and Leverage (in $M, except otherwise indicated) Q1 2024 Q1 2023 Net Limited Recourse & Recourse Segment Adjusted EBITDA* from AtkinsRéalis Services 223 190 Debt to Adjusted EBITDA Ratio *** Change in working capital and other items from AtkinsRéalis Services 48 (95) Net cash gene
Slide 16: 2024 Revised Outlook
16 2024 Revised Outlook (in $M, except otherwise indicated) 2024 Targets 2023 Actuals Engineering Services Regions organic revenue growth* Between 8% and 10% 20.9% New: Between 15% to 20% Nuclear organic revenue growth* 14.3% Previous: Between 12% and 15% Engineering Services Regions Segment adjuste
Slide 17: Conclusion
17 CONCLUSION
Slide 18: Conclusion: Key Takeaways
18 Key Takeaways Conclusion • Momentum from 2023 continued into the first quarter with strong organic revenue growth and profitability, with positive operating cash flows • Record backlog highlights a long runway for growth and the significant demand for our services • Market-leading position allows
Slide 19: Questions & Answers
19 QUESTIONS & ANSWERS
Slide 20: Appendix
20 APPENDIX
Slide 21: Financial Targets (2022-2024) (Set in 2021)
21 Financial Targets (2022-2024)1 (Set in 2021) 2022-2024 Targets 2022 Actuals 2023 Actuals AtkinsRéalis Services organic revenue growth* (annually) Between 4% and 6% 6.8% 18.3% AtkinsRéalis Services Segment Adjusted EBIT to segment revenue ratio Between 8% and 10% 8.7% 8.9% (annually) Engineering S
Slide 22: Endnotes
22 Endnotes (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) is a non-IFRS ratio comparing organic r