Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Q3 2024 Earnings Presentation
24 slides from Atkinsrealis's earnings presentation, Nov 14, 2024
Slide 1: Q3 Conference Call Presentation
Q3 CONFERENCE CALL PRESENTATION November 14, 2024
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: Strong Third Quarter results
3 Strong Third ▪ AtkinsRéalis Services revenue totaled $2.3B3, an Quarter results increase of 15%1,3 (14% on an organic revenue growth* basis) ↗ Engineering Services Regions revenue totaled $1.8B3, an increase of 10%1,3 (8% on an organic Enhanced margins revenue growth* basis) ↗ Nuclear revenue tota
Slide 4: AtkinsRéalis Services Backlog
4 AtkinsRéalis Services Backlog1 in $M Selected Q3 Bookings ▪ CANDU® reactor life extension mandate at 16,837 the Qinshan (China) Nuclear Generating Station +34.7% 15,617 ▪ Technology services supporting major 15,271 capital investment programs at Heathrow Airport (UK), including network backbone in
Slide 5: Engineering Services Regions
5 Engineering Services Regions Revenue1 ($M) Backlog1 ($M) Net Revenue +8% +17% 1,792 1,633 12,031 10,243 1,171 1,289 Q3 2023 Q3 2024 30-Sep-23 30-Sep-24 Organic revenue growth* +160 bps Segment Adjusted 16.9% EBITDA** ($M) 15.3% 218 and Segment Adjusted EBITDA to 179 Segment Net Revenue (%)* *Organ
Slide 6: Canada
6 Revenue ($M) Backlog ($M) Canada Net Revenue -8% Q3 Key Highlights and Wins +23% Continued success in obtaining key awards, particularly in Transportation, 368 348 Buildings & Places and Power & Renewables markets, leading to a strengthened backlog Revenue decrease year-on-year driven by a major p
Slide 7: UKI
7 Revenue ($M) Backlog ($M) UKI Net Revenue +6% Q3 Key Highlights and Wins +8% Continued strong performance across key growth markets, as Defence, Water, 650 611 Aviation and Power & Renewables remain robust, with encouraging investment flows › Significant opportunities across Defence supply chain a
Slide 8: USLA
8 Revenue ($M) Backlog ($M) USLA Net Revenue +11% Q3 Key Highlights and Wins +7% Continued progress on “Land and Expand” strategy, with strong increase in 429 384 prospects across the US Continued strong momentum in Transportation, Power & Renewables, and Water markets 1,512 1,613 301 328 Strong bac
Slide 9: AMEA
9 Revenue ($M) Backlog ($M) AMEA Net Revenue +33% Q3 Key Highlights and Wins +16% Strong year-on-year revenue growth mainly driven by higher volume in the 364 Middle East 271 Strong demand and wins in Transportation & Industrials markets in Asia Increasing opportunities in Australia in Power & Renew
Slide 10: Nuclear
10 Nuclear Revenue ($M) Backlog ($M) +35% +206% 369 3,221 271 1,053 Q3 2023 Q3 2024 30-Sep-23 30-Sep-24 Organic revenue growth* +18% Segment Adjusted EBIT ($M) (% of Segment Revenue) 12.4% 14.3% 46 39 Q3 2023 Q3 2024 *Organic revenue growth is a non-IFRS ratio. Please refer to endnote 1 on slide 24
Slide 11: Nuclear Q3 Key Highlights and Wins
11 Nuclear Q3 Key Highlights and Wins CANDU ® Services Canadians for CANDU campaign gaining support with more key stakeholders Involvement in sustainable power efforts continues with recent appointment to onboarded develop the pre-concept design for Type One Energy’s Fusion Pilot Plant in the US Rev
Slide 12: CANDU Delivers Revenue Today and into the Future
12 CANDU® Delivers Revenue Today and into the Future Strong Present Total $937M $1.9B $3.2B Bright Future Dec. 31 Dec. 31 Sept. 30 Nuclear Backlog 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Darlington 1 to 4 Life Extension Bruce 3 to 8 Projects Canada Pickering 5 to 8 Ontario | Oppo
Slide 13: Linxon, LSTK Projects & Capital
13 Linxon, LSTK Projects & Capital Linxon +32% LSTK Projects Capital Revenue ($M) Organic revenue Segment Adjusted EBIT ($M) Segment Adjusted EBIT ($M) growth* 189 140 Q3 2023 Q3 2024 Segment Adjusted 3.4% EBIT ($M) -13 (% of Segment 0.3% -18 23 25 Revenue) 6 0 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 202
Slide 14: Financial Performance
14 FINANCIAL PERFORMANCE
Slide 15: Q3 Selected Financial Metrics
15 Q3 Selected Financial Metrics in $M, except otherwise indicated Q3 2024 Q3 2023 Change Revenues PS&PM 2,424 2,171 12% Capital 28 29 (3)% Total Revenues 2,452 2,200 11% Segment Adjusted EBIT – Total 246 197 25% Corporate SG&A expenses – from PS&PM (27) (47) (43)% Gain from sale of Scandinavian Eng
Slide 16: Free Cash Flow
16 Free Cash Flow* in $M Nine months Nine months Q3 2024 Q3 2023 ended Sept. 30, 2024 ended Sept. 30, 2023 Segment Adjusted EBIT1 from AtkinsRéalis Services 239 629 187 511 Segment Adjusted EBITDA* from AtkinsRéalis Services 276 741 222 615 Change in working capital and other items from AtkinsRéalis
Slide 17: Conclusion
17 CONCLUSION
Slide 18: Conclusion
18 Conclusion • Revenues are growing, backlog is building, margins are improving, and we are generating operating cash flows • General market conditions for Engineering services and Nuclear remain strong in response to the energy transition super cycle and aging infrastructure replacement megatrends
Slide 19: Questions & Answers
19 QUESTIONS & ANSWERS
Slide 20: Appendix
20 APPENDIX
Slide 21: 2024 Revised Outlook
21 2024 Revised Outlook 2024 Targets 2023 Actuals Engineering Services Regions organic revenue growth* Between 8% and 10% 20.9% Between 30% and 35% Nuclear organic revenue growth* Q1 revision: Between 15% and 20% 14.3% Initial: Between 12% and 15% Engineering Services Regions Segment adjusted EBITDA
Slide 22: Financial Targets 2022-2024 (Set in 2021)
22 Financial Targets 2022-20241 (Set in 2021) 2022-2024 Targets 2022 Actuals 2023 Actuals Annually AtkinsRéalis Services organic revenue growth* 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% Engineering Services Between
Slide 23: Financial Targets 2025-2027 set in 2024
23 Financial Targets 2025-20271 set in 2024 2025 – 2027 Target Engineering Services Regions Organic revenue growth* CAGR 2025 – 2027 >8% Segment Adjusted EBITDA to segment net revenue ratio* by 2027 Between 17% and 18% Nuclear Annual revenue by 2027 Between $1.8B to $2.0B Segment Adjusted EBIT to se
Slide 24: Endnotes
Endnotes 24 (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