Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Q2 2024 Earnings Presentation
23 slides from Atkinsrealis's earnings presentation, Aug 9, 2024
Slide 1: Q2 Conference Call Presentation
Q2 CONFERENCE CALL PRESENTATION August 9, 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 Second Quarter Results
3 Strong ▪ AtkinsRéalis Services revenue totaled $2.3B3, an increase of 17%1,3 (17% on an organic revenue growth* basis) Second ↗ Engineering Services Regions revenue Quarter totaled $1.7B3, an increase of 12%1,3 (12% on an organic revenue growth* basis) Results ↗ Nuclear revenue totaled $357.6M, an
Slide 4: AtkinsRéalis Services Backlog
4 AtkinsRéalis Services Backlog1 in $M Selected Q2 Bookings ▪ Systems and trackwork delivery 15,617 contract to support the Surrey-Langley 15,271 +26.4% SkyTrain Extension in BC ▪ Multi-year Master Service Agreement in Northeastern US by Avangrid Networks 13,746 ▪ Construction Engineering and Inspec
Slide 5: Engineering Services Regions
5 Engineering Services Regions Revenue1 ($M) Backlog1 ($M) Net Revenue +12% +19% 1,747 1,565 12,214 10,284 1,164 1,245 Q2 2023 Q2 2024 30-Jun-23 30-Jun-24 Organic revenue growth* +110 bps Segment Adjusted 15.2% EBITDA** ($M) 14.1% 190 and Segment Adjusted EBITDA to 164 Segment Net Revenue (%)* Segme
Slide 6: Canada
6 Revenue ($M) Backlog ($M) Canada Net Revenue +1% Q2 Key Highlights and Wins +26% 358 372 Strong increase year over year in backlog – a record high Continued success in obtaining key awards, particularly in Transportation and Buildings & Places markets 7,603 Market remains strong, supporting a heal
Slide 7: UKI
7 Revenue ($M) Backlog ($M) UKI Net Revenue +6%1 Q2 Key Highlights and Wins +5% 595 603 Power & Renewables, Industrial and Buildings & Places markets give healthy opportunity as clients transition to clean energy and decarbonize assets Well-positioned to take advantage of key commitments by public s
Slide 8: USLA
8 Revenue ($M) Backlog ($M) USLA Net Revenue +12% Q2 Key Highlights and Wins +3% 436 Continued progress with our “Land and Expand” strategy, methodically 383 increasing presence in US Northeast and mid-Atlantic Strong growth particularly in Transportation, Power & Renewables and Water, while maintai
Slide 9: AMEA
9 Revenue ($M) Backlog ($M) AMEA Net Revenue +45% Q2 Key Highlights and Wins +19% Continued strong win rate in the region drove significant increase in 336 backlog 229 Increase in demand for Transportation, Building & Places, and Power & Renewables, driving the growth outlook across the region 1,369
Slide 10: Nuclear
10 Nuclear Revenue ($M) Backlog ($M) +41% +57% 358 1,749 251 1,117 Q2 2023 Q2 2024 30-Jun-23 30-Jun-24 Organic revenue growth* +32% Segment Adjusted EBIT ($M) (% of Segment Gross Revenue) 12.1% 13.1% 43 33 Q2 2023 Q2 2024 *Organic revenue growth is a non-IFRS ratio. Please refer to endnote 1 on slid
Slide 11: Nuclear Q2 Key Highlights and Wins
11 Nuclear Q2 Key Highlights and Wins CANDU ® Services Canadians for CANDU campaign gaining support with more key stakeholders Signature of framework to support the deployment of Poland’s first Small onboarded Modular Reactors Conference Board of Canada confirms significant positive GDP impact of Da
Slide 12: Linxon, LSTK Projects & Capital
12 Linxon, LSTK Projects & Capital Linxon +29% LSTK Projects Capital Revenue ($M) Organic revenue Segment Adjusted EBIT ($M) Segment Adjusted EBIT ($M) growth* 187 142 Q2 2023 Q2 2024 Segment Adjusted 1.6% EBIT ($M) -13 (% of Segment 1.3% -18 24 22 Gross Revenue) 3 2 Q2 2023 Q2 2024 Q2 2023 Q2 2024
Slide 13: Financial Performance
13 FINANCIAL PERFORMANCE
Slide 14: Q2 Selected Financial Metrics
14 Q2 Selected Financial Metrics in $M, except otherwise indicated Q2 2024 Q2 2023 Change Revenues PS&PM 2,336 2,102 11% Capital 28 29 (3)% Total Revenues 2,364 2,132 11% Segment Adjusted EBIT – Total 208 178 17% Corporate SG&A expenses – from PS&PM (39) (29) 34% Net financial expenses (43) (43) - N
Slide 15: Free Cash Flow
15 Free Cash Flow* in $M Six months Six months Q2 2024 Q2 2023 ended June 30, 2024 ended June 30, 2023 Segment Adjusted EBIT1 from AtkinsRéalis Services 204 391 167 324 Segment Adjusted EBITDA* from AtkinsRéalis Services 242 465 203 392 Change in working capital and other items from AtkinsRéalis Ser
Slide 16: 2024 Revised Outlook
16 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 17: Conclusion
17 CONCLUSION
Slide 18: Conclusion
18 Conclusion • Significant year over year revenue growth • Record backlog and key wins highlight the significant demand for our services • Market-leading position allows us to continue to capture growth from the energy transition super cycle and aging infrastructure replacement megatrends • Operati
Slide 19: Questions & Answers
19 QUESTIONS & ANSWERS
Slide 20: Appendix
20 APPENDIX
Slide 21: Financial Targets 2022-2024
21 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 22: Financial Targets 2025-2027
22 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 23: Endnotes
Endnotes 23 (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