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MONTREAL \u2014 Nuclear projects fuelled a big surge in revenue at AtkinsR\u00e9alis Group Inc. last quarter, paving the way for better financial results in the year ahead, the engineering firm said.<\/p>\n
\u201cWe cannot overstate our belief in the significant opportunity in front of AtkinsR\u00e9alis in the nuclear sector,\u201d chief executive Ian Edwards told analysts on a conference call.<\/p>\n
\u201cWe continue to position extremely well to take advantage of the ongoing nuclear supercycle.\u201d<\/p>\n
The Montreal-based company formerly known as SNC-Lavalin raised its 2025 nuclear revenue outlook to between $1.9 billion and $2 billion from the previous range of $1.6 billion to $1.7 billion. It also increased its projections for adjusted earnings.<\/p>\n
Edwards also brushed off any concerns about the impact of the global trade war set off by U.S. President Donald Trump, who has also tried to freeze hundreds of billions of dollars in federal grants and loans.<\/p>\n
\u201cWe are not directly impacted by tariffs, and we are minimally exposed to federal agency contracts,\u201d he said.<\/p>\n
During its latest quarter, AtkinsR\u00e9alis boosted its backlog of nuclear work to a record $5.25 billion in a 185 per cent leap from a year earlier.<\/p>\n
Revenue in the segment grew organically by 77 per cent year-over-year to a quarterly record of $538 million, accounting for the vast majority of the company\u2019s total revenue increase and its 52 per cent jump in profits.<\/p>\n
Last quarter, Atkins subsidiary Candu Energy signed a multibillion-dollar contract for a life extension on four reactors at Ontario\u2019s Pickering nuclear power station.<\/p>\n
It also secured a contract to extend the life of a reactor at the Cernavoda nuclear plant in Romania, after winning a bid late last year to build two new multibillion-dollar reactors there.<\/p>\n
In March, the federal government announced a preliminary agreement to finance half the cost of Candu\u2019s proposed Monark reactor \u2014 AtkinsR\u00e9alis\u2019 latest homegrown nuclear technology \u2014 with a $304-million loan.<\/p>\n
\u201cWe\u2019re negotiating both for additional life extensions in Korea, additional phases of life extensions in Canada and obviously new builds (in Europe and Asia),\u201d Edwards said.<\/p>\n
The one drain on the company\u2019s income statement remained three so-called lump-sum turnkey (LSTK) construction contracts: Toronto\u2019s Eglinton Crosstown light-rail transit system, Ottawa\u2019s Trillium Line and the greater Montreal area\u2019s REM light-rail network extension. But, the losses totalled far less than the $84.4-million from the previous quarter.<\/p>\n
The legacy segment yielded $14.9 million in adjusted losses before interest and taxes. The loss was owed mainly to \u201coverhead costs from the ongoing efforts to bring the remaining projects to completion\u201d \u2014 particularly the REM in Montreal, where most of the construction backlog lies \u2014 the company said.<\/p>\n
The backlog for the costly LSTK division \u2014 its fixed-price contracts mean companies must pay for any cost overruns themselves \u2014 sat at $200 million last quarter, down from $299 million the year before.<\/p>\n
AtkinsR\u00e9alis halted all bidding on new construction contracts in 2019.<\/p>\n
It also continues to hunt for a buyer for its money-losing joint venture with Hitachi Energy, Linxon, which focuses on electrical substations.<\/p>\n
The company reported a net income $70.6 million for the three months ended March 31 versus $46.6 million in the same period a year earlier.<\/p>\n
First-quarter revenues increased 12 per cent year-over-year to $2.55 billion from $2.26 billion.<\/p>\n
On an adjusted basis, AtkinsR\u00e9alis\u2019 professional services and project management business earned 57 cents per diluted share in its latest quarter, up from an adjusted profit of 42 cents per diluted share a year ago.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n