Q2 2025 Atkinsrealis Group Inc Earnings Call Transcript
Key Points
- Atkinsrealis Group Inc (SNCAF) reported a strong quarter with a 15% increase in services revenue, reaching $2.6 billion.
- The company's Nuclear segment saw a significant organic revenue growth of 56%, achieving a quarterly record high of $567 million.
- The total backlog reached a record high of $21 billion, driven by demand in Engineering Services and Nuclear sectors.
- The acquisition of a majority stake in David Evans and the sale of interest in Highway 407 resulted in proceeds of approximately $2.6 billion, strengthening the balance sheet.
- The company repurchased 9 million shares and paid down $900 million in debt, positioning itself as net cash positive and ready for further growth opportunities.
- Engineering Services Regions revenue organically declined by 1% to $1.9 billion.
- The company decreased its 2025 Engineering Services Regions revenue organic growth outlook due to lower-than-expected growth in the USLA and EMEA segments.
- Revenue in the EMEA region declined 8% organically, with a backlog decrease of 4% due to project delays and completions.
- The US segment experienced a 3% organic revenue decline, impacted by delays in infrastructure project wins converting to revenue.
- Free cash flow was negative $163 million for the quarter, driven by higher working capital usage and capital expenditures.
Thank you for standing by, and welcome to the AtkinsRéalis second-quarter 2025 conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Denis Jasmin, Vice President, Investor Relations. Please go ahead, sir.
Thank you, Jonathan. (spoken in foreign language) Good morning, everyone, and thank you for joining us today. For those dialing in, we invite you to view a slide presentation that we have posted in the Investors section of our website, which we will refer to during this call. Today's call is also webcast. With me today are Ian Edwards, Chief Executive Officer; and Jeff Bell, Chief Financial Officer.
(Operator Instructions) I would like to draw your attention to slide 2, comments made on today's call may contain forward-looking information. This information by its nature is subject to assumptions, risks and uncertainties, and as such, actual results may differ materially
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