AtkinsRealis pares down legacy jobs

Article Excerpt

ATKINSREALIS GROUP INC. $95 is a hold. The engineering company (Toronto symbol ATRL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 174.8 million; Market cap: $16.6 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.atkinsrealis.com), formerly called SNC-Lavalin Group Inc. (old symbol SNC), continues to wind down its remaining lump-sum, turnkey (LSTK) construction projects. They expose it—and its investors—to cost overruns. It now focuses on services such as design and consulting, instead of construction. The company’s LSTK backlog was $199.9 million as of March 31, 2025. That’s down 33.1% from a year earlier. As well, the backlog at its main engineering division (in Canada, the U.S., the U.K., Ireland, Latin America and Asia) rose 6.2% to $12.71 billion, while contracts related to nuclear power projects (including its CANDU design) soared 184.6% to $5.25 billion. Thanks to those new orders, the stock has jumped over 70% in the past year. It now trades at 30.4 times the company’s likely 2025 earnings of $3.12…