MONTREAL, Aug. 9, 2024 /CNW/ - AtkinsRéalis Group Inc. (TSX:ATRL), a world-class engineering services and nuclear company with offices around the world, today announced its financial results for the second quarter ended June 30, 2024. AtkinsRéalis delivered strong Q2 results, with significant year-over-year increases in Revenue, Segment Adjusted EBIT, Net Income and EPS. The Company's Segment Adjusted EBITDA to segment net revenue ratio for Engineering Services Regions improved year-over-year, mainly driven by the Company's initiatives presented at the Investor Day on June 13, 2024. Note that the net income and EPS were impacted in the quarter by a strong share price appreciation, increasing the Company's compensation costs. The Company's backlog continued to achieve record highs with strong year-over-year increases in Engineering Services Regions and Nuclear. "We concluded the first half of the year with another strong quarter, delivering significant year-over-year revenue growth and margin expansion. We continue to see robust demand for our engineering services business and the market remains strong, as witnessed by our record backlog," said Ian L. Edwards, President and CEO of AtkinsRéalis. "In addition, we are encouraged by the exceptional opportunities we are seeing across our Nuclear portfolio, particularly in CANDU® refurbishment. With the powerful organic growth engine we have constructed, we remain confident in our ability to drive long-term shareholder value." "In June, we held our Investor Day where we introduced our new 'Delivering Excellence, Driving Growth' strategy underpinned by three pillars. In alignment with these pillars, we highlighted the ways in which we will optimize the business, accelerate value creation, and explore untapped potential. We also unveiled our long-term financial targets, emphasizing our confidence in driving growth, improving margins and delivering excellence for our customers. I want to thank the exceptional leadership team of AtkinsRéalis for setting the tone in differentiating the Company, as well as our 38,500 employees for their passion and dedication in helping to engineer a better future for our planet and its people." Q2 2024 Financial Highlights(All results reflect comparisons to prior-year period of Q2 2023, except as otherwise indicated)(Engineering Services Regions is comprised of the following reportable segments: Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA") and Asia, Middle East & Australia ("AMEA")) AtkinsRéalis Services revenue(1) totaled $2.3 billion, an increase of 17.0%, or 17.0% on an organic revenue growth(2)(3) basis Engineering Services Regions revenue(1) totaled $1.7 billion, an increase of 11.6%, or 12.0% on an organic revenue growth(2)(3) basis, above the Company's full year outlook range, with organic revenue growth in all regions Nuclear revenue totaled $357.6 million, an increase of 42.4%, or 40.9% on an organic revenue growth(2)(3) basis, well above the Company's full year outlook range AtkinsRéalis Services Segment Adjusted EBIT(1) increased by 21.9% to $203.8 million Segment Adjusted EBIT for Engineering Services Regions(1) increased by 19.0% to $157.4 million, representing a Segment Adjusted EBIT to segment revenue ratio of 9.0%, while the Segment Adjusted EBITDA to segment net revenue ratio(2)(4) was 15.2%, an increase of 110 basis points and in line with the Company's full year outlook range Segment Adjusted EBIT for Nuclear increased by 31.8% to $43.4 million, representing a Segment Adjusted EBIT to segment revenue ratio of 12.1% Segment Adjusted EBIT for LSTK Projects was negative $18.4 million Adjusted EBITDA from PS&PM(2) increased by 12.2% to $187.6 million AtkinsRéalis Services backlog(1) reached a new record-high and totaled $15.6 billion as at June 30, 2024, an increase of 26.4% from June 30, 2023 Net income attributable to AtkinsRéalis shareholders totaled $82.2 million, or $0.47 per diluted share, compared to $63.8 million, or $0.36 per diluted share Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM(2) totaled $85.3 million, or $0.49 per diluted share. Results this quarter were impacted by a strong share price appreciation, which increased the Company's expenses related to the AtkinsRéalis' long-term incentive plans ("LTIP") Net cash used for operating activities of $88.7 million The Company returned $16.1 million to shareholders through share repurchases and dividends ($22.6 million year-to-date) Net limited recourse and recourse debt to Adjusted EBITDA ratio(2)(5) was 1.9 as at June 30, 2024 compared to 3.1 as at June 30, 2023 2024 Outlook The Company is raising its Nuclear organic revenue growth(2)(3) outlook for full year 2024 compared to 2023 to between 30% and 35%, from the previous range of between 15% and 20%, reflecting strong growth to date and confidence in continued demand, supported by a strong backlog. The Company is adjusting its Nuclear Segment Adjusted EBIT to segment revenue ratio outlook for full year 2024 to between 12% and 14%, from the previous range of between 13% and 15%, reflective of the 2024 business mix and in line with the Company's long-term target introduced at the Investor Day on June 13, 2024.   All other financial outlook metrics for full year 2024, issued on March 1, 2024, in the Q4 2023 press release, and as updated on May 15, 2024 in the Q1 2024 press release, are maintained. Second Quarter Financial Results Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together the Company's segments, namely Engineering Services Regions (Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA"), and Asia, Middle East, & Australia ("AMEA")), Nuclear, Linxon, and Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM. The increase in net income attributable to AtkinsRéalis shareholders was mainly due to higher Segment Adjusted EBIT, partially offset by higher corporate selling, general and administrative expenses primarily driven by higher LTIP compensation costs. IFRS Financial Highlights Q2 2024 Q2 2023 2024A 2023A Revenues    From PS&PM 2,336.2 2,102.2 4,593.9 4,108.9    From Capital 27.8 29.4 34.4 45.7 2,364.0 2,131.5 4,628.3 4,154.6 Attributable to AtkinsRéalis shareholders Net income    From PS&PM 68.3 49.8 121.5 75.8    From Capital 13.9 14.0 6.2 16.4 82.2 63.8 127.7 92.2 Diluted EPS    From PS&PM ($) 0.39 0.28 0.69 0.43    From Capital ($) 0.08 0.08 0.04 0.09 0.47 0.36 0.73 0.53 Non-IFRS Financial Highlights Q2 2024 Q2 2023 2024A 2023A Attributable to AtkinsRéalis shareholders Adjusted net income from PS&PM(2) 85.3 71.9 159.2 127.3 Adjusted diluted EPS from PS&PM(2)(6) ($) 0.49 0.41 0.91 0.73 Adjusted EBITDA from PS&PM(2) 187.6 167.2 362.4 323.1 Segment Performance Q2 2024 Q2 2023 2024A 2023A Segment revenues AtkinsRéalis Services    Engineering Services Regions           1,746.6 1,565.0 3,465.7 3,035.1    Nuclear 357.6 251.2 656.2 495.5    Linxon 187.0 142.2 345.8 263.8    Total 2,291.3 1,958.5 4,467.7 3,794.4 LSTK Projects 44.9 143.7 126.2 314.5 Capital 27.8 29.4 34.4 45.7 2,364.0 2,131.5 4,628.3 4,154.6 Segment Adjusted EBIT AtkinsRéalis Services    Engineering Services Regions 157.4 132.4 303.4 255.2    Nuclear 43.4 33.0 82.4 65.6    Linxon 2.9 1.8 4.8 2.6    Total 203.8 167.1 390.6 323.5 LSTK Projects (18.4) (12.6) (31.5) (21.8) Capital 22.2 23.7 23.3 35.3 207.6 178.2 382.4 337.1 Backlog as at June 30 AtkinsRéalis Services    Engineering Services Regions 12,213.8 10,283.7    Nuclear 1,748.5 1,116.6    Linxon 1,654.9 957.5    Total 15,617.1 12,357.7 LSTK Projects 251.4 421.9 Capital 22.0 27.3 15,890.5 12,807.0 All figures in millions of Canadian dollars, except as otherwise indicated Certain totals and subtotals may not reconcile due to rounding A For the six-month period ended June 30 Quarterly Dividend The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on September 6, 2024 to shareholders of record on August 23, 2024. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes. Second Quarter 2024 Conference Call / Webcast AtkinsRéalis will hold a conference call and audio webcast today at 8:00 a.m. (Eastern Time) to discuss and present its second quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the Company's website at www.atkinsrealis.com/en/investors. The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2024. Please dial toll free at 1 844 763 8274 in North America, dial 1 647 484 8814 outside North America, or dial +44 20 3795 9972 in the United Kingdom. A recording and a transcript of the conference call will be available on the Company's website within 24 hours following the call. About AtkinsRéalis Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-leading engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn. Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures, Total of Segments Measures and Non-Financial Information The Company reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). However, the following non‑IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information are used by the Company in this press release: Organic revenue growth (contraction), EBITDA, Adjusted EBITDA, Adjusted net income (loss) attributable to AtkinsRéalis shareholders, Adjusted diluted EPS, Segment Adjusted EBITDA to segment net revenue ratio, Segment net revenue, Net limited recourse and recourse debt to Adjusted EBITDA ratio and Net limited recourse and recourse debt as well as certain measures for various reportable segments that are grouped together, such as revenue for ...