AtkinsRéalis says the slowdown in the United States is temporary

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This article was published 07/08/2025 (232 days ago), so information in it may no longer be current.

MONTREAL – Montreal-based engineering firm AtkinsRéalis revised down its forecasts for the engineering sector slightly due to a decline in activity in the United States. 

New orders in the United States and Latin America accounted for only 59 per cent of revenue in the second quarter, according to second-quarter results released Thursday. 

The Montreal-based company’s president and CEO, Ian Edwards, acknowledged that business was slow south of the border. 

“We’ve seen some delays in infrastructure project win converting to revenue,” he said during a conference call with analysts. 

Projects have been delayed in various U.S. states as public officials waited to gauge the impact of the change in administration at the White House. 

Edwards believes the outlook remains good in the U.S. He also noted that the results were being compared to a strong period for the U.S. mining sector. 

Analyst Ian Gillies of Stifel shared this optimism. “We would be buyers on weakness as we believe the structural spending tailwinds remain in place and the balance sheet is well positioned for self-funded mergers and accquistions,” Gillies said.

The company formerly known as SNC-Lavalin has slightly lowered its revenue growth forecast for the engineering services segment due to weaker international demand. However, it has slightly improved its forecast for nuclear energy.

AtkinsRéalis’ order book is performing better for the company as a whole.

The company reported an order backlog of $20.9 billion, compared to $15.9 billion in the same period last year. 

Edwards also reiterated that the company is taking steps in the United States to enter the nuclear market. 

“We are looking at what it would take to get it through the licensing process, which we don’t think is too difficult because they think about things very similar to Canada.”

The executive said the end of the decade is when the company expects to obtain the necessary permits. 

The context is favourable for the industry south of the border, with the Trump administration setting a goal of quadrupling nuclear power production in the United States by 2050. The government wants to begin construction of 10 large reactors by 2030 and speed up the approval process. 

The US industry is concentrated, with Westinghouse being the only US company capable of building large reactors in the United States.

AtkinsRéalis reported net income attributable to shareholders of $2.3 billion in the second quarter, compared to $82.2 million in the same period last year. 

The significant difference is attributable to a $2.2 billion gain from the sale of its interest in Highway 407 in the Greater Toronto Area.

Total revenues were up 15 per cent to $2.7 billion. Adjusted earnings per share were $0.78.

Before the results were released, analysts had expected revenues of $2.6 billion and earnings per share of $0.68, according to financial data firm Refinitiv.

AtkinsRéalis shares ended the day up 62 cents at $96.94 on the Toronto Stock Exchange. 

This report by The Canadian Press was first published Aug. 7, 2025.

Company in this release: (TSX: ATRL)