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Introduction & Market Context
Atkinsréalis Group Inc (ATRL) reported strong first-quarter 2025 results on May 15, with net income surging 50% year-over-year as the company capitalized on growing infrastructure and energy transition demands. The engineering and construction firm’s shares have performed well recently, closing at $75.95 on May 14, representing a 57.8% increase from its 52-week low of $48.12.
The company’s performance reflects continued momentum from its strong finish to 2024, when it reported 14% revenue growth in the fourth quarter. This positive trajectory appears to be continuing into 2025, with Q1 results showing broad-based growth across most segments and geographies.
Quarterly Performance Highlights
Atkinsréalis reported total revenues of $2.55 billion for Q1 2025, representing a 12% increase compared to Q1 2024. The company’s Professional Services and Project Management (PS&PM) segment generated $2.53 billion in revenue, up 12% year-over-year.
Net income attributable to shareholders reached $69 million, a 50% jump from $46 million in the same period last year. Diluted earnings per share increased by the same percentage, rising from $0.26 to $0.39. Adjusted diluted EPS from PS&PM showed a 36% improvement, reaching $0.57 compared to $0.42 in Q1 2024.
As shown in the following comprehensive financial overview:
The company’s backlog reached a record $20.41 billion as of March 31, 2025, representing a 31% increase from the prior year. This substantial backlog provides strong visibility for future revenue growth and reflects the company’s success in winning new contracts across multiple segments.
Segment Analysis
The standout performer was undoubtedly the Nuclear segment, which delivered exceptional results with 77% organic revenue growth and a 185% increase in backlog year-over-year. Revenue in this segment jumped from $299 million in Q1 2024 to $538 million in Q1 2025, while backlog surged from $1.84 billion to $5.25 billion.
The Nuclear segment’s performance is illustrated in the following slide:
This remarkable growth in the Nuclear business was driven by several major contract wins, including life extension projects for CANDU® reactors at the Pickering Nuclear Generating Station in Ontario and the Cernavoda Nuclear Power Plant in Romania. The company has also strengthened its supply chain relationships and is actively pursuing new nuclear projects in Canada and internationally.
The company’s CANDU® technology is expected to deliver substantial revenue over the coming years, as shown in this timeline:
Performance across Engineering Services regions was mixed. The UKI (United Kingdom (TADAWUL:4280) and Ireland) region showed solid results with 3% organic revenue growth and improved profitability, while the AMEA (Asia-Pacific, Middle East, and Africa) region experienced a 9% organic revenue contraction and declining margins. The Canada region saw revenue decrease but backlog increase by 9%, while the USLA (United States and Latin America) region remained relatively flat with a 1% organic revenue contraction despite nominal revenue growth.
Strategic Initiatives
During the quarter, Atkinsréalis announced two significant strategic moves: the sale of its interest in Highway 407 ETR and the acquisition of a majority stake in David Evans Enterprises, Inc. These transactions align with the company’s disciplined capital allocation framework and its focus on strengthening its core engineering services business.
The company’s backlog growth demonstrates its success in securing new contracts across multiple segments and geographies. The AtkinsRéalis Services backlog has shown consistent growth over the past year:
Selected Q1 bookings included major projects such as the East Harbour Transit Hub, rail systems integration for the East Coast Digital Programme in the UK, and design services for the San Tin/Lok Ma Chau Development Node in Hong Kong.
Revised Outlook and Future Targets
Based on strong performance in the Nuclear segment, Atkinsréalis has revised its 2025 outlook upward. The company now expects Nuclear segment revenue to reach $1.9-$2.0 billion in 2025, up from its previous guidance of $1.6-$1.7 billion.
The revised outlook for 2025 is presented in the following slide:
For Engineering Services Regions, the company maintains its organic revenue growth forecast of 7-9% for 2025, with results expected to be more weighted toward the second half of the year. The Segment Adjusted EBITDA to Segment Net Revenue ratio is projected to be 16-17%, compared to 15.9% in 2024.
Looking further ahead, Atkinsréalis has updated its 2025-2027 financial targets, increasing its Nuclear segment annual revenue target for 2027 to $2.2-$2.5 billion, up from the previous target of $1.8-$2.0 billion. The company continues to target organic revenue growth of more than 8% CAGR for Engineering Services Regions during this period.
In the earnings call, management emphasized that market conditions for Engineering Services and new Nuclear remain strong, driven by energy transition and infrastructure development needs globally. The company’s focus remains on delivering excellence and driving growth, supported by a strong balance sheet that enables both organic expansion and strategic acquisitions.
"We had a strong start to the year," noted management in the conclusion of their presentation, highlighting that the company’s disciplined capital allocation framework positions it well to deliver on its growth objectives both organically and through acquisitions.
With its record backlog, strong performance in the Nuclear segment, and strategic positioning in growing infrastructure and energy markets, Atkinsréalis appears well-positioned to continue its growth trajectory through 2025 and beyond.
Full presentation:
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