AtkinsRéalis Q3 2025 slides: revenue up 15%, Nuclear segment surges 62%

AtkinsRéalis Group Inc (ATRL) presented strong third-quarter results on November 13, 2025, showcasing robust revenue growth, improved margins, and a record-high backlog. The engineering and construction firm's stock rose 4.49% following the announcement, reflecting investor confidence in the company's performance and outlook.

Quarterly Performance Highlights

AtkinsRéalis reported total revenues of $2.8 billion for Q3 2025, representing a 15% increase compared to the same period last year. The company's net income attributable to shareholders jumped 41% to $147 million, while diluted earnings per share rose 49% to $0.88. Notably, adjusted diluted EPS from PS&PM (Professional Services & Project Management) surged 68% to $1.06.

As shown in the following chart of quarterly revenue growth, AtkinsRéalis Services demonstrated consistent revenue increases throughout 2025, with Q3 revenue reaching $2.76 billion, a 17% year-over-year increase:

The company's backlog reached a record high of $20.98 billion as of September 30, 2025, up 23% from the previous year. This substantial backlog provides strong visibility for future revenue and reflects the company's successful business development efforts across multiple sectors.

The following table presents a comprehensive overview of the company's key financial metrics for Q3 2025:

Segment Analysis

AtkinsRéalis's performance varied across its geographic segments. The USLA (United States and Latin America) region showed the strongest growth with a 26% revenue increase to $540 million, while the UKI (United Kingdom and Ireland) region grew by 10% to $714 million. Canada maintained stable performance with a 1% increase to $352 million, while AMEA (Asia-Pacific, Middle East, and Africa) experienced a 9% decline to $333 million.

However, the standout performer was the Nuclear segment, which demonstrated exceptional growth with a 62% revenue increase to $596 million. The segment's adjusted EBITDA margin also improved significantly to 26.2%, up from 23.3% in the previous year. This robust performance was supported by key developments including a renewed Master Services Agreement with Bruce Power and approximately $2 billion in purchase orders to Candu suppliers.

The following slide illustrates the Nuclear segment's impressive financial performance:

The company's CANDU nuclear technology represents a significant long-term growth driver, with projects spanning from current life extension initiatives to future new builds. The following timeline demonstrates how CANDU is positioned to deliver revenue growth over the coming years:

Financial Analysis

Despite strong operational performance, AtkinsRéalis reported a decline in free cash flow, which fell to $56 million in Q3 2025 compared to $226 million in the same period last year. This decrease was primarily due to changes in working capital requirements and increased tax payments.

The detailed breakdown of the company's free cash flow components is presented below:

The company maintains a strong balance sheet, with management targeting a net leverage ratio between 1.0 and 2.0, positioning AtkinsRéalis for continued strategic investments and potential acquisitions, particularly in the U.S. market.

Forward Outlook

Based on the strong performance in the first three quarters, AtkinsRéalis has revised its outlook for 2025. The company now expects low-single-digit percentage organic revenue growth for Engineering Services Regions, with segment adjusted EBITDA margins between 16-17%. For the Nuclear segment, revenue is projected to reach $2.2-2.3 billion with segment adjusted EBIT margins of 11-13%.

The following slide details the company's revised outlook for 2025:

Looking further ahead, AtkinsRéalis has established medium-term financial targets for 2025-2027, including over 8% organic revenue growth in Engineering Services and continued expansion of its Nuclear business. The company also aims to maintain strong cash flow conversion with FCF to adjusted net income between 80-90%.

CEO Ian Edwards expressed confidence in the company's trajectory during the earnings call, highlighting the strength of the U.S. market and the strategic importance of nuclear technology. "We are extremely proud of our success in the third quarter, achieving several record results," Edwards stated, adding that "capacity for nuclear companies is going to be everything" in the evolving energy landscape.

With its record backlog, strong performance in key segments, and clear strategic direction, AtkinsRéalis appears well-positioned for continued growth as it leverages opportunities in infrastructure, energy transition, and nuclear technology markets.

Full presentation:

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