MONTREAL, May 15, 2024 /CNW/ - AtkinsRéalis [SNC-Lavalin Group Inc.] (TSX:ATRL), a fully integrated professional services and project management company with offices around the world, today announced its financial results for the first quarter ended March 31, 2024. AtkinsRéalis reports a strong start of the year, delivering solid Q1 year-over-year increases in revenue, Segment Adjusted EBIT, Adjusted EBITDA and EPS, as well as positive operating cash flows. The Company's backlog continued to achieve record highs with strong increases in Engineering Services Regions and Nuclear. "We continued our momentum from 2023 into the first quarter. Our financial results and increased backlog reflect our strong market position and the continued demand for our Engineering Services and Nuclear businesses. This great start to the year positions us well to deliver on our full year 2024 outlook," said Ian L. Edwards, President and CEO of AtkinsRéalis. "We have constructed a powerful, organic growth engine, enhanced by our new organizational structure, which we expect to fuel significant positive net cash from operations for the Company and which should continue to drive long-term shareholder value. This is an exciting time at AtkinsRéalis, and I want to thank our 38,000 employees for their dedication to helping create a better future for our planet and its people." Q1 2024 Financial Highlights(All results reflect comparisons to prior-year period of Q1 2023, except as otherwise indicated)(Engineering Services Regions include 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 $2.2 billion, an increase of 18.5%, or 19.1% on an organic revenue growth(2)(3) basis Engineering Services Regions revenue(1) totaled $1.7 billion, an increase of 16.9%, or 17.9% on an organic revenue growth(2)(3) basis, above the Company's full year outlook range, with strong organic revenue growth in Canada, USLA and AMEA Nuclear revenue totaled $298.6 million, an increase of 22.2%, or 20.9% on an organic revenue growth(2)(3) basis, above the Company's full year outlook range AtkinsRéalis Services Segment Adjusted EBIT(1) increased by 19.5% to $186.8 million Segment Adjusted EBIT for Engineering Services Regions(1) increased by 18.8% to $146.0 million, representing a Segment Adjusted EBITDA to segment net revenue ratio(2)(4) of 15.0%, an increase of 50 basis points and in line with the Company's full year outlook range Segment Adjusted EBIT for Nuclear increased by 19.2% to $39.0 million, representing a margin of 13.1%, in line with the Company's full year outlook range Segment Adjusted EBIT for LSTK Projects was negative $13.0 million Segment Adjusted EBIT for Capital was $1.1 million, compared to $11.6 million in Q1 2023, mainly due to a revised estimate on a financial asset held in one of the Company's investments Adjusted EBITDA from PS&PM(2) increased by 12.1% to $174.8 million from $155.9 million AtkinsRéalis Services backlog reached a new record-high and totaled $15.3 billion as at March 31, 2024, an increase of 26.4%. Backlog additions in Q1 2024 totaled $3.7 billion and included $1.4 billion for one specific Operations & Maintenance contract acquisition Net income attributable to AtkinsRéalis shareholders totaled $45.5 million, or $0.26 per diluted share, compared to $28.4 million, or $0.16 per diluted share in Q1 2023 Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM(2) totaled $73.8 million, or $0.42 per diluted share, compared to $55.4 million, or $0.32 per diluted share in Q1 2023 Net cash generated from operating activities was $36.6 million Net limited recourse and recourse debt to Adjusted EBITDA ratio(2)(5) was 1.7 as at March 31, 2024 compared to 1.8 as at December 31, 2023 2024 Outlook Nuclear organic revenue growth(2)(3) outlook for full year 2024 compared to 2023 raised to between 15% and 20%, from the previous range of between 12% and 15%, reflecting strong growth to date and confidence in continued demand, supported by a strong backlog. Corporate selling, general and administrative expenses from PS&PM outlook for full year 2024 increased to approximately $130 million from the previous guidance of approximately $110 million, driven by higher long-term compensation costs primarily as a result of the significant share price rise. All other financial outlook metrics for full year 2024, issued on March 1, 2024, in the Q4 2023 press release, are maintained. First Quarter Financial Results Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together the Company's segments, namely Engineering Services Regions (Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA"), and Asia, Middle East, & Australia ("AMEA")), Nuclear, Linxon, and Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM. The increase in net income attributable to AtkinsRéalis shareholders was mainly due to higher Segment Adjusted EBIT and lower net financial expenses, partially offset by higher corporate selling, general and administrative expenses primarily driven by higher long-term compensation costs. IFRS Financial Highlights Q1 2024A Q1 2023A Revenues    From PS&PM 2,257.7 2,006.7    From Capital 6.6 16.3 2,264.3 2,023.1 Attributable to AtkinsRéalis shareholders Net income (loss):    From PS&PM 53.2 26.0    From Capital (7.7) 2.4 45.5 28.4 Diluted EPS:    From PS&PM ($) 0.30 0.15    From Capital ($) (0.04) 0.01 0.26 0.16 Non-IFRS Financial Highlights Q1 2024A Q1 2023A Attributable to AtkinsRéalis shareholders Adjusted net income from PS&PM(2) 73.8 55.4 Adjusted diluted EPS from PS&PM(2)(6) ($) 0.42 0.32 Adjusted EBITDA from PS&PM(2) 174.8 155.9 Segment Performance Q1 2024A Q1 2023A Segment revenues AtkinsRéalis Services    Engineering Services Regions 1,719.0 1,470.1    Nuclear 298.6 244.3    Linxon 158.8 121.5    Total 2,176.4 1,835.9 LSTK Projects 81.3 170.8 Capital 6.6 16.3 2,264.3 2,023.1 Segment Adjusted EBIT AtkinsRéalis Services    Engineering Services Regions 146.0 122.9    Nuclear 39.0 32.7    Linxon 1.8 0.8    Total 186.8 156.3 LSTK Projects (13.0) (9.2) Capital 1.1 11.6 174.9 158.8 Backlog as at March 31 AtkinsRéalis Services    Engineering Services Regions 11,969.1 10,099.1    Nuclear 1,844.2 985.8    Linxon 1,457.2 994.4    Total 15,270.5 12,079.3 LSTK Projects 298.8 517.9 Capital 24.5 29.3 15,593.8 12,626.5 All figures in millions of Canadian dollars, except as otherwise indicated Certain totals and subtotals may not reconcile due to rounding A For the three-month period ended March 31 Investor Day AtkinsRéalis will host a hybrid Investor Day in Toronto, Canada on Thursday, June 13, 2024. The event will feature presentations from Ian L. Edwards, President and Chief Executive Officer, and Jeff Bell, Chief Financial Officer, alongside other members of the executive team. Building on the strong value creation ...