AtkinsRéalis reports record US$10 billion backlog

Canada-based professional services and project management company noted two record figures: Its services’ segment saw a rise in revenue of 20.3% (US$5.8 billion) from last year and its backlog reached $10.3 billion, according to the 2023 report.

The Dubai Opera building in the United Arab Emirates. (Image: AtkinsRéalis) The Dubai Opera building in the United Arab Emirates. Canadian firm AtkinsRéalis provided architecture and masterplanning services for the project. (Image: AtkinsRéalis)

AtkinsRéalis released its Q4 and 2023 annual report on March 1, with the company reporting overall revenue of $6.3 billion.

The engineering services segment recorded $4.3 billion in revenue; approximately a 20% increase from 2022. The firm’s nuclear division brought in just more than $738 million in revenue.

Lump-sum turnkey projects’ revenue was down 37% ($374 million revenue reported), which represented the largest percent reduction among segments. The operations and maintenance segment’s revenue dipped 6% ($347 million revenue) from the year prior. All other divisions reported gains over 2022.

“The company’s operating cash flow was positive for a second consecutive quarter,” stated AtkinsRéalis. “[We’ve had] a significant increase year over year, strengthening the company’s balance sheet and lowering the debt leverage ratio to within the… target range.”

The more than $10 billion backlog is nearly $1.5 billion higher than at the end of 2022. AtkinsRéalis said the figures were ‘record highs.’

Ian L. Edwards, president and CEO, said, “We ended the year on a high note with strong fourth quarter financial results, including significant positive operating cash flows. Consequently, our balance sheet achieved our targeted debt leverage ratio a year earlier than expected.”

AtkinsRéalis’ 2024 outlook

The firm appeared confident for the remainder of 2024, noting it elevated expectations in two segments.

“AtkinsRéalis now expects organic revenue growth for the ‘Engineering Services Regions’ and ‘Nuclear’ segments in 2024 should be higher than the company’s 2022-2024 long-term target range outlined in… September 2021.”

The company provided the following outlook data for the divisions (all percents compared to AtkinsRéalis’ 2023 reporting):

  • 8% to 10% growth in ‘Engineering Services Regions’ organic revenue growth compared to 2023
  • 12% to 15% ‘Nuclear’ organic revenue growth
  • $295million or more of net cash generated from operating activities
AtkinsRéalis announces change to 2024 reporting and new operational structure

In the report, the firm noted changes to its financial reporting going forward.

“Beginning in 2024, AtkinsRéalis has evolved and implemented a new operational structure to unify and simplify the company in the regions where it operates,” said the company.

“Under the new structure, the ‘Engineering Service’s and ‘O&M’ segments will be merged and managed by region. Therefore, the segment disclosure in the company’s 2024 financial statements and management’s discussion and analysis will include, under Engineering Services Regions: Canada, United Kingdom & Ireland (‘UKI’), United States & Latin America (‘USLA’), and Asia, Middle East, & Australia (‘AMEA’).”

The report also noted the company is making permanent a chief operating officer office.

“Our new operational structure will produce a more effective deployment of our global capabilities locally to all stakeholders. This change will yield even greater value creation for our clients and strengthens our ability to capture key wins,” added CEO Edwards.

“We enter 2024 confident that the recent foundational changes we have made – our new operational structure, our new brand – coupled with the strong demand for our global services should further drive sustainable profitable growth.”

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