AtkinsRéalis Group (ATRL) Q2 2025 earnings summary

Executive summary

• Achieved 15% revenue growth to $2.7B in Q2 2025, with organic growth at 9% and record backlog of $21B, driven by strong performance in nuclear and Linxon segments.

• Nuclear revenue up 59% to $567M, backlog up 223% to $5.6B, and Engineering Services Regions backlog at $13B, up 6%.

• Completed acquisition of David Evans Enterprises for $404M and sale of Highway 407 ETR interest for ~$2.6B, enabling $900M debt repayment and over 9M shares repurchased.

• Net income attributable to shareholders surged to $2.3B, driven by a $2.2B after-tax gain on the Highway 407 sale.

• Balance sheet now net cash positive, with investment grade ratings and leverage-neutral position.

Financial highlights

• Total IFRS revenues up 15% year-over-year to $2.7B; segment-adjusted EBIT up 18% to $246M.

• Adjusted EPS from PS and PM rose 59% to $0.78 per diluted share.

• Free cash flow for the quarter was -$163M, with operating cash flow expected to exceed $300M for full year 2025.

• Segment Adjusted EBITDA from PS & PM increased 30.4% to $244.6M (9.1% margin).

• Net cash used for operating activities was $102.4M; cash and equivalents at $953M as of June 30, 2025.

Outlook and guidance

• Raised 2025 nuclear revenue outlook to $2.0B–$2.1B, with 11%–13% Segment Adjusted EBIT to revenue ratio.

• Lowered 2025 organic revenue growth outlook for Engineering Services Regions to mid-single digits due to USLA and EMEA/AMEA softness.

• Segment Adjusted EBITDA to net revenue ratio for Engineering Services Regions guided at 16%–17%.

• Corporate SG&A expenses expected at $120M–$130M for PS & PM.

• All other 2025 financial outlook metrics maintained.