SNC-Lavalin Group Beats Analyst Expectations with Strong Fourth-Quarter Performance
SNC-Lavalin Group, under its new name AtkinsRealis, has reported a robust fourth-quarter performance that exceeded analyst expectations. The company posted a net income of 90 million Canadian dollars ($66.3 million), or C$0.51 per share, a significant improvement from the loss of C$54.5 million, or C$0.31 per share, in the same quarter last year.
Impressive Revenue Growth and Profitability
Revenues for the quarter reached C$2.28 billion, up from C$1.9 billion, surpassing analysts’ forecasts of C$2.08 billion. The strong performance was driven by a 24% increase in Services revenue, totaling C$2.2 billion, with earnings before interest and taxes rising by 29% to C$201.3 million. However, the legacy lump sum turnkey projects incurred a loss before interest and taxes of C$23.6 million.
Positive Outlook for 2024
SNC-Lavalin foresees continued momentum in 2024, expecting organic revenue growth in its engineering services regions to be between 8% and 10% higher than the previous year. Additionally, the nuclear segment is projected to grow by 12% to 15% this year.
Financial Projections
The company anticipates that net cash generated from operating activities for the year will exceed C$400 million. This positive outlook is supported by higher cash inflows from core segments, which are expected to offset declining cash outflows from LSTK projects.
