AtkinsRéalis Group (formerly SNC-Lavalin) saw its stock shoot up by around 13% on Thursday, and the CEO, Ian Edwards, says big trends like the push for nuclear energy and the need to upgrade old water systems are driving this growth.
In its third-quarter report, released before the market opened, the company announced it pulled in over $2.45 billion in sales from July to September, up from $2.2 billion the previous year. Their main services area had a 15% boost in revenue, while their nuclear division jumped an impressive 35%.
Based in Montreal, AtkinsRéalis does everything from consulting to engineering to construction, and even specializes in CANDU nuclear reactors. Edwards mentioned that demand remains high as the company helps public and private groups meet their energy goals and strive for net-zero emissions.
However, profits were slightly lower this quarter compared to last year, mainly because they had a big gain from selling their Scandinavian business back then. Still, the company reported a record project backlog worth $16.8 billion, a 35% jump from last year.
Analyst Sabahat Khan from RBC Capital Markets called their Q3 performance better than expected and maintained a $70 price target with an “outperform” rating, meaning he sees potential for more growth.