Q2 2024 Atkinsrealis Group Inc Earnings Call Transcript
Key Points
- Atkinsrealis Group Inc (SNCAF) reported a strong second quarter with a 17% increase in Services revenue and a 22% rise in segment adjusted EBIT.
- The company's backlog reached a record high of $15.6 billion, growing 26% year-over-year, indicating strong future revenue potential.
- The Nuclear segment showed significant growth with a 42% increase in revenue and a 57% growth in backlog, driven by CANDU refurbishment work.
- Atkinsrealis Group Inc (SNCAF) successfully increased its headcount by approximately 740 employees, enhancing its capacity to meet growing demand.
- The company is strategically expanding its presence in key markets, securing major contracts in Canada, the US, UK, and Hong Kong, which are expected to drive sustained profitable growth.
- The LSTK projects segment experienced a 69% decrease in revenue compared to the same quarter in 2023, contributing to a negative EBIT of $18 million.
- Corporate SG&A expenses increased to $39 million from $29 million last year, driven by higher long-term compensation costs due to a significant share price rise.
- The effective income tax rate is expected to be higher in the second half of the year, potentially impacting net income.
- The US and Latin America regions saw a decline in EBITDA margin from 14.9% to 13.1%, partly due to lower income from emergency response activities.
- The company faces challenges in improving margins in its Canadian operations, with a slight decline in segment adjusted EBITDA margin noted in the quarter.
Thank you for standing by. This is the conference operator. Good morning, and welcome to AtkinsRéalis second-quarter 2024 results conference call. As a reminder all participants are in a listen-only mode and the conference is being recording. (Operator Instructions)
I would now like to turn the conference over to Denis Jasmin, Vice President, Investor Relations. Please go ahead.
Thank you Betsy. Good afternoon, good morning, everyone, and thank you for joining us today. For those dialing in, we invite you to view the slide presentation that we have posted on the Investors section of our website, which we will refer to during this call. Today's call is also webcast.
With me today are Ian Edwards, Chief Executive Officer; and Jeff Bell, Chief Financial Officer. Before we begin, I would like to ask everyone to limit their self to one or two questions to ensure that all analyst have an opportunity to particiate. Youâre welcome to return to the queue for any follow-up
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