Mr. Ian Edwards reports

ATKINSREALIS REPORTS STRONG FIRST QUARTER RESULTS AND POSITIVE OPERATING CASH FLOWS

AtkinsRealis (SNC-Lavalin Group Inc.) has released its financial results for the first quarter ended March 31, 2024.

AtkinsRealis reports a strong start of the year, delivering solid Q1 year-over-year increases in revenue, Segment Adjusted EBIT, Adjusted EBITDA and EPS, as well as positive operating cash flows. The Company's backlog continued to achieve record highs with strong increases in Engineering Services Regions and Nuclear.

"We continued our momentum from 2023 into the first quarter. Our financial results and increased backlog reflect our strong market position and the continued demand for our Engineering Services and Nuclear businesses. This great start to the year positions us well to deliver on our full year 2024 outlook," said Ian L. Edwards, President and CEO of AtkinsRealis. "We have constructed a powerful, organic growth engine, enhanced by our new organizational structure, which we expect to fuel significant positive net cash from operations for the Company and which should continue to drive long-term shareholder value. This is an exciting time at AtkinsRealis, and I want to thank our 38,000 employees for their dedication to helping create a better future for our planet and its people."

Q1 2024 Financial Highlights

(All results reflect comparisons to prior-year period of Q1 2023, except as otherwise indicated)

(Engineering Services Regions include the following reportable segments: Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA") and Asia, Middle East & Australia ("AMEA"))

AtkinsRealis Services revenue(1) totaled $2.2 billion, an increase of 18.5%, or 19.1% on an organic revenue gro wth(2)(3) basis

Engineering Services Regions revenue(1) totaled $1.7 billion, an increase of 16.9%, or 17.9% on an organic revenue gro wth(2)(3) basis , above the Company's full year outlook range, with strong organic revenue growth in Canada, USLA and AMEA

Nuclear revenue totaled $298.6 million, an increase of 22.2%, or 20.9% on an organic revenue gro wth(2)(3) basis , above the Company's full year outlook range

AtkinsRealis Services Segment Adjusted EBIT(1) increased by 19.5% to $186.8 million

Segment Adjusted EBIT for Engineering Services Regions(1) increased by 18.8% to $146.0 million, representing a Segment Adjusted EBITDA to segment net revenue ratio(2)(4) of 15.0%, an increase of 50 basis points and in line with the Company's full year outlook range

Segment Adjusted EBIT for Nuclear increased by 19.2% to $39.0 million, representing a margin of 13.1%, in line with the Company's full year outlook range

Segment Adjusted EBIT for LSTK Projects was negative $13.0 million

Segment Adjusted EBIT for Capital was $1.1 million, compared to $11.6 million in Q1 2023, mainly due to a revised estimate on a financial asset held in one of the Company's investments

Adjusted EBITDA from PS&PM(2) increased by 12.1% to $174.8 million from $155.9 million

AtkinsRealis Services backlog reached a new record-high and totaled $15.3 billion as at March 31, 2024, an increase of 26.4%. Backlog additions in Q1 2024 totaled $3.7 billion and included $1.4 billion for one specific Operations & Maintenance contract acquisition

Net income attributable to AtkinsRealis shareholders totaled $45.5 million, or $0.26 per diluted share, compared to $28.4 million, or $0.16 per diluted share in Q1 2023

Adjusted net income attributable to AtkinsRealis shareholders from PS&PM(2) totaled $73.8 million, or $0.42 per diluted share, compared to $55.4 million, or $0.32 per diluted share in Q1 2023

Net cash generated from operating activities was $36.6 million

Net limited recourse and recourse debt to Adjusted EBITDA ratio(2)(5) was 1.7 as at March 31, 2024 compared to 1.8 as at December 31, 2023

2024 Outlook

Nuclear organic revenue growth(2)(3) outlook for full year 2024 compared to 2023 raised to between 15% and 20%, from the previous range of between 12% and 15%, reflecting strong growth to date and confidence in continued demand, supported by a strong backlog.

Corporate selling, general and administrative expenses from PS&PM outlook for full year 2024 increased to approximately $130 million from the previous guidance of approximately $110 million, driven by higher long-term compensation costs primarily as a result of the significant share price rise.

All other financial outlook metrics for full year 2024, issued on March 1, 2024, in the Q4 2023 press release, are maintained.

First Quarter Financial Results

Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together the Company's segments, namely Engineering Services Regions (Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA"), and Asia, Middle East, & Australia ("AMEA")), Nuclear, Linxon, and Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM.

The increase in net income attributable to AtkinsRealis shareholders was mainly due to higher Segment Adjusted EBIT and lower net financial expenses, partially offset by higher corporate selling, general and administrative expenses primarily driven by higher long-term compensation costs.

IFRS Financial Highlights
  
  
   Q1 2024 A Q1 2023 A
Revenues                                                     
From PS&PM                                2,257.7   2,006.7  
From Capital                              6.6       16.3     
                                          2,264.3   2,023.1  
Attributable to AtkinsRealis shareholders                    
Net income (loss):                                           
From PS&PM                                53.2      26.0     
From Capital                              (7.7)     2.4      
                                          45.5      28.4     
Diluted EPS:                                                 
From PS&PM ($)                            0.30      0.15     
From Capital ($)                          (0.04)    0.01     
                                          0.26      0.16     


  

Non-IFRS Financial Highlights
  
  
   Q1 2024 A Q1 2023 A 
Attributable to AtkinsRealis shareholders                     
Adjusted net income from PS&PM(2)         73.8      55.4      
Adjusted diluted EPS from PS&PM(2)(6) ($) 0.42      0.32      
Adjusted EBITDA from PS&PM(2)             174.8     155.9     


  

Segment Performance
  
  
   Q1 2024 A Q1 2023 A
Segment revenues                                
AtkinsRealis Services                           
Engineering Services Regions 1,719.0   1,470.1  
Nuclear                      298.6     244.3    
Linxon                       158.8     121.5    
Total                        2,176.4   1,835.9  
LSTK Projects                81.3      170.8    
Capital                      6.6       16.3     
                             2,264.3   2,023.1  
                                                
Segment Adjusted EBIT                           
AtkinsRealis Services                           
Engineering Services Regions 146.0     122.9    
Nuclear                      39.0      32.7     
Linxon                       1.8       0.8      
Total                        186.8     156.3    
LSTK Projects                (13.0)    (9.2)    
Capital                      1.1       11.6     
                             174.9     158.8    
                                                
Backlog as at March 31                          
AtkinsRealis Services                           
Engineering Services Regions 11,969.1  10,099.1 
Nuclear                      1,844.2   985.8    
Linxon                       1,457.2   994.4    
Total                        15,270.5  12,079.3 
LSTK Projects                298.8     517.9    
Capital                      24.5      29.3     
                             15,593.8  12,626.5 


  
  
   All figures in millions of Canadian dollars, except as otherwise indicated
Certain totals and subtotals may not reconcile due to rounding            
A    For the three-month period ended March 31                            


  

Investor Day

AtkinsRealis will host a hybrid Investor Day in Toronto, Canada on Thursday, June 13, 2024. The event will feature presentations from Ian L. Edwards, President and Chief Executive Officer, and Jeff Bell, Chief Financial Officer, alongside other members of the executive team. Building on the strong value creation from the 2022-2024 "Pivoting to Growth" strategy, the leadership team will unveil the Company's strategy and capital allocation framework for 2025-2027, including key initiatives for revenue growth and margin expansion. The Company will also showcase its globally diversified capabilities and dedication to engineering a better future for our planet and its people.

The event will commence at 8:30 a.m. (Eastern Time) and is expected to last about half a day. It will comprise formal presentations along with interactive Question & Answer panel sessions with senior leadership. The full agenda, the list of speakers and the presentation slides will be available on the Company's dedicated Investor Day 2024 webpage.

To participate in our Investor Day 2024 virtually, including the Question & Answer sessions, registration is required and can be completed in advance by clicking here .

Due to limited capacity, in-person attendance will be by invitation only.

A recording and a transcript of the webcast will be available and archived shortly after the conclusion of the event on the Investor Day 2024 and Investor's Briefcase web pages.

Quarterly Dividend

The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on June 12, 2024, to shareholders of record on May 29, 2024. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.

First Quarter 2024 Conference Call / Webcast

AtkinsRealis will hold a conference call and audio webcast today at 8:00 a.m. (Eastern Time) to discuss and present its first quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the Company's website at www.atkinsrealis.com/en/investors . The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2024 .

Please dial toll free at 1 844 763 8274 in North America, dial 1 647 484 8814 outside North America, or dial +44 20 3795 9972 in the United Kingdom. A recording and a transcript of the conference call will be available on the Company's website within 24 hours following the call.

Annual Meeting of Shareholders

AtkinsRealis' Annual Meeting of Shareholders (the "Meeting") will be held on Thursday, May 16, 2024, at 11:00 a.m. (Eastern Time). Registered shareholders as of the close of business on March 25, 2024 and duly appointed proxyholders of record are entitled to participate in the Meeting virtually at https://web.lumiagm.com/453602059 , regardless of geographic location, and will have the opportunity to ask questions and vote, all in real time, provided they are connected to the internet and comply with all of the requirements set out in the proxy materials. Whether or not a shareholder plans to attend the Meeting, the Company urges all shareholders to vote and submit their proxy in advance of the Meeting by one of the methods described in the proxy materials provided to shareholders.

Additional information related to the Meeting can also be found in AtkinsRealis' 2024 Management Proxy Circular which is available on SEDAR+ at www.sedarplus.com and on the Company's website at www.atkinsrealis.com.

About AtkinsRealis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRealis is a world-leading professional services and project management company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.

We seek Safe Harbor.