It was a pretty good quarter for AtkinsRealis (TSE:ATRL), as the engineering services and nuclear company posted its earnings report. The numbers were solid by any stretch and gave investors reason sufficient to stand up and cheer. They pushed AtkinsRealis shares up in a big way, too, with shares up over 11% in Thursday morning’s trading.
Revenue came in at $2.3 billion, which was up 15% over the third quarter of 2023. It was up just 13.5%, however, if using an organic revenue growth basis. Engineering services brought in $1.8 billion, a 9.7% increase, and its nuclear revenue came in at $368.9 million, which was an impressive 36.4% jump.
In addition, its services backlog actually hit a record high in the third quarter, coming in at $16.8 billion, which was up 34.7% against 2023’s third quarter. The nuclear division also hit a new record, clearing $3.2 billion.
Irish Surge, Canadian Highway
And AtkinsRealis does not look to stop there; it has plans for significant expansion in the making. In fact, it plans to triple the size of its team in Ireland, according to a report from Partnerships Bulletin. It currently has around 370 staff in the country, but within the next five years, it will increase its ranks to 1,000.
Meanwhile, AtkinsRealis also took on a new project with the Canadian government, working on portions of the Trans-Canada Highway as well as Route 95 in New Brunswick. AtkinsRealis will be operating and maintaining—as well as rehabilitating—a 275-kilometer stretch of highway until 2033, noted a Daily Commercial News report.
What Is the Target Price for AtkinsRealis?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:ATRL stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 66% rally in its share price over the past year, the average TSE:ATRL price target of C$72.60 per share implies 1.2% upside potential.
