Q3 2025 AtkinsRéalis Group Inc Earnings Call

Question and answer session to ask a question during the session you'll need to press star one on your telephone. We will then hear an automated message advising your hand is raised to withdraw your question. Please press star. One again. Please be advised today's conference is being recorded I would now like to turn the conference over to your speaker today Dennis Jasmine. Please go ahead.

Thank you Kevin.

Good morning, everyone and thank you for joining us today.

Although that again, we invite you to get a slide presentation that we have posted in the investors section of our website, which we will refer to during this call. Today's call is also webcast.

With me today are yet Edwards, Chief Executive Officer, and Jeff <unk>, Chief Financial Officer before we begin I would like to update you wanted to limit themselves to one or two questions to ensure that all of them have an opportunity to vote.

Ian Edwards: As we think about those disruptions going forward, which have really been about states sitting on project releases and sitting on project awards, it's the volatility connected to tariffs that shut down the big beautiful bill. What we're seeing now is that actually being overcome. We're seeing definitely in Q4 a return to wins, a return to orders coming through. You've got to remember that the fundamentals in the US that drive our markets in energy, and in replacement of infrastructure resilience work, are all really good. Also, we've got to remember the IIJA is only actually about 40% expended so far, and that bill has still got support. That's specifically in the USLA region.

Welcome to return into the queue any follow up questions.

I would like to draw your attention to slide two comments made on today's call may contain forward looking information. This information by its nature is subject to assumptions risks and uncertainties and as such actual results may differ materially from the views expressed today.

Further information on these assumptions risks and uncertainties. Please consult the company's relevant filings on SEDAR plus these documents are also available on our website.

Also during the call we may refer to certain non <unk> financial measures.

Reconciliation of these amounts to be to the corresponding RFS financial measures are reflected in our earnings release, and the MD&A, which can be found on SEDAR plus in our website and now I will pass the call over to yen headwinds. Thank you Tony Good morning, everyone and thank you for joining us today.

Im going to begin today's call by providing an overview of our company performance in the third quarter, including a record backlog and margin as well as performance highlights across the engineering services regions nuclear businesses I'll, then pass it back to Jeff.

Ian Edwards: In EMEA, we've actually kind of started reprioritizing the way we look at EMEA because we were heavily dependent on some very big jobs in KSA in Saudi Arabia. One of those jobs, we've closed out phase one, and we're seeing a lot more diversified opportunity both in the UAE and both in transportation. We're pretty confident going forward in that region as well. Looking at our backlog, and particularly looking at a backlog, I won't cancer through each region because I'm sure there'll be another kind of question on that. If you look at our backlog, it's 8% up. That's the leading indicator for me. As we look at performance in Q4, we're getting back to growth. Obviously, our revised guidance isn't zero, but we will end with positive growth.

To provide more detail on our financial results and our updated 2025 outlook before we open up for questions. So.

Let's get started on slide three.

Our third quarter performance highlights our ability to both grow and operate more efficiently across the business. We delivered another strong quarter of services revenue growth up 17% year over year or 11% on an organic basis.

Engineering services regions revenue reached a record high of $1 9 billion, while nuclear revenue organically grew 60% to a quarterly record high of $596 million.

Ian Edwards: That will take quite a bounce back in Q4 to get there, which we're confident we're going to do. Moving into 2026, obviously, we're looking at development of pipeline and our kind of preparation for the Q4 outlook already. We're seeing pretty good growth, and we're fairly confident going forward that we're going to return to some good growth numbers. It's the few specific challenges this year, but very confident going forward that we're going to return to growth in ES. All right. That's helpful. Thank you. Maybe turning to nuclear, a couple of pieces of this question. First of all, I wonder if you can maybe add your take. There's been a lot of discussion around nuclear services more broadly, particularly in the US with some of the SMRs.

Link some continues to perform well.

And organically grew 15%.

We also had a strong increase in adjusted EBITDA from <unk> of.

21% a record high adjusted EBITDA from <unk> PM margin of 10% highlighting the work that we've done across the business to improve margins.

Our total backlog reached a new record high this quarter as our expertise across engineering services.

Nuclear continues to be in demand.

<unk> reality services backlog recorded a 24% growth versus the backlog.

<unk> 2024.

The continued revenue growth and increasing backlog in our nuclear business has led us to increase our nuclear revenue outlook to $2 two to $2 3 billion for 2025.

Ian Edwards: You've also got, I think, lots of opportunity even with the CANDU technology and other things that you've been able to work on. Can you maybe walk through high level your thoughts around the nuclear industry and penetration of nuclear and how you think Atkins maybe fits into this whole ecosystem from the perspective of either supporting some of these newer proponents with smaller technologies or having the Monarch able to address different segments of the market? Just thoughts about how we should think about where Atkins can go in the nuclear business over and above where it is today would be helpful. I'll leave it there. All right. This is probably going to be a fairly long answer, but that's fine. It's a good start. Look, I mean, we're in a super cycle. The two world conferences were in Q3 in nuclear.

On the other hand due to lower year to date revenue growth in our U S delay and EMEA regions with decreased our 2025 organic revenue growth outlook in our engineering services regions business to a low single digit year over year percentage increase.

We expect the full year impacts of these changes on profitability to be neutral.

Jeff will provide more details on this later.

Subsequent to quarter close we announced the acquisition of C to AE, which advances our land and expand strategy in the U S and it's in line with our stated capital allocation priorities.

Pipeline of potential bolt on acquisitions remains robust and we would expect to announce further acquisitions in the coming quarters.

We're extremely proud of our accomplishments this quarter generating record revenues backlog and margins, while utilizing strong operating cash flow to invest in M&A opportunities to expand our footprint and geographical white spaces.

Ian Edwards: We're one in London called the Symposium and one in Paris called the Exhibition. What's really clear to me, having attended and spoke at those conferences, is AtkinsRéalis and the CANDU technology operates on the world stage as a leader. I think that's the first thing I would say. When we look at our business, as I've said before, we're not just a nuclear OEM of CANDU. We are a full-service nuclear business in addition to being an OEM in CANDU. This puts us at a very differentiated place in the nuclear market. I'll call out a couple of our differentiators because these are really important. I'm not sure that they're fully understood by everybody. The first thing is that capacity for nuclear companies is going to be everything. There's clearly a strong demand.

Delivering excellence driving growth strategy is creating value for shareholders.

Turning to slide four revenue in our engineering services regions business increased 8% year over year, but if we exclude David Evans revenues and positive FX impacts organic revenue was basically flat.

Segment adjusted EBITDA over net revenue margin was 17% for third for the third quarter up 30 basis points versus the prior year period as operating margin improvement initiatives are bearing fruit, specifically through optimized cost enhanced bidding discipline artificial intelligence and continued.

Leveraging of digital tools for more efficient project delivery.

Notably we continue to increase our backlog, which now stands at a new record high of $13 billion, representing an 8% increase versus backlog as at September 32024.

Ian Edwards: All countries that signed up to the tripling are looking for new nuclear. Hyperscalers are looking for nuclear. It's very, very real. We have got 40,000 professional people in our company. 6,000 to 7,000 of those are nuclear professionals because we've built capacity through the life extension program here in Canada. That's not unique because the French and the Chinese clearly have a big nuclear program too, but it puts us up there at the top with capacity. We have a supply chain in Canada. There's got 90,000 people in it doing manufacturing, and actually professional skilled labor in the nuclear industry. That, again, is not unique, but it's up there with some of the best countries in the world that can deploy nuclear technology.

Beginning on slide five we provide an overview of each of our four regions on that performance this quarter.

Canada revenue organically grew 1% while segment adjusted EBITDA grew $36 million with a 17% margin 180 basis points increase highlight.

Segments adjusted in Morrow of a net revenue margin was 17% for a third, for the third quarter of 30 basis points versus the prior year period. As operating margin Improvement, initiatives are bearing fruit, specifically through optimized cost, enhanced bidding, discipline, artificial intelligence and continued leveraging of digital tools for more efficient project delivery.

Highlighting our continued efforts on our margin improvement plan.

Backlog grew 5% year over year and now stands at seven 8 billion.

Given market dynamics, we are focusing on growing our presence in the buildings and places transportation industrials power renewables and defense end markets as we believe these areas offer good opportunities in the near future.

Noticeably. We continue to increase our backlog, which now stands at a new record. High of 1300 representing an 8% increase versus our backlog, as at September 3024,

Beginning on slide 5, we provide an overview of each of our 4 regions and their performance this quarter.

We saw growth this quarter and transportation unparalleled renewables, while softness in the industrials end markets remained.

Ian Edwards: We have a world-class technology in CANDU, and it's differentiated because it uses natural uranium, which gives countries energy security because of an abundance of natural uranium. There is not an abundance of processed uranium. In fact, there's a shortage. We can produce medical isotopes, which countries and customers are very interested in. Canada has a unique advantage in the way that it operates with countries around the world because where we've built CANDU in India, Korea, China, Romania, and Argentina, we've left behind decades of relationships between Canada and those countries, and decades of relationships between AtkinsRéalis and the utilities, which is world-renowned and is recognized by new countries that are coming into the technology. I guess the last point I would say, and just to remind everybody on slide 11, this growth that we're experiencing right now has no new build in it.

in Canada Revenue organically grew 1%, while segment adjusted ibida, grew 36 million with a 17% margin 180 basis points, increase

Separately.

Highlighting our continued efforts but our margin Improvement plan.

NATO commitments by the Canadian government are likely to yield further opportunities for our defense expertise.

Backlog grew 5% year-over-year and now stands at 7.8 billion dollars.

I'm looking at the opportunities that will come from building, Canada Act offset solid positive impact on Atkins railroads. The government's focus on accelerating domestic funding for large scale projects is exciting and due to our well established foot hold in the market.

Given market dynamics, we are focusing on growing our presence in the buildings and places Transportation Industrials, power Renewables, and defense end markets. As we believe these areas offer good opportunities in the near future.

And our historical success across the entire infrastructure lifecycle, we remain bullish about the near term opportunities that may present themselves from this bill.

We saw growth this quarter in transportation and power Renewables while softness in the Industrials and markets remain.

In UK and Ireland revenue grew 10%.

<unk> grew 5% year over year, primarily driven by strong demand in aviation water and defense.

Segment, adjusted EBITDA grew $102 million in the quarter, representing an 18, 6% EBITDA margin as the business continues to improve the efficiency of project delivery.

I'm looking out the opportunities that will come from building Canada. Act are set to have a positive impact on acting. Realists. The government's focus on accelerating domestic funding for large scale. Projects is exciting and due to our well-established foothold in the market,

Ian Edwards: We're all over the map now trying to sell the CANDU technology. We're getting very good traction. Clearly, there's nothing to announce, but in the coming years, there will be. Our services business is a full-services business that supports SMRs in the UK, in the US, and here in Canada. We have a business in services which supports EDF at Hinkley and Sizewell with hundreds and hundreds of engineers deployed on those jobs. We do processing of waste, and we're even in fusion. All in all, what I'm trying to explain here is we've got a really differentiated business here. I'm glad you asked the question at the beginning. I know that was a long answer, but that is what is the reality of where we're at. Okay. That's helpful. Thank you. I'll pass the line. One moment for our next question.

Our concentration in flexibility in the region enabled us to consistently position or people in areas with the highest demand, which helps underpin strong operating margin delivery.

And our historical success across the entire infrastructure life cycle. We remain bullish about the near-term opportunities that may present themselves from this bill.

Backlog grew 15% year on year to approximately $1 9 billion.

Driven by strong demand in aviation water and defense.

Driven mainly by wins in the defense and transportation markets.

Our expertise in water is creating significant opportunities with the <unk> eight investment program.

As evidenced by our recent win with the <unk> Awards with services, representing a more than one 5 billion dollar opportunity over the next 15 years.

Segment adjusted EBITDA grew $102 million in the quarter, representing an 18.6% EBITDA margin as the business continues to improve the efficiency of project delivery.

As mentioned on prior calls there have been several commitments by the UK government to increase funding for defense and infrastructure spending over the next decade.

Our concentration and flexibility in the region enable us to consistently position our people in areas with the highest demand, which helps underpin strong operating margin delivery.

<unk> and power and renewables is rising with the early stage activity and grid investments.

Ian Edwards: Our next question comes from Christopher with CIBC. Your line is open. Hi. Thanks for taking my question. Maybe just going back to the first question and looking at EMEA, can you provide a little bit more color just on the margins in that segment and how you're expecting those to trend over the next year and maybe what you've put in place to kind of help those margins? Yeah. Let me do the market and how we're repositioning the business. Jeff will come in on the margin front and how we see that in our margin expansion program. I mean, basically, our EMEA business historically has been heavily focused on Saudi Arabia. Now, Saudi Arabia itself has done some reprioritization of spend and of projects they're going to focus on. They want to focus on Riyadh.

Backlog group 15% year on year to approximately 1.9 billion dollars driven mainly by wins in the defense and transportation markets.

They establish long term UK industrial investment strategy will yield enhanced opportunities in the industrials end market.

Our expertise in water is creating significant opportunities with the AMP 8 investment program.

We have a strong and growing presence in UK and Ireland, and we are focusing our efforts on enhancing our capabilities across the transportation defense buildings in places water power renewables and industrial end markets as they present, the most opportunity over the next several years.

As evidenced by our recent win, with the Anglia Water Services representing a more than 1 and a half billion dollar opportunity over the next 15 years.

Turning to slide seven.

Our U S land and expand strategy continues to make strides.

Recently announced the acquisition of <unk>, which strengthens our presence in the upper Midwest and expanded capabilities in key growth end markets such as water.

Demand in power and Renewables is rising with the early stage activity in Grid Investments. While the established long-term UK industrial investment strategy will yield enhanced opportunities in the Industrials and Market

During the third quarter revenue increased 36% however.

However, excluding David Evans acquisition unfavorable FX impacts organic revenue was flat year over year, a softness within our global minerals and metals sector weighed on our results. If we exclude that our global if we exclude our global minerals and metals business.

Ian Edwards: They're focusing on the World Cup 2034 and Expo 2030. It's not that the place has gone flat from a market potential. It's actually just reprioritized. We're really well positioned. We have finished out a huge project that has given us the kind of decline in that KSA business this year. Now, the UAE is also really interesting because they are actually seeing themselves compete with Saudi Arabia. They're putting investment back into the UAE, both in buildings and places, but interestingly, in transportation. We're bidding numerous kind of rail jobs there right now. Obviously, we've got that global capability, so it's easy for us to be agile and kind of exploit those opportunities as the market pivots and the opportunities change.

We have a strong and growing presence in UK and Ireland and we are focused in our efforts, on enhancing our capabilities, across the transportation to fence buildings, and places, water power, Renewables, and Industrial and markets. As they present the most opportunity over the next several years.

Turning to slide 7.

Underlying engineering services business in the U S organically grew about 4%.

We experienced slower framework agreement conversions of projects and procurement disruptions, which were primary growth detractors in the quarter, but that being said we believe these headwinds are temporary.

Our U.S. land and expand strategy continues to make strides, and we recently announced the acquisition of C2AE, which strengthens our presence in the Upper Midwest and expands capabilities in key growth markets such as water.

During the third quarter, revenue increased 36%.

We remain confident in the near term and long term growth opportunities in the U S for our services.

Segment, adjusted EBITDA was $66 million, which translates to a 15, 8% operating margin an improvement of 30 basis points on the previous year.

Ian Edwards: As far as the EMEA region is concerned and its growth plan in the future, we're really opening up Australia and the Asia region. Australia is really important to us in terms of our energy capability and our defense capability, where a lot of the funds are going now from government, where historically it was all about transportation. We feel we've got a really good opportunity there. In Asia, Hong Kong, we've always had a good business. They are developing a new city on the border with China called the Northern Metropolis, and we're winning work there now. We're pretty optimistic about the region of EMEA. Obviously, we've had a bit of a reprioritization and challenges to work through this year. We're pretty confident going forward. Jeff, maybe you could just talk to the kind of margin expansion around things. Yeah.

However, excluding David Evans acquisition and favorable effects. Impacts organic Revenue was flat Euro, a year, a softness within our Global minerals and metals sector weighed on the results. If we exclude, that our Global, if we exclude our Global minerals and metals business, uh, underlying Engineering Services business, in the US, organically grew about 4%,

Margin improvement was driven by sustained project execution and overhead control.

The backlog increased 11% year over year to nearly one 8 billion.

As we continue to prioritize client engagement and leverage our unique end to end capabilities.

We continue to build our backlog in the U S, particularly with the departments of transportation.

We experienced slower framework agreement conversions to projects and procurement disruptions which were primary growth detractors in the quarter. But that being said, we believe these headwinds are temporary and we remain confident in the near term and long term growth opportunities in the US for our services.

We have continued to deepen our collaboration with David Evans team to win incremental new work.

Segment. Adjusted ibida was 66 million, which translate to a 15.8% operating margin and Improvement of 30 basis points on the previous year.

The pipeline of opportunities continues to increase.

Financially and operationally the business is performing in line or ahead of our expectations.

Margin improvement was driven by sustained project execution and overhead control.

Ian Edwards: I think what we'll see, and as Ian has said, we're transitioning the business, particularly in the Middle East. There have been some very large, very profitable projects there. As we head into next year, we'll have to see the business transition away from those. We may see a bit of headwind margin-wise in the Middle East. As Ian said, as we grow other parts of the EMEA region in Australia, in Asia, those are good margin geographies. As they start to take a larger proportion of that region, that will help underpin margin delivery in EMEA there. Over the longer term, we don't see any reason why EMEA wouldn't be part of our 17% to 18% target in the long term. Okay. Thank you. That's great color. Maybe just sorry. No, you go. Sorry.

While we are not directly affected by the recent U S government shutdown federal funding to states slowed impacting some of our client at state level. As a result, we are experiencing some delays in receiving contracts awards in commencing projects in the meantime, our pipeline is growing and we are actively investing organically.

The backlog increased 11% year-over-year to nearly $1.8 billion as we continue to prioritize client engagement and leverage our unique end-to-end capabilities.

We continue to build our backlog in the US, particularly with the Departments of Transportation.

And inorganically to expand our position in the marketplace.

And regardless of the macro dynamics.

We have continued to deepen. Our collaboration with David Evans team to win incremental new work, which the pipeline of opportunities continues to increase.

<unk> in the long term growth of our U S <unk> business.

Financially and operationally, the business is performing in line or ahead of our expectations.

End markets remained strong.

We are strategically positioning ourselves to win new business and the transportation buildings in places industrials minerals and metals and water end markets given the opportunities we see.

While we are not directly affected by the recent U.S. government shutdown, federal funding to states has slowed.

In EMEA.

Revenue declined 9% while segment adjusted EBITDA declined.

Ian Edwards: Oh, just one last one for me, maybe a higher-level one on nuclear. Obviously, you've increased your guidance significantly throughout the year, I think roughly 36% from what you started with. Has the mix evolved as you have expected it to evolve for your nuclear business? Does it change how you think about the margins at all over the medium term? Yeah. That's a very good question. I think as the year has evolved, what we've been awarded in terms of life extension and services businesses is not different from what we expected, but it has come sooner. Even the progress on the Pickering Life Extension, we're getting better progress than we thought.

<unk> declined to $34 million.

A pipeline is growing, and we are actively investing, organically and inorganically, to expand our position in the marketplace.

Representing a 16% EBITDA margin of net revenue.

and regardless of the macro Dynamics,

Revenue declined primarily due to lower volumes of large scale building in places projects in the middle East, where our involvement is reduced compared to this time last year.

Our conviction in the long-term growth of our USLA business.

In in markets, remain strong.

The total backlog in EMEA was approximately one 5 billion.

Up 15% versus the third quarter of 2024, mainly driven by new bookings in the buildings in places and industrials and market.

We are strategically positioning ourselves to win new business in the transportation buildings and places Industrials minerals and metals and water and markets. Given the new opportunities we see.

In the middle East, while opportunities still present themselves and buildings in places, we're seeing increased demand for our services in large scale transportation projects such as our focus is on transportation projects in the near term.

In Amia Revenue declines, 9% while segment adjusted debt, decline to 34 million representing a 16% debt down margin of a net revenue.

Ian Edwards: At the beginning of these life extension projects or any kind of nuclear power project, there's a lot of procurement you've got to put in place for long lead items where the margins on that work are not as good as the actual engineering and execution work that we do ourselves. I think that's probably where we've evolved through the year, and you're seeing that in our results. That's good news. I mean, things are happening quicker than we thought they would happen. For sure. Thank you. I'll leave it there. Thank you. One moment for our next question. Our next question comes from Yuri Lynk with Canaccord Genuity. Your line is open. Good morning, guys. Morning. Good morning. Maybe one for Jeff.

But we will continue to closely monitor substantial building opportunities such as preparing for the 2030 for World Cup and Saudi Arabia.

Revenue decline, primarily due to lower volumes on large-scale building and places projects in the Middle East where our involvement has reduced compared to this time last year.

In Asia, we're seeing sustained investments in infrastructure and transportation, mainly fueled by Hong Kong's Northern Metropolis.

The total backlog in a year was approximately 1.5 billion dollars up. 15% versus the third quarter of 2024. Mainly driven by new bookings in the buildings and places and Industrials and markets.

In Australia, we are focused on expanding our presence through opportunities that leverage our global expertise in transportation power and defense.

I'd like to now move to slide nine and discuss our third quarter results from nuclear business.

In the Middle East while opportunities still present themselves in buildings and places. We're seeing increased demand for our services in large-scale transportation projects, such as our focus is on Transportation projects in the near term.

The business continues to demonstrate.

but we will continue to closely monitor substantial building opportunities such as preparing for the 2034 World Cup in Saudi Arabia,

Exceptional growth achieving organic revenue increase of 60% compared to the third quarter of 2024.

In Asia. We're seeing sustained investments in industry and transportation mainly fueled by Hong Kong's, Northern Metropolis.

Our nuclear backlog totaled $5 $4 billion, 68% higher than our backlog as at September 32024.

Ian Edwards: It looks like to get to the midpoint of your engineering services regions, EBITDA margin guidance for the year, 16% to 17%, it's going to require 80-ish basis points step up in margin in the fourth quarter, which is not the typical seasonal pattern that we've seen in the past. Just wondering if there's anything unique in play in the fourth quarter that would drive the margin sequentially higher. Yeah. Thanks. As you say, I'll take that, Yuri. We do typically see stronger margins in the second half of the year than the first half of the year. You saw that in Q3, and we remain very confident in delivering that 16% to 17% for the full year. As you say, that does mean strong fourth-quarter operating margins.

In Australia, we are focused on expanding our presence through opportunities, that leverage, our Global expertise in transportation, power and defense.

Segment, adjusted EBIT grew 44% to $66 million and segment adjusted EBIT margin was approximately 11%.

That's in our moves flight now and discuss our third quarter results from nuclear business.

Segment, adjusted EBITDA grew 40% year over year.

The business continues to demonstrate.

And the margin now stands at 26% almost 300 basis points higher than this time last year.

On slide 10, we highlight the achievements across our nuclear can do and services portfolios.

Exceptional growth, achieving organic Revenue, increase of 60% compared to the third quarter of 2024.

And I can do business, we have several projects ramping up that give us excitement about the near term revenues.

A nuclear backlog total 5.4 billion dollars 68% higher than our backlog. As at September, 30 2024,

We renewed a 10 year Master service agreement with Bruce Power, we are continuing to work on <unk> four so devoted in Romania.

Segment adjusted EBIT grew 44% to $66 million, and segment adjusted EBIT margin was approximately 11%.

Excellent progress on the Pickering life extension.

Ian Edwards: With all the work we've done in our initiatives through the year and that you've seen coming through in Q3, we see an absolute continuation of that in the fourth quarter. That's everything from continued better and more sophisticated pricing with our clients, better productivity and utilization, higher utilization of our global technology center in India, and the continued work on our overhead cost base. The work that we've delivered through the year and in the third quarter, we see that absolutely continuing in the fourth quarter and remain very confident in delivering that uplift in Q4. Okay. Second one is just on the US region within engineering services, USLA.

Our optimism and.

And the continued advancement of can do projects is further underpinned by the recent issuance of more than $2 billion and purchase orders by Atkins realize to over 548 companies and the can do supply chain. During the last 18 months with 90% of these orders.

Segment, adjusted ibida grew 40% year-over-year and the margin now stands at 26%. Almost 300 basis points higher than this time last year

On slide 10. We highlight the achievements, across our nuclear can do and services portfolios.

In our can-do business, we have several projects ramping up that give us excitement about the near-term revenues.

To Canadian suppliers.

We renewed a 10-year Master Service Agreement with Bruce Power.

Can do it.

As a world class homegrown nuclear technology.

Building high paying jobs and economic growth for Canadian workers and businesses.

We are continuing to work on C3 C4 at CERN of older in Romania. And we make an excellent progress on the Pickering life extension.

Our optimism.

We are in ongoing discussions with several countries across the globe regarding potential new builds.

While they are taking place we remain focused on the development of the Camden monarch.

For services.

We continue to offer Newbuild support at Hinkley point C and size of Allstate.

Ian Edwards: Can you talk a little bit about when you've done your portfolio reviews, including Linxon and capital and stuff like that, why the mining business, the mining and minerals business never didn't come up in those? Well, I'm sure they did, but you decided to keep it. I guess why keep that business? Is it scaled properly to compete with the bigger mining-focused engineering houses? Is having it in the US segment appropriate, I guess? Yeah. All our businesses, we review regularly. I mean, we review the whole mix of portfolio to make sure that the long-term strategy of the company has got the right portfolio of businesses going forward.

In the continued advancement of kandu projects is further underpinned. By the recent issuance of more than 2 billion dollars in purchase orders by Atkins realis to over 548 companies. In the canned do supply chain during the last 18 months with 90% of these orders to Canadian suppliers.

Also in the U K, we're driving growth in the region through our decommissioning waste management services at Sellafield for which we just recently renewed our framework agreement.

Can do.

Is a world class homegrown nuclear technology.

Fueling high-paying jobs and economic growth for Canadian workers and businesses.

Lastly, we extended our global strategic partnership with robotic developer kit over for three years.

Elaboration is showcasing cutting edge robotic innovation to perform high performance remote operations at nuclear facilities. This technology will enable cost effective operations at reactors and more importantly, enhance the safety of this work.

We are in ongoing discussions with several countries across the globe, regarding potential new builds while they are taking place, we remain focused on the development of the candu monarch.

For services, we continue to offer new bills support at Hinkley Point, C and sizewell C.

2025 has been an exceptional year from nuclear business. The revised revenue guidance for the year I mentioned earlier exceeds our original estimate at the beginning of the year by more than 30% further highlighting the opportunities in front of us to generate real revenue today.

Also in the UK we're driving growth in the region through our decommissioning Waste Management Services at cfield for which we've just recently renewed our framework agreement.

Ian Edwards: Absolutely, the minerals and metals business, we've reviewed a couple of times, and we will continue to do that to make sure that it can get to the profitability and the growth that makes it meaningful and at scale. It was a business that we had to repurpose from an EPC business a long time ago into a pure-play services business. That's taken time, frankly. I think we're getting some good traction now, and I think we're getting some better profitability. We are winning some work. In actual fact, we've been picking work up recently in the sector. Whether it belongs in USLA, it's just a question of putting it with one of the presidents. It is a global business because the business has to be client-focused. There are a handful of large mining operators around the world, so you can't really regionalize the business.

Lastly, we extended our Global strategic partnership with robotic developer Kenova for 3 years.

Across the nuclear sector.

Turning to slide 11, you can see a pictorial reminder of these near term can do revenue opportunities within our nuclear business.

Robotic Innovation to perform high performance remote operations at nuclear facilities.

This technology will enable cost effective operations at reactors and more importantly, enhance the safety of this work.

The potential can do crop contracts you see on this slide showcase a massive opportunity for our kids realize and could deliver significant growth for the foreseeable future.

2025 has been an exceptional year for nuclear business.

A $5 4 billion dollar nuclear backlog achievement is just the start.

The revised revenue guidance for the year, I mentioned earlier, exceeds our original estimate at the beginning of the year by more than 30%.

Customers are continuing to recognize our nuclear expertise.

Further highlighting the opportunities in front of us to generate real Revenue today, across the nuclear sector.

<unk> been working hard to bolster our backlog with high quality wins.

Total backlog does not include follow on phases for our recent wins and a very small amount of can do new builds we cannot overstate the massive opportunity in front of Atkins rallies in the nuclear sector.

Turn into slide 11. You can see our pictorial reminder of these near-term, canned, do Revenue opportunities within our nuclear business.

Now moving to slide 12, and I'll link some L S teekay projects and capital businesses.

Ian Edwards: It's got to be a global business that follows clients, basically. We're happy with it right now. It's in the business right now. We do see this need around the world for critical minerals. We don't really do coal. We do these specialized critical mineral kind of mining projects supporting customers. We're happy with it where it is right now. Okay. That's fair. I'll turn it over. Thanks, guys. Thank you. One moment for our next question. Our next question comes from Sabahat Khan with RBC Capital Markets. Your line is open. Great. Thanks. Good morning. Just, I guess, looking ahead to 2026 a little bit, just on the broader setup, you obviously indicated that the IIJA, a good chunk of it hasn't been spent and/or even allocated.

The potential can do contracts. You see on this slide showcase, a massive opportunity for active realities and could deliver significant growth for the foreseeable future.

Our 5.4 billion dollar. Nuclear backlog achievement is just the start.

And I'll leave some segment revenue organically grew 15% year over year.

As customers are continuing to recognize our nuclear expertise.

Linked zone realized 230 basis points of EBIT margin expansion year over year as operational improvements continued to positively flow through the business.

We've been working hard to bolster our backlog with high quality wins.

Backlog increased 50% to a record $2 4 billion at the end of the quarter.

Total backlog does not include follow on faces for our recent wins and a very small amount of canned do new builds. We cannot overstate the massive opportunity in front of Atkins realis in the nuclear sector.

We are seeing backlog improvement across the Americas, Europe and middle East.

I'll now lets Teekay project segment adjusted EBIT was in line with expectations.

Now, moving to slide 12 and our links on LSTK, projects, and capital businesses.

And with that I'll now turn it over to Jeff to discuss our financial results and our 2025 outlook.

In our links on segment Revenue organically grew, 15% year-over-year.

Thank you Ian and good morning, everyone.

Turning to slide 14.

Ian Edwards: Can you just talk about the outlook for the rest of that larger infrastructure bill to be rolled out and sort of your early thoughts on that region on a potential new infrastructure bill at some point? Just trying to gauge the demand drivers for the US market for next year. Thanks. Yeah. Yeah. Look, there's a couple of things that are specific to ourselves, which I'll probably say at the beginning. Our business has got 6,500 people in it. Some of our peers have got over 20,000 people in their businesses. The way I think about our strategy in the US is that we've got a long way to go and a long runway to go. Our ambition in the near term, once two years, is to get the business in the top 10, which would require us to have 10,000 people or more.

We realized 230 basis points of EBIT margin expansion year-over-year as operational improvements continue to positively flow through the business.

Total <unk> revenues increased 15% year over year totaling $2 8 billion.

Which included revenue increases of 8% in engineering services, 62% in nuclear and 19% Enlink Sun.

Backlog increased 50% to a record 2.4 billion dollars at the end of the quarter.

We are seeing backlog Improvement across the America's Europe and Middle East.

Total segment adjusted EBIT for the quarter increased 9% to $269 million as the decrease in capital segment. Adjusted EBIT was more than offset by a $41 million increase in Atkins reality services.

On lstk Project segment. Adjusted ebit was in line with expectations.

and with that I'll now turn it over to Jeff to discuss our financial results and our 2025 Outlook

Thank you, Ian, and good morning, everyone.

Corporate SG&A expenses from <unk> totaled $26 million in the quarter in line with the previous year.

Turning to cite 14.

We continue to anticipate these expenses should be between 120 and $130 million for the full year 2025.

Ian Edwards: Obviously, beyond that, in the longer term, we want to be in the top five. We want to be a serious player in the US. The fundamentals of the US market are really, really strong. The need for energy security. They've got an aging infrastructure problem in the US with actually a $3.7 trillion gap in infrastructure investment, which ultimately will play through to a deterioration of roads, water, rail infrastructure, which they will have to spend on to bring it back to operable state. Resilience work in the US for flooding, flood defense, and hurricanes, unfortunately, present an opportunity, obviously, at the expense of disasters, which is not great, but it's an opportunity for us. The IIJA is 40% allocated and spent. That will continue to fund states. For ourselves, I don't think the one big beautiful bill will have a specific impact on us.

Note that following the sale of our interest in the highway 407, ETR corporate SG&A expenses from capital decreased to $1 $5 million this quarter and are expected to remain at this level.

Total IFRS revenues, increase 15% year-over-year totaling 2.8 billion dollars, which included Revenue increases of 8% in Engineering Services. 62% in nuclear and 19% in links on

Net financial expenses for the quarter were $22 million.

Compared to $41 million in Q3 2024.

Total segment. Adjusted ebit for the quarter, increased 9% to 269 million as the decrease in capitals segment. Adjusted ebit was more than offset by a 41 million increase in Atkins realis services.

Mainly due to the repayment of all outstanding borrowings under the law cost loan and the company's term loan in the second quarter.

Corporate STNA expenses from PS and PM, total of 26 million in the quarter in line with the previous year.

We believe Q4 will be a similar amount.

The income tax expense was lower than Q3 2024, mainly due to revised estimates on certain tax liabilities and geographic mix.

We continue to anticipate these expenses should be between $120 million and $130 million for the full year 2025.

The tax rate for adjusted <unk> net income was approximately 16% in the quarter and 17% year to date and.

Note that following the sale of our interest in the Highway. 407 ETR corporate sgna expenses from Capital decrease to 1.5 million this quarter and are expected to remain at this level.

And therefore, we now expect the tax rate for the full year 2025 on our adjusted <unk> net income to be approximately 20%.

Net Financial expenses for the quarter were 22 million compared to 41 million in Q3 2024.

The <unk> diluted EPS this quarter increased by 49% to 88.

Mainly due to the repayment of all outstanding borrowings under the lacasse loan, and the company's Term Loan, in the second quarter.

We Believe Q4 will be a similar amount.

Compared to 59 in Q3 2020 for.

Ian Edwards: I mean, I think it will have an impact on industrials, perhaps, and maybe the energy sector, which will have less impact for us, I think. We're really confident in our strategy, and we'll continue to invest in M&A, and we'll continue to land and expand across the states. As I said before, the issues, we really do see them as temporary. We are actually seeing an increase of flow-through now, particularly as we're getting into the fourth quarter and we're picking up work. All in all, it's probably been a bit of a disruptive time this last year, but I think we're going to get back to some good growth opportunities. Great. Thanks for the color. Just on sort of the last comment around M&A, just given where the balance sheet is, we were active on the buyback this year.

While the adjusted EPS from <unk> PM increased 68% to $1 <unk> per diluted share compared to <unk> 63 in the third quarter last year.

The income tax expense was lower than Q3 2024. Mainly due to revised estimates on certain tax liabilities and Geographic mix.

And as Ian mentioned, our backlog ended the quarter at a record high of 21 billion, 23% higher than at the end of September 2024, with strong increases across all our businesses engineering services nuclear and links up.

The tax rate for adjusted PS and PM. Net income was approximately 16% in the quarter and 17% year to date.

And therefore we now expect the tax rate for the full year 2025 on our adjusted PS and PM, net income to be approximately 20%.

Let's now move on to slide 15, and free cash flow.

Net cash generated from operating activities totaled $123 million for the quarter.

The IFRS diluted EPS this quarter increased by 49% to 88 cents compared to 59 cents in Q3 2024.

This is mainly driven by a stronger Atkins reality services EBITDA delivery, partially offset by the timing of working capital usage and analysis teekay projects cash usage.

While the adjusted EPS from PS and PM. Increased 68% to $16 per diluted, share, compared to 63 cents in the third quarter last year.

We continue to expect operating cash flow to be in excess of $300 million for the full year 2025.

Ian Edwards: How do you think about potentially reactivating that buyback, just given the number of M&A opportunities out there? Just how are you going to balance the two at this point in cycle? Thanks very much. Yeah. Jeff, why don't I take that? I think, as we've said earlier, and to what you've referenced, we have taken advantage of that share buyback significantly over the course of the year. As we said in the last quarter, our focus really, from a capital allocation perspective, is around growing and investing in the business, primarily through M&A and inorganic activity. As Ian has said, we see real opportunity to continue to land and expand in the US. We see opportunity in other geographies or areas of capability where we have white space, and the pipeline of opportunities is really strong.

After capex of $45 million, which included $15 million for the development of monarch and the payment of lease liabilities of $22 million or free cash flow stood at $56 million for the quarter.

4 was strong increases across all our businesses Engineering, Services, nuclear and links up.

Let's now move on to slide 15 and free cash flow.

I'd like to now turn to my final slide Slide 16.

Net cash generated from operating activities totaled 123 million for the quarter.

As you've heard Ian Sam nuclear the demand for our services continues to grow and our backlog is at a new record high.

This was mainly driven by a stronger. Atkins realis Services ebit, dog delivery. Partially offset by the timing of working capital usage and an lsdk projects. Cash usage.

Therefore, we are again, increasing our nuclear revenue outlook to between two two and $2 3 billion for the full year 2025 from.

We can continue to expect operating cash flow to be in excess of $3 million for the full year 2025.

<unk> from the previous range of 2 billion and $2 1 billion that we outlined last quarter.

On the other hand, we are decreasing the engineering services regions 2025 organic revenue growth outlook over 2024 to a low single digit percentage.

After capex of 45 million, which included 50 million for the development of Monarch, and the payment of lease, liabilities of 22 million. Our free cash flow, stood at 56 million for the quarter.

From the previous range of mid single digit percentage.

Ian Edwards: We're seeing lots of good potential organizations that we're in discussions with, we're in processes with. Therefore, we're very confident in our ability to continue to deploy capital in a value-creating way, and a strongly value-creating way like that going forward. That will continue to be our area of focus. Thanks very much. Thank you. One moment for our next question. Our next question comes from Ben Walpolea with Desjardins. Your line is open. Yeah. Good morning, Ian. Good morning, Jeff. Morning. Just on the nuclear, yeah. Just on the nuclear, it seems like your main Canadian nuclear reactor competitor has signed an MOU agreement for a potential large-scale Alberta nuclear project you were previously involved in. Can you give us an update on the current competitive dynamics in the Canadian nuclear market? I actually thought that announcement that came out made them American.

I'd like to now turn to my final slide, Slide 16.

Reflecting lower than expected revenue growth in the U S and EMEA segments.

As you've heard Ian sand nuclear, the demand for our services continues to grow and our backlog is at a new record high.

Note that we continue to expect David Evans revenues, which is excluded from this organic revenue growth to be around $300 million for 2025.

Therefore, we are again increasing our nuclear revenue outlook to between $2.2 billion and $2.3 billion for the full year 2025.

We remain confident in our medium term target of 8% plus revenue growth for engineering services as outlined in our delivering excellence driving growth strategy and see the lower growth rate in 2025 is temporary in nature.

From the previous range of $2 billion and $2.1 billion that we outlined last quarter.

All other financial outlook metrics for full year 2025 are maintained.

On the other hand, we are decreasing, the Engineering Services regions 2025 organic Revenue, growth Outlook over 2024 to a low single digit percentage.

And with that I'll now hand, the presentation back to you.

Thank you Jeff.

From the previous range of mid-single-digit percentage reflecting lower than expected revenue growth in the USLA and AMIA segments.

We're extremely proud of our success in the third quarter.

Achieving central record results on the top line and on the margin from across our engineering services nuclear businesses.

Note that we can continue to expect David Evans revenues, which is excluded from this organic Revenue growth to be around 300 million for 2025.

The combination of these two businesses provides us with a unique competitive mix also the improvement of margins stems from the operational plan, we put in place at our June 2000.

We remain confident in our medium-term Target of 8% plus Revenue growth for Engineering Services as outlined in our delivering Excellence drive and growth strategy and see the lower growth rate in 2025 as temporary in nature.

Yield tangible results.

All other Financial Outlook metrics for fill your 2025 are maintained.

Ian Edwards: I understand exactly what you mean. You're talking about our competitor's announcement to partner with the US government to deploy reactors in the US. I think this is a good thing. I mean, I think it just shows the momentum in the nuclear industry. Clearly, the US government is highly committed to new nuclear. There are executive orders that are signed. I think that partnership is a really smart partnership for the deployment of new nuclear in the US. As I've said in the past, capacity is everything. Initiatives like that to enable capacity to be built and meet the demands of the new nuclear market is very good. For ourselves, we are Canadian. Our business is Canadian supply chain, Canadian jobs, and the technology is Canadian.

No matter the geopolitical tension that may exist or a rise in the future.

And with that, I'll now hand the presentation back to Ian.

Yeah, thank you. Jeff.

Global energy transition.

We're extremely proud of our success in the third quarter.

And infrastructure redevelopment are fueling growth in our markets.

While we have built.

Achieving several record results on the top line and on the margin from across our Engineering Services, nuclear businesses.

Strong foundation.

Our landing and expanding.

Our balance sheet and appetite for growth puts us at a distinct position to capitalize on M&A opportunities that may arise in this current macroeconomic landscape.

The combination of these 2 businesses providers with a unique competitive, mix also the Improvement of margin stems from the operational. Plan, we put in place at our June.

Our team is working tirelessly to continue X with executing on delivering excellence and driving growth strategy.

Tangible results.

I want to thank our 40000 employees for their hard work and dedication. We are proud of our performance to date in 2025, another actively positioning the company to capture real revenue across our engineering services business and 26 and beyond.

No matter the geopolitical, tension that may exist or arise in the future, Global energy transition.

An infrastructure, Redevelopment are fueling growth in our markets.

Where we have built.

A strong foundation for our landing and expanding.

So with that let's open it up for questions.

Thank you ladies and gentlemen, if you have a question or a comment at this time. Please press star one on your telephone. If your question has been answered or you wish to remove yourself from the queue. Please press star one again, we will pause for a moment, while we compile the Q&A roster.

Our balance sheet and appetite for growth, puts us at a distinct position to capitalize, on m&a opportunities, that may arise in this current macroeconomic landscape.

Our team is working tirelessly to continue expert. Executing our delivering excellence and driving growth strategy.

Ian Edwards: It's actually owned by the Canadian government, but we have the sole rights to deploy it. All the reactors in Canada right now are Canadian and CANDU. The way that I would see this from a competitive perspective in Canada is I would hope that our utilities and our provinces here in Canada choose a technology which is Canadian, which will supply jobs to Canadians, because no other technology will do that. The jobs will go down south with the company that you're referring to for manufacturing and for engineering. From a competitive edge, we kind of hope that sense will prevail and we'll support our own technology here in Canada, if that's at the heart of the question. Yeah. Okay. That's great color, Jeff. Obviously, you have an ongoing discussion with several countries on new builds with CANDU. There's a big potential, obviously.

Our first question comes from Chris Murray with ATB capital markets. Your line is open.

Hey, good morning folks.

Morning.

Morning.

Maybe starting with the organic growth profile.

And I want to thank our 40,000 employees for their hard work and dedication. We are proud of our performance today in 2025, and have actively positioning the company to capture real Revenue across, our Engineering Services business in 26 and Beyond

Couple of questions around this one.

So with that, let's open it up for questions.

You talked about it slowing a little bit in in Q3, and just wondering a couple of things one as we go into Q4.

Call It a couple of different spaces.

Thank you, ladies and gentlemen, if you have a question or a comment at this time, please press star 1, 1 on your telephone. If your question has been answered, you wish to move yourself from the queue. Please press star 1 1 again, we will pause for a moment while we compile, our Q&A roster.

Just kind of curious to see or are you seeing in Q4 and extension of the same trends or is there something different just wondering maybe if theres anything around the U S government shutdown that maybe.

Maybe slowing things and leading to your interior view.

Our first question comes from Chris Murray with ATB Capital markets. Your line is open.

And then more importantly.

Can you describe this as sort of a temporary slowdown can you maybe give us some more color on why you have the confidence that as we enter 2026 that you think it should revert back to what we've talked about kind.

Yeah, good morning, folks. Um, good morning, morning morning um maybe starting with the organic growth profile. Um sort of a couple questions around this uh 1.

Kind of those historic mid single digit level off for the engineering services business.

Yes for sure.

This is presumably the questions related to engineering services right.

Ian Edwards: I'm just wondering if it is dependent on your ability to secure first the Monarch in Canada or any color about the potential timing for new builds, what we should expect in terms of timing for announcing new builds? Yeah. Outside of Canada, I mean, obviously, we're working hard in Canada. We are in competition. I mean, that's a fact. We're working hard in Canada for deployment of the Monarch. Outside of Canada, we're seeing numerous opportunities in Eastern Europe and potentially Asia. Actually, the technology that is wanted is actually our EC6 existing technology, which is a 700-megawatt reactor. The grids in the countries that we're discussing are more suited to a smaller reactor, which is a different situation than it is in Canada. The other advantage of the EC6 is it is deployable now. It's existing technology.

Yes, yes.

So look I mean.

Obviously.

Through the kind of journey of 2025, we've had some challenges to overcome.

But they are specific challenges than no underlying issues that are going to take us through.

Into the future.

In those specific regions.

As we've said in previous quarters, we've had some pretty hard year over year comps because of really three large projects in.

I think it should maybe revert back to what we've talked about, uh, kind of those historic mid single digit levels, uh, for the Engineering Services business.

Yeah, for, for sure. And

In our Canada region, and Middle East region, and in our mining and metals, but we worked our way through that so so those are behind US now and then there's clearly been some kind of disruption to the U S market, which at which I'll come back come backwards.

Presumably, the questions relate to Engineering Services, right? It does. Yes. Yeah.

so look, I mean

So.

The quarter.

We've actually seen.

A continuation.

In Q3 of disruptions in the U S.

Ian Edwards: It's the technology that we're delivering in Romania for the two new builds in Romania. I mean, there's nothing to announce today. We're working very hard. We've got very detailed technical and commercial meetings ongoing with several countries. The first stage of anything would be an MOU announcement, then there would be a development through to what we would call a feed contract or an initial contract, which, again, would probably be certainly back end of next year if that was to happen. We're working hard on these things. There are numerous opportunities, to be clear, for the EC6 out there. Okay. Thank you very much for the time. One moment for our next question. Our next question comes from Michael Tupholme with TD Cowen. Your line is open. Thank you. Good morning. Good morning.

And as we as we think about those disruptions going forward, which have really been about.

States sitting on.

<unk>.

Project releases and sitting on.

Project Awards.

It's the it's the volatility connected to tariffs to shut down the big beautiful build but what we see now.

Obviously um, through the the the kind of Journey of 2025, we've had some challenges to overcome, um, but they are specific challenges that they're not underlying, uh, issues that are going to take us through, uh, into the future and and those specific reasons are as we've said in, in previous quarters, we've had some pretty hard year-over-year comps because of really 3 large projects in in a in a in a in a Canada region in our middle east region and in our Mining and metals. But we worked our way through that. So so those are behind us now and then there's clearly been some kind of disruption to the US market which which I'll Kombat come back with

so,

the quarter.

Is that actually being.

We we've actually seen um, a continuation.

Overcome and we're seeing definitely in Q4, a return to Windsor returned to orders coming through and you got to remember.

In Q3 of disruptions in the US.

and,

The fundamentals in the U S. The drive our markets in energy.

as we as we think about those disruptions going forward, which have really been about

And and replacement of infrastructure resilience work are all really good.

States sitting on, um,

And also we got to remember the IHA is only actually about 40% expanded so far so and that bill is still a goal.

Project releases and sitting on um, project Awards.

Support.

So that's specifically.

It's it's the it's the volatility connected to tariffs that shut down the big beautiful bill. But what was seeing now

And the <unk> region and in EMEA.

Ian Edwards: Ian, you spoke earlier in the call on several occasions about your capabilities in the defense arena and some of the opportunities you see there. I'm wondering if you can add on to that and speak in a little bit more detail about exactly where you see AtkinsRéalis as having strong capabilities in defense and to what extent you think we could see defense be a growth area that really contributes in 2026 and beyond. Yeah. Yeah. No. For sure. I mean, our current real strength in defense is in the UK, where we play is in the facilities to operate, maintain, and house assets. Assets being aircraft, submarines, ships, even people, barracks, and the like. What we've experienced in the UK over the last few years is a fairly significant upgrade of existing dockyards, existing airfields to take on the new evolution of assets.

Absolutely.

Started re prioritizing the way we look at it because we were heavily dependent on some very big jobs in KSA, and Saudi Arabia, and one of those jobs, we've closed out phase one.

And we're seeing a lot more diversified opportunity both in the UAE and both in transportation.

So we're pretty confident going forward in that region as well so.

Is that actually being, uh, overcome and, and we're seeing definitely in Q4 a return to wins a return to orders coming through. And you got to remember that that the fundamentals in the US that that drive our markets in energy. Um and in replacement of infrastructure, resilience work are all really good. And also we got to remember, the iija is only actually about 40% expended so far. So and that bill has still gone.

Support.

Looking at our backlog and particularly looking at the backlog I won't canter through each region, because I'm sure there'll be another kind of question on that but if you look at our backlog, it's 8% that's a leading indicator for me and as we look at performance in Q4.

so there are specifically um, in the in the in the USA region and and in Amia

we've, we've actually

We're getting back to growth and obviously.

Our revised guidance isn't zero, we are we will end with positive growth and that will take quite a quite a bounce back in Q4, together, which we're comfortable we're going to do.

And then moving into 'twenty six obviously, we're looking at the development pipeline.

Kind of started rep prioritizing the way we look at it here because we, we were heavily dependent on some very big jobs in KSA in, in the, in Saudi Arabia. And 1 of those jobs, we've closed out Phase 1, and we're seeing a lot more Diversified opportunity both in the UAE and both in transportation. So we're pretty confident going forward in in that region as well. So,

Kind of preparation for the Q4 outlook already.

Pretty good growth and we're fairly confident going forward.

Ian Edwards: A good example of that and how we will move from the UK to other countries would be the AUKUS Submarine Program, where we are the engineer of physical infrastructure assets to support that program in the UK. Having got that experience, we are in a very good place, I think, in Australia, where the AUKUS submarine is being deployed also. They're going through a big program to build ports, actually, to support ours and maintain their first nuclear submarine in Australia. Same in Canada. I mean, new aircraft in Canada, new ships in Canada, new potential submarines in Canada, all of the physical infrastructure will need upgrading to be able to operate and maintain those assets.

To return some good growth numbers so.

Few specific challenges this year, but we're very confident going forward that we're going to return to growth in es.

Looking at our backlog, particularly at the backlog— I won't go through each region because I'm sure there'll be another kind of question on that— but if you look at our backlog, it's 8% up. That's the leading indicator for me. And as we look at performance in Q4,

we we we're getting back to growth and and obviously,

Alright, that's helpful. Thank you.

And then maybe Karen can nuclear a couple of pieces in that question.

So first of all.

I Wonder if you can maybe add your cake theres been a lot of discussion around.

Nuclear services more broadly, particularly in the U S from some of the <unk>, but you've also got I.

I think lots of opportunity, even with the candy technology and other things that you've been able to work on can you maybe walk through maybe high level your thoughts around the nuclear industry.

You know, our revised guidance isn't zero but we are, we will, we will end with positive growth and, and that will take quite a, quite a bounce back. In Q4 to get there, which we're confident, we're going to do. And then moving into 26, obviously, we're looking at development of Pipeline and our and our kind of preparation for, for the Q4 Outlook already. And we we've seen pretty good growth and we're fairly confident in going forward that we're going to return to some good growth numbers. So you know it's the few specific challenges this year but very confident going forward that we're going to return to growth in es.

And penetration of nuclear and how you think.

Atkins, maybe fits into this fall.

Ian Edwards: Probably a fact that really isn't well known is that when you buy a bunch of assets, in the capital, sorry, in the overall cost of deploying those assets, well over half of it is in the physical infrastructure, and the operations and OpEx to operate that over its life. There is quite an investment that goes into the kind of non-equipment asset when defense programs are being put through. Clearly, with the UK, Australia, and Canada having increased commitments, those are the countries that we see the best opportunity for ourselves. Okay. That's perfect. Thank you. As a follow-up, you had a number of questions earlier about the organic growth in the ESR segment. Wondering if you can talk a little bit about David Evans. I know at the moment it's contributing to acquisition growth.

All right, that's helpful. Thank you. Um, and then maybe turning to nuclear a couple pieces of this question. Um, you know, so first of all,

This whole ecosystem.

From our perspective these are supporting some of these newer proponents.

Smaller technologies.

Or having the monarch able to address different segments of the market.

So just thoughts about like how we should think about where Atkins can go in the nuclear business over and above where it is today.

Would be helpful. So I'll leave it there.

Alright.

Probably going to be a fairly long answer, but that's fine.

I, I wonder if you can maybe add your take, uh, there's been a lot of discussion around, um, nuclear Services, more broadly, particularly in the US with some of the, the smrs, but you've also got, um, I think lots of opportunity, even with the can do technology and other things that you've been able to work on. Um, can you maybe walk through, you know, maybe high level your thoughts around the nuclear industry um and penetration of nuclear and how you think?

Good stuff.

Look I mean.

We're in a super cycle.

Atkins. Maybe fits into this whole, um, this whole ecosystem.

The two world.

Conferences were in Q3.

In nuclear but one in London, the KOL Symposium in London, Paris Colby exhibition.

Um, from the perspective of either supporting some of these newer proponents uh with smaller Technologies or you know, having the Monarch able to address different segments of the market. Um,

What's really clear to me.

Having attended and spoke at those conferences.

Ian Edwards: Within its underlying operations, what have you seen in the third quarter in terms of its own underlying organic growth? Yeah. I mean, good growth. They continue to perform in line with our expectations. The integration piece and the cooperation between our US business and David Evans is going well. Probably going forward, the most important thing is that we've developed a pipeline of opportunities that actually David Evans would not have been able to bid because of scale, and we would not have been able to bid because of lack of local connectivity, presence, and people. That pipeline now goes well into 2026 and is being executed together. We're actually putting teams on those bids, which are joint teams at this stage.

Is that kinda realize and they can do technology.

Just so, so just thoughts about like how we should think about, you know, where where Atkins can go in the nuclear business over and above where it is today uh, would be helpful so I'll leave it there.

Operates on the world stage.

As a leader.

And I think Thats, the first thing I would say.

Probably going to be a fairly long answer, um, but, but that's fine. It's, it's a good start. Um, look, I mean,

And.

When we look at.

we're we're in a super cycle, uh,

Yeah.

<unk>.

As I've said before.

you know, the the 2 world.

We're not just a nuclear OEM can do we are a full service nuclear business. In addition to being an OEM in Canada.

Uh, conferences, we're in Q3. Um, in nuclear. Well, 1 in London that call the Symposium and 1 in Paris called the exhibition

And what's really clear to me?

And this puts us a very differentiated place in.

Having attended and spoke at those conferences.

In the nuclear market.

And.

Is Atkins reality and the canned do technology.

I'll call out a couple of our Differentiators.

As a leader.

Because these are really important.

And I'm not sure that they are fully understood.

And I think that's the first thing I would say,

and,

when we look,

Bye everybody.

At our business.

The first thing is the capacity.

As I've said before.

For nuclear companies, it's going to be everything.

There's clearly a strong demand.

All countries that signed up to the tripling.

Ian Edwards: We would hope to start winning work, which is beyond kind of the ability that David Evans would have had on their own. Those revenue synergies were part of the whole thesis of buying David Evans in the first place. Perfect. Thank you. I'll leave it there. One moment for our next question. Our next question comes from Jonathan Goldman with Scotiabank. Your line is open. Hi. Good morning. Thanks for taking my questions. Good morning. Good morning. You revised the organic growth guidance in engineering services to low single digit. That does seem to imply a pretty significant growth in Q4, double-digit growth. I know part of that's just an easy comp last year, but what visibility do you have, as we sit here today, on getting to that sort of level of growth in Q4? Yes, Jeff, why don't I take that?

Looking for new nuclear Hyperscale is looking for nuclear.

We’re not just a nuclear OEM of Canada, are we? We are a full-service nuclear business in addition to being an OEM in Canada.

It's very very real.

And and this puts us at a very differentiated place.

We.

In the nuclear Market.

I've got 40000 professional people in our company six to 7000 of those on nuclear professionals.

and,

I'll call out a couple of our differentiators.

Because we build capacity through the life extension program here in Canada.

And and I'm not sure that they're fully understood.

Bye. Bye everybody.

That's not unique because the French and the Chinese clearly out of the big nuclear program too, but it puts us up there at the top with capacity.

The first thing is that capacity.

For nuclear companies, it's going to be everything.

We have a supply chain in Canada.

There is about 90000 people in it during manufacturing and.

That there's clearly a strong demand all countries that signed up to the tripling are looking for new nuclear. Hyperscalers are looking for nuclear

Actually professional skilled labor in the nuclear industry.

It's very, very real.

Again, it's not unique but it's up there.

With some of the best countries in the world that can deploy nuclear technology.

We have got 40,000 professional people in our company.

6 to 7,000 of those are nuclear professionals.

We have a world class technology tend to.

And is differentiated because it uses natural uranium, which gives countries energy security because an abundance of natural uranium there is not an abundance of processed uranium departments the shortage.

Because we've built capacity through the life extension program here in Canada.

Ian Edwards: We have really good visibility, Jonathan. You are right. We are lapping a less strong quarter in the previous year. That clearly underpins some of that growth, increased quarter over quarter we'd expect in Q4. As you heard from Ian earlier, we are finishing off, we finished off some of the projects that were creating some of that headwind. We are seeing real increase in activity in the markets that we're in. We're seeing higher levels of backlog. We are seeing contracts and framework agreements that we've now won, that we have won that had some delay. It was particularly true in the US, now actually turning into revenue. Now that we're the better part of six weeks, halfway through the quarter, we are definitely seeing an uptick in contracts into revenue, higher utilization, and productivity.

That's not unique because the French and the Chinese clearly have a big nuclear program too, but it puts us up there at the top with capacity.

We have a supply chain in Canada.

And we can produce medical isotopes, which countries and.

Customers are very interested in.

There's got 90,000 people in it doing manufacturing and actually professional skilled labor in the nuclear industry.

And in Canada as a unique advantage.

But again, it's not unique, but it's up there.

And the way that it operates with countries around the world because where we build can do.

With some of the best countries in the world that can deploy nuclear technology.

In India, Korea, China, Romania, Argentina, we've left behind.

We have a world-class technology in can do.

Decades of relationships between Canada, and those countries and decades of relationships, we're not kids reality and the utilities.

Which is well renowned and is recognized by new countries that are coming into the technology.

And it's differentiated because it uses natural uranium, which gives countries energy security because an abundance of natural uranium there is not an abundance of processed uranium. In fact, there's a shortage

So.

and we can produce medical Isotopes, which countries and, and

I guess the last point.

Customers are very interested in.

I would say and.

Just to remind everybody on slide 11.

This growth that we're experiencing right now is no no newbuild in it.

And and and and Canada has a unique advantage.

Ian Edwards: We therefore are very confident in that return to growth that underpins that overall full-year guidance of growth. Okay. That's helpful. Maybe, I guess, talking about the backlog, engineering services is kind of flat quarter on quarter. Is some of that maybe timing-related and can mirror the cadence that you're seeing on the top line's organic growth guide, but on the backlog side as well? Yeah, a bit of that. I think it's why we've seen this over the last two or three quarters, just this lengthening of clients taking pieces of work that we've won and just taking disproportionately longer to turn that into actual purchase orders or statements of work that we execute against. Now we're seeing that starting to flow a lot more like we had seen previously. Okay. That's really helpful. Makes a lot of sense.

And we're all over the map now trying to sell in the <unk> technology.

in the way that it operates with countries around the world because where we've built can do

And we're getting very good traction.

Really there's nothing to announce but in the coming years there will be.

An India. Career. China Romania, Argentina. We've left behind

And our services business as a full services business as suppose SMS.

Decades of relationships, between Canada, and those countries and Decades of relationships between Atkins realities and the utilities,

In the U K and U S. Here in Canada, we have a business in services, which supports EDF inquiry in size well with hundreds and hundreds of engineers deployed on those jobs, we do.

Which is well-renowned and is recognized by new countries that are coming into the technology.

so,

I guess the last point.

You know, I would say, I mean, and just to remind everybody on slide 11.

Processing of waste.

We're even infusion so all in all what I'm trying to explain here is we've got really differentiated business here.

This growth that we're experiencing right now is no no new build in it.

And we're all over the map. Now, trying to sell in the can do technology.

And we're getting very good traction.

And I'm glad you asked the question at the beginning I don't know if that was a long answer but that is what is the reality of where we're at.

Clearly, there's nothing to announce, but in the coming years, there will be...

And our services business is a full service is business that supports smrs.

Okay. That's helpful. Thank you I'll pass the line.

One moment for our next question.

Ian Edwards: I guess maybe a higher level one for you, Ian, the 40% of IIJA money that's only been spent so far does seem to set up well for the next few years. Is there a risk that the balance of the money does not get deployed, given all the uncertainty in the market and kind of things that are happening with the US administration? Well, there's always a risk. What we're hearing and what we understand is that the bill has got support and that the bill is necessary to try and fill this infrastructure investment gap that is across the country. Okay. That makes sense. Thanks for taking my questions. One moment for our next question. Our next question comes from Devin Dodge with BMO Capital Markets. Your line is open. Yeah. Thanks. Good morning. Thanks for squeezing me in here.

Okay.

Our next question comes from Christopher <unk> with CIBC. Your line is open.

Hi, Thanks for taking my question.

In the UK in us. And here in Canada, we have a business in Services which supports ETF for Hinckley and size. Well, with hundreds and hundreds of Engineers deployed on those jobs, we do, uh, processing of waste

Maybe just going back to <unk>.

The first question and booking.

Amy can you provide a little bit more color just on the margins in that segment.

And how you're expecting those to trend over over the next year and maybe what you've put in place to.

And and we're even in future. So all in all what I'm trying to explain here is we've got a really differentiated business here. Um and I'm glad you asked the question at the beginning. I I know that was a long answer but but that that is what, you know, is the reality of where we're at.

Kind of help those margins.

Okay, that's helpful. Thank you all. Uh, I'll pass along.

Yes, So let me let me do the market.

1 moment for our next question.

How were repositioning the business and Jeff will comment on the on the margin from now we see that kind of in that margin expansion program.

Our next question comes from Christopher with CIBC your line is open.

So.

Basically our EMEA business historically has been heavily focused on the Saudi Arabia.

Now <unk>, Saudi Arabia itself has done some re prioritization of spend.

Hi. Thanks for taking my question. Um, maybe just going back to the uh the the first question and looking at uh, Amia can you provide a little bit more color just on the margins in that segment and

<unk>.

Projects are going to focus on they want to focus on re upped the focusing on the World Cup 34, and Expo 30, So it's not that the places come flat from a market potential.

Ian Edwards: I was going to ask a question on nuclear. The 2027 revenue target, $2.2 to 2.5 billion, and you're in the low end of that range in 2025. Just wondering if we should be expecting revenue growth to be, we'll say, relatively more muted in 2026 and 2027 off a pretty high base in 2025, or should we be assuming there's some conservatism still baked into the 2027 target? Obviously, we've seen phenomenal growth year over year, 2024, 2025. We will continue to grow revenues, even with the backlog we already have. On slide 11, you can see that sort of visibility of the follow-up phases that will fuel revenues and backlog through to 2027.

Over over the next year and maybe what you've put in place to um to kind of help those margins.

We just re prioritized and we're really well positioned but we have finished our huge projects that has given us the kind of decline in that case a business.

Yeah. So let let let me do the the market and how we're repositioning the business and let and Jeff will come in on the, on the margin front. Now we see that kind of in our margin expansion program.

so,

This year.

Now the UAE is also really interesting because they're.

I mean, basically, our AMA business historically has been heavily focused on the Saudi Arabia.

They are absolutely see themselves compete with Saudi Arabia, and putting investment back into the UAE. Both in buildings in places, but interestingly in transportation and we're bidding numerous kind of rail jobs there right now.

Now, Saudi Arabia itself is done some rep prioritization of

And obviously, we've got a global capability. So it's easy for us to be agile and kind of exploring those opportunities as the market kind of pivots in the opportunities change.

As far as the EMEA region is concerned and its growth plan in the future, we're really opening up Australia.

Spend and and of uh of of of of of projects that are going to focus on. They want to focus on Riyadh they're focusing on the World Cup 34 and Expo 30. So it's not that the place has gone flat from a market potential. It's actually just rep prioritized and we're really well positioned. But we have uh, finished out a huge project that are that is given us the the kind of decline in that case a business. Um, this year

Ian Edwards: We're not going to see the kind of growth that we've seen year over year, 2024 to 2025, because we're obviously comparing next year against very good growth in 2025. You will see growth, but it will be very different than you've seen this year. I would also say, to repeat what I said before, that on slide 11, the backlog and the near-term revenues are really about the new build at Cernavodă and about the life extension projects. If and when we start winning further new builds, the revenues at the beginning will be quite low because the engineering phase and the feasibility phase of these projects are not going to bring significant revenues towards the end of this decade, where they really will bring significant revenues.

The Asia region.

And Australia is really important to us in terms of our energy capability and our defense capability, where a lot of the funds are going down from government, where historically it was all about transportation. So we feel we've got a really good opportunity there and then in Asia Hong Kong, We've always had a good business they are developing a new <unk>.

Now, the UAE is also really interesting because they are actually seeing themselves compete with Saudi Arabia, and they're putting investment back into the UAE, both in buildings and places. But interestingly, in transportation, and we're bidding numerous kind of rail jobs there, right now.

City on the border with China co linoleum Metropolis, and we're winning work there now so we're pretty optimistic about the region of EMEA.

Um, and obviously we've got that Global capability. So it's easy for us to be agile and and kind of exploring those opportunities, as the market kind of pivots and the opportunities change.

But obviously, we've had we've had a bit of a re prioritization and challenges to work through this year. So we're pretty confident going forward and Jeff maybe you could just talk to the kind of margin expansion right. Yes. So I think what will what we will see and as <unk> has said we're we're.

Transitioning the business, particularly in the middle East there have been some very large very profitable projects there.

And so as we head into next year.

Ian Edwards: The way we see it is we've got great growth potential for the medium term in this business through into the next decade, but it's not going to be what we've seen recently. Yeah. I mean, fair enough. Do you see maybe a mixed shift more towards, we'll say, services versus procurement as you think about '26 and '27? Well, I'd say both, actually. I mean, they can do technology. Obviously, as I said, we're in discussions in Canada. We're in discussions around the world for new builds. The services business, which supports other technologies, decommissioning, waste management, and even fusion programs, is also winning work. The whole industry is really going through this supercycle, and we're seeing good opportunities all around. Our US business is relatively small right now.

We will have to see the business transition away from those so we may see a bit of headwind margin wise in the middle East, but as Ian said as we grow other parts of the EMEA region in Australia in Asia.

Those are good margin.

Geographies and as they start to take a larger proportion of that.

That region that will help underpin maher.

Margin delivery in EMEA there so.

Over the longer term, we don't see any reason why EMEA wouldn't be part of our 2017% to 18% target in the long term.

But as far as the Emir region can is concerned and its growth plan in the future, we're really opening up Australia and and the Asia region. And and Australia is really important to us in terms of our energy capability and our Defence capability where a lot of the funds are going now from government, where historically, it was all about Transportation. So we feel, we've got a really good opportunity there and then in Asia Hong Kong. We've always had a good business, they are developing a new city on the border with China called the northern metropolis and we're winning work there now, so we're pretty optimistic about the region of are. Um, but obviously, we've had a, we've had a bit of a rep prioritization and challenges to work through this year. So we're, we're pretty confident, going forward and Jeff. Maybe you could just talk to the, the kind of margin expansion, right? Yeah. So I think what, we'll what we'll see and as, as Ian has said, you know, we're we're transitioning the business particularly in the Middle East there have

Okay. Thank you that's great color.

Let me just sorry.

Sure.

Just one last one for me, maybe a higher level one on nuclear obviously you increased your guidance significantly throughout the year I think roughly 36% from what.

What you started with.

It was the mix evolved as you expected it to evolve for you and does it change how you think about the margins at all over the medium term.

Ian Edwards: With the very strong commitment in the US, we're taking the CANDU technology through the licensing process to ensure that we are able, if utilities and clients want the Canadian CANDU technology in the US, we're able to deploy it there as well. I think the whole industry is pretty buoyant. Okay. Fair enough. Switching over to maybe engineering services, obviously seems like a pretty active M&A market there. What do you see as the drivers for sellers coming to the market now? What's your pitch to them to select Atkins to be the buyer of choice? Yeah.

Have been so, you know, very large, very profitable projects there. Um, and so as we, you know, head into next year, uh, you know, we'll have to see the business transition, you know, away from those. So we may see a bit of headwind margin wise in the Middle East but as Ian said as we grow other parts of the Amia region in Australia in Asia. Um you know those are good margin uh geographies um and as they start to take a larger proportion of the uh, of that region, you know, that will help underpin uh margin uh delivery in in Amia there. So you know, over the longer term. We don't see any reason why Amia, you know wouldn't be part of our 17 to 18% Target in the long term.

Yes.

Very good question I mean, I think as the year has evolved.

Okay, thank you. That's great color. And then maybe just uh sorry.

We've been awarded in terms of life extension and services businesses.

It is not.

Different from what we expected, but it has come sooner.

And even the progress on the picker and life extension.

No yep you go. Sorry oh it's just 1 last 1 for me. Yeah maybe a higher level 1 on nuclear obviously you've increased your guidance significantly throughout the year. I think roughly 36% from uh what you started with.

We're getting better progress.

We saw.

And also at the beginning of these.

Life extension projects or any kind of nuclear power projects. There's a lot of procurement you've got to put in place for long lead items, where the margins on that work are not as good as the actual engineering and execution work.

Ian Edwards: I mean, at the scale of deals that we're doing at the moment, I think owners of privately owned companies at the thousand-ish size get to a point where they've got to do something different to continue to grow, either get investment from private equity or join a strategic such as ourselves. I think the advantage, particularly in the US for ourselves, is that we've got a lot of white space geographically. They're not going to get absorbed into a machine that gives them no unity and gives them no kind of identification of what they have become and what they are. For our strategy, it's a matter of stitching together geographic targets to give us a complete picture across the US.

It was the mix of evolved as you have expected it to V to evolve for your nuclear business. And does it change how you think about the margins at all over? The the medium term.

Yeah, that's that. That very good question. I mean I I think it's the years evolved.

Being awarded, in terms of life extension and services businesses.

We do ourselves, so I think thats, probably well with.

Is is not.

Evolve through the year and you're seeing that in our results.

Sure.

But thats good news I mean things are happening quicker than we thought that would happen.

Okay. Thank you I'll leave it there.

Thank you.

One moment for our next question.

Our next question comes from Yuri Lynk with Canaccord Genuity. Your line is open.

Different from what we expected, but it has come sooner, uh, and, and even the progress on the Pickering life, extension, we're getting better progress than than than we thought. And also at the beginning of these, um, life extension projects or, or any kind of nuclear power project, there's a lot of procurement, you got to put in place for a long lead items.

Good morning, guys.

Good morning, everyone.

Maybe one for Jeff.

Where the margins on that work are not as good as the actual engineering and execution work that were that we do ourselves. So I think that's probably where we've

It looks like to get to get to the midpoint of your engineering services regions EBITDA margin guidance for the year 16, 17%.

Evolved through the year, and you're seeing that in our results. Um,

But that's good news. I mean things are happening quicker than we, if we thought it would happen,

Ian Edwards: Something like David Evans, there was high competition for that acquisition, but we managed to work together to ensure that what they wanted for their future and what we wanted for our future became aligned. Now, it doesn't always work. I mean, the good news in the US is there's numerous targets that are in that situation, numerous, and that are continually coming onto the market. Of course, you've got the recycled assets from private equity that come onto the market at the end of that investment cycle. It's a very buoyant and quite exciting market for us at the moment. That's our strategy. Okay. Good color. Maybe just one quick clarification, and apologies if I missed it, but are you still expecting to reach the targeted one to two turns for net debt to EBITDA by the end of 2026? Yeah.

To require.

88 ish basis point step up in margin in the fourth quarter.

For sure. Thank you. I'll uh, I'll leave it there.

Thank you. 1 moment for our next question.

Hum.

She is not the typical seasonal pattern that we've seen in the past. So just wondering if there's anything unique in play in the fourth quarter.

Our next question comes from UA link with Ken chordu your line is open.

Good morning, guys.

Drive the margin sequentially higher.

Uh, maybe $1 for Jeff. Um,

Yes, Thanks, Ed as you say I will take that here.

So we do typically see stronger margins in the second half of the year than the first half of the year you saw that in Q3.

And we are we remain very confident in delivering that 16% to 17% for the full year and as you say that does mean.

It it looks like to get to get to the midpoint of your Engineering Services, regions IBA margin guidance for the year. 1617 percent you it's going to require um,

<unk> fourth quarter operating margins.

But with.

All of work, we've done on our initiatives through the year and that you've seen coming through in Q3, we see an absolute continuation of that.

You know, 80, 80 basis points, Step Up in margin in the fourth quarter, um, which is not the typical seasonal pattern that we've seen in the past. So, just just wondering if there's anything unique in play, in the fourth quarter, that would, uh,

In the fourth quarter and that's everything from.

Drive the the margin sequentially higher.

Ian Edwards: We did not comment on it, but I would say our comments remain the same that we laid out at Q2 and that I commented to then is that largely we expect to deploy capital in line with the capital allocation framework we laid out such that by the end of 2026, we would at least be at around the bottom end of the range of our one to two times leverage. Okay. Great. Thanks for that. I will turn it over. Thank you. I am not showing any further questions at this time. I would like to turn the call back to Denis Jasmin for any further remarks. Thank you. Thank you very much, everybody, for joining us today. If you have further questions, please do not hesitate to contact me. Thank you very much, everyone. Bye-bye. Ladies and gentlemen, this concludes today's presentation.

Continued better and more sophisticated pricing with our clients, it's better productivity and utilization its higher utilization of our global Technology Center in India.

And the continued.

Continued work on our our overhead cost base.

So the work that we've delivered through the year and in the third quarter, we see that absolutely continuing in the fourth quarter.

We remain very confident in delivering that uplift in Q4.

Yeah.

Okay.

Second one is just on the U S.

Yeah, thanks that. As you see I'll I'll take that Eerie. Um, so we do typically see, stronger, margins in the second half of the year than the first half of the year you saw that in Q3. Um and you know we are you know, we remain very confident in delivering that 16 to 17% for the full year and as you say that does mean, you know, a strong fourth quarter operating margins. Um, but with the all the work we've done in our initiatives through the year and that you've seen coming through in Q3, we see an absolute continuation of that um, in the fourth quarter and you know, that's that's everything from, you know, you know, continued better and more sophisticated pricing with

Region within engineering services USL.

U S L a.

Can you talk about a little bit of both.

When you when you've done your your portfolio reviews, including linked fun and capital and stuff like that why.

Ian Edwards: You may now disconnect and have a wonderful day.

Mining business my name minerals business never didn't come up in those I'm sure. They did but you decided to keep it and I guess.

Clients. It's better productivity and utilization, it's higher utilization of our Global Technology Center in India. Um, and they continued, uh, the continued work on our, you know, our overhead cost base. Um, you know, so the the work that we've, you know, delivered through the year. And in the third quarter, we see that absolutely continuing in the fourth quarter, um, and remain, you know, very confident in delivering that uplifting Q4.

Why why keep that that business is it is it scaled properly to compete with the bigger mining focused engineering houses and.

Okay.

Um,

You know as having it in the U S segment.

Uh huh.

Appropriate I guess.

Yes.

All of our businesses.

We review regularly.

We view the whole mix of portfolio to make sure.

The long term strategy of the company has got the right.

Portfolio of businesses going forward.

second 1 is, is just on, uh, the, the US, uh, region within Engineering Services at usla. Um, can you talk about a little bit about, um, you know, when, when you, when you've done your, your portfolio reviews, including, you know, links on and capital and stuff like that. Why? Uh, the mining business, The Mining and minerals business never didn't come up in those? Well, I'm sure they did. But, you know, you decided to keep it and I guess.

Absolutely.

The minerals and metals business, we've reviewed a couple of times.

We will continue to do that to make sure.

Why, why keep that? That business is it is it scaled properly to compete with the bigger mining focused engineering houses? And

It can get to the profitability and the growth.

You know, is is having it in the US segment. Uh,

Makes it meaningful at scale. It was a business that we had to re.

Uh appropriate, I guess.

yeah, I mean

Repurpose from an EPC business long time ago into a pure play services business.

And that's taken time, frankly, but I think we're getting some good traction now and I think we're getting some better profitability.

We are winning some work natural fact.

With.

Pickens woke up recently in the sector.

Whether it belongs in USA.

It's just a question of putting it with one of the President's and it is a global business because.

The business has to.

B client focused.

There are.

A handful of large mining operators around the world. So you cant really regionalize the business. It's got a vehicle business that then follows clients basically.

All our businesses. Uh, we review regularly. I mean, we, we review the whole mix of portfolio to make sure that the, you know, the long-term strategy of the company has got the right, uh, portfolio of businesses going forward and then absolutely, uh, the the, the minerals and metals business. We've reviewed a couple of times and, uh, we will continue to do that, to make sure that it can get to the profitability and the, and the growth that that makes it meaningful. And, and at scale, it was a business that we had to re, um, repurpose from a, an EPC business, long, long time ago into a Pure Play services business,

So.

We're happy with it right now it's in the business right now we do see this need around the world for critical minerals.

We don't really do coal, where we do the specialized critical mineral kind of mining projects supporting customers.

And and that's taken time frankly. But I think we're getting some good traction now and I think we're getting some better profitability. We're we're, we are winning some work in the actual fact, um, we're we're, we're we've been picking World Cup recently in the sector. Um, whether it belongs in usla, you know, it's, it's a, it's just a question of putting it with 1 of the presidents. And, and it is a global business because

You know, the business has to.

But we're happy with it where it is right now.

Okay, That's fair I'll turn it over thanks guys.

Okay.

One moment for our next question.

Be client focused you know there there are you know handful of large mining operators around the world so you can't really regionalize the business. Um it's got to be a global business that that follows clients basically.

Our next question comes from <unk> Khan with RBC capital markets. Your line is open.

So,

Great Thanks, and good morning.

Looking ahead to 'twenty six a little bit just on a broader set up.

Obviously indicated that the IHA a good chunk of it hasnt been spent and or even allocated can you maybe just talk about the outlook for rest of that larger infrastructure bill to.

We're happy with it right now. It's in the business right now. We do see this, uh, need around the world for critical minerals, you know, we don't really do coal with. We, we do the specialized critical mineral, uh, kind of mining projects supporting customers.

But and and we're happy with it, where it is right now.

<unk> rolled out and sort of your early thoughts on that region on a potential infrastructure bill at some point just trying to gauge the demand.

Okay, that's fair. I'll turn it over. Thanks guys.

Thank you.

1 moment for our next question.

Drivers for the U S market production.

Yeah, Yeah. So.

So look there's a <unk>.

Couple of things.

Our next question comes from sabat Khan, with RBC Capital markets, your line is open.

Specific to ourselves, which are probably said at the beginning.

Our business is about 6500 people in it.

Our peers, we've got over 20000 people in their businesses. So the way I think about <unk>.

Strategy in the U S is that we've got a long way to go and a long runway to go our ambition in the near term.

Great thanks and good morning. Um just I guess looking ahead to 26 a little bit just on the broader setup. You obviously indicated that the IIA. A good chunk of it hasn't been spent and or even allocated can you just talk about the outlook for rest of that larger infrastructure bill?

Once two years is to get the business in the top 10, which would require us to have 10000 people are more and obviously beyond that in the longer term, we want to be the top five we want to be a serious player in the U S.

To be rolled out and sort of your early thoughts on that region on a potential new infrastructure bill. At some point, just trying to gauge the the demand drivers for the US market for next year. Thanks. Yeah, yeah. So

The fundamentals of the U S market are really really strong.

so, look, I there's a couple of things that are specific to ourselves which are probably say at the beginning,

The need for energy security.

<unk> got an ageing infrastructure problem in the U S with actually a 3.7 trillion dollars gap and in infrastructure investment, which ultimately.

A business is about 6,500 people in it. You know, some of our peers have got over 20,000 people in their businesses. So the way I think about

We'll play through to a deterioration of roads water rail infrastructure, which they will have to spend all to bring it back to operable state resilience work in the U S for flooding flip defense and Hurricanes, Unfortunately present an opportunity.

Our strategy in the US is that we've got a long way to go and a long Runway to go our ambition, in the near term.

Once 2 years is to get the business in the top 10, which would require us to over 10,000 people or more, and obviously, beyond that. In the longer term, we want to be in the top 5. We want to be a serious player in the US.

The fundamentals, the US market are really, really strong.

Obviously at the expense of disasters, rich, which is not great, but it's a.

The, the need for energy security.

It's an opportunity for us.

So the AAJ is 40% allocated and spend.

That will continue to fund states.

They've got an aging infrastructure problem in the U.S. with actually a $3.7 trillion gap in infrastructure investment, which ultimately.

For ourselves.

The one big beautiful Bill will have a specific impact on us I mean, I think it will have an impact on industrials, perhaps and maybe the energy sector.

Which will have less less impact for us I think.

But we're really confident in our strategy and we will continue to invest in M&A, then we will continue to land and expand.

will will play through to a deterioration of Roads, water rail infrastructure, which they will have to spend on to bring it back to operable State resilience work in. The US for flooding, flood Defence and hurricanes, unfortunately present, you know, an opportunity obviously, at the expense of disasters, which, which is is not great. But it's a, it's an, it's an opportunity for us.

Across across across the states.

As I said before.

The issues, we really do see them as temporary.

So the AA is 40% allocated and spent. That will continue to fund states.

Um,

We are actually seeing an increase of flow through there.

for ourselves.

Particularly as we're getting into the fourth quarter and what we're picking up work.

So all in all.

It's probably been a bit of a disruptive time this last year, but I think we're going to get back to some good growth opportunities.

I don't think the the 1, big beautiful, bill will have a specific impact on us. I mean, I think it will have an impact on Industrials perhaps and maybe the energy sector, um, which will have less less impact for us. I think

Great. Thanks for that color and then just on the sort of the last comment around M&A, just given where the balance sheet as we were active on the buyback this year.

How do you think about potentially reactivating that buyback just given the number of M&A opportunities out there just how are you going to balance the two.

At this point of cycle, thanks very much.

Yes, it's Jeff why don't I take that I think as you know as <unk>.

But we're really confident in the, in our, in our strategy and, and we will continue to invest in m&a and we'll continue to land and expand, uh, across across across the states. Um, as I said before, you know, the issues we'd really do see them as temporary. And we are actually seeing an increase of flow through now. Um, particularly as we're getting into the the fourth quarter and we're, we're picking up work.

We've said earlier and to what you've referenced.

<unk> taken advantage of that share buyback significantly over the course of the year.

And as we said in the last quarter, our focus really from a capital allocation perspective is around growing and investing in the business.

So so all in all, you know it's you know it's it's probably been a bit of a disruptive time this last year, but but I think we're going to get back to some good growth opportunities.

Primarily through.

Great, thanks for the caller, and then, just on the sort of, the last comment around m&a, just give her the balance sheet is, we're active on the buyback this year.

M&A and inorganic activity and and as Ian has said.

We see real opportunity to continue to land and expand in the U S. We see opportunity in other geographies or areas of capability, where we have white space.

How do you think about potentially reactivating that buyback? Just given the number of m&a opportunities out there? Just how are you going to balance the 2 uh at this point in cycle? Thanks very much.

And the pipeline of opportunities is really strong.

We're seeing lots of good potential organizations that were in discussions with where and processes with.

And therefore, we're very confident in our ability to continue to deploy capital in a value, creating way and are strongly value, creating way like that going forward. So that will continue to be our area of focus.

Thanks very much.

Yeah. It's it's Jeff. Why don't why don't I take that? I think it's you know, as we've said earlier and to what you've referenced uh we have, you know, taken advantage of that share buyback significantly over the course of the year. Um, and as we said in the last quarter, you know, our Focus really from a capital allocation perspective is around growing and investing in the business. Probably, you know, primarily through, uh, m&a and inorganic activity. And as, as Ian has said, you know, we see, you know, real opportunity to continue to land and expand into

Thank you.

One moment for our next question.

Our next question comes from Venmo Correa with visual and your line is open.

Yeah good morning.

Good morning, Jeff.

And then just on the nuclear yeah, just on the nuclear it seems like your main Canadian nuclear reactor competitor, a signed Mou agreement with for potential large scale Alberto Nuclear project. You were previously involved in so can you give us an update on the current competitive.

Us, you know, we see opportunity, you know, in other geographies or areas of capability where we have white space, um, and the pipeline of opportunities is really strong. Um, we're seeing lots of good, you know, potential organizations that were in discussions with, we're in processes with. Um, and therefore, you know, we're very confident in our ability to continue to deploy capital in a value creating way and I strongly value creating way like that, you know, going forward. So you know, that will continue to be our our area of focus.

Thanks very much.

Thank you.

1 moment for our next question.

The dynamics in the.

In the Canadian nuclear market.

Yeah.

I actually thought that announcement that came out make them American but.

Our next question comes from Beno with desert, and your line is open.

So I understand exactly what you mean.

<unk>.

Competitors announcement to partner with the U S government to deploy reactors in the U S.

And I think this is a good thing.

Think it just shows the momentum in the nuclear industry.

I mean, clearly the U S government is highly committed to new nuclear.

There are executive orders that assigned.

Canadian nuclear, reactor competitor, assigned, mou agreement with 4 potential, large scale, Alberta nuclear project, uh, you were previously involved in. So can you give us an update on the uh current competitive Dynamics in uh, in the Canadian nuclear Market?

That partnership is a really small partnership for the deployment of new nuclear in the U S.

I I actually thought that announcement that came out made them American, but, um,

<unk>.

And.

As I've said in the past I mean.

Capacity is everything.

<unk>.

Initiatives like that to enable capacity.

So I I I understand exactly what you mean, you talking about competitors announcement to partner with the US government to deploy uh reactors in the US.

To be to be built.

And, and I think this is a good thing. I mean, I think it just shows

And.

And meet the demands of the new nuclear market.

the momentum in the nuclear industry.

It is very good.

But for ourselves.

We are Canadian.

Canadian.

Our business.

As Canadian supply chain Canadian jobs.

I mean, clearly, the US government is highly committed to to new nuclear there, there are executive orders that are signed and I think that partnership is, is a, is a really smart partnership for the deployment of new nuclear in, in the US. Um,

and,

And the technology is Canadian it's actually owned by the Canadian government, but we are the sole rights to deploy it.

as I've said in the past, I mean, you know,

And.

All the reactors in Canada right now are Canadian.

And can do so.

So the way that I would say pace.

From a competitive perspective in Canada.

Capacity is everything and and you know, initiatives like that to enable capacity um to be to be built. Uh and uh and and and and and meet the demands of the new nuclear Market. Um, it is is very good.

but for ourselves,

As I would hope so.

We are.

Canadian.

Sure.

Utilities, and our provinces theory, Canada.

Our business.

Choose a technology, which is Canadian which will supply jobs to Canadians.

Is Canadian supply chain Canadian jobs.

No other technology, we will do that.

and the technology is Canadian, it's actually owned by the Canadian government but

The jokes will go down to south with the company that Joe referred to for manufacturing and engineering.

We have the sole rights to deploy it.

and,

All the reactors in Canada right now are Canadian.

So.

From a competitive edge, we kind of hope that.

We will provide it.

We will support our own technology here in Canada.

Uh, and can do. So, the way that I would see this is from a competitive perspective in Canada.

At the heart of the question.

Yes, Okay, that's great color, Jeff and obviously you have a ongoing discussion with several countries on the new builds which can do.

Is, I would hope.

The.

There's a big potential obviously.

Uh, utilities and and our provinces here in Canada. Choose a technology, which is Canadian, which will supply jobs to Canadians.

Just wondering if the.

Because no other technology will do that.

And then on your ability to secure first the monarch in Canada or any color about the potential timing for new builds what we should expect in terms of timing for announcing newbuild.

The jobs will go down south with the company that you're referring to for manufacturing and for engineering.

So I, you know, from a Competitive Edge, we cannot hope that

Yes, so outside of Canada, I mean, obviously, we're working hard in Canada.

sensible Prevail and uh, will support our own technology here in Canada if that's at the heart of the question.

We are in competition.

That's a fact, but we're working hard in Canada.

For deployment of the monarch.

Outside of Canada.

Were seeing numerous opportunities eastern Europe and potentially Asia.

Actually the technology that.

Is wanted.

Is actually our ACC its existing technology, which is a 700 megawatt reactor.

And the grids and the countries that we're discussing.

Yeah. Okay, that that's great caller Jeff and obviously, you have a ongoing discussion with several countries on a new bills with can do. Uh, there's a big potential. Obviously, I'm just wondering if the, uh, is it dependent on your ability to secure first the uh, Monarch in Canada or any caller about the uh, potential timing for new bills. What we should expect in terms of uh timing for uh announcing new bills.

Are more suited to a smaller reactor, which is a different situation than it is in Canada.

And the other advantage of easy fixes deployable now its existing technology, it's the technology that we're delivering in Romania for the two new builds in Romania.

Yeah, so outside of Canada, I mean, obviously, we're working hard in Canada. We are in competition; I mean, that's a fact. But we're working hard in Canada for the deployment of the Monarch.

Outside of Canada.

I mean, there's nothing to announce today, we are working very hard we have very detailed.

We're seeing numerous opportunities, the Eastern Europe and potentially Asia.

Technical and commercial maintenance ongoing with several countries.

actually, the technology that

is wanted.

The first stage of anything would be an Mou announcement, and then there would be.

Is actually our ec6 existing technology, which is a 700 megawatt reactor.

Relevant through to what we would call a feed contracts are.

Um, and the grids in the countries that we're discussing.

Or an initial contract which again.

Are more suited to a smaller reactor, which is a different situation than it is in Canada.

It would probably be certainly backend of next year, if that was to happen.

But were working out on these things.

And the and the other advantage of the ec6 is Deployable now, its existing technology. It's the technology that we're delivering in Romania for the 2 new bills in Romania.

There are numerous opportunities to be clear for the EC <unk> out there.

Okay. Thank you very much for the time.

One moment for our next question.

So, I mean, there's nothing to announce today. We're, we're working very hard. We got very detailed, uh, Technical and Commercial meetings ongoing with several countries.

Yeah.

Our next question comes from Michael talk home with TD Cowen Your line is open.

Thank you good morning.

Good morning.

And you spoke earlier in the call on several occasions.

Asians about your capabilities in the <unk>.

Defense Arena and some of the opportunities you see there I'm wondering if you can add on to that and speaking a little bit more detail about about exactly where you see back in two hours is having strong capabilities in defense and to what extent you think we could see defense to be a growth area that really contributes in 2026 and beyond yes, yes.

The first stage of anything would be an mou announcement and then there would be a development through to what we would call a feed contract, or a, or a, or a, or an initial contract, which again, you know, it would probably be certainly, uh, back end the next year if that was to happen, uh, but but we're working hard on these things and, and there are numerous opportunities to be clear for the ec6 out there.

Okay, thank you very much, uh, for the time.

1 moment for our next question.

No for sure.

Our next question comes from Michael to home with TD cow and your line is open.

Our current real strengths and defenses in the UK.

Thank you. Good morning.

Morning.

Where we play.

As in the facilities to operate maintain and house assets.

So assets be in aircrafts submarines ships.

Even people.

<unk> and the like.

And what we've experienced in the UK over the last few years.

Is it to.

Finally significant upgrade of existing dockyards existing fields.

Take on the new evolution of assets.

Um, Ian, you spoke earlier in the call, uh, on several occasions about, uh, your capabilities, uh, in the defense arena and some of the opportunities you see there. I'm wondering if you can add on to that and speak in a little bit more detail about exactly where you see AtkinsRéalis having strong capabilities in defense and to what extent you think we could see defense be a growth area that really contributes in 2026 and beyond. Yeah, yeah, no, for sure. I mean, our current real strengths in defense are in the UK and...

A good example of that.

And now we will move.

Move from the U K. So the countries would be the focus on Marine program, where we are.

where where we play uh, is in the facilities to operate maintain and hows assets.

So, assets, being aircraft, submarines, and ships.

The engineer of physical infrastructure assets to support that program in the U K.

uh, even people, uh, various and the like,

Having got that experience.

And what we've experienced in the in the UK over the last few years.

And a very good place I think in Australia, where the Orca submarine is being deployed also and theyre going through a big program to bill's points actually to.

To support and maintain the first nuclear submarine in Australia.

Is that to, you know, a fairly significant upgrade of existing dockyards existing airfields, to take on the new Evolution of assets.

Um, a good example of that.

And then same in Canada.

New aircraft in Canada, new shifts in Canada, new potential submarines and Canada.

All of the physical infrastructure will need upgrading to be able to sort of operate maintain those assets.

And then probably a factor really is well known is that.

When you buy a bunch of assets.

In the capital sorry in the overall cost of deploying those assets well over half of it is in the physical infrastructure and the operations in Opex.

To operate that over its life.

And how we will move from the UK to other countries would be these orcas and Marine program where we are the the the engineer of of physical infrastructure assets to support that program in the UK. And, and having got that experience, we are in a very good place. I think in Australia where the orcas summary has been deployed also and they're going through a big program to build ports actually to to to to to support hours and maintain their first nuclear submarine in in Australia.

So there is quite an investment that goes into the.

The kind of non equipment asset.

When defense programs being put through so clearly.

And and in the same in Canada, I mean, you know, new aircraft in Canada, new ships in Canada, new potential submarines in Canada, all of the physical infrastructure will need upgrading to be able to to operate and maintain those assets.

The U K Australia.

Canada, having increased commitments that those are the countries that we see the best opportunity for ourselves.

And there probably a factor that really isn't well known is that, you know, when you buy a bunch of assets.

Okay.

Okay. That's perfect. Thank you and then.

As a follow up you had a number of questions earlier about the organic growth in <unk>.

<unk> segment I'm wondering if you can talk a little bit about David Evans I know at the moment, it's contributing to acquisition growth, but within its underlying operations and what have you seen in the third quarter in terms of its own underlying organic growth.

At the in the capital, sorry in the overall cost of deploying those assets. Well over half of it is in the physical infrastructure and the the operations and Opex uh to operate that over its life.

Yeah, I mean good growth.

They continue to.

Perform in line with our expectations.

The integration piece and the cooperation between.

So there is quite an investment that goes into the the kind of non equipment asset uh when defense programs have been put through. So clearly, you know, with uh with the UK Australia and Canada having increased commitments, that those are the countries that we see the best opportunity for ourselves.

Our U S business and David Evans.

Well.

Probably going forward the most important thing is.

We've developed a pipeline of opportunities.

That actually David Evans wouldn't have announced pit because of scale.

And we wouldn't.

And what's a bit them, because I'd like a local connectivity and present some people.

Okay, that's perfect. Thank you. And then um as a followup, you had a number of questions earlier about the organic growth in ESR. Segment wondering if you can talk a little bit about David Evans, I know at the moment, it's contributing to acquisition growth, but within its underlying operations, what have you seen in the third quarter in terms of its own underlying organic growth?

So that pipeline now.

It goes well into 2026.

And it's being executed together, so we're actually putting teams on those bids.

Yeah, I mean, good growth. Uh, we they continue to, um, perform online with a with our expectations.

The integration piece and the cooperation between our us business and David Evans is is going well.

Which our joint teams at this stage and we would hope to start winning work, which is beyond kind of the.

And probably going forward. The most important thing is

That we've developed a pipeline of opportunities.

<unk>.

The ability that David It was we would have had on their own.

That actually David Evans wouldn't have been able to bid them because of scale.

Revenue synergies.

Over part of the whole thesis of buying David Evans in the first place.

and we wouldn't have been able to bid them because I like a local connectivity and presence and people

Perfect. Thank you I'll leave it there.

One moment for our next question.

Our next question comes from Jonathan Goldman with Scotiabank. Your line is open.

So that pipeline now, you know, it goes well into 2026 and and and and and and it's been executed together. So we're we're actually, you know, putting teams on those bids.

Hi, good morning, and thanks for taking my questions.

Good morning, you revise the organic growth guidance and engineering services to the low single digits that does seem to imply a pretty significant growth in Q4.

Which are joint teams at this stage, and we would hope to start winning work that goes beyond kind of the the...

Double digit growth I know part of that is just an easy comp.

the, the ability that David was would have had on their own and, and those Revenue synergies,

Last year, but what visibility do you have as we sit here today and getting to that sort of level of growth in Q4.

Uh, uh, we were part of the whole thesis of buying David Evans in the first place.

Thank you. I'll leave it there.

1 moment for our next question.

Yes, Jeff why don't I take that we have really good visibility.

Jonathan and you are right we are lapping.

Our next question comes from Jonathan Goldman with Scotia Bank. Your line is open.

A less strong quarter than in the previous year.

Hi, good morning and thanks for taking my questions.

Clearly underpins some of that that growth increased quarter over quarter, we would expect in Q4, but as you heard from me in earlier.

We are finishing our finished off some of the projects that we're creating some of that headwind, but we are seeing.

Double digit growth. I know, part of that is just an easy comp.

Real increase in activity in the markets that we're in.

Last year. But what visibility do you have as we sit here today on getting to that sort of level of growth? Thank you for

We're seeing higher levels of backlog.

We are seeing contracts since framework agreements that we have now one that we have one that had some delay is particularly true in the U S. Now actually turning into revenue. So now that we're a better part of six weeks halfway through the quarter.

Yes. Jeff. Why? Why don't I take that? We have really good visibility. Um Jonathan and you are right, you know, we are lapping uh,

We are definitely seeing an uptick in.

Contracts into revenue higher utilization and productivity.

And so we therefore very confident in that returned to coke that returned to growth for that underpins that overall full year guidance of growth.

Okay. That's helpful. And then I guess talking about the backlog engineering services kind of flat quarter on quarter is some of that may be timing related and kind of come here the cadence that you're seeing on the top line mechanic growth guide, but on the backlog side as well.

Yes, a bit of that.

But I think.

And it's fine we've seen that settled in the last two or three quarters. Just this this lengthening of clients taking pieces of work that we've won and just taking disproportionately longer to turn that into actual purchase orders or statements of work that we execute against now.

You know, a less strong quarter in, you know, in the previous year. So that clearly underpins, you know, some of that, that growth, uh, increase quarter over quarter. We'd expect in Q4. Um, but as you heard from me in earlier, um, you know, we are finishing off. You know, we finished off some of the projects that were creating some of that headwind. But we are seeing, you know, real increase in activity in the markets that we're in. Um, you know, we're seeing higher levels of backlog. Um, we are, you know, seeing contracts and framework, agreements that we've now want, you know, that we have 1 that had some delay, you know, is particularly true in the US now actually turning into Revenue. So, you know, now that we're, you know, the better part of, you know, 6 weeks halfway through the quarter. Um, you know, we are definitely seeing an uptick in uh, you know, contracts into Revenue. You know, higher utilization and productivity. Um, and so, you know, we therefore, you know, very confident in that return to cook

Did that return to 4? Um, that underpins that overall full year guidance of growth?

Now, we're seeing that starting to flow a lot more like we had seen previously.

Okay. That's really helpful and makes a lot of sense and I guess, maybe a higher level one for you again.

Okay, that's helpful. Maybe I guess talking about the backlog Engineering Services, kind of flat quarter on quarter. If some of that maybe timing related and kind of conveyor, the Cadence that you're seeing on the top lines, organic growth guide, but on the backlog side as well.

40% of Iga aid money, that's only been spent so far.

Does it seem to set up well for the next few years, but is there a risk that the balance of the money does not get deployed.

Given all the uncertainty in the market.

Kind of things that have been happening with the U S administration.

Well, there's always a risk, but what we're hearing.

And what we understand is the bill and Scott.

Yeah, a bit of that. Um, but I think, you know, and it's fine, we, you know, we've seen this over the last 2 or 3 quarters, just this, this lengthening of clients, you know, taking, you know, pieces of work that we've won and just taking disproportionately longer to turn that into actual purchase orders or statements of work that we execute against. You know, now we're seeing that, you know, starting to flow among a a lot more like we, you know, had seen previously.

And the abilities necessary to.

Trying to fill this infrastructure investment GAAP.

That is across the country.

Okay, that's really helpful and makes a lot of sense and I guess maybe a higher level 1 for for you again. Um, you know, the 40% of iija money, that's only been spent so far.

Okay that makes sense, thanks for taking my questions.

One moment for our next question.

You know, it does seem to set up well for the next few years. But is there a risk that the balance of the money does not get the point?

Our next.

Comes from Devin Dodge with BMO capital markets. Your line is open.

Given all the uncertainty in the market, um, and kind of things that are happening with the US Administration.

Yes. Thanks, good morning, Thanks for squeezing me in here.

I'm going to ask a question on nuclear.

So the 2027 revenue target.

225 billion.

We're in the low end of that range in 2025.

Well, there's always a risk, but but what we're hearing uh and what we've we understand is that the bill has got support, uh, and that the bill is necessary to try and fill this infrastructure investment Gap.

So I'm just wondering if we should be expecting revenue growth to be let's say relatively more muted in 'twenty six 'twenty seven off a pretty high base in 2025 or should we be assuming there is some conservatism still baked into the 2027 target.

That is uh, that is across the country.

Okay, that makes sense. Thanks for taking my questions.

Question.

So obviously.

We've seen phenomenal growth year over year.

Our next question comes from Devon Dodge with BMO Capital markets, your line is open.

'twenty four 'twenty five.

Yes, thanks, uh, good morning. Thanks for squeezing me in here. Um,

And.

We will continue.

To grow revenues easily even with the backlog we already have.

On slide 11, you can see that visibility.

I was gonna ask a question on, uh, nuclear. Um, so the 2027 Revenue Target, uh, you know, 2.2 2.5 billion, uh, and you're in the low end of that range in 2025,

The follow up phases.

There will fuel.

Revenues in backlog into through 2027.

But we're not going to see the kind of growth that we've seen year over year 'twenty four 'twenty five because we're obviously comparing next year against.

So just wondering if we should be expecting Revenue growth to be, we'll see relatively more muted in 26 and 27 off of you know a pretty high Bas in 2025 or should be assuming there's some conservatism and still baked into the 2027 Target.

so obviously,

We've seen phenomenal growth year over year.

Very good growth in 'twenty five.

Um, 24/25

and,

You will see growth.

But it will be very different than you've seen.

We will continue.

This year.

And also I would say that.

To grow revenues, even even with the backlog we already have and on-site 11. You can see that sort of visibility

Repeat what I've said before.

On slide 11.

of the following phases.

The backlog in the near term revenues.

That will fuel.

Really about the Newbuild that set of Oda and about the life extension projects.

Uh revenues and and backlog into through 2027.

If and when we start winning further new builds.

The revenues at the beginning will be quite low because the engineering phase and the feasibility phase of these projects are not going to bring significant revenues until until towards the end of this decade.

But we're not going to see the kind of growth that we've seen year over year 24 to 25, because we're obviously comparing next year against, you know, very good growth in 25.

Um, you will see growth, uh, but it will be very different than than, than you've seen. Um, this year.

It really will bring significant revenues so the way we see it as well.

We've got great growth potential for the medium term in this business through into the next decade.

And I mean, I would also say that, you know, we repeat what I said before that, that on Slide 11.

But it's not going to be what you've seen recently.

You know, the backlog of the near-term revenues are are are really about the new bill that sernova and about the the life extension projects.

Yeah, I mean fair enough I mean, what do you see maybe a mix shift took more towards.

Further new bills.

I will say services versus procurement as you think about 'twenty six 'twenty seven.

Well I see both actually I mean, they can do to LNG, obviously as I said, we're in discussions May Canada, we're in discussions around the world for new builds.

But the services business, which supports other technologies and decommissioning and waste management and even fusion programs.

The revenues at the beginning will be quite low because the the engineering phase and the feasibility phase of these projects are not going to bring significant revenues until until towards the end of this decade where, where they really will bring significant revenues. So the way we see it is,

It's also winning work and so the whole industry is really.

We've got great growth potential for the medium term in this business through into the next decade. Um, but it's not going to be what you've seen recently.

Going through the Super cycle.

And we're seeing good opportunities all around.

And and you know our U S business.

Yeah. I mean fair enough I mean but do you see maybe a mixed shift to more towards

<unk> is relatively small right now, but with the very strong commitment in the U S were taken the can do technology through the licensing process.

We'll say Services versus procurement, as you think about 26, and 27.

To ensure that we are able.

Well, I see both actually I mean they can do technology obviously, as I said, we're in discussions between Canada and discussions around the world for for new builds.

Utilities and clients want Canadian country technology in the U S. We're able to deploy there as well so I think it said the whole industry is pretty pretty volume.

Okay Fair enough and then switching over to.

Engineering services, obviously, it seems like a pretty active.

But the the services business which supports other Technologies and decommissioning and waste management and even Fusion programs is is also winning work and and and so the whole industry is really you know, going through this super cycle and uh and we're seeing good opportunities all around. Um,

M&A market there.

What do you see as the drivers for sellers coming to the market now and what's your pitch to them to select Atkins can be the buyer of choice.

Yes.

I mean.

Scale of deals that we're doing at the moment.

I think.

Owners of privately owned.

Companies at the door.

<unk>.

And and, you know, our us businesses is relatively small right now, but with the very strong commitment in the US, we're we're taking the can do technology through the licensing process, um, to ensure that we are able if utilities and clients want a Canadian can do technology in the US. We're able to deploy there as well. So I think it's at the whole industry is, is pretty pretty violent.

Size.

They get to a point where.

They're going to do something different to continue to grow either get investment from private equity or joined the strategic such as ourselves.

Okay, fair enough. And then switching over to, um, the Engineering Services, obviously, it seems like a pretty active M&A market there.

And I think the advantage, particularly in the U S for ourselves is that we've got a lot of why it's geographically so they're not going to get absorbed into a machine.

What do you see as the drivers for sellers coming to the market now and and what's your pitch to them to select Atkins, you know, to be the buyer of choice.

Yeah, I mean at at the scale of deals that we're we're doing at the moment.

I think.

Give some no unity and gives them no kind of identification of what they have become and what they are.

you know, owners of privately owned uh, companies at the Thousand or ish um, size

For our strategy as a matter of stitching together.

They, they, they get to a point where.

Geographic.

<unk>.

Targets to give us a complete picture across across the U S and then something that David Evans.

They're going to do something different to continue to grow, but either get investment from private equity or join a strategic partner such as ourselves.

Hi competition.

So that acquisition, but.

We manage to work together to ensure that.

They want it for their future and what we want it for all future became aligned now it doesn't always work.

And I think the advantage particularly in the US for ourselves is that we've got a lot of ways geographically. So they're not going to get absorbed into a machine.

But the good news in the U S is there's numerous targets that are in that situation lifeline numerous continually.

That gives them no unity and and gives them know kind of uh identification of of what they have become and what what what they are.

Coming onto the market.

And then of course, you've got the recycled assets from private equity that come onto the market.

so for our strategy, it's a matter of stitching together, you know, Geographic, uh,

Targets to give us a complete picture across across the US.

And does that investment cycle, so, it's a very potent and quiet.

Exciting market for us.

At the moment, but that's our strategy.

Okay. Good color and then maybe just one quick clarification and apologies if I missed it but are you still expecting to reach the targeted.

One to two turns for net to EBITDA by the end of 2026.

Yes, we didn't comment on it but I would say our comments remain the same that we laid out at Q2 and then I commented too then is that largely we expect to be to deploy capital.

And and something like David Evans, you know, there was high competition for that acquisition. But we managed to work together to to ensure that what they wanted for their future and and what we wanted, for our future became aligned and it doesn't always work. I mean, but the good news in the US is there's numerous targets that are in that situation like like numerous and that that are continually, uh, coming onto the market.

In line with the capital allocation framework, we laid out such that by the end of 2026, we'd at least be at that around.

And and then of course, that you've got the Recycled assets from private Equity that that come onto the market at the end of that investment cycle. So it's it's, it's a, it's a, it's a very buoyant and, and quite, um, exciting market for us, uh, at the moment. But that that's our strategy.

Around the bottom end of the range of our 1% to two times leverage.

Okay.

Okay, great. Thanks for that I'll turn it over.

Okay, good color and then let me just 1 quick clarification and apologies if I missed it. But are you still expecting to reach the targeted?

Thank you.

I'm not showing any further question at this time I'd like to turn the call back to Dennis Johnson for any further remarks.

uh, 1 to 2 turns for by the end of 2026,

Thank you. Thank you very much everybody for joining us today. If you have further questions. Please do not debt is that something that can be.

Thank you very much everyone.

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

Yeah, we we didn't comment on it, but I would say our, our comments remain the same, um, that we laid out at Q2 and that I commented to then, is that, uh, largely we expect to be to deploy Capital, um, in line with the capital allocation framework. We, we laid out such that, you know, by the end of 2026, you know, we'd at least be at the, you know, around the bottom end of the range of our our 1 to 2 times Leverage.

Okay, great. Thanks for that. I'll turn it over.

Thank you.

I'm not showing any further questions at this time. I'd like to turn the call back to Dennis Jasmine for any further remarks.