AtkinsRéalis Group Inc.ATRL.TOCOMMENTFeb 04, 2015Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
Doesn't agree that AI is going to ruin construction businesses. The design portion of projects may be streamlined through AI, such as accelerating gathering data, but the fundamental narrative doesn't change. The Build Canada projects must be good for construction companies.
Not a sector he'd play, but it's OK at these levels.
Tremendous run, and now some engineering firms are under pressure. A laggard. You want to own things people really care about, and he's been very selective and carving out underperformers.
Midterm election years tend to have weakness in June, July, August. We'll see. Market breadth is not ideal right now. Look for better opportunities.
Very strong portfolio of engineering and design and consulting. Plays into infrastructure, energy, and environment. Focus on nuclear will be important, with 15% of revenue coming from there. If Hwy 407 were sold at a good price, would be a catalyst to create value (but he wouldn't buy something just because there might be a deal down the road). Yield is 0.1%.
(Analysts’ price target is $70.31)
This company has had 3 bad things happen to it in the last few years. 1) There has been the bribery corruption scandal in North Africa. 2.) Inability to make money on a lot of their construction contracts. They came into the post recession period with a huge order backlog that they couldn’t converted into profits, which made him believe that they had underbid on the lot of their contracts. 3.) Now they are exposed to a lot of energy projects, which don’t look like they are going to get built, or if they do it is going to be very difficult for them to make their margins. New management is doing a pretty good job, but they have a lot of headwinds and he is not tempted to go into this.