AtkinsRealis Group (ATRL.TO)

BDT is on fire. A bit technically overbought. The $11B backlog is great. Data centre contract with BCE. Multiple's not expensive at 16x 2027 PE for 30% growth. Trades at a higher multiple than WSP and ATRL, as it's riskier. Try to get it cheaper.

Sentiment is the reverse for WSP and ATRL. Fears of AI disruption curtailing growth. Both look meritorious at these levels. He models 17% growth for ATRL at 14x PE. WSP models 17% growth at 12.5x PE. These 2 are more of a Buy, wouldn't sell.

Not a fan of this. Has gotten attention for its nuclear business. Their growth rate is okay at single digits and trades at 18x forward PE. Okay. Doesn't like their history.

Anything not tech or energy is not up now. But likes it. He expects market breadth to expand and this to return to highs.

Likes where it is technically. Hovering right around its 200-day MA. Wants a company that will benefit from nation-building and nuclear. Reasonable PE multiple and nice growth. 

Q4 had higher losses, and that was the opportunity. Has 5-7% good organic growth. Growing ~19% and trading ~18x PE. Book-to-build ratio looks good. Margin expansion of ~17.3%. Yield is 0.09%.

Doesn't own any pureplay engineering stocks. Always tend to be too expensive. Bid up on future infrastructure needs. 

See his Top Picks, one of which has a division devoted to engineering services.

Benefits from nation-building and nuclear story. Reasonable multiple and nice growth. Q4 included previous losses in construction, so stock came down -- that's 1% of the story. 

Most of the story is in engineering services, and that was in line. Organic growth of 5-7%, consistent with peers. Book-to-bill ratio looks really good. Margin expansion of 17.3% better than street thought, and that's the real key to the story. 

Trading very reasonably at 19x PE, growing 19%. Now hovering around 200-day MA. Good value, price to growth, chart, long-term story. Yield is 0.09%.

He bought it a few months ago when the chart fell down to the trendline after being in an uptrend. The chart since 2023 shows an uptrend. They have a lot of projects coming.

A way to get upstream from the data centre buildout. He prefers WSP.

A safer way to play nuclear in Canada. Engineering, with a strong and competitive business in the nuclear space. Nuclear expertise, owns the CANDU technology.

Good rebranding, stock's done pretty well. Effectively a nuclear proxy stock, as it helps with the buildout. About 35% of engineering backlog is related to nuclear, which has really come into its own. Interesting, but not best-managed engineering/construction firm in Canada. That title goes to WSP.

Better off owning nuclear AI exposure directly through NVDA, MSFT, or CCO.

Infrastructure and engineering companies are in a pretty good spot, especially if you're working on power generation. Long runway. He'd still buy in today.

Once owned it, sold a few weeks ago because its relative strength was breaking down along with all construction/engineering stocks. The bottom has fallen out, falling below $90. Next support is $75-80.

Contracts with built-in cost overrun provisions provide a better business model with higher margins and more stability. Nuclear remains a growth area.

(Note the short timeframe.)  Nice relative outperformer to the TSX (which is up ~22% over this timeframe). Nuclear space is really heating up, and it's a big growth trajectory for them. Nice place to buy here.

Today he's trying to choose beneficiaries of big themes, and Carney's national projects are a big theme. This name is on fire. Beat last quarter by 3% in engineering services, 20% in nuclear. Margins improving. Involved in Darlington in Ontario, one of the favoured "major projects". 

Mission is to meet demand for low-carbon energy, build resilience to climate change, and repair aging infrastructure. Balance sheet in terrific shape. Reasonable 20x PE for 37% visible growth. Yield is 0.08%.