Highlights

• AtkinsRéalis acquired the remaining interest in David Evans Enterprises, Inc., completing a staged Acquisition that began with a 70% stake in April 2025.

• Third-quarter Revenue reached a record of about $3.1 billion, up roughly 11%, while adjusted EBITDA rose 14% to $331 million.

• Total Backlog stood at about $20.5 billion, and the company deployed $236 million on share repurchases during the quarter.

Full ownership of a United States engineering platform and a record quarter arrived within days of each other for AtkinsRéalis Group Inc. (TSX:ATRL). In an announcement issued on Tuesday, the Montreal-based engineering services and nuclear group said it had acquired the remaining interest in David Evans Enterprises, Inc., turning the Portland-based firm into a wholly owned subsidiary. On Thursday, the company followed with third-quarter results that showed record revenue of about three point one billion dollars and a sizeable rise in adjusted EBITDA.

How the David Evans Deal Came Together

The transaction completes a staged acquisition. In April of last year, AtkinsRéalis announced and then completed the purchase of a seventy percent stake in David Evans for roughly three hundred million United States dollars in cash, with a path to full ownership built into the arrangement. The latest step, reported at about one hundred and thirty million dollars in cash, brings the remaining Equity into the fold. The company has said David Evans keeps its Brand and management structure.

David Evans is an employee-owned engineering and staffing Business founded in nineteen seventy-six and based in Portland, Oregon. At the time of the first transaction it operated from dozens of offices across ten states, employed roughly one thousand two hundred and fifty people, and generated annual revenue of a little under three hundred million United States dollars, more than half of it from transportation work. Its services span transportation, power, water and environment, surveying and geomatics, and land development.

Why Full Ownership Matters

A wholly owned structure simplifies integration, lets the parent direct bids and resources more freely, and removes the need to share future profits with a minority holder. Management indicated on the Earnings Call that full ownership is expected to support larger United States infrastructure programs, building on the combined geographic reach and engineering and project management skills. It also suggested that future American acquisitions are likely to be of a similar scale, and that a materially larger deal is not expected this year or possibly during the first half of next year.

For a company that has reshaped itself into an engineering services and nuclear specialist, the United States market is a significant growth avenue. Federal and state spending on roads, bridges, water systems and the electricity grid creates a long pipeline of design and program management work.

The Third-Quarter Scorecard

Revenue rose by about eleven percent, or roughly nine percent on an organic basis, while adjusted EBITDA grew fourteen percent to about three hundred and thirty-one million dollars. Adjusted Earnings Per Share increased by nine percent to one dollar and twenty cents. Reported Diluted Earnings per Share edged lower, to eighty-three cents from eighty-eight cents, because the effective tax rate was higher at roughly twenty-six percent.

Backlog stood at about twenty and a half billion dollars. Within Engineering Services, Canada grew organic revenue strongly, the United Kingdom and Ireland expanded steadily, and the United States added revenue as well. The Africa, Middle East and Asia Pacific region was weaker, with revenue lower and margins compressed because of the ongoing conflict in the Middle East, which led management to trim its full-year growth target for the segment.

Regional Detail Within Engineering Services

Engineering Services generated adjusted EBITDA margins in the high teens and carried the larger share of backlog, at roughly thirteen billion dollars. The Canadian business posted the strongest organic revenue growth of the regions, although its backlog was somewhat lower than a year earlier. The United Kingdom and Ireland business reported a higher backlog and a healthy margin, and the United States business recorded margins that were flattered by contract settlements. Those regional differences explain why management emphasised a balanced portfolio, in which strength in some geographies offsets softness in others, rather than reliance on any single market.

Nuclear Momentum

The Nuclear division grew organic revenue by about ten percent, and adjusted Earnings before interest and taxes rose by about twelve percent. Backlog in the segment was lower than a year earlier as projects advanced toward delivery, which management described as typical until follow-on awards arrive. A joint venture signed a three-year contract worth about one point seven billion dollars with Ontario Power Generation to refurbish Pickering Unit five.

Further out, the company is pursuing United States licensing for the CANDU EC six reactor, has submitted the first of several planned topical reports, and signed a memorandum of understanding with Indiana and Hoosier Energy that contemplates up to eight reactors. Site selection and funding remain open. A larger gigawatt-scale design known as MONARK is in development, with regulatory approval for the EC six targeted by the end of two thousand and twenty-seven. Investors tracking Bluechip Stocks often view such long-dated nuclear optionality as a distinguishing feature of this particular large-cap name.

Capital Allocation and Balance Sheet

During the quarter the company deployed about three hundred and ninety-five million dollars, of which roughly two hundred and thirty-six million went to share repurchases and the balance to two smaller acquisitions. Over the year to date it has repurchased about four percent of its outstanding shares. Net Debt sits well below the target range, giving room for further investment, acquisitions and returns, and Operating Cash Flow is expected to be at least five hundred million dollars this year. The Dividend remains very small and was unchanged.

Risks and Sector Context

Engineering and nuclear programs are long-cycle and exposed to cost overruns, schedule delays and regulatory timelines. The Middle East conflict is already weighing on one region, and geopolitical developments could affect others. Foreign currency movements matter because a growing share of revenue is earned in the United States and the United Kingdom, and the Canadian dollar's moves against those currencies influence translated results. Contract settlements helped United States margins in the quarter, and management cautioned that this should not be extrapolated.

Public-sector budgets are an additional variable. Canadian federal and provincial infrastructure commitments, American infrastructure funding and the Bank of Canada's rate path all influence project timing and financing. Reported profit has also been affected by tax, so attention to the effective rate is warranted.

Index Reference and What Comes Next

AtkinsRéalis is a member of the [S&P/TSX Composite Index] and counts among the best-known Canadian engineering names globally. The next items to follow include the integration of David Evans into the Canadian-led structure, any follow-on awards for nuclear refurbishment and new-build projects, and progress toward American regulatory milestones for the CANDU design. The most recent results show a company with scale, a very large backlog and active portfolio management, balanced by regional and execution risks.