Under Edwards’ stewardship since June 2019, SNC-Lavalin has shifted its focus to engineering and consulting services and away from lump-sum projects - fixed-price contracts under which companies must pay for any cost overruns themselves. The outfit expects an LSTK loss related to overhead costs to reach a similar level as last year’s, when they totalled about $44 million. Adjusted earnings before interest and taxes in the segment saw a loss of $9.2 million in SNC’s first quarter. However, the company’s challenges with so-called lump-sum turnkey (LSTK) projects continue to drain on its finances, albeit more lightly than before. ![]() despite underlying uncertainties in global economies.” and Europe, we saw continued revenue growth which speaks to the focus of governments to spend on defence and energy. “The public sector focus on converting to a greener grid for baseload power, for greener infrastructure, has resulted in continued key wins across our core geographies,” Edwards said. The six-year contract comes after SNC helped oversee the generating station’s multibillion-dollar refurbishment. Its nuclear division inked an agreement with Ontario Power Generation in January to develop the country’s first small modular reactor at the Darlington nuclear plant. Last quarter, SNC’s engineering service secured deals to upgrade railways in the south of England and lead the design of a new subway in Dublin. He cited electric vehicle battery plants, as discussions continue with potential customers.Ĭanada and the United Kingdom also hold promise for sustainable energy as well as military contracts. government via the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. “We want a lot more than that to be equal to our peers.”Įdwards said he sees potential in the massive funding injection from the U.S. ![]() where we build on the business that we already have,” he told analysts on a conference call Tuesday, noting the Montreal-based company employs 4,200 workers in the United States. It will be a sensible, step-by-step M&A program in the U.S. “Ultimately, we will get to an M&A program. is a key pillar of our pivoting-to-growth strategy,” he said, citing new contracts ranging from a Texas toll route to City of Baltimore wastewater facilities. “We continue to achieve record-high backlog in this growing market. SNC hopes to seize on its recent successes with further growth via mergers and acquisitions, particularly south of the border - but not immediately - said CEO Ian Edwards. The jump marked a nearly 47 per cent increase from a year earlier. The fresh figures Tuesday pushed up the company’s share price by $3.90 or 12.2 per cent to close at $35.88 on the Toronto Stock Exchange. The former segment boosted its backlog 25 per cent to a record $4.8 billion, while nuclear tacked on almost $1 billion more, lengthening its order list by 23 per cent. ![]() ![]() In the three months ended March 31, SNC rode its engineering services and nuclear divisions to net earnings nearly 15 per cent higher than a year earlier. sees the United States as ripe with growth potential in energy and infrastructure, key areas that helped the company swing to a profit last quarter - and sent its stock skyward.
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