AtkinsRéalis Renews Major Buyback, Betting Big on Its Future Value

MONTREAL, QC – March 13, 2026 – AtkinsRéalis Group Inc. is sending a powerful message of self-assurance to the market, announcing the renewal of its significant share buyback program. The global engineering and nuclear powerhouse has received approval from the Toronto Stock Exchange (TSX) to repurchase up to 13,649,009 of its common shares, representing about 10% of its public float, over the next twelve months.

This move, known as a Normal Course Issuer Bid (NCIB), will commence on March 17, 2026. It follows a period of robust financial performance and strategic repositioning, suggesting that the company's leadership believes its shares are currently undervalued by the market. The company stated its belief that, in appropriate circumstances, purchasing its own shares is an "effective use of its funds and be in the best interests of the Company and its shareholders."

A Confident Bet on Undervalued Shares

For investors, a large-scale share buyback is often interpreted as more than just a capital allocation tactic; it is a tangible signal of management's confidence in future earnings and growth. By reducing the number of shares outstanding, the company can mechanically boost its earnings per share (EPS), a key metric for valuation. AtkinsRéalis's track record supports this strategy's effectiveness.

In 2025, the company deployed approximately $957 million to repurchase over 10.8 million shares under a previous bid and a separate agreement. This aggressive buyback coincided with impressive financial results. For the full year 2025, the company reported an 88% surge in adjusted diluted EPS from its core Professional Services & Project Management (PS&PM) segment, which reached $3.36. This performance demonstrates how share repurchases can be highly "accretive," a term management has used to describe the program's impact.

The decision to renew the NCIB is underpinned by a balance sheet that market observers have described as flawless. The company generated $461 million in net cash from operating activities in 2025 and has strategically sold non-core assets, such as its interest in the Highway 407 ETR, to bolster its financial position. This fiscal discipline provides the firepower for both strategic investments and significant returns of capital to shareholders.

The Enduring Influence of a Major Shareholder

A unique and telling aspect of the buyback strategy is the continued involvement of Caisse de dépôt et placement du Québec (La Caisse), one of North America's largest institutional investors. AtkinsRéalis has a special arrangement, pre-cleared by the TSX, that allows it to purchase shares directly from La Caisse. This is designed to enable the pension fund manager to maintain its proportionate ownership stake as close as possible to its target of 16.7%.

This arrangement highlights a deeply symbiotic relationship. La Caisse, known for its long-term investment horizon and focus on supporting Québec-based champions, provides a stable, foundational block of ownership for AtkinsRéalis. In turn, the company’s buyback program gives La Caisse a structured and predictable way to manage its position without disrupting the market. During the previous bid, AtkinsRéalis repurchased 7 million shares directly from La Caisse in a single transaction, underscoring the significance of this partnership.

The agreement stipulates that purchases from La Caisse will occur on days when AtkinsRéalis is also buying shares from the open market, ensuring alignment with other shareholders. This stable institutional backing is a strategic advantage, insulating the company from short-term market pressures and allowing management to focus on long-term value creation.

A Standout Strategy in a Competitive Field

When viewed in the context of the broader engineering and construction industry, AtkinsRéalis's capital allocation strategy appears particularly robust. While share buybacks are a common tool, the rationale and financial health backing them can vary widely among competitors.

For instance, peer company Aecon Group Inc. also maintains an NCIB, but on a smaller scale, targeting 5% of its shares. More telling, Aecon recently announced a share offering to raise capital to pay down debt, illustrating a different set of financial priorities. Meanwhile, U.S.-based Fluor Corporation has engaged in massive buybacks, but its program has faced scrutiny from analysts after the company reported a net loss for 2025, raising questions about whether the capital could be better used to shore up its operations.

In contrast, AtkinsRéalis's buyback is launched from a position of strength. The company has successfully pivoted away from high-risk, lump-sum turnkey projects that previously plagued its financials. Its focus is now on high-margin, recurring revenue from engineering services and its booming nuclear division, a strategy that is clearly paying off.

Powered by Nuclear Resurgence and Record Backlog

The confidence to invest nearly a billion dollars in its own stock is not born in a vacuum. It is fueled by exceptional operational performance and a bright outlook, particularly in the nuclear sector. AtkinsRéalis is a key player in a global nuclear renaissance, driven by the world's pursuit of carbon-free energy security.

The company is deeply involved in major projects, including the refurbishment of the Pickering and Darlington nuclear generating stations and the development of Small Modular Reactors (SMRs). This has translated into a record-high backlog for the nuclear division and a dramatically increased revenue target, which the company now projects will reach between $2.6 billion and $3.0 billion by 2027.

This nuclear success is complemented by strength across its other core businesses. The company's total backlog reached an all-time high of $21.2 billion at the end of 2025, providing exceptional revenue visibility for years to come. By renewing its share buyback, AtkinsRéalis is not just rewarding shareholders today; it is making a clear statement that it believes the best is yet to come.