Mr. Ian Edwards reports

ATKINSREALIS REPORTS STRONG FOURTH QUARTER RESULTS AND POSITIVE OPERATING CASH FLOWS; INTRODUCES 2024 OUTLOOK

SNC-Lavalin Group Inc. (AtkinsRealis) has released its financial results for the full year and fourth quarter ended Dec. 31, 2023, and introduced its 2024 outlook.

AtkinsRealis delivered strong Q4 and full year results in 2023, with significant year over year increases in revenue, Segment Adjusted EBIT and EPS. The company's operating cash flow was positive for a second consecutive quarter, with a significant increase year over year, strengthening the company's balance sheet and lowering the debt leverage ratio to within the company's target range. The company's backlog continued to achieve record highs with strong increases in the Engineering Services, Nuclear and Linxon segments.

"We are extremely proud of our performance in 2023 with exceptional results across our businesses and in our core geographies," said Ian L. Edwards, President and CEO of AtkinsRealis. "We ended the year on a high note with strong fourth quarter financial results, including significant positive operating cash flows. Consequently, our balance sheet achieved our targeted debt leverage ratio a year earlier than expected. Our operational focus and the continued demand for our capabilities, coupled with a stronger balance sheet, provide us with the financial flexibility to drive further value creation in the coming year. This past year proved again that our strategy is working. We have the right people in place to achieve our goals in 2024 and beyond, and I would like to thank them for their loyalty and diligence."

Q4 2023 Financial Highlights

(All results reflect comparisons to prior-year period of Q4 2022, except as otherwise indicated)

• AtkinsRealis Services revenue reached a quarterly record-high of $2.2 billion, an increase of 24.2 per cent, or 24.6 per cent on an organic revenue gro wth basis, above the company's full year outlook range, with strong organic revenue growth in the Engineering Services, Nuclear and Linxon segments
• AtkinsRealis Services Segment Adjusted EBIT increased by 29.2 per cent to $201.3-million, representing a 9.4 per cent margin, an increase of 36 basis points
• Segment Adjusted EBIT for Engineering Services increased by 25.8 per cent to $149.9-million, representing a margin of 9.6 per cent, while the Segment Adjusted EBITDA to segment net revenue ratio was 15.5 per cent
• Segment Adjusted EBIT margin for Nuclear was 14.8 per cent
• LSTK Projects Segment Adjusted EBIT was negative $23.6-million
• Adjusted EBITDA from PS&PM increased to $186.5-million from $20.2-million
• Net income attributable to AtkinsRealis shareholders from continuing operations totalled $90-million, or $0.51 per diluted share, compared with a net loss of $54.4-million, or $(0.31) per diluted share in Q4 2022
• Adjusted net income attributable to AtkinsRealis shareholders from PS&PM totalled $79.5-million, or $0.45 per diluted share, compared with an adjusted net loss of $32.5-million, or $(0.19) per diluted share in Q4 2022
• Net cash generated from operating activities was $272.8-million
  • Limited recourse and recourse debt decreased by $310.7-million compared with Sept. 30, 2023 and Net limited recourse and recourse debt to Adjusted EBITDA ratio improved to 1.8 as at Dec. 31, 2023, from 2.7 as at Sept. 30, 2023.

Full Year 2023 Financial Highlights

(All results reflect comparisons to full year 2022, except as otherwise indicated)

• AtkinsRealis Services revenue reached a yearly record-high of $8.0 billion, an increase of 20.3 per cent, or 18.3 per cent on an organic revenue growth basis, above the company's full year outlook range, with strong organic revenue growth in the Engineering Services and Nuclear segments
• AtkinsRealis Services Segment Adjusted EBIT increased by 22.5 per cent to $711.9-million, representing an 8.9 per cent margin
• Segment Adjusted EBIT for Engineering Services increased by 30.6 per cent to $519.6-million, representing a margin of 8.8 per cent, while the Segment Adjusted EBITDA to segment net revenue ratio was 14.4 per cent
• Segment Adjusted EBIT margin for Nuclear was 13.9 per cent
• LSTK Projects Segment Adjusted EBIT was negative $58.6-million
• Adjusted EBITDA from PS&PM increased by 74.8 per cent to $678.2-million

AtkinsRealis Services backlog reached a record-high and totalled $13.7 billion as at December 31, 2023, an increase of 16.1 per cent, with strong booking-to-revenue ratios and backlog increases in the Engineering Services, Nuclear and Linxon segments. Bookings in 2023 totalled $10.0 billion, representing a 1.26 booking-to-revenue ratio(4)

Net income attributable to AtkinsRealis shareholders from continuing operations totalled $287.2-million, or $1.64 per diluted share, compared with $16.6-million, or $0.09 per diluted share in 2022

Adjusted net income attributable to AtkinsRealis shareholders from PS&PM totalled $274.1-million, or $1.56 per diluted share, compared with $112.8-million, or $0.64 per diluted share in 2022

2024 Financial Reporting - New Operational Structure to Sustain Growth

Beginning in 2024, AtkinsRealis has evolved and implemented a new operational structure to unify and simplify the company in the regions where it operates. Under the new structure, the Engineering Services and O&M segments will be merged and managed by region. Therefore, the Segment disclosure in the company's 2024 financial statements and Management's Discussion and Analysis will include, under Engineering Services Regions: Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA"), and Asia, Middle East, & Australia ("AMEA").

In addition, to drive margin expansion and operational excellence through the development, optimization, and deployment of AtkinsRealis' global capabilities, a permanent Chief Operating Officer ("COO") office has been created.

"Our new operational structure will produce a more effective deployment of our global capabilities locally to all stakeholders. This change will yield even greater value creation for our clients and strengthens our ability to capture key wins," added Mr. Edwards. "We enter 2024 confident that the recent foundational changes we have made - our new operational structure, our new brand - coupled with the strong demand for our global services should further drive sustainable profitable growth and shareholder value creation."

In 2024, the company will restate its 2023 comparative information of segment results to conform with its new reporting structure. As such, reconciliations of the segment results under the current reporting structure and the new reporting structure for the four quarters of 2023 and the year ended Dec. 31, 2023, are provided in Section 13.5 of the company's 2023 Annual Management's Discussion and Analysis (the "Annual MD&A").

2024 Outlook

Engineering Services Regions organic revenue growth expected to be between 8 per cent and 10 per cent, compared with 2023, with a Segment Adjusted EBITDA to segment net revenue ratio expected to be between 15 per cent and 17 per cent, an increase of 100 basis points above the company's previously published targets

Nuclear organic revenue growth expected to be between 12 per cent and 15 per cent, compared with 2023, with a Segment Adjusted EBIT to segment revenue ratio between 13 per cent and 15 per cent

Net cash generated from operating activities is expected to be in excess of $400-million for 2024, as cash inflows from AtkinsRealis Services and Capital are expected to be significantly higher than the declining cash outflows from LSTK Projects

Fourth Quarter Financial Results

Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together five of the company's segments, namely Engineering Services, Nuclear, Linxon, Operation & Maintenance ("O&M"), and Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM.

2024 Outlook

This outlook is provided as at March 1, 2024, to assist analysts and investors in formulating their respective views on the year ending December 31, 2024. The following information is based on current expectations. This information is forward-looking and the actual results could differ materially. The 2024 Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

This outlook is based on the assumptions and methodology described in the Annual MD&A under the heading "How We Budget and Forecast Our Results" and the "Forward-Looking Statements" section below and is subject to the risks and uncertainties summarized therein and in the Annual MD&A.

The company now expects organic revenue growth for the Engineering Services Regions and Nuclear segment in 2024 should be higher than the company's 2022-2024 long-term target range outlined in the company's "Pivoting to Growth" strategy presented during the September 2021 Investor Day.

AtkinsRealis is providing the following targets for the full year 2024:

Investor Day

AtkinsRealis will host an Investor Day on June 13, 2024. Building on the strong value creation from the 2022-2024 "Pivoting to Growth" strategy, the leadership team will unveil the company's strategy and capital allocation framework for 2025-2027, including key initiatives intended to drive growth in the Engineering Services Regions and Nuclear segment as well as margin expansion. The event will feature presentations from Ian L. Edwards, President and Chief Executive Officer, and Jeff Bell, Chief Financial Officer, alongside other members of the executive team. The company will also showcase its globally diversified capabilities and dedication to engineering a better future for our planet and its people.

The event will be held in a hybrid format, physically in Toronto, Canada, and webcasted live, and is expected to last about half a day starting in the morning. It will comprise formal presentations along with interactive Q&A panel sessions with senior leadership. Due to limited capacity, in-person attendance will be by invitation only.

Information on webcast and in-person registration, as well as the agenda and speakers, will be provided closer to the event date.

Quarterly Dividend

The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on March 29, 2024, to shareholders of record on March 15, 2024. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.

Fourth Quarter 2023 Conference Call / Webcast

AtkinsRealis will hold a conference call and audio webcast today at 8:00 a.m. (Eastern Time) to discuss and present its fourth quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the company's website at www.atkinsrealis.com/en/investors . The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2023 .

Please dial toll free at 1 800 319 4610 in North America or dial 1 604 638 5340 outside North America. You can also use the following numbers: 416 915 3239 in Toronto, 514 375 0364 in Montreal, or 0808 101 2791 in the United Kingdom. A recording and a transcript of the conference call will be available on the company's website within 24 hours following the call.

About AtkinsRealis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRealis is a world-leading professional services and project management company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services in key regions (Canada, the United States, the United Kingdom, as well as Asia, the Middle East and Australia), Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.

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