ATRL: Highlights from the RBC Canadian Industrials Conference

Research evidence excerpt

ATRL: Highlights from the RBC Canadian Industrials Conference

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

Sabahat Khan (Analyst)

Arthur Nagorny, CFA (Analyst)

Bhaven Shah (AVP)

Padraig Murphy (Associate)

May 20, 2026

AtkinsRealis Group Inc.

Highlights from the RBC Canadian Industrials Conference

TSX: ATRL | CAD 80.99 | Outperform | Price Target CAD 120.00

Sentiment: Neutral

This afternoon, Jeff Bell, Chief Financial Officer, presented during day two of RBC's Canadian Industrials Conference. Overall, our

discussion touched on the 2026 and 2025-2027 organic growth outlook, opportunities with AI, the company's positioning amidst

the nuclear renaissance, and capital allocation. We highlight key takeaways from our discussion below:

2026 organic growth tracking against revised Investor Day targets – Recall that AtkinsRéalis' revised 2025-2027 targets reflect

an Engineering Services Regions organic revenue CAGR of +5-7% and a segment Adjusted EBITDA margin of 17%-18%. Today,

the company outlined that 2026 is tracking against these targets with organic growth coming in at +5% in Q1 (potential for an

acceleration in H2, with the full-year target of +5-7% reiterated at the quarter), with management expecting the momentum to

carry on in 2027. Notably, Q1 was weighed on by the Middle East conflict (AMEA organic growth was -8.9%), with the segment

likely to be soft through Q2 (expected to be a modest headwind; recall that the company undertook reprioritizations and wound-

down various projects in Q1).

Expect AI to enhance productivity – To-date, AtkinsRéalis has deployed multiple AI applications, with management observing

material productivity enhancements in various lower value-add tasks. While management expects to pass some of the productivity