Best Smidcap Ideas: Asymmetric Nuclear Risk/Reward; H2/26 Re-rating Catalyst

Research evidence excerpt

Best Smidcap Ideas: Asymmetric Nuclear Risk/Reward; H2/26 Re-rating Catalyst

TD Cowen AtkinsRéalis Group

Global Research June 18, 2026

Nuclear Segment Outlook

We believe AtkinsRéalis is poised to benefit from increasing demand for new

nuclear energy capacity, as the company holds the exclusive commercial rights for

the CANDU technology, while it also has capabilities to support projects involving

other reactor technologies, including SMRs.

We see CANDU as well positioned for potential large-scale nuclear greenfield

opportunities. In our view, the ability of CANDU reactors to operate on natural

uranium (unenriched uranium), leverage on-power refueling, and produce in-demand

medical isotopes provides a unique value proposition, positioning it as an attractive

candidate for large-scale greenfield projects.

Potential Ontario new build projects represent a ~$38bln revenue opportunity for

ATRL, with additional upside potential from other Canadian and international

opportunities. In Ontario, Bruce Power and OPG are advancing plans to add four and

eight new large-scale nuclear reactors, respectively, representing a potential ~$38bln

revenue scope for ATRL (vs. its Nuclear backlog of $4.5bln). We also see strong

potential for CANDU new builds in other regions (Canada and international). While

Canada is an AtkinsRéalis priority market for sales of CANDU rectors, we believe the

technology is also well-suited for various international markets. This includes

countries that do not have indigenous, large-scale nuclear reactor technologies and

that value attributes offered by CANDU, including independence from enriched

uranium, opportunities for localization, medical isotope production, and proven

operating performance. ATRL’s main international target markets include Eastern