AtkinsRéalis Group Inc. (TSE:ATRL) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

AtkinsRéalis Group Inc. (TSE:ATRL) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of CA$2.8b were in line with what the analysts predicted, AtkinsRéalis Group surprised by delivering a statutory profit of CA$0.88 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AtkinsRéalis Group after the latest results.

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Following the latest results, AtkinsRéalis Group's twelve analysts are now forecasting revenues of CA$11.6b in 2026. This would be a meaningful 9.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 74% to CA$4.06 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$11.6b and earnings per share (EPS) of CA$3.96 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for AtkinsRéalis Group

The consensus price target was unchanged at CA$115, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values AtkinsRéalis Group at CA$131 per share, while the most bearish prices it at CA$95.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AtkinsRéalis Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that AtkinsRéalis Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.1% per year. So it's pretty clear that, while AtkinsRéalis Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AtkinsRéalis Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple AtkinsRéalis Group analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for AtkinsRéalis Group you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.