SNC-Lavalin beats earnings expectations as engineering services in hot demand in U.S.

By The Canadian Press on August 3, 2023.

MONTREAL – SNC-Lavalin Group Inc. is raising its financial forecast for the year on the heels of healthy organic revenue growth, as the company cuts down on losses from contracts for large rail projects.

The engineering firm is projecting organic revenue growth of between 12 and 15 per cent in 2023, more than double its previous prediction of between five and seven per cent.

SNC says net income grew to $63.8 million for the three months ended June 30, towering over profits of $1.6 million from the same period the year before and despite losses of $13 million from fixed-price construction projects – a cash drain that was lighter than analysts predicted.

Organic growth pushed revenues up 14 per cent to $2.13 billion in the second quarter versus $1.87 billion a year earlier, with engineering services south of the border driving much of the increase.

On an adjusted basis, diluted earnings notched 41 cents per share compared with 31 cents per share the year before.

The outcome beat analyst expectations of 30 cents per share, according to financial markets firm Refinitiv.