SNC-Lavalin (SNC) reported that its third-quarter profit rose 140% from a year ago due to
growth in its engineering services.
The Montreal-based engineering firm said its net income in Q3 amounted to $44.7 million or
$0.25 per share. That compares with net income of $18.6 million or $0.11 per share a year ago.
SNC-Lavalin’s net cash flow from operations in the July through September period totalled
negative -$159 million compared to negative -$65 million in the third quarter of 2021.
Revenue for Q3 amounted to $1.89 billion, up from $1.81 billion a year earlier.
Analysts had expected adjusted earnings of $0.33 per share and $1.78 billion in revenue,
according to Refinitiv data.
SNC-Lavalin said the backlog in its turnkey projects decreased by 19.9% during Q3 and totalled
$663.9 million, a 42.7% decrease from the same period a year ago.
However, the company’s engineering services backlog grew 20% to $4.6 billion in the quarter,
which could help to sustain momentum in the current fourth quarter.
Looking ahead, the company raised its revenue growth outlook for its engineering services
division for all of this year to a range of 5% to 7%, up from a previous forecast of 4% to 6%.
SNC-Lavalin’s stock is down 26% this year at $23.44 per share.