- SNC-Lavalin Group Inc (TSX: SNC) (OTC: SNCAF) reported first-quarter revenue growth of 3.8% year-over-year to C$1.89 billion (+4% Y/Y). Adjusted EPS declined to C$0.25 from C$0.51 for the quarter.
- SNCL Services revenue totaled C$1.66 billion (+6.8% Y/Y) and +8.4% Y/Y on an organic basis. The increase was driven by organic revenue growth of 10% in Engineering Services and 21.3% in Linxon.
- SNCL Services segment EBIT declined by 7.2% Y/Y to C$126.7 million, and the margin contracted by 115 bps to 7.6%.
- Net cash generated from operating activities in SNCL Services of $58.7 million in Q1.
- SNC-Lavalin net cash used for operating activities for the quarter totaled C$134 million, compared to cash generated C$5.6 million a year ago.
- The negative operating cash flows in Q1 reflected operating cash outflows related to the LSTK projects, partially offset by operating cash inflows from SNCL Services.
- Backlog from continuing operations as of March 31 was C$12.17 billion.
- LSTK Projects segment backlog decreased by 18% during the quarter; the Backlog totaled C$956.6 million as of March 31, 2022.
- SNC-Lavalin held cash and equivalents of C$506 million as of March 31, 2022.
- Dividend: SNC-Lavalin declared a cash dividend of C$0.02 per share, payable on June 2, 2022, to shareholders of record on May 19, 2022.
- “Robust growth from our Engineering Services segment, strong performance of our Nuclear and O&M segments and the sustained strong bidding activities further underpins our confidence in delivering on our full-year 2022 outlook,” commented CEO Ian L. Edwards.
- FY22 Outlook reaffirmed: SNC-Lavalin expects SNCL Services organic revenue growth of 4%-6%; SNCL Services segment Adjusted EBIT to segment revenue ratio of 8%-10%.
- It expects net cash generated from operating activities of C$0 - C$100 million.
- Price Action: SNC shares are trading lower by 13.7% at C$24.88 on TSX, and SNCAF is lower by 10.97% at $19.64 on the last check Thursday.
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