Author argues AtkinsRéalis is an underappreciated nuclear engineering play because it owns CANDU reactor technology and should benefit from nuclear revival and government/international CANDU deals while trading at a discount.
ATRL.TO — LONG The author claims AtkinsRéalis is a 'de-risked' nuclear investment that is overlooked by investors focused on uranium producers. The mechanism is ATRL's ownership of Candu Energy and the CANDU reactor design, giving it an engineering and services position in nuclear construction with high barriers to entry and exposure to Canada and international CANDU projects in India, China, Romania, South Korea, and Argentina. Catalysts include a Canadian government contribution of $304M for CANDU technology development and rising nuclear demand as electricity needs grow 40-50% by 2035, while ATRL trades at a discount to peers despite double-digit revenue growth since 2020. The author notes the historical SNC-Lavalin scandal as why the stock fell under the radar.
One of the most overlooked parts of ATRL is its nuclear business. With governments reconsidering nuclear for energy security and decarbonization, ATRL is positioned as an engineering and services provider. ATRL owns Candu Energy, which owns the CANDU nuclear reactor design.