MONTREAL — After a year of huge revenues and record backlogs, Atkins Realis Group CEO Ian Edwards said artificial intelligence is a key path to expansion and efficiency, and sought to allay concerns that AI could significantly eat into demand for engineers.
“We see AI as a powerful enabler for our business, but we don’t see it as a disruptor,” Edwards told analysts on a conference call, describing engineering as a “judgement-based profession.”
The chief executive said the company plans to take a “disciplined” approach to acquisitions in 2026 and said merger activity is likely to accelerate as the technology offers capabilities that favor larger organizations.
“It’s going to become increasingly difficult for small and medium-sized businesses to invest in AI. Companies like ours that have the scale and balance sheet and can deploy AI at scale are going to have a clear ultimate advantage from a cost-based perspective,” he said.
Edwards determined that it will likely take one to two years for the unifying effects of AI to begin to materialize.
He said the company is implementing a suite of design, modeling, surveying and safety tools during the bidding process. It is also rolling out technology for support operations and data collection, with AI tools playing a role in departments ranging from human resources and safety inspections to tax and finance.
“We see AI as a real advantage that will enable our business to grow and enable a lower cost base,” Edwards summed up.
In the latest quarter, Atkins Realis’ backlog increased 22% to a record $21.21 billion from $17.45 billion in the year-ago period. This increase was due to new contracts signed in the Engineering Services and Nuclear sectors.
The company also reported fourth-quarter profits of $95 million, an 81% year-over-year increase.
Edwards wasn’t the only CEO to address concerns about AI this week.
WSP Global CEO Alexandre L’Heureux said the company remains more insulated from AI disruption than other sectors, largely due to the complexity of the infrastructure projects it manages.
“In recent months, many stakeholders have painted all professional services firms with the same AI brush, and I fear we are on the verge of an era in which advanced AI will replace companies like WSP,” Leroux told analysts.
But in the context of AI, he says, lumping diverse industries together makes little sense.
“AI cannot negotiate with the city council regarding building permits, and it certainly cannot be held accountable before a specialized committee if something goes wrong,” he says.
Like Edwards, L’Heureux said the technology presents an opportunity for WSPs, allowing them to do more with their data and help build the power plants needed to take advantage of the technology.
Atkins Réalis reported revenue totaling $2.93 billion for the quarter ended Dec. 31, up from $2.59 billion in the year-ago period.
The Montreal-based company, formerly known as SNC-Lavalin, reported adjusted earnings from professional services and project management of 97 cents per diluted share, up from 26 cents a year earlier and about the same level as analysts expected, according to financial markets firm LSEG Data & Analytics.
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