SNC Lavalin beats earnings expectations as engineering services in hot demand in U.S. - constructconnect.com - Daily Commercial News

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.SNCLavalin raised its financial forecast for the year on the heels of healthy organic revenue growth, as the company chipped away at a costly backlog of big, over-budget rail contracts.

Economic, US NewsMONTREAL — SNC-Lavalin Group Inc. raised its financial forecast for the year on the heels of healthy organic revenue growth, as the company chipped away at a costly backlog of big, over-budget rail contracts.

SNC hit organic revenue growth “out of the park,” said Desjardins analyst Benoit Poirier in a note to investors. Edwards pointed to the massive funding injection from the U.S. government via the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. He also cited “key wins this quarter” related to electric vehicle battery plants.

SNC knocked another $96 million off its LSTK backlog from three months earlier, reducing it to a still hefty $422 million – but down from $828 million a year prior. “Testing and commissioning on our two Ontario projects is proceeding as scheduled. Our last project, REM, continues to progress well, with the South Shore portion having successfully opened on July 31,” said Edwards – though the inauguration was marred by three disruptions.

 

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