The energy sector has outperformed thus far in 2024, but some stocks outside the sector have incredible and proven growth potential. Two companies that have rebranded and one heavy metal mining company are TSX’s future giants.
AtkinsRéalis (TSX:ATRL), formerly SNC-Lavalin, continues to win contract awards in the engineering and construction industry. Mattr Corp. (TSX:MATR), formerly Shawcor, is now a growth-oriented, global materials technology company serving critical infrastructure markets. NexGen Energy (TSX:NXE) is developing the Rook I Project, the world’s largest, low-cost producing uranium mine.
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Multiple contract wins
AtkinsRéalis is always in the news due to successive contract awards. In 2023, service revenue and backlog rose 20.8% and 16.1% year over year to record highs of $8 billion and $13.7 billion. Notably, adjusted net income climbed 143% to $274.1 million versus 2022.
Its president and chief executive officer (CEO), Ian L. Edwards, noted the exceptional results across businesses and in core geographies. The $9.44 billion fully integrated professional services and project management company operates globally but has implemented a new operational structure to sustain growth.
AtkinsRéalis won a $40 million contract to provide general engineering services for the Georgia Department of Transportation. The operations and maintenance work at the Centre Hospitalier de l’Université de Montreal, one of Canada’s largest hospital centres, spans 26 years.
The most recent contract win is for the new Île d’Orléans Bridge developed by Quebec’s Department of Transportation and Sustainable Mobility. ATRL trades at $53.15 per share and pays a modest 0.15% dividend. But with multiple contracts pouring in, expect the share price to soar in 2024 and beyond.
Significant opportunities
Last year was a breakout year for Mattr. Besides the revenue rising 7.4% year over year to $925.3 million, net income reached $87.2 million compared to the $30.9 million net loss in 2022. The $1.1 billion company operates a network of fixed manufacturing facilities and derives revenue from the Composite Technologies and Connection Technologies business segments.
Mattr is present in the communication, electrification, energy, transportation, and water management markets. Its president and CEO, Mike Reeves, said, “Our businesses serve large and growing end markets; we have a robust balance sheet, significant opportunities for investment in high-return organic growth and the capacity to seek and complete meaningful, accretive acquisitions.”
Based on market analysts’ buy rating, the upside potential in one year is 68.4%. The current share price is $16.63.
Growing demand
NexGen Energy owns a portfolio of highly prospective projects, and Rook I is the prime project. The $6.13 billion company sees a growing demand for uranium (127% and 200% by 2030 and 2040) and envisions delivering clean, secure energy solutions.
The growth potential is on the horizon, given that uranium fuels nuclear power plants. Because of climate change, demand and new investments in nuclear energy are fast-rising. According to management, 70% of demand comes from Organization for Economic Cooperation and Development (OECD) countries.
Besides the Rook I’s robust economics and high-grade production, its initial mine life is 10.7 years. NextGen can provide reliable, flexible supply. At $11.19 per share, investors are up 20.7% year to date.
Real deals
AtkinsRéalis, Mattr, and NexGen Energy are real deals, not speculative investments. Growth investors can take positions now before the stock price skyrockets.
