SNC Lavalin (TSX:SNC) is a 110-year-old company that has adapted through more than a century of disruption and technological change. The year 2020 was an important reminder of the fundamental role that engineering occupies in helping to meet critical needs and facilitate societal transformation. Last year, SNC-Lavalin rose to the challenge, while advancing the company’s own transformation.
Contributing to sustainable infrastructure and net-zero carbon emissions
SNC-Lavalin plays an important role in designing, assessing, testing and project managing environmentally sustainable infrastructure, which includes light rail transit, carbon-free nuclear energy, electric aircraft, hydrogen storage, wind energy, or the use of data and digital technology and modular manufacturing to reduce the environmental footprint of construction.
Providing energy to six million homes
Further, SNC-Lavalin’s nuclear services business, which has continued to grow this year with strong earnings before interest and taxes (EBIT) margins, is an important partner in the carbon net-zero targets of several countries. Over the past year, SNC-Lavalin has won new mandates from Korea to Romania and the U.K, where the company is in the midst of a 10-year program to build a new nuclear power station that will provide energy to six million homes and furnish 7% of the country’s electricity.
Working on large clean energy projects
In the U.S., SNC-Lavalin is working with the federal government on the nationwide deactivation and renewal of nuclear sites. Some of the company’s most important nuclear work, however, is happening in Canada. SNC-Lavalin is working on the country’s two largest clean energy projects, which include the refurbishment of the Darlington nuclear generating station and Bruce Power, which together supply approximately half of Ontario’s energy.
Reducing dependency on carbon-emitting power sources
In addition, SNC-Lavalin is also quickly pivoting the company’s nuclear expertise and propriety CANDU technology to move into the evolving field of small modular reactors, which has become a priority for governments looking to reduce dependency on carbon-emitting power sources.
Managing climate change risks
In Louisiana, SNC-Lavalin was recently awarded a contract to support the state’s flood mitigation efforts, an important consideration for managing climate change risk. This work builds on the expansion of SNC-Lavalin’s U.S. business, one of the company’s core markets.
Expanding presence in strategic locations
Over the past year, SNC-Lavalin has won new mandates with the department of transportation in the states of Texas, Georgia, North Carolina, and Louisiana. SNC-Lavalin has also expanded the company’s presence in southern California to support new work on the Los Angeles metro, airport, and port.
Growing digital expertise on a number of projects
Furthermore, SNC-Lavalin continues to deploy the company’s growing digital expertise on a number of projects that will help reduce environmental footprint and transform legacy infrastructure. A great example of this is in the U.K., where SNC-Lavalin has been chosen to lead the digital transformation of the East Coast Main Line railway and improve network performance.
Bright future outlook
Overall, SNC-Lavalin appears well-positioned to take advantage of the global demand for infrastructure solutions. Long-term shareholders look set to continue to be well served by SNC-Lavalin.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.