AtkinsRéalis and the CANDU Nuclear Renaissance: A Strategic Bet on Energy Security and Domestic Innovation

The global energy landscape is undergoing a seismic shift, driven by the urgent need to decarbonize while meeting surging electricity demand. In this context, nuclear energy—long sidelined by cost overruns and public skepticism—is re-emerging as a cornerstone of clean, reliable power. At the forefront of this renaissance is AtkinsRéalis, a Canadian engineering and nuclear technology leader, which is leveraging its deep expertise in CANDU reactor technology to unlock economic value through state-of-the-art infrastructure projects and supply chain leadership. For investors, this represents a compelling long-term opportunity rooted in energy security, technological innovation, and strategic government backing.

The CANDU Advantage: A Proven Foundation for the Future

AtkinsRéalis' dominance in the CANDU reactor ecosystem is not accidental. The CANDU (Canada Deuterium Uranium) reactor, a pressurized heavy-water design, has been a global success for over six decades. Its ability to use unenriched uranium and co-produce medical isotopes like Cobalt-60 gives it a unique edge in both energy and healthcare. By 2025, AtkinsRéalis has secured a $450 million execution contract for the first of four BWRX-300 small modular reactors (SMRs) at Ontario's Darlington site—a project that will deliver 300 megawatts of power for 300,000 homes by 2030. This marks Canada's first new nuclear build in 30 years and the first grid-scale SMR in a G7 nation.

The strategic significance of this project cannot be overstated. SMRs like the BWRX-300 are modular, scalable, and inherently safer than traditional reactors, making them ideal for decentralized energy systems. For AtkinsRéalis, the Darlington project is a showcase of its end-to-end capabilities: from licensing and engineering to digital delivery and commissioning. The company's partnership with GE Vernova Hitachi and Aecon Kiewit Nuclear Partners further strengthens its ability to execute complex, high-stakes projects on time and on budget—a rarity in the nuclear sector.

Supply Chain Leadership and Economic Value

AtkinsRéalis' strength extends beyond reactor design. The CANDU supply chain is 85% Canadian, supporting over 89,000 jobs nationwide and creating a robust ecosystem of 250+ domestic companies. This localization is a strategic asset in an era of geopolitical fragmentation and energy nationalism. For example, the Pickering Nuclear Generating Station's Retube, Feeder, and Boiler Replacement (RFBR) project—a $2.1 billion life extension initiative—will sustain thousands of high-skilled jobs while extending the operational life of four reactors until the mid-2060s.

The company's recent memorandum of understanding (MOU) with Argentina's National Atomic Energy Commission (CNEA) to restart heavy water production at the Neuquén plant further underscores its supply chain acumen. Heavy water is critical for CANDU reactors, and securing its long-term availability ensures operational continuity. Plans to establish similar facilities in Canada could also boost domestic job creation and energy security, positioning the country as a global leader in nuclear inputs.

Government Support and the Path to Next-Gen CANDU

The Canadian government's $304 million loan to AtkinsRéalis for next-generation CANDU development is a testament to the company's role in national energy strategy. This funding will accelerate the evolution of the Darlington reactor model into the CANDU MONARK™, a reactor designed for improved economic and environmental performance. With climate goals tightening and electricity demand in Ontario projected to rise by 75% by 2050, the government's backing is both a vote of confidence and a catalyst for innovation.

Investment Thesis: A Long-Term Play on Energy Transition

For investors, AtkinsRéalis represents a rare convergence of technological leadership, supply chain resilience, and policy tailwinds. The company's backlog—bolstered by contracts like the Pickering RFBR and Darlington SMR—provides visibility into future cash flows, while its expertise in both large and small reactor technologies positions it to capitalize on the global SMR boom.

However, risks remain. Nuclear projects are capital-intensive and subject to regulatory delays. Yet, AtkinsRéalis' track record—such as the on-time, on-budget completion of the Darlington Refurbishment Project—demonstrates its ability to mitigate these challenges. Additionally, the company's focus on nuclear environmental remediation and decommissioning diversifies its revenue streams and aligns with the growing emphasis on legacy site management.

Conclusion: Engineering a Sustainable Future

AtkinsRéalis is not just building reactors; it is engineering a sustainable energy future. By combining its CANDU heritage with cutting-edge SMR technology and a localized supply chain, the company is addressing the twin challenges of decarbonization and energy security. For investors with a long-term horizon, this is a strategic bet on a sector poised for decades of growth. As the world grapples with climate change and energy scarcity, AtkinsRéalis stands at the intersection of innovation and infrastructure—a position that promises both economic value and societal impact.

Investment Advice: Consider a long-term position in AtkinsRéalis, particularly for portfolios seeking exposure to the energy transition. Monitor regulatory developments and project milestones, and use volatility in the stock price as an opportunity to accumulate shares at attractive valuations.