Procter & Gamble's Restructuring Signals a Larger Shift: Why Nuclear Energy's “Toll Booth” Plays Are the Next Big Bet

The global economy is at an inflection point. Procter & Gamble (PG) recently announced sweeping job cuts and restructuring efforts to combat rising costs from tariffs and energy inefficiencies—a stark reminder of the pressures facing industries reliant on traditional operational models. But this isn't just a story about consumer goods; it's a warning about the urgent need for modern, efficient energy infrastructure. Enter AtkinsRéalis Group Inc. (ATRL), a nuclear energy Engineering, Procurement, and Construction (EPC) firm positioned to profit as artificial intelligence (AI) and data-driven systems fuel a surge in energy demand.

The PG Restructuring: A Mirror for the Economy's Challenges

Procter & Gamble's decision to cut 7,000 jobs (6% of its global workforce) and streamline operations underscores a broader truth: cost pressures are no longer optional to address. Tariffs, inflation, and supply chain inefficiencies have forced PG to pivot toward energy-efficient, lean operations. The company's $600 million annual tariff-related headwind and focus on core brands like Tide and Pampers highlight a strategic shift toward profitability over scale.

But PG's struggles aren't isolated. Companies across industries are grappling with the same issues: rising energy costs, geopolitical volatility, and the need to adapt to AI-driven systems that demand massive amounts of energy. Data centers, autonomous vehicles, and advanced manufacturing—all powered by AI—require reliable, scalable energy solutions. This creates a paradox: the very technologies driving growth today are also straining existing infrastructure.

The Energy Infrastructure Gap—and Who's Filling It

The solution lies in nuclear energy, a high-capacity, low-carbon power source capable of meeting AI's energy needs. But building new nuclear plants or modernizing existing ones requires specialized expertise: enter EPC firms like AtkinsRéalis.

AtkinsRéalis isn't just a construction company. It's a “toll booth” for the energy transition:
- Nuclear Dominance: Its nuclear segment generated $538.3 million in Q1 2025 revenue (up 80% year-over-year), with a backlog exceeding $5.2 billion—a record high. This segment focuses on reactor life extensions and new projects, directly addressing the energy needs of data centers and industrial AI applications.
- Low Debt, High Flexibility: With a debt-to-EBITDA ratio of 1.1—among the lowest in its sector—AtkinsRéalis has the financial strength to bid on large projects without overleveraging.
- AI's Quiet Enabler: While not an AI company, AtkinsRéalis uses AI tools like pyMAISE (a University of Michigan-developed platform) to optimize reactor designs and safety protocols. This integration reduces costs and speeds up project timelines, making nuclear energy more competitive.

Why AtkinsRéalis Is the Hidden AI Play

The buy thesis hinges on two overlooked factors:
1. AI's Energy Appetite: A single data center can consume as much power as a small city. As AI adoption surges—think self-driving cars, smart grids, or industrial automation—the demand for reliable, carbon-efficient energy will skyrocket. Nuclear plants, managed by firms like AtkinsRéalis, are the only scalable solution.
2. Undervalued Toll Booth: AtkinsRéalis isn't just building reactors; it's creating the infrastructure that underpins the AI economy. Its backlog and low debt position it to capitalize on a $1.3 trillion global nuclear energy market expected to grow through 2030.

Risks and Opportunities

• Regulatory Hurdles: Nuclear projects face strict safety and environmental regulations. But AtkinsRéalis's focus on transparency (via tools like pyMAISE) and legacy partnerships mitigates this risk.
• Commodity Volatility: Steel and uranium prices could impact margins. However, the company's long-term contracts with utilities lock in pricing, reducing exposure.

The Bottom Line: Buy AtkinsRéalis

AtkinsRéalis is a “Buy” with a price target of $55 (up from current $42/share). Key catalysts include:
- Q4 2025 earnings: Expected to show further backlog growth and margin expansion.
- U.S. and EU nuclear subsidies: Governments are prioritizing nuclear as part of energy security plans.

In a world where even PG must slash costs to survive, AtkinsRéalis represents the future: a debt-free, AI-optimized firm building the infrastructure that powers tomorrow's economy. This is more than a stock—it's a bet on the energy backbone of the AI era.

Disclosures: The author holds no position in ATRL. Research is for informational purposes only.