SNC-Lavalin to focus on its three main regions – Quick Facts
(RTTNews) – SNC-Lavalin (SNC.TO) said the company is strongly committed to driving growth and targeting positive cash flow, which should position it for organic and inorganic growth. The company has published, Pivoting to Growth Strategy, its three-year global strategic plan.
As part of this plan, SNC-Lavalin will focus its efforts on its three main regions: the United Kingdom, Canada and the United States. The company will also maintain more focused operations in certain markets in Europe, the Middle East, Asia-Pacific and Latin America. In these geographic areas, SNC-Lavalin will focus on seven customer end markets: transportation, buildings and premises, defense, water, industrial and mining, renewable energy and energy, and nuclear.
The company said its growth strategy could also be accelerated through organic and inorganic investments. Depending on liquidity, excess capital can be returned to shareholders through share buybacks or dividend growth.
The company has also undertaken an operational realignment of the business. The new market-oriented global structure will come into effect on January 1, 2022.
As part of this plan, SNCL Services is targeting annual organic revenue growth of 4% to 6% and an adjusted segment EBIT to segment revenue ratio of 8% to 10% from 2022 to 2024.
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