SNC Lavalin (TSX:SNC) passed through a major scandal at the end of the previous decade. The Quebec-based company offers engineering services, project management, construction, procurement, and operations and maintenance products. Its shares plunged to their lowest point in 15 years due to the impact of the SNC-Lavalin Affair.
In 2019, The Globe and Mail reported that Prime Minister Justin Trudeau’s office had attempted to influence its Minister of Justice to rule in the company’s favour. The following months saw the company and the Prime Minister’s office under siege. However, two years later Trudeau has won re-election and SNC-Lavalin stock has climbed 57% in the year-to-date period as of close on October 19.
Investors can expect to see its third-quarter 2021 results in late October. In Q2 2021, SNC-Lavalin delivered Engineering Services revenue growth of 2.4% to $1.5 billion. Meanwhile, its Engineering Services backlog rose 1.1% to $11.1 billion. SNC-Lavalin saw its Engineering Services Segment deliver adjusted EBIT of $145 million. That represented a 9.6% margin, an improvement of 63 basis points over the previous year.
Shares of SNC-Lavalin are trading in favourable territory relative to its industry peers. It last paid out a quarterly dividend of $0.02 per share. That represents a modest 0.2% yield. This is still a stock worth snagging in late October as it looks to have put the worst behind it.
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