SNC-Lavalin Group (SNC) says it is undertaking a strategic review of its business after the Montreal-based engineering firm reported a fourth quarter net loss of $54.4 million.
The company’s latest loss was 256% greater than a loss of $15.3 million reported in the final quarter of 2021.
SNC-Lavalin blamed the hefty loss on challenges it experienced with turnkey engineering and construction projects and said it is conducting a strategic review to help optimize its business.
In speaking with analysts and media, SNC-Lavalin executives said they also continue to work through issues such as supply chain disruptions and cost overruns due to inflation.
In terms of revenue, SNC-Lavalin earned $1.90 billion in the three months ended December 31, 2022, down 2% from $1.94 billion a year earlier.
SNC's engineering segment boosted its backlog of contracts to a record of $4.66 billion during Q4. However, the company’s professional services and project management operations posted a loss of $0.19 per share compared with a loss of $0.15 per share a year earlier.
SNC-Lavalin’s stock has increased 5% over the past year to trade at $29.39 per share.
