OTTAWA (dpa-AFX) - SNC-Lavalin (SNC.TO) said the company is making a substantial commitment to deliver growth and target positive cash flows, which should position it to grow organically and inorganically. The company released, Pivoting to Growth Strategy, its three-year global strategic plan.
As part of the plan, SNC-Lavalin will focus its efforts on its three core regions- United Kingdom, Canada and the United States. The company will also maintain more targeted operations in select markets in Europe, the Middle East, Asia-Pacific, and Latin America. Within these geographies, SNC-Lavalin will focus on seven customer end markets: transportation, buildings and places, defence, water, industrial and mining, power and renewables, and nuclear.
The company said its growth strategy may also be accelerated through organic and inorganic investments. Depending on cash resources, surplus capital may be returned to shareholders through share buybacks or dividend growth.
The company has also undertaken an operational realignment of the business. The new global market-facing structure will be effective January 1, 2022.
As part of the plan, SNCL Services target of 4% to 6% annual organic revenue growth and 8% to 10% segment adjusted EBIT to segment revenue ratio from 2022-2024.
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