Stantec Inc
TSX:STN
Stantec Inc
Stantec Inc., a global design and delivery company, weaves its narrative across communities around the world through its multifaceted approach to engineering, architecture, and environmental sciences. Founded in 1954 as a one-man operation in Edmonton, Alberta, Stantec's initial focus was on civil engineering projects. Over time, the company evolved by expanding its expertise and geographic reach, transforming into a multinational powerhouse that delivers consulting services in sectors such as infrastructure, water, buildings, and energy. This adaptability has been a cornerstone of Stantec's continued relevance and growth, allowing it to remain at the forefront of both innovative project design and sustainable practice.
The financial engine of Stantec is driven by its diversified portfolio of services. The company's revenue is primarily generated by offering consulting, design, and project management services to both public and private sector clients. With an integrated approach, Stantec tackles projects from initial concept through to completion, ensuring value through each stage in sectors like transportation, urban development, and environmental management. By operating through a network of local experts backed by global knowledge, Stantec effectively responds to complex client needs, fostering long-term partnerships. This model not only secures a consistent stream of projects but also creates opportunities for cross-selling services, thereby maximizing revenue and stabilizing growth across varied market conditions.
Stantec Inc., a global design and delivery company, weaves its narrative across communities around the world through its multifaceted approach to engineering, architecture, and environmental sciences. Founded in 1954 as a one-man operation in Edmonton, Alberta, Stantec's initial focus was on civil engineering projects. Over time, the company evolved by expanding its expertise and geographic reach, transforming into a multinational powerhouse that delivers consulting services in sectors such as infrastructure, water, buildings, and energy. This adaptability has been a cornerstone of Stantec's continued relevance and growth, allowing it to remain at the forefront of both innovative project design and sustainable practice.
The financial engine of Stantec is driven by its diversified portfolio of services. The company's revenue is primarily generated by offering consulting, design, and project management services to both public and private sector clients. With an integrated approach, Stantec tackles projects from initial concept through to completion, ensuring value through each stage in sectors like transportation, urban development, and environmental management. By operating through a network of local experts backed by global knowledge, Stantec effectively responds to complex client needs, fostering long-term partnerships. This model not only secures a consistent stream of projects but also creates opportunities for cross-selling services, thereby maximizing revenue and stabilizing growth across varied market conditions.
Strong Revenue Growth: Net revenue for Q3 reached $1.7 billion, up nearly 12% from last year, fueled by both organic and acquisition growth over 5%.
Record Margins: Adjusted EBITDA margin hit an all-time high of 19%, up 100 basis points year-over-year, with adjusted EPS increasing 17.7% to $1.53.
Robust Backlog: Contract backlog rose to $8.4 billion, up almost 15% year-over-year, providing approximately 13 months of work.
Cash Flow Surge: Year-to-date operating cash flows soared by 86% to $551 million, driven by revenue growth and strong collections, with DSO improving by 4 days.
Guidance Raised: Stantec increased its adjusted EBITDA margin outlook to 17.2%–17.5% for the full year and expects adjusted EPS growth of 18.5%–21.5%.
Broad-Based Demand: Water, Energy & Resources, and Infrastructure sectors showed double-digit organic growth across geographies, with significant contributions from recent acquisitions.
Positive 2026 Outlook: Management expressed strong momentum entering 2026, supported by global water infrastructure spending, energy transition, and diversified end-market exposure.
