Stantec Inc

Latest Results (13.02.2026):

Stantec Inc. — Q3 2025: Stantec reported strong Q3 2025 results (all amounts in Canadian dollars), with net revenue of $1,705.4 million (up 11.8% vs. Q3 2024), record adjusted net income of $174.1 million and adjusted EPS of $1.53, plus solid operating cash flow and backlog growth supporting continued investment and acquisitions.

Revenue and growth

Q3 2025 net revenue was $1,705.4M (+11.8% YoY: +5.6% organic, +5.2% acquisition). Year‑to‑date net revenue was $4,855.1M (+10.6% YoY). Foreign‑exchange added ~$16.1M in Q3 and ~$93.7M YTD.

Profitability and margins

Project margin rose to $927.9M in Q3 (54.4% of net revenue, up 10 bps YoY). Adjusted EBITDA for Q3 was $323.4M (19.0% margin, +100 bps YoY). Adjusted net income was a record $174.1M (10.2% margin, +17.7% YoY).

Net income and EPS

Reported net income for Q3 was $150.0M (diluted EPS $1.32, +46.7% YoY). Adjusted EPS was $1.53 (up 17.7% YoY). YTD diluted EPS was $3.38 and adjusted EPS was $4.05.

Backlog and pipeline

Contract backlog at September 30, 2025 was $8.4B, up 14.9% YoY (organic +5.6%, acquisitions +6.8%), representing roughly 13 months of work and supporting near‑term revenue visibility.

Cash flow and working capital

Operating cash inflow was $315.9M for the quarter and $550.6M YTD (YTD +86% YoY). Days Sales Outstanding (DSO) improved to 73 days (below internal guideline of 80 days). Working capital was $620.2M and current ratio ~1.27.

Leverage and capital management

Net debt was $1,637.2M and net debt to trailing‑12‑month adjusted EBITDA was 1.5x (within Stantec’s target <2.0x). Debt increased to fund acquisitions; the company issued senior unsecured notes and added a US$100M bilateral revolver.

Acquisitions and strategic moves

Stantec completed several strategic acquisitions in 2025, most notably Page (July 31, 2025), plus Ryan Hanley and Cosgroves; these contributed materially to Buildings and Water revenue and increased goodwill, intangibles, lease assets and related debt.

Outlook and guidance

Stantec reaffirmed 2025 targets: net revenue growth 10–12%; adjusted EBITDA margin revised up and narrowed to 17.2–17.5%; adjusted EPS growth target 18.5–21.5% vs. 2024. The company expects Q4 seasonality to temper margin temporarily and an effective tax rate of ~23.5–24.5%.

Taxes, other items and shareholder returns

Effective tax rate was 24.5% in Q3 (24.1% YTD). Other income included a $3.7M gain on sale of an investment YTD. The Board declared a quarterly dividend of $0.225/share payable Jan 15, 2026 (record date Dec 31, 2025).