Stantec Inc

STN

Equity

ISIN CA85472N1096 / Valor 970716

Toronto Stock Exchange (2024-12-24)

CAD 114.54+0.52%

Stantec Inc
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About company

Stantec Inc is a global design firm that has evolved significantly since its founding in 1954 as D. R. Stanley Associates in Edmonton. Over the years, the company has grown through strategic acquisitions and expansions, with milestones including being listed on the Toronto Stock Exchange in 1994 and completing its largest-ever acquisition of MWH Global in 2016. With a focus on providing top-tier design services to clients around the world, Stantec has established a strong presence in various regions across 6 continents, boasting a team of approximately 22,000 employees in over 400 locations. The company's core mission revolves around creating communities and designing with community in mind, as evidenced by its new brand positioning launched in 2013. In recent years, Stantec has continued to expand its global footprint through acquisitions in Australia, New Zealand, and the United Kingdom, solidifying its position as a leading player in the design industry.

Summarized from source with an LLMView SourceSector: Industrials

Revenue Growth

In the third quarter of 2024, Stantec Inc. reported a significant increase in net revenue, which rose by 15.8% or $208.0 million, reaching a total of $1.5 billion. This growth was primarily driven by a combination of 7.8% acquisition growth and 6.5% organic net revenue growth. The company experienced organic growth across all regional and business operating units, with notable double-digit growth in its Water and Buildings sectors.

Project Margin

Stantec Inc.'s project margin for Q3 2024 increased by 14.8% or $107.0 million, totaling $828.1 million. However, as a percentage of net revenue, the project margin decreased by 50 basis points to 54.3%. This slight decline was attributed to a minor shift in project mix and certain project recoveries and change order approvals that occurred in the prior period.

Adjusted EBITDA

For the third quarter of 2024, Stantec Inc. reported an adjusted EBITDA of $274.6 million, marking a 13.8% increase or $33.3 million compared to the same period in 2023. The adjusted EBITDA margin was 18.0%, which was in line with the company's expectations. The margin decreased by 30 basis points compared to Q3 2023, primarily due to lower project margins and higher administrative and marketing expenses.

Net Income

Stantec Inc.'s net income for Q3 2024 increased by 1.9% or $1.9 million, reaching $103.2 million. The diluted earnings per share (EPS) was $0.90, which was largely consistent with the $0.91 reported in Q3 2023. The increase in net income was driven by strong net revenue growth, although it was partly offset by a non-cash lease impairment charge of $13.7 million and higher administrative and marketing expenses.

Adjusted Net Income and EPS

In the third quarter of 2024, Stantec Inc.'s adjusted net income grew by 16.7% or $21.2 million, totaling $147.9 million, which represented 9.7% of net revenue. The adjusted diluted EPS increased by 14.0% or $0.16, reaching $1.30. The revaluation of the long-term incentive plan (LTIP) had a positive impact of $0.03 on the Q3 2024 adjusted diluted EPS, compared to a negative impact of $0.05 in Q3 2023.

Summarized from source with an LLMView Source

Key figures

9.63%1Y

63.2%3Y

209%5Y

Performance

19.5%1Y

21.2%3Y

23.3%5Y

Volatility