Group 1 - The article emphasizes the importance of investing in high-quality stocks and businesses that are managed by disciplined capital allocators [1] - It highlights the characteristics of preferred businesses, which include exceptional returns on capital and the ability to compound invested capital over long periods [1]

Stantec Inc. (NYSE:STN) Q4 2024 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Gord Johnston - President and Chief Executive Officer Vito Culmone - Executive Vice President and Chief Financial Officer Conference Call Participants Sabahat Khan - RBC Krista Friesen - CIBC Chris Murray - ATB Capital Markets Frederic Bastien - Raymond James Yuri Lynk - Canaccord Genuity Michael Tupholme - TD Cowen Benoit Poirier - Desjardins Devin Dodge - BMO Capital Markets Maxim Sytchev - NBF Jonat ...

Q4 and Year End 2024 Results Presentation February 25, 2025 Cautionary statement This presentation contains non -IFRS and other financial measures and forward -looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward - looking statements since a number of factors could cause actual future results to differ materially from the targets and expectations expressed. Non -IFRS and other financial measures do not ha ...

Core Viewpoint - Stantec reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.60 per share a year ago, indicating a strong performance in the engineering sector [1][2]. Financial Performance - The company achieved revenues of $1.06 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.49%, compared to $912.51 million in the same quarter last year [2]. - Over the last four quarters, Stantec has consistently surpassed consensus EPS estimates, indicating a positive trend in financial performance [2]. Stock Performance and Outlook - Stantec shares have declined approximately 2.7% since the beginning of the year, contrasting with the S&P 500's gain of 1.7%, suggesting underperformance relative to the broader market [3]. - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.08 billion, and for the current fiscal year, it is $3.44 on revenues of $4.5 billion [7]. Industry Context - The Consulting Services industry, to which Stantec belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, which may negatively impact stock performance [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5].

Annual Report FEBRUARY 24, 2025 TABLE OF CONTENTS 3 Letter to Shareholders 4 Financial Highlights 6 About Stantec 7 Business Operating Units 8 Sustainability Leadership M-1 Management's Discussion and Analysis F-1 Financial Statements 2 2024 STANTEC ANNUAL REPORT MESSAGE FROM OUR CEO AND BOARD CHAIR Another year of record performance 2024 was another year of record performance for Stantec. Early in the year we completed three strategic acquisitions: ZETCON in Germany, Morrison Hershfield in Canada, and Hydr ...

Core Insights - Stantec achieved record financial results in 2024, with net revenue increasing by 15.8% to $5.9 billion, driven by both organic growth of 7.4% and acquisition growth of 7.5% [3][11] - The company reported a record adjusted EBITDA margin of 16.7% and diluted earnings per share (EPS) of $3.17, reflecting strong project execution and operational excellence [3][11] - Stantec's strategic focus on addressing macro challenges such as water security and climate change positions it for continued growth in 2025, with projected net revenue growth of 7% to 10% [5][8] Financial Performance - For the fourth quarter of 2024, Stantec's net revenue grew by 19.0% to $1.5 billion, with organic growth of 9.3% and acquisition growth of 7.6% [4][16] - Adjusted EBITDA for the year reached $980.3 million, an increase of 18.0% compared to 2023, with a margin of 16.7% [7][11] - The company reported a backlog of $7.8 billion, up 24.1% from the previous year, indicating strong future revenue potential [7][20] 2025 Outlook - Stantec anticipates net revenue growth of 7% to 10% in 2025, with organic growth expected in the mid- to high-single digits across its US and Canadian operations [6][8] - The adjusted EBITDA margin is projected to range from 16.7% to 17.3%, supported by strong project margins and operational efficiencies [9][10] - The company aims for adjusted EPS growth of 16% to 19% compared to 2024, with adjusted net income expected to exceed 8.8% of net revenue [10][11] Segment Performance - In 2024, Stantec achieved double-digit organic growth in its Water and Buildings sectors, with notable performance in the US market [11][18] - The company reported strong organic growth rates of 8.6% in the US, 6% in Canada, and 5.8% globally [7][18] - The project margin increased to 54.5% of net revenue, reflecting effective project execution and management [11][16] Dividend Declaration - On February 24, 2025, Stantec's Board of Directors declared a dividend of $0.225 per share, representing a 7.1% increase from the previous dividend [12][17]

Core Insights - Stantec and Drees & Sommer have been selected for a €3.2 billion semiconductor assembly and test facility for Silicon Box in Northern Italy, marking a significant investment in the European semiconductor ecosystem [1][2][3] Company Overview - Stantec is recognized as a global leader in sustainable design and engineering, providing architecture and infrastructure design services for the new facility [1][5] - Drees & Sommer specializes in consultation and implementation services across real estate, infrastructure, and industrial markets, contributing industrial engineering and clean room design services for the project [3][5] Project Details - The facility is set to begin operations in 2028 and is expected to create approximately 1,600 jobs in the region [2] - This facility will be Silicon Box's second asset, emulating its advanced automated facility in Singapore, which focuses on large-format panel-level semiconductor packaging solutions [2][4] Strategic Importance - The expansion into Italy is seen as a catalyst for a more secure and robust electronics supply chain in Europe, aligning with the goals of the Italian government and the European Commission [3][7] - The project aims to enhance Italy's competitive strengths in key technology initiatives such as artificial intelligence, electric vehicles, and edge computing [6][7] Sustainability Commitment - Stantec's design will adhere to high environmental standards, focusing on sustainability and minimizing environmental impact, in line with European Commission requirements [7][5] Broader Industry Context - The new facility is part of Silicon Box's broader investment strategy in the semiconductor industry, reflecting a commitment to innovation and resilience in the supply chain [7] - Stantec is also involved in other major advanced manufacturing projects, including a $2.5 billion solar power manufacturing facility and a £4 billion battery plant [9]

Core Insights - Stantec, a global leader in sustainable design and engineering, will release its fourth quarter and full-year 2024 financial results on February 25, 2025, before market opening [1] - A webcast and conference call to discuss the financial performance will take place on the same day at 2:30 PM Mountain Time (4:30 PM Eastern Time) [1][2] - The conference call will be hosted by the president and CEO, Gord Johnston, and the executive vice president and CFO, Vito Culmone [1] Company Overview - Stantec is recognized for empowering clients, people, and communities to address significant global challenges, particularly in sustainable architecture, engineering, and environmental consulting [4] - The company focuses on managing issues such as aging infrastructure, demographic changes, and the energy transition [4] - Stantec emphasizes the importance of diverse perspectives from various stakeholders to tackle critical issues like climate change and digital transformation [5] Communication and Participation - The conference call and slideshow presentation will be broadcast live and accessible on the Events and Presentations section of Stantec's website [3] - Preregistration for the conference call is recommended to participate in the Q&A session [2]

Core Insights - Stantec has been recognized as the eighth most sustainable corporation globally and the top among its industry peers by Corporate Knights in their 2025 ranking [1] - The recognition reflects Stantec's commitment to sustainability, which is deeply embedded in its culture and strategy [2] Sustainability Achievements - In 2023, Stantec generated $3.9 billion, accounting for 61% of its gross revenue, from projects supporting the United Nations Sustainable Development Goals [3] - The company has committed to the MEP 2040 Challenge, aiming to significantly reduce carbon emissions from mechanical, electrical, and plumbing systems by 2040 [3] Recent Recognitions - Stantec was named one of Canada's Most Responsible Companies for 2025 by Newsweek in October 2024 [2] - The company was also included in TIME's list of the World's Most Sustainable Companies for 2024 [2] Company Overview - Stantec is a global leader in sustainable architecture, engineering, and environmental consulting, addressing challenges such as aging infrastructure and energy transition [4] - The company emphasizes community engagement, considering diverse perspectives to tackle critical issues like climate change and digital transformation [5] Operational Focus - Stantec employs a range of professionals, including designers, engineers, and project managers, to innovate and redefine possibilities in community development [6]

Core Insights - Stantec has been recognized as the eighth most sustainable corporation globally and the top among its industry peers by Corporate Knights in their 2025 ranking [1][2] - The recognition is based on an assessment of over 6,000 publicly traded companies with revenues exceeding US$1 billion [1] Sustainability Achievements - In 2024, Stantec reported that $3.9 billion, or 61 percent, of its 2023 gross revenue was generated from projects aligned with the United Nations Sustainable Development Goals [3] - The company has committed to the MEP 2040 Challenge, aiming to significantly reduce carbon emissions from mechanical, electrical, and plumbing systems by 2040 [3] Recent Recognitions - Stantec was named one of Canada's Most Responsible Companies for 2025 by Newsweek in October 2024 [2] - The company was also included in TIME's list of the World's Most Sustainable Companies for 2024 [2] Company Overview - Stantec is a global leader in sustainable architecture, engineering, and environmental consulting, addressing challenges such as aging infrastructure and energy transition [4] - The company emphasizes the importance of community engagement and diverse perspectives in tackling critical issues like climate change and digital transformation [5]