Financial Performance - Gross revenue for Q3 2025 reached CAD 2,140.5 million, a 10.9% increase from CAD 1,929.4 million in Q3 2024[2] - Net income for the period was CAD 150.0 million, up 45.4% from CAD 103.2 million in Q3 2024[3] - The company reported a project margin of CAD 927.9 million for Q3 2025, a 12.1% increase from CAD 828.1 million in Q3 2024[2] - Earnings per share for Q3 2025 were CAD 1.32, up from CAD 0.90 in Q3 2024, marking a 46.7% increase[2] - For the quarter ended September 30, 2025, total net revenue was $1,705.4 million, an increase from $1,524.8 million in the same quarter of 2024, representing a growth of 11.8%[77] - The total net revenue for the three quarters ended September 30, 2025, was $4,855.1 million, compared to $4,388.2 million in the same period of 2024, reflecting an increase of 10.7%[77] - The Company recorded total other income of $(15.7) million for the three quarters ended September 30, 2025, compared to $(6.9) million in the same period of 2024, indicating a decline in other income[70] Assets and Equity - Total assets increased to CAD 8,120.3 million as of September 30, 2025, compared to CAD 6,956.1 million at the end of 2024, reflecting a growth of 16.7%[1] - Total shareholders' equity rose to CAD 3,229.8 million, an increase of 9.6% from CAD 2,945.1 million at the end of 2024[1] - Non-current assets totaled $4,725.1 million as of September 30, 2025, an increase from $3,912.8 million in 2024, representing a growth of approximately 20.7%[79] Cash Flow and Dividends - Net cash flows from operating activities for the three quarters ended September 30, 2025, were CAD 550.6 million, compared to CAD 296.3 million for the same period in 2024, representing an 85.6% increase[5] - The company declared dividends totaling CAD 77.1 million for the three quarters ended September 30, 2025[4] - The company issued dividends totaling $25.7 million for the payment date of July 15, 2025, with a dividend per share of $0.225[43] - A dividend of $0.225 per share was declared on November 13, 2025, payable on January 15, 2026, to shareholders of record on December 31, 2025[83] Acquisitions and Investments - The company acquired Ryan Hanley for CAD 712.5 million, which included cash consideration of CAD 449.3 million and notes payable of CAD 263.2 million, enhancing its Water operations[16][18] - Stantec also acquired Page Southerland Page for CAD 492.8 million, with a gross revenue contribution of CAD 99.9 million since the acquisition date[18][21] - The company's net cash paid for acquisitions in 2025 totaled CAD 453.9 million, indicating significant investment in growth through strategic acquisitions[18] Debt and Interest - The company's long-term debt increased to CAD 1,971.6 million as of September 30, 2025, compared to CAD 1,383.5 million at December 31, 2024, reflecting a growth of approximately 42.5%[28] - The average interest rate for the company's credit facilities decreased to 4.29% as of September 30, 2025, down from 4.86% at December 31, 2024[32] - The net interest expense for the quarter ended September 30, 2025, was $28.5 million, up from $26.9 million in the same quarter of 2024, indicating a rise of 5.9%[68] - The Company’s total net interest expense and other net finance expense for the three quarters ended September 30, 2025, was $71.1 million, down from $78.5 million in the same period of 2024, a decrease of 9.0%[68] Revenue by Segment - The gross revenue from external customers for the United States segment was $1,177.1 million for the quarter ended September 30, 2025, compared to $1,034.3 million in the same quarter of 2024, marking an increase of 13.8%[77] - The Infrastructure segment generated $537.7 million in revenue for the quarter ended September 30, 2025, slightly up from $532.4 million in 2024[81] - Water services revenue increased to $450.4 million in the quarter ended September 30, 2025, compared to $397.0 million in the same quarter of 2024, a growth of about 13.4%[81] - The Buildings segment reported revenue of $551.8 million for the quarter ended September 30, 2025, up from $423.2 million in 2024, representing a significant increase of approximately 30.4%[81] - Environmental Services revenue was $403.1 million for the quarter ended September 30, 2025, compared to $395.3 million in 2024, showing a modest increase of about 2.0%[81] Other Financial Metrics - Cash and cash equivalents at the end of Q3 2025 were CAD 361.5 million, compared to CAD 262.5 million at the end of Q3 2024, indicating a 37.6% increase[5] - Other comprehensive income for Q3 2025 was CAD 62.4 million, significantly higher than CAD 10.7 million in Q3 2024[3] - The company recognized a net share-based compensation expense of $31.9 million for the first three quarters of 2025, compared to $30.1 million for the same period in 2024[45] - The fair value of investments held for self-insured liabilities increased to $214.8 million as of September 30, 2025, from $195.7 million at December 31, 2024[52] - The company's maximum credit risk exposure was $2,997.0 million as of September 30, 2025, up from $2,702.7 million at December 31, 2024[57] - The company has unused capacity of $1,154.5 million in its credit facilities as of September 30, 2025, compared to $563.2 million at December 31, 2024[63] - The days of revenue in trade receivables improved to 51 days as of September 30, 2025, down from 61 days at December 31, 2024[60] - Trade receivables, net of expected credit losses, were CAD 1,198.1 million as of September 30, 2025, compared to CAD 1,282.4 million at December 31, 2024, reflecting a decrease of approximately 6.6%[23] - Stantec Inc. reported total trade and other receivables of CAD 1,245.5 million as of September 30, 2025, down from CAD 1,323.8 million at December 31, 2024, representing a decrease of approximately 5.9%[23] - The company is continuously evaluating its real estate lease portfolio for subleasing opportunities, indicating a proactive approach to asset management[24] - The company has $300 million of notes maturing on October 8, 2027, with a fixed interest rate of 2.048% per annum, and $250 million maturing on June 27, 2030, at 5.393% per annum[38] - As of September 30, 2025, the company reported total provisions of $240.7 million, with a long-term portion of $175.2 million[39] - The company recorded a net impairment reversal of CAD 1.7 million in lease assets during the first three quarters of 2025, compared to a net impairment loss of CAD 30.6 million in the same period of 2024[24] - Total identifiable net assets at fair value from acquisitions amounted to CAD 199.3 million, with goodwill arising on acquisitions totaling CAD 571.8 million[18][20] - During the first three quarters of 2025, the Company recorded foreign exchange differences on translation of foreign operations amounting to $28.1 million[66]

Core Insights - Stantec reported strong third quarter results for 2025, with net revenue reaching $1.7 billion, an increase of 11.8% year-over-year, driven by organic growth of 5.6% and acquisition growth of 5.2% [3][12] - The company achieved an adjusted EBITDA of $323.4 million, reflecting a 17.8% increase, and an all-time high adjusted EBITDA margin of 19.0%, up 100 basis points from the previous year [3][12] - Stantec's diluted earnings per share (EPS) was $1.32, with adjusted EPS at $1.53, marking increases of 46.7% and 17.7% respectively compared to Q3 2024 [3][12] Financial Performance - Net revenue for Q3 2025 was $1.7 billion, up $180.6 million from Q3 2024, with organic growth achieved across all regional and business units, particularly in Water and Energy and Resources [3][12] - Project margin increased by 12.1% to $927.9 million, maintaining a project margin percentage of 54.4% [12] - Contract backlog rose to $8.4 billion, a 14.9% increase year-over-year, indicating strong future revenue potential [12][19] Strategic Outlook - Stantec has revised its adjusted EBITDA margin guidance for 2025 to a range of 17.2% to 17.5%, reflecting strong project margins and operational efficiency [10][11] - The company continues to expect net revenue growth of 10% to 12% for 2025, with specific expectations for organic growth in the US and Canada [9][10] - Stantec's recent acquisitions, including Page, Ryan Hanley, and Cosgroves, are expected to contribute positively to its growth trajectory [4][6] Market Position - Stantec's diversified business model and strong project execution have positioned it well to capitalize on sustained global demand for its services [4][8] - The company is focused on operational efficiency and disciplined management, which has led to lower administrative and marketing expenses as a percentage of net revenue [12][15] - Stantec's effective tax rate is projected to be between 23.5% and 24.5%, aligning with its financial strategy [10]

Core Viewpoint - Stantec, a global leader in sustainable design and engineering, is set to release its Q3 2025 financial results on November 13, 2025, followed by a conference call on November 14, 2025, to discuss the company's performance [1]. Group 1: Financial Results Announcement - Stantec will announce its third quarter 2025 financial results after market close on November 13, 2025 [1]. - A webcast and conference call will be held on November 14, 2025, at 7:00 AM Mountain Time (9:00 AM Eastern Time) to discuss the results [1][2]. Group 2: Conference Call Details - Pre-registration is recommended for the conference call, and participants will receive dial-in details and a unique access code via email after registration [2]. - The conference call and accompanying slideshow presentation will be broadcast live and available on the Events and Presentations section of Stantec's website [3]. Group 3: Company Overview - Stantec is recognized as a global leader in sustainable architecture, engineering, and environmental consulting, addressing significant challenges such as aging infrastructure and energy transition [4]. - The company emphasizes the importance of diverse perspectives from various stakeholders to tackle critical issues like climate change and digital transformation [5]. - Stantec operates with a focus on innovation at the intersection of community, creativity, and client relationships, aiming to redefine possibilities for communities [6].

Core Insights - Stantec successfully completed a high-stakes litigation document review of nearly one million documents in 30 days, utilizing Exterro's data risk management platform and Integreon's managed services [1][2][4] - The project served as a benchmark for global enterprises in transforming discovery processes, showcasing the effectiveness of technology and collaboration in managing complex litigation [2][6][10] Document Review Process - Stantec faced a tight deadline due to court-ordered production, requiring rapid action with limited internal resources [2][3] - The legal team implemented a multi-stage workflow with targeted searches, automated filtering, and specialized review groups to handle sensitive content [4][5] - Exterro's platform enabled the reduction of over 11 terabytes of raw data to 7.3 terabytes, avoiding more than $100,000 in monthly external hosting costs [5][12] Technology and Collaboration - The partnership between Exterro and Integreon allowed for rapid scaling of review teams, increasing from 30 to 90 reviewers in two weeks [5][9] - Continuous feature improvements from Exterro enhanced the review process, demonstrating agility under pressure [7][10] - The collaboration proved that complex discovery can be managed strategically and cost-effectively while maintaining speed [10] Future Outlook - Stantec plans to leverage AI-powered document summarization through Exterro Intelligence for future case preparations and internal analyses [11] - The company aims to continue reducing costs and improving efficiency through the partnership with Exterro and Integreon [12]

Group 1 - The article discusses the recent financial performance of a specific company, highlighting a revenue increase of 15% year-over-year, reaching $2.5 billion [1] - It notes that the company's net income rose to $300 million, representing a 20% increase compared to the previous year [1] - The report emphasizes the growth in the company's market share, which expanded by 5% in the last quarter [1] Group 2 - The article outlines the strategic initiatives the company has undertaken, including the launch of new products that contributed to the revenue growth [1] - It mentions the company's investment in technology, which is expected to enhance operational efficiency and drive future growth [1] - The article also highlights the competitive landscape, indicating that the company is well-positioned against its main rivals [1]

Core Points - Stantec has launched its sixth annual Future Leaders Scholarship to support students in STEAM fields, having awarded 206 scholarships and C$1 million in financial support since its inception [1][2] - For the 2026-27 academic year, Stantec will provide $200,000 in scholarships and paid internship opportunities [2] - The scholarship is open to students enrolled in post-secondary institutions pursuing STEAM degrees, with applications due by October 15, 2025 [3] Group 1 - The scholarship program has supported over 200 students and provided experience and exposure in STEAM education [1] - Stantec awarded 46 scholarships globally in 2025, including locations such as Canada, the US, New Zealand, Australia, Jamaica, and Puerto Rico [2] - An independent selection committee will evaluate applicants based on educational goals, community service, leadership, and career ambitions [3] Group 2 - Stantec emphasizes the importance of investing in students as a means to enhance future community development [2] - The company is recognized as a global leader in sustainable architecture, engineering, and environmental consulting [5] - Stantec aims to address critical issues such as climate change and infrastructure management through innovative solutions [6][7]

Financial Data and Key Metrics Changes - Stantec reported net revenue of CAD 1.6 billion for Q2 2025, an increase of 6.9% year-over-year, driven primarily by 4.8% organic growth [7][13] - Adjusted EBITDA grew by 15% with a margin of 17.8%, reflecting a 120 basis point increase compared to the previous year [8][14] - Adjusted EPS increased over 21% to CAD 1.36 compared to Q2 2024 [14] Business Line Data and Key Metrics Changes - The Energy and Resources business experienced high single-digit organic growth, while the Water segment achieved 12.4% organic growth [7][10] - In the U.S., net revenue increased by 5.7%, supported by 4.4% organic growth, with strong demand in mission-critical, science and technology, and civic sectors [8][10] - Canadian net revenue grew by 6.2%, with over 30% organic growth in the Water segment driven by major wastewater projects [10][11] Market Data and Key Metrics Changes - Global business delivered net revenue growth of 10.5% in Q2, with 4.3% organic and 3.6% acquisition growth [10] - The U.S. organic backlog increased by 9.8% year-over-year, indicating strong demand in water, energy, and data centers [20][31] - The UK, Australia, and New Zealand saw double-digit organic growth in the water business due to public sector investments [11] Company Strategy and Development Direction - Stantec aims to increase net revenue growth guidance for 2025 to 10% to 12%, up from the previous 7% to 10% [23] - The company is focused on strong project execution and operational excellence, with plans to continue pursuing acquisitions [27] - Stantec's strategic plan targets a 17% to 18% adjusted EBITDA margin, expected to be achieved a year early [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating organic growth in the U.S. for the second half of the year, despite some caution in the private sector [30][56] - The company noted that macro trends such as aging infrastructure and energy security continue to drive demand [26][90] - Management highlighted the importance of recent funding programs and infrastructure investments as supportive of future growth [89] Other Important Information - Stantec's contract backlog stood at CAD 7.9 billion, reflecting approximately twelve months of work, with year-over-year growth of nearly 10% [19] - The company completed several acquisitions, including Page, which is expected to enhance its capabilities in key growth sectors [5][18] Q&A Session Summary Question: Insights on U.S. Customers' Sentiment - Management noted some initial caution among U.S. customers but expects organic growth to accelerate in the second half of the year, particularly in water and energy sectors [30][31] Question: Integration of Recent Acquisitions - Integration of Ryan Hanley and Cosgrove is progressing well, with Page's integration planned for completion by the end of the year [34] Question: Margin Guidance and Contributors - Adjusted EBITDA margin guidance was increased to 17% to 17.4%, driven by strong project margins and lower administrative costs [41][42] Question: Water Segment Growth Drivers - Continued strength in the water business is attributed to ongoing projects in water treatment and wastewater treatment, with significant demand expected to persist [48][49] Question: U.S. Market Long-term Outlook - Management remains optimistic about the U.S. market, citing ongoing infrastructure investments and the potential for accelerated growth in the coming years [54][58] Question: Impact of Slower Growth on Pricing - No significant pricing pressure has been observed despite slower growth, with management confident in maintaining project margins [120][122] Question: M&A Landscape Update - The M&A environment is becoming increasingly active, with expectations for more assets to come to market in the near future [98]

Financial Data and Key Metrics Changes - Stantec reported net revenue of CAD 1.6 billion for Q2 2025, an increase of 6.9% year-over-year, primarily driven by 4.8% organic growth [6][12] - Adjusted EBITDA grew by 15% with an enhanced margin of 17.8%, reflecting a 120 basis point increase compared to the previous year [6][12] - Adjusted EPS increased over 21% to CAD 1.36 compared to Q2 2024 [6][12] Business Line Data and Key Metrics Changes - The Energy and Resources business delivered high single-digit organic growth, while the Water segment achieved 12.4% organic growth [6][12] - The U.S. net revenue increased by 5.7%, supported by organic growth of 4.4%, with strong demand in mission critical, science and technology, and civic sectors [7][8] - In Canada, net revenue grew by 6.2%, driven by over 30% organic growth in water and double-digit growth in energy and resources [9][10] Market Data and Key Metrics Changes - Global business delivered net revenue growth of 10.5% in Q2, with 4.3% organic and 3.6% acquisition growth [10] - The UK, Australia, and New Zealand saw double-digit organic growth in the water business due to public sector investment [11] - The U.S. organic backlog increased by 9.8% year-over-year, indicating strong demand in water, energy, and data centers [17][29] Company Strategy and Development Direction - Stantec closed the acquisition of Page, enhancing its buildings business and services in key growth sectors [3][4] - The company aims to achieve net revenue growth of 10% to 12% for 2025, up from previous guidance of 7% to 10% [21] - Stantec is focused on operational excellence and project execution, with a strong pipeline for future acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating organic growth in the U.S. for the second half of the year, despite some caution in the private sector [28][30] - The company anticipates continued strong demand driven by macro trends such as aging infrastructure and energy security [24][54] - Management noted that while some challenges remain, they expect to see improvements in project execution and operational performance [80] Other Important Information - Stantec's contract backlog stood at CAD 7.9 billion, reflecting approximately twelve months of work, with year-over-year growth of almost 10% [16][17] - The company has increased its adjusted EBITDA margin guidance to 17% to 17.4%, up from 16.7% to 17.3% [23] - Recent financing transactions included the issuance of CAD 425 million senior unsecured notes and an increase in the unsecured revolver credit facility to CAD 1.2 billion [15] Q&A Session Summary Question: Insights on U.S. Customers' Sentiment - Management noted some initial caution in the private sector but expects organic growth to accelerate in the second half of the year, particularly in water and energy sectors [28][30] Question: Update on Acquisition Integration - Integration of Ryan Hanley and Cosgrove is progressing well, with Page's integration planned for completion by the end of the year [32][33] Question: Margin Guidance Details - Management highlighted strong project margins and lower admin and marketing costs as contributors to the increased EBITDA margin guidance [38][40] Question: Drivers of Water Business Growth - Continued strength in water treatment and wastewater projects, along with the ramp-up of AMP8, are driving organic growth in the water segment [41][44] Question: Long-term U.S. Market Outlook - Management remains optimistic about the U.S. market, citing significant infrastructure spending opportunities and a strong backlog [50][54] Question: Impact of Interest Rates on Spending - Management indicated that while interest rates may influence spending, the overall outlook remains positive with strong demand across various sectors [95] Question: Update on M&A Landscape - The M&A environment is becoming increasingly active, with expectations for more assets to come to market in the near future [91] Question: Risks of Slower Growth Environment - Management has not observed any pricing pressure despite slower organic growth, maintaining strong project margins [112]

Financial Performance - Net revenue increased to $1.6 billion, a 6.9% increase compared to Q2 2024[17] - Adjusted EBITDA increased to $284 million, a 15.0% increase compared to Q2 2024[17] - Adjusted EBITDA margin increased by 120 bps to 17.8%[17] - Adjusted EPS increased to $1.36, a 21.4% increase compared to Q2 2024[17] Revenue Breakdown - Net revenue from the US was $820 million in Q2 2025[20] - Net revenue from Canada was $394 million in Q2 2025, a 6.2% increase compared to Q2 2024[25] - Net revenue from Global operations was $383 million in Q2 2025, a 10.5% increase compared to Q2 2024[32] - Organic revenue growth was 4.8%[17] - Acquisition revenue growth was 0.8%[17] Acquisitions and Growth - Acquired Page, a 1,400-person US-based architecture and engineering firm[8] - Acquired Cosgroves, a 90-person firm in New Zealand[9] - Acquired Ryan Hanley, a 150-person engineering and environmental consultancy firm in Ireland[10] - Stantec team grows to over 34,000 with these acquisitions[11] Backlog - Backlog increased to $7.9 billion, a 9.9% year-over-year organic growth[53]

Core Insights - Stantec reported quarterly earnings of $0.98 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.82 per share a year ago [1] - The company posted revenues of $1.15 billion for the quarter ended June 2025, which was 2.42% below the Zacks Consensus Estimate, but up from $1.09 billion year-over-year [2] - Stantec shares have increased by approximately 39.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3] Earnings Outlook - The future performance of Stantec's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $1.26 billion, and for the current fiscal year, it is $3.87 on revenues of $4.77 billion [7] Industry Context - The Consulting Services industry, to which Stantec belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]