Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying strong growth stocks is challenging due to associated risks and volatility [1] Group 1: Company Overview - Stantec (STN) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company exhibits a historical EPS growth rate of 18.4% and is projected to grow EPS by 18.6% this year, significantly outperforming the industry average of 4.4% [5] Group 2: Financial Metrics - Stantec's year-over-year cash flow growth stands at 17.2%, exceeding the industry average of 10.4% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 28.8%, compared to the industry average of 8.3% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Stantec, with the Zacks Consensus Estimate for the current year increasing by 2.5% over the past month [8] - Stantec's overall earnings estimate revisions have contributed to its Zacks Rank of 1 (Strong Buy) and a Growth Score of B, indicating strong potential for growth investors [10]

Core Viewpoint - Stantec (STN) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Stantec suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - Stantec is projected to earn $3.83 per share for the fiscal year ending December 2025, representing an 18.6% year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Stantec has increased by 11.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Stantec's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Stantec's shares have experienced significant growth, rising 16% over the past month and reaching a 52-week high of $101.81, with a year-to-date increase of 29.1% compared to the broader market [1][2]. Financial Performance - Stantec has consistently exceeded earnings expectations, reporting an EPS of $0.81 against a consensus estimate of $0.79 in its last earnings report, with a revenue beat of 4.49% [2]. - For the current fiscal year, Stantec is projected to achieve earnings of $3.86 per share on revenues of $4.77 billion, reflecting a 19.5% increase in EPS and an 11.37% increase in revenues. The following fiscal year is expected to see earnings of $4.31 per share on $5.11 billion in revenues, indicating year-over-year changes of 11.53% and 7.12%, respectively [3]. Valuation Metrics - Stantec's current valuation metrics indicate a premium, trading at 26.2 times the current fiscal year EPS estimates compared to the peer industry average of 21 times. On a trailing cash flow basis, it trades at 19.2 times versus the peer group's average of 18.7 times [6]. Style Scores and Zacks Rank - Stantec has a Value Score of D, while its Growth and Momentum Scores are B and A, respectively, resulting in a combined VGM Score of B. This suggests a mixed valuation perspective [6]. - The stock holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts, indicating potential for further gains [7].

Core Points - Stantec Inc. held its annual meeting of shareholders on May 15, 2025, with 88,159,157 shares represented, accounting for 77.29% of outstanding common shares [1] Group 1: Election of Directors - All nine nominees for the Board of Directors were elected, with the highest percentage of votes for Martin A. à Porta at 99.54% and the lowest for Marie-Lucie Morin at 95.65% [1] Group 2: Appointment of Auditor - PricewaterhouseCoopers LLP was reappointed as auditor for 2025, receiving 87,906,572 votes in favor, which is 99.71% of the total votes [2] Group 3: Executive Compensation - Shareholders approved Stantec's approach to executive compensation with 80,417,027 votes for, representing 94.77% [3] Group 4: Company Overview - Stantec is a global leader in sustainable engineering, architecture, and environmental consulting, addressing challenges such as aging infrastructure and energy transition [4][6]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Stantec (STN) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.53%. A quarter ago, it was expected that this engineering firm would post earnings of $0.69 per share when it actually produced earnings of $0.79, delivering a surprise of 14.49%.Over the last four quarters, the company h ...

Exhibit 99.2 - Stantec Inc.'s Unaudited Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statements of Financial Position (Unaudited) | | | March 31, | December 31, | | --- | --- | --- | --- | | | | 2025 | 2024 | | (In millions of Canadian dollars) | Notes | $ | $ | | ASSETS | | | | | Current | | | | | Cash and cash equivalents | | 254.0 | 228.5 | | Trade and other receivables | 4 | 1,194.3 | 1,323.8 | | Unbilled receivables | | 789.2 | 724.5 | | Contract assets | | 127.3 | ...

Core Insights - Stantec reported a strong first quarter for 2025, with net revenue increasing by 13.3% year-over-year to $1.6 billion, driven by both organic growth of 5.9% and acquisition growth of 3.2% [3][6][11] - The company achieved an adjusted EBITDA of $252.3 million, reflecting a 19.1% increase, and an adjusted EBITDA margin of 16.2%, which is a 70 basis point improvement compared to the same quarter in 2024 [3][6][11] - Stantec's backlog reached a record high of $7.9 billion, up 12.8% year-over-year, indicating strong future revenue potential [4][6][11] Financial Performance - Net income for Q1 2025 increased by 29.8% to $100.1 million, with diluted EPS rising by 29.4% to $0.88 [11][12] - Adjusted net income grew by 28.9% to $132.8 million, achieving 8.6% of net revenue, an increase of 110 basis points [11][12] - Operating cash flows increased significantly by 135.8% to $100.7 million, demonstrating strong cash flow generation [11] Growth Strategy - Stantec reaffirmed its 2025 guidance, targeting net revenue growth of 7% to 10%, with adjusted EBITDA margin expected to be between 16.7% and 17.3% [5][8][9] - The company is optimistic about organic growth in both the US and Canada, expecting mid- to high-single-digit growth driven by a robust backlog [8][10] - Stantec has entered into definitive agreements to acquire Page and Ryan Hanley, which will enhance its capabilities and expand its workforce by over 1,500 team members [4][6][15] Market Position - The acquisition of Page, a 1,400-person architecture and engineering firm, positions Stantec to become the second largest architecture firm in the US, enhancing its expertise in advanced manufacturing and healthcare [4][6][11] - The acquisition of Ryan Hanley strengthens Stantec's presence in the Irish water sector, further diversifying its service offerings [15] Segment Performance - In Q1 2025, net revenue by region showed strong performance, with Canada achieving 12.2% organic growth, the US growing by 2.4%, and Global operations increasing by 7.5% [13] - The project margin increased to 54.3%, reflecting solid project execution and effective cost management [11][12] Future Outlook - Stantec anticipates continued strong demand and operational performance, with a focus on maintaining high project margins and effective cost management strategies [9][10] - The company expects adjusted EPS growth of 16% to 19% compared to 2024, indicating confidence in its financial trajectory [10]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Stantec (STN) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 18.1%, with projected EPS growth of 15.7% this year, significantly outperforming the industry average of 3.9% [4] Group 2: Financial Metrics - Stantec's year-over-year cash flow growth stands at 17.2%, exceeding the industry average of 12.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 28.8%, compared to the industry average of 8.3% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Stantec, with the Zacks Consensus Estimate for the current year increasing by 1.5% over the past month [8] - Stantec has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, indicating strong potential for outperformance [10]

Core Insights - Stantec has been selected by the City of Mississauga to lead the design and contract administration for the Dundas Bus Rapid Transit (BRT) Mississauga East Corridor, which spans over 7 kilometers and includes 8 stops with an estimated project budget of C$580 million [1][3] Group 1: Project Overview - The Dundas BRT will enhance connections to urban light rail and the regional transit network, improving local and regional transit services [2][3] - The project aims to increase service reliability, decrease travel time, and enhance transit ridership and satisfaction, aligning with Metrolinx's 2041 Regional Transportation Plan [3][4] - The design will feature dedicated median bus lanes and Intelligent Transportation Systems (ITS) for optimized signal timings, ensuring fast and reliable service [4][5] Group 2: Environmental and Community Impact - Stantec's Water group will collaborate on significant watermain and wastewater main replacements, utilizing trenchless tunneling and open-cut techniques to minimize community disruption [2][6] - The project will incorporate environmentally friendly practices and materials to reduce its carbon footprint [6] Group 3: Company Expertise and Experience - Stantec has extensive experience in BRT projects across North America, including notable projects in the Greater Toronto Area and Calgary [7][8] - The company provides a comprehensive range of services including consulting, design, construction support, and maintenance period administration [6]