Financial Performance - Gross revenue for Q3 2024 reached CAD 1,929.4 million, up from CAD 1,693.2 million in Q3 2023, representing an increase of 13.9%[6] - Net income for the period was CAD 103.2 million, compared to CAD 101.3 million in the same quarter last year, reflecting a growth of 1.9%[8] - Total comprehensive income for the period was CAD 113.9 million, down from CAD 138.0 million in the same quarter last year[8] - Earnings per share (EPS) for Q3 2024 was CAD 0.90, slightly down from CAD 0.91 in Q3 2023[6] - Total net revenue for the three quarters ended September 30, 2024, reached CAD 4,388.2 million, compared to CAD 3,824.0 million in 2023, reflecting a year-over-year increase of 14.8%[98] - Project margin for the quarter ended September 30, 2024, was CAD 828.1 million, up from CAD 721.1 million in the same quarter of 2023, indicating a growth of 14.8%[98] Assets and Liabilities - Total assets increased to CAD 6,939.5 million as of September 30, 2024, up from CAD 5,766.3 million at the end of 2023, marking a growth of 20.3%[2] - Total liabilities rose to CAD 4,206.2 million, compared to CAD 3,315.2 million at the end of 2023, an increase of 26.8%[2] - Long-term debt increased to CAD 1,475.8 million from CAD 974.2 million at the end of 2023, an increase of 51.6%[2] - Non-current assets as of September 30, 2024, totaled CAD 3,853.3 million, an increase from CAD 3,049.7 million as of December 31, 2023[99] Cash Flow and Investments - Total net cash flows from operating activities for the quarter were CAD 178.9 million, down from CAD 212.7 million in the previous year, a decrease of 15.9%[12] - Cash and cash equivalents decreased to CAD 262.5 million from CAD 352.9 million at the end of 2023, a decline of 25.6%[2] - Net cash flows used in investing activities totaled CAD 32.7 million for the quarter, a decrease from CAD 46.5 million in the previous year[12] - Business acquisitions net of cash acquired resulted in a cash outflow of CAD 555.0 million for the three quarters ended September 30, 2024, compared to CAD 75.6 million in the same period last year[12] Acquisitions - The Company acquired ZETCON Ingenieure GmbH for a total consideration of CAD 671.7 million, enhancing its Infrastructure operations[34] - The acquisition of Morrison Hershfield Group Inc. was completed for cash and notes payable, further strengthening the Company's operations in Canada and the United States[35] - Hydrock Holdings Limited was acquired for a total consideration of CAD 671.7 million, bolstering the Company's Energy & Resources and Infrastructure operations[36] - The fair value of identifiable net assets acquired from recent acquisitions was assessed at CAD 166.3 million, with goodwill arising from acquisitions totaling CAD 505.4 million[37] Employee and Compensation Costs - The total employee costs for the quarter ended September 30, 2024, were CAD 1,128.2 million, an increase from CAD 974.9 million in the same quarter of 2023[87] - The company recognized a net share-based compensation expense of CAD 30.1 million for the first three quarters of 2024, down from CAD 40.2 million in the same period last year[65] - Cash-settled share-based compensation decreased from CAD 95.5 million to CAD 70.7 million, a reduction of 26.0%[61] - The company granted 126,023 Performance Share Units (PSUs) at a fair value of CAD 13.9 million, compared to 177,897 units for CAD 15.7 million in the previous year[66] Financial Ratios and Metrics - The maximum amount of credit risk exposure was CAD 2,703.3 million as of September 30, 2024, up from CAD 2,407.3 million at December 31, 2023[77] - The unused capacity of credit facilities at September 30, 2024, was CAD 273.5 million, significantly down from CAD 732.7 million at December 31, 2023[83] - The days of revenue in trade receivables improved to 53 days as of September 30, 2024, from 59 days at December 31, 2023[80] - A 5% increase or decrease in equity prices at September 30, 2024, would impact the Company's net income by CAD 2.5 million[81] Other Financial Information - Interest paid for the quarter ended September 30, 2024, was CAD 24.1 million, compared to CAD 18.1 million in 2023, reflecting a 33.2% increase[94] - Income taxes paid, net of recoveries, for the three quarters ended September 30, 2024, were CAD 111.1 million, slightly up from CAD 109.5 million in 2023[94] - The average interest rate for revolving credit and term loan facilities decreased from 6.78% to 5.87%[53] - The total provisions increased from CAD 186.5 million to CAD 218.2 million, an increase of 17.0%[61] Dividends and Shareholder Returns - The company declared a dividend of CAD 0.21 per share on November 7, 2024, payable on January 15, 2025[103]

Q3 2024 Highlights Record net revenue of $1.5 billion, an increase of 15.8% compared to Q3 2023Adjusted EBITDA1 increase of 13.8% to $274.6 million and adjusted EBITDA margin1 of 18.0%Adjusted diluted EPS1 of $1.30, up 14.0% compared to Q3 2023Backlog of $7.3 billion, up 15.9% since December 31, 2023 EDMONTON, Alberta and NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Stantec (TSX, NYSE:STN), a global leader in sustainable design and engineering, released its third quarter 2024 results today which are underpi ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Stantec, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - Stantec is expected to report quarterly earnings of $0.90 per share, reflecting a +5.9% change year-over-year, with revenues projected at $1.12 billion, up 13.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Stantec is lower than the consensus estimate, resulting in an Earnings ESP of -1.55%, indicating a bearish sentiment among analysts [10]. Historical Performance - Stantec has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +1.23% in the last reported quarter [12][13]. Zacks Rank - Stantec currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP complicates the prediction of an earnings beat [11]. Conclusion - While Stantec does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions [16].

EDMONTON, Alberta, Oct. 25, 2024 (GLOBE NEWSWIRE) -- TSX,NYSE: STN Stantec, a global leader in sustainable design and engineering, will release its third quarter 2024 financial results after markets close on Thursday, November 7, 2024. On Friday, November 8, 2024, at 7:00 AM Mountain Time (9:00 AM Eastern Time), Gord Johnston, president and chief executive officer, and Vito Culmone, executive vice president and chief financial officer, will hold a webcast and conference call to discuss the Company’s perform ...

Company Announcement - Stantec announced the passing of Dr Patricia D Galloway, a member of its Board of Directors, on September 26, 2024 [1] - Dr Galloway had been a member of Stantec's Board of Directors since May 2020 and served on the Corporate Governance and Compensation, and Sustainability and Safety committees [2] Leadership and Legacy - Dr Galloway was a renowned leader in civil engineering, gigaproject construction, and dispute resolution with over 40 years of experience specializing in energy and construction matters [2] - She was the first female president of the American Society of Civil Engineers and a proud supporter of inclusion, diversity, and equity [3] Company Overview - Stantec is a global leader in sustainable architecture, engineering, and environmental consulting [4] - The company focuses on addressing challenges such as aging infrastructure, demographic changes, and the energy transition through expertise, technology, and innovation [4] - Stantec emphasizes community engagement and diverse perspectives to tackle critical issues like climate change, digital transformation, and future-proofing cities and infrastructure [5] Business Operations - Stantec operates at the intersection of community, creativity, and client relationships to advance communities globally [6] - The company trades on the TSX and NYSE under the symbol STN [6]

We Are Stantec (NYSE:STN) is something of a hidden gem in the Industrials sector. A company specializing in sustainable infrastructure and building projects, it has seen double-digit growth in revenue, earnings per share, and EBITDA over the past few years while increasing its dividend between 6% and 8% over that time. The forward P/E of 26x is lofty but should fall back to the company's historical averages if growth targets for 2025 and 2026 are met. I believe Stantec is positioned to thrive well into the ...

Core Insights - Stantec has been awarded a five-year master services agreement by the Los Angeles Department of Water & Power (LADWP) to upgrade and modernize electrical infrastructure in greater Los Angeles, supporting the clean energy transition [1][4] - The agreement is valued at US$104 million and includes a range of services such as transmission planning, reliability assessments, and consulting for construction and maintenance [2][3] Group 1: Company Overview - Stantec is recognized as a global leader in sustainable design and engineering, focusing on addressing significant challenges such as aging infrastructure and the energy transition [6][8] - The company has previously engaged in similar projects, including a CAD$186 million agreement with BC Hydro for electrical infrastructure services in British Columbia [4] Group 2: Project Details - The services provided under the LADWP agreement will encompass power system and resource development, including feasibility studies and renewable resource assessments [2][3] - Stantec's Energy & Resources team specializes in integrating renewable energy into existing power grids, addressing the challenges of modernizing electrical infrastructure [4]

Financial Data and Key Metrics Changes - Record net revenue for Q2 2024 reached CAD 1.5 billion, up almost 17% compared to Q2 2023, with 7% organic and 9% acquisition growth [8][12] - Adjusted EBITDA rose to CAD 247 million, up 14.5%, with a margin of 16.6% [9][12] - Adjusted diluted EPS increased 13% to CAD 1.12 [12] Business Line Data and Key Metrics Changes - Water and Buildings businesses both achieved double-digit organic growth, with Buildings' organic growth reaching almost 30% [10][11] - Infrastructure business saw enhanced activity related to aging infrastructure, particularly in the U.S. [7][10] - Energy and Resources experienced a slight retraction due to delays in new project ramp-ups, but backlogs are growing [10][11] Market Data and Key Metrics Changes - U.S. business delivered a 16% increase in net revenue, including 6% acquisition growth and 9% organic growth [9] - Canadian net revenue grew by 16%, with 11% acquisition growth and 5% organic growth [10] - Global operations generated a 19% increase in net revenue, with 14% from acquisitions and 6% from organic growth [11] Company Strategy and Development Direction - Stantec continues to focus on sustainability, being recognized as a top Canadian corporate citizen and included in Time Magazine's list of the World's Most Sustainable Companies [3] - The company is well-positioned for growth in the Water business, particularly in the UK, with significant contracts awarded [4][5] - Stantec is actively pursuing M&A opportunities, with a robust pipeline and no change in M&A philosophy despite management transitions [23][49] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the growth outlook, reaffirming 2024 financial targets with expected net revenue growth of 12% to 15% [17][18] - The company anticipates mid to high single-digit organic growth driven by ongoing demand in Water and Buildings [18] - Management noted that the U.S. infrastructure funding remains strong, providing long-term tailwinds for growth [46] Other Important Information - The backlog at the end of Q2 stood at CAD 7.2 billion, the highest level ever, representing approximately 12 months of work [14] - A new Executive Vice President, Vito Culmone, will assume the CFO role, succeeding Theresa Jang [20] Q&A Session Summary Question: Capital allocation and M&A pipeline - Management is confident in continuing M&A discussions and has a full pipeline of opportunities, including larger transactions [23] Question: Margin progression in the second half of the year - Management expects the second half to be solid, with historical trends indicating stronger margins [24] Question: Feedback from private sector clients - No significant softening in private sector client approaches; healthcare and public sector projects remain strong [25] Question: Organic backlog development in the U.S. - Management sees strong pipeline opportunities and attributes backlog moderation to timing issues rather than a slowdown [28] Question: Real estate optimization strategy - The company is on track to reduce real estate by an additional 10% over three years, with a lease impairment charge taken in Q2 [29] Question: Claim provisions and margin expectations - The lower provisions were primarily in Q2 of last year, with expectations for normal margins moving forward [32][34] Question: U.S. backlog and election impact - No delays in project awards due to the election; steady activity from clients is observed [35] Question: Margin enhancement opportunities in 2025 - Management anticipates good opportunities for margin expansion in 2025 as integration work wraps up [65] Question: Opportunities in Europe through ZETCON - Focus is on Germany and Austria for future growth, with plans to solidify ZETCON's integration before pursuing further opportunities [67]

Stantec (STN) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.23%. A quarter ago, it was expected that this engineering firm would post earnings of $0.63 per share when it actually produced earnings of $0.67, delivering a surprise of 6.35%. 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) | | | June 30, | December 31, | | --- | --- | --- | --- | | | | 2024 | 2023 | | (In millions of Canadian dollars) | Notes | $ | $ | | ASSETS | | | | | Current | | | | | Cash and cash equivalents | | 218.2 | 352.9 | | Trade and other receivables | 5 | 1,137.4 | 1,063.5 | | Unbilled receivables | | 778.5 | 623.8 | | Contract assets | | 120.4 | ...