Stantec (US:STN)2023-02-22 22:00Financial Performance - Stantec reported record net revenue of $4.5 billion in 2022, an increase of 22.6% compared to 2021, driven by 9.4% organic growth and 12.3% acquisition growth[2][10] - Adjusted diluted EPS for 2022 was $3.13, reflecting a 29.3% increase over 2021[7][10] - The company achieved a record adjusted EBITDA margin of 16.2% in 2022, with adjusted EBITDA increasing by 26.2% to $723.9 million[2][10] - Total net revenue for 2022 was CAD 4,457.2 million, representing a 22.6% increase from CAD 3,636.1 million in 2021[16] - Adjusted EBITDA for Q4 2022 was CAD 191.7 million, up from CAD 142.1 million in Q4 2021, reflecting a significant growth[32] - Adjusted net income for the year ended December 31, 2022, was CAD 347.1 million, compared to CAD 269.9 million in 2021, indicating a 28.7% increase[33] - The total revenue for Q4 2022 was CAD 1,130.4 million, a 23.4% increase from CAD 916.2 million in Q4 2021[17] Backlog and Future Growth - Stantec's contract backlog reached $5.9 billion, a 14.9% increase from December 31, 2021, indicating strong future revenue potential[7][10] - The company's backlog as of December 31, 2022, was CAD 5,901.7 million, a 14.9% increase from CAD 5,134.3 million in 2021[18] - For 2023, Stantec expects net revenue growth of 7% to 11%, with organic growth in the mid- to high-single digits[5][9] - The company anticipates continued strong growth in the US, driven by infrastructure investments and project opportunities from recent legislation[9] Earnings and Dividends - Adjusted diluted EPS growth for 2023 is projected to be between 9% and 13%[6][9] - The company declared a dividend of $0.195 per share, representing an 8.3% increase, payable on April 17, 2023[11] Operational Efficiency - Days sales outstanding (DSO) improved to 81 days at December 31, 2022, a 5-day reduction from Q3 2022[10] - Stantec's net debt to adjusted EBITDA ratio was 1.6x at the end of 2022, within the company's target range of 1.0x to 2.0x[10] Segment Performance - Organic growth in the United States segment for 2022 was 9.5%, contributing CAD 170.7 million to the total revenue growth[16] - The Canadian segment reported a total revenue of CAD 1,150.8 million in 2022, a 7.7% increase from CAD 1,068.5 million in 2021[16] - The global segment's revenue increased by 11.4% in 2022, reaching CAD 1,039.8 million, up from CAD 768.1 million in 2021[16] Future Outlook - The company plans to discuss its 2023 outlook and annual targets in a conference call scheduled for February 23, 2023[19]