Stantec (US:STN)2025-08-13 21:05Financial Performance - Gross revenue for Q2 2025 reached CAD 1,964.3 million, a 3.9% increase from CAD 1,889.7 million in Q2 2024[2] - Net income for the period was CAD 135.4 million, up 62.7% compared to CAD 83.2 million in Q2 2024[3] - Earnings per share (basic and diluted) increased to CAD 1.19 in Q2 2025 from CAD 0.73 in Q2 2024, representing a 63.0% growth[2] - The company reported a project margin of CAD 864.7 million for Q2 2025, compared to CAD 811.7 million in Q2 2024, indicating a 6.5% increase[2] - For the two quarters ended June 30, 2025, net income reached CAD 235.5 million, up 46.8% from CAD 160.3 million in the prior year[5] - The total net revenue for the two quarters ended June 30, 2025, was $3,149.7 million, compared to $2,863.4 million for the same period in 2024, reflecting an increase of 10.0%[85] - The project margin for the two quarters ended June 30, 2025, was $1,708.2 million, compared to $1,554.2 million for the same period in 2024, indicating an increase of 9.9%[85] Assets and Liabilities - Total current assets rose to CAD 2,628.5 million as of June 30, 2025, compared to CAD 2,549.0 million at the end of 2024, marking a 3.1% increase[1] - Total liabilities decreased to CAD 3,928.7 million from CAD 4,011.0 million at the end of 2024, a reduction of 2.1%[1] - Total shareholders' equity increased to CAD 3,043.1 million as of June 30, 2025, up from CAD 2,945.1 million at the end of 2024, reflecting a growth of 3.3%[1] - The company's long-term debt increased to CAD 1,510.3 million as of June 30, 2025, compared to CAD 1,383.5 million at December 31, 2024[34] - The company reported a total of $2,114.1 million in liabilities arising from financing activities as of June 30, 2025, compared to $2,347.0 million as of June 30, 2024, showing a decrease of 9.9%[79] Cash Flow and Investments - Net cash flows from operating activities for the quarter were CAD 134.0 million, a significant increase from CAD 74.7 million in the same quarter of 2024[5] - The company reported a net cash flow used in investing activities of CAD 59.3 million for the quarter, compared to CAD 164.4 million in the same quarter of 2024[5] - The company raised CAD 422.9 million from the issuance of senior unsecured notes during the quarter[5] - Cash and cash equivalents at the end of the period were CAD 344.5 million, up from CAD 218.2 million at the end of the same quarter in 2024[5] - Business acquisitions net of cash acquired resulted in a cash outflow of CAD 36.8 million for the quarter, compared to CAD 123.7 million in the same quarter of 2024[5] Expenses and Costs - Administrative and marketing expenses for the quarter were CAD 598.3 million, slightly up from CAD 578.4 million in Q2 2024[2] - For the quarter ended June 30, 2025, total employee costs increased to $1,207.2 million, up from $1,122.0 million in the same quarter of 2024, representing a growth of 7.6%[75] - The Company recognized a total net interest expense of $21.2 million for the quarter ended June 30, 2025, down from $27.4 million in the same quarter of 2024, reflecting a reduction of 22.7%[76] - Share-based compensation increased to CAD 11.6 million for the quarter, compared to CAD 9.3 million in the same quarter of 2024[5] Acquisitions and Growth - The company acquired Ryan Hanley, an engineering and environmental consultancy, for a total consideration of CAD 58.3 million, enhancing its Water operations[22] - The acquisition of Cosgroves Group Limited was completed for CAD 58.3 million, strengthening the company's Buildings operations[23] - The company acquired Page for a purchase price of approximately $730 million, enhancing its capabilities in the architecture and engineering sector[92] Foreign Exchange and Other Comprehensive Income - The company experienced a foreign exchange loss of CAD 18.7 million on cash held in foreign currency during the quarter[5] - Other comprehensive loss for the period was CAD 105.9 million, compared to a gain of CAD 37.6 million in Q2 2024[3] - The company recorded exchange gains on translation of foreign operations of $89.9 million during the first two quarters of 2025, with $46.7 million related to goodwill[74] Shareholder Returns - The company declared dividends of CAD 51.4 million during the first half of 2025[4] - The company declared a dividend of $0.225 per share on August 13, 2025, payable on October 15, 2025[93] Credit Facilities and Risk Exposure - The average interest rate for credit facilities decreased to 4.25% as of June 30, 2025, down from 4.86% at December 31, 2024[39] - The unused capacity of the credit facilities at June 30, 2025, was $1,209.8 million, significantly higher than $563.2 million at December 31, 2024[70] - As of June 30, 2025, the Company's maximum credit risk exposure was $2,731.8 million, slightly up from $2,702.7 million at December 31, 2024[64]