Stantec (US:STN)2025-11-13 22:04Financial 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]