Stantec announces record 2024 earnings, increases dividend by 7%, achieves all-time record backlog of $7.8 billion, and provides 2025 outlook

Core Insights - Stantec achieved record financial results in 2024, with net revenue increasing by 15.8% to $5.9 billion, driven by both organic growth of 7.4% and acquisition growth of 7.5% [3][11] - The company reported a record adjusted EBITDA margin of 16.7% and diluted earnings per share (EPS) of$ 3.17, reflecting strong project execution and operational excellence [3][11] - Stantec's strategic focus on addressing macro challenges such as water security and climate change positions it for continued growth in 2025, with projected net revenue growth of 7% to 10% [5][8] Financial Performance - For the fourth quarter of 2024, Stantec's net revenue grew by 19.0% to $1.5 billion, with organic growth of 9.3% and acquisition growth of 7.6% [4][16] - Adjusted EBITDA for the year reached$ 980.3 million, an increase of 18.0% compared to 2023, with a margin of 16.7% [7][11] - The company reported a backlog of $7.8 billion, up 24.1% from the previous year, indicating strong future revenue potential [7][20] 2025 Outlook - Stantec anticipates net revenue growth of 7% to 10% in 2025, with organic growth expected in the mid- to high-single digits across its US and Canadian operations [6][8] - The adjusted EBITDA margin is projected to range from 16.7% to 17.3%, supported by strong project margins and operational efficiencies [9][10] - The company aims for adjusted EPS growth of 16% to 19% compared to 2024, with adjusted net income expected to exceed 8.8% of net revenue [10][11] Segment Performance - In 2024, Stantec achieved double-digit organic growth in its Water and Buildings sectors, with notable performance in the US market [11][18] - The company reported strong organic growth rates of 8.6% in the US, 6% in Canada, and 5.8% globally [7][18] - The project margin increased to 54.5% of net revenue, reflecting effective project execution and management [11][16] Dividend Declaration - On February 24, 2025, Stantec's Board of Directors declared a dividend of$ 0.225 per share, representing a 7.1% increase from the previous dividend [12][17]