Stantec (US:STN) Globenewswire·2025-11-13 22:00Core Insights - Stantec reported strong third quarter results for 2025, with net revenue reaching $1.7 billion, an increase of 11.8% year-over-year, driven by organic growth of 5.6% and acquisition growth of 5.2% [3][12] - The company achieved an adjusted EBITDA of $323.4 million, reflecting a 17.8% increase, and an all-time high adjusted EBITDA margin of 19.0%, up 100 basis points from the previous year [3][12] - Stantec's diluted earnings per share (EPS) was $1.32, with adjusted EPS at $1.53, marking increases of 46.7% and 17.7% respectively compared to Q3 2024 [3][12] Financial Performance - Net revenue for Q3 2025 was $1.7 billion, up $180.6 million from Q3 2024, with organic growth achieved across all regional and business units, particularly in Water and Energy and Resources [3][12] - Project margin increased by 12.1% to $927.9 million, maintaining a project margin percentage of 54.4% [12] - Contract backlog rose to $8.4 billion, a 14.9% increase year-over-year, indicating strong future revenue potential [12][19] Strategic Outlook - Stantec has revised its adjusted EBITDA margin guidance for 2025 to a range of 17.2% to 17.5%, reflecting strong project margins and operational efficiency [10][11] - The company continues to expect net revenue growth of 10% to 12% for 2025, with specific expectations for organic growth in the US and Canada [9][10] - Stantec's recent acquisitions, including Page, Ryan Hanley, and Cosgroves, are expected to contribute positively to its growth trajectory [4][6] Market Position - Stantec's diversified business model and strong project execution have positioned it well to capitalize on sustained global demand for its services [4][8] - The company is focused on operational efficiency and disciplined management, which has led to lower administrative and marketing expenses as a percentage of net revenue [12][15] - Stantec's effective tax rate is projected to be between 23.5% and 24.5%, aligning with its financial strategy [10]